Texas oilfield chemical provider to pay $439K in back wages, damages to 50 workers following US Labor Department investigation

Employer: WadeCo Specialties Inc., an oilfield services chemical provider

Site: 8115 West Industrial Avenue, Midland, Texas 79706

Investigation Findings: U.S. Department of Labor’s Wage and Hour Division investigators found that WadeCo Specialties Inc. violated the overtime and recordkeeping provisions of the Fair Labor Standards Act. The employer incorrectly classified service technicians and their billing support manager as exempt from the overtime requirements of the FLSA. The employer paid these workers flat salaries, without regard to the number of hours they actually worked. This practice resulted in violations when they failed to pay the workers overtime when they worked more than 40 hours in a week. The employer also failed to keep accurate time records as required by the FLSA.

Resolution: WadeCo Specialties will pay $219,515 in back wages and an equal, additional amount in liquidated damages for a total of $439,030 to 50 employees. The employer has reclassified the positions in question correctly as non-exempt, pays workers in those positions overtime, and now keeps records as required to comply with the FLSA.

Quote: “Simply paying workers on a salary basis does not necessarily mean they are not due overtime,” said Betty Campbell, regional administrator for the Wage and Hour Division in the Southwest. “Failing to pay workers the wages they have rightfully earned will come at high cost to the employer. When employers fail to pay workers legally, it harms the workers and their families and puts law-abiding employers at a competitive disadvantage. The liquidated damages paid to workers in this case demonstrate that the division will continue to use every remedy available to ensure workers are paid what they have earned.”

Background: Headquartered in Midland, WadeCo Specialties Inc. supplies, transports, services and stores chemicals required for oil field services and operation. Since 2012, the Wage and Hour division has concluded more than 1,000 investigations nationally and recovered more than $40 million in back wages for more than 29,000 employees in an initiative focused on oil and gas and related industries.

Information: The FLSA provides an exemption from both minimum wage and overtime pay requirements for individuals employed in bona fide executive, administrative, professional and outside sales positions, as well as certain computer employees. To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee's specific job duties and salary must meet all the requirements of the department’s regulations.

The division is committed to ensuring that workers receive every penny they have rightfully earned. For more information about the FLSA, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243). Information also is available at http://www.dol.gov/whd/.