Day Rate Employees, commonly referred to as “Daily Rate Workers,” are employees paid a flat sum for a day’s work, no matter how many hours they actually work during that day. This practice is very prevalent in the oil and gas industry for both on-shore and offshore workers. Just because your employer has told you the practice was legal, does not make it so.
Many jobs are paid by the day, including:
- Pipeline Inspectors
- Service Supervisors
- Field Coordinators
- Lease Operators
- Field Engineers
Pay Rates for Day Rate Employees
According to federal law, virtually all employees are entitled to overtime compensation when they work more than 40 hours a week. This is true regardless of their job title, rate of pay, or duties. Many employees who are paid a day rate for their services are not paid overtime when they work more than 40 hours. In most cases, this type of compensation practice violates the law.
If you receive a day rate regardless of your specific job title or duties, work more than 40 hours a week, and don’t receive overtime compensation, you may have had your wage rights violated.