New Mexico oil and gas company cited for FLSA infractions
Morco Geological Services Inc., an employer of mud-logging technicians who conduct tests to detect and analyze hydrocarbon gas, agreed to pay $595,737 to 121 current and former employees for violating the provisions of the Fair Labor Standards Act. The decision followed a U.S. Labor Department's Wage and Hour Division investigation into violations relating to federal minimum wage standards, overtime and record-keeping standards.
The New Mexico-based company provides services to West Texas and Southeastern New Mexico, but Albuquerque District Office investigators revealed that the company misclassified employees as exempt from overtime pay, according to New Mexico NPR affiliate KRWG. As a result, technicians were paid a daily base rate regardless of the number of hours they worked, violating regulations that mandate employees working beyond 40 hours per week are entitled to a time-and-a-half pay rate.
In addition, Morco violated minimum wage requirements when the organization paid workers $75 per day after working a 24-hour shift. The pay rate falls well below the federal $7.25 per hour minimum requirement. The company's time and attendance system also failed to maintain accurate records.
Cynthia Watson, regional administrator for the Southwest branch of the Wage and Hour Division, told KRWG the employees regularly worked an excess of 100 hours per week but were denied compensation for their efforts. Watson also reported this sort of behavior is not limited to Morco and reflects a larger trend in the oil and gas industry.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.