In the case of Knight v. Dakota 2000 Inc., Austin Knight filed a proposed collective action against Dakota 2000, alleging violations of the Fair Labor Standards Act (FLSA). He claimed that Dakota 2000 failed to pay overtime wages to him and other similarly situated employees who worked more than 40 hours per week. Knight sought conditional certification of the collective action and requested that notice be sent to potential plaintiffs so they could decide whether to join the lawsuit.
Knight worked as a production flow-back supervisor at Dakota 2000’s gas and oil worksites, while another employee, Rodney Smith, worked as an oil and gas production flow watch. Both employees claimed they frequently worked more than 40 hours per week under a rotational schedule known as a “hitch” and were paid only a day rate without overtime compensation. They argued that other Dakota 2000 employees with similar job duties also experienced the same treatment.
Knight presented written statements from himself and Smith, as well as a class list identifying 81 flow-back employees who were paid a day rate. This evidence indicated a common policy or practice of denying overtime pay to day-rate employees at Dakota 2000. Dakota 2000 opposed the conditional certification, arguing that Knight might be exempt from the FLSA’s overtime requirement and that he and Smith had different job duties. However, at that stage, exemption defenses were not considered, and differences in job duties were not sufficient to deny conditional certification.
The court granted Knight’s motion for conditional certification. It was found that he had made a modest factual showing of being similarly situated to the potential plaintiffs. The court also noted that Knight’s proposed notice to potential plaintiffs was timely and informative. However, there were questions about the scope of the collective action and the production of a list of potential opt-in plaintiffs, which was further discussed at a hearing.
Key lessons from this case:
- Employees wishing to participate in a collective action must provide written consent.
- Employees with different job duties and titles can still be considered when filing for conditional certification for collective action.
- It is important to adhere to the rules that come with filing an overtime lawsuit to ensure that employees get the fair hearing they seek.
If you want to know more about overtime regulations, read our guide on South Dakota Overtime Laws.