In the case of Warren v. MBI Energy Services, Inc., filed on March 18, 2019, Timothy Warren and similarly situated plaintiffs alleged that MBI Energy Services misclassified wireline engineers as exempt salaried employees, thereby denying them overtime pay in violation of the Fair Labor Standards Act (FLSA) and Colorado wage laws.
The plaintiffs contended that their primary duties were manual and non-exempt in nature, including operating wireline equipment and performing physically demanding tasks at oil well sites. Despite working extensive hours—often 12-hour shifts for consecutive days—they were compensated with a fixed salary and bonuses, without overtime pay.
The court conditionally certified the case as a collective action under the FLSA, allowing other similarly situated employees to join the lawsuit. The case proceeded with disputes over the applicability of the executive exemption and the proper classification of the employees.
Key lessons learned from the case:
- Employers must ensure that employees meet all criteria for exempt status under the FLSA to avoid misclassification and potential liability for unpaid overtime.
- Positions involving primarily manual, non-supervisory tasks are typically non-exempt, regardless of salary level, and thus eligible for overtime pay.
- The FLSA’s collective action mechanism allows groups of employees to challenge wage violations collectively, promoting enforcement of labor standards.
If you want to know more about salaried employee rights, read our guide on What are my rights as a salaried employee in Colorado?
