In the case of Parrish v. Premier Directional Drilling, LP, several workers had claimed that Premier Directional Drilling, a company providing drilling services, violated the FLSA for misclassifying them as independent contractors so that they wouldn’t have to provide overtime compensation.
The workers argued that they were, in fact, employees as they were required to work specific hours and days of work, follow Premier’s supervision and guidance, use Premier’s tools, be paid a flat rate per day regardless of hours worked, and were not allowed to be employed by other employers.
The court decided to favor the workers, as they were considered to be employees under the FLSA. The workers were awarded a cumulative total of $363,422, $181,711 in compensation, and $181,711 in liquidated damages.
Key lessons from this case:
- The term “employee” can be broad and may include those who are under an employer’s control and direction. It is important to know your rights as an employee if that is the case.
- Misclassified employees are fully entitled to any unpaid overtime wages (and other damages) that have been neglected by the employer.
- The line can be blurry between being an independent contractor or an employee. Thus, it is important to familiarize yourself with the contract and clarify your entitlement beforehand.
If you want to know more about overtime regulations, read our guide on Texas Overtime Laws.
