A federal judge has given preliminary approval to a $6 million dollar settlement in a class-action lawsuit against a Canadian company involved in hydraulic fracturing (fracking) in the United States. The settlement will cover an estimated 1,039 people who worked for Calfrac Well Services Corp. in Pennsylvania, Arkansas, Colorado and North Dakota. The lawsuit alleged that Calfrac underpaid its employees for overtime hours under the Fair Labor Standards Act (FLSA) and respective state wage laws.
The employees were paid a salary and bonuses. When they worked overtime, the company calculated their “hourly” rate by dividing their salary and bonuses by the total hours worked and paying them time-and-a-half on that rate. The Plaintiffs contended that Calfrac should have divided their salary and bonuses by 40 hours per week to obtain the base rate for the overtime calculation. Calfrac’s method of calculating the employees’ hourly rate significantly reduced the amount of overtime compensation Calfrac paid its employees.
Source: Law 360
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