• FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR

  • LOGIN
  • SIGN UP FREE

HR Morning

  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • More
    • Leadership & Strategy
    • Compensation
    • Staff Administration
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • Employee Services
    • Work Location
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans

Cardinal FLSA sin costs employer $18.3M in overtime case

Christian Schappel
by Christian Schappel
September 25, 2015
2 minute read
  • SHARE ON

To terminate FLSA accusations against it brought on by the DOL, oil and gas giant Halliburton Co. will shell out $18.3M. Its mistake is always No. 1 on every list ever assembled of things employers should not do when employing salaried workers. 
Three examples of such lists can be found here, here and here.
The mistake in question: making all salaried employees exempt from overtime, without considering their income or whether they pass the duties tests.
According to a report by Reuters, the DOL said Halliburton automatically exempted all salaried workers from overtime without considering their pay or duties.
That’s a massive no-no. Still, it’s one that the DOL finds pretty often.
This mistake was caught as part of an ongoing multi-year compliance initiative by the DOL to investigate major players in the oil and gas industry for violations of the FLSA.
According to a release by the DOL, the agency’s investigators found that Halliburton incorrectly categorized employees in 28 job positions as exempt from overtime.
Some of the positions incorrectly classified as exempt:

  • field service reps
  • pipe recovery specialists
  • drilling tech advisors
  • perforating specialists, and
  • reliability tech specialists.

This misclassification resulted in 1,016 employees not receiving the overtime compensation the FLSA said they were entitled to.
On top of that, Halliburton was also accused of failing to keep accurate records of the hours worked by employees in those misclassified positions. That is often the case when employers misclassify workers as exempt. After all, they feel there’s no need to track hours for exempt workers. But that’s a move that comes back to haunt employers in situations like this.

So what now?

Following the DOL’s investigation, Halliburton agreed to pay roughly $18.3M in back wages to those 1,016 workers. That averages out to about $18,000 per affected employee.
Halliburton claims it discovered workers had been misclassified during an independent audit and, as a result, had already started paying those workers overtime in line with FLSA regulations, according to the Reuters’ report.
Here’s what DOL Secretary Thomas Perez had to say about the case in the agency’s release:

“The Department of Labor takes very seriously its responsibility to ensure workers receive the wages they have earned. This settlement will put millions of dollars where they belong — in the pockets of hardworking people and their families. Employers who don’t pay their employees the wages they have earned don’t just hurt their workers, they undercut employers who play by the rules. That’s why we work every day to help level the playing field.”

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES

Keep Up To Date with the Latest HR News

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Sign up for a free HRMorning membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
HR Morning Logo
  • Facebook
  • Twitter
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • HR Technology
  • Performance Management
  • Leadership & Strategy
  • Compensation & Payroll
  • Policy & Culture
  • Staff Administration
  • Wellness & Safety
  • Staff Departure
  • Employee Services
  • Work Location
  • HR Career & Self-Care

HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

preloader