Do Lower Oil Prices Signal A New Wave Of FLSA Actions In The Energy Industry?

PresenterMark TabakmanFollow us :

Learn How to Avoid the Potential Risks of FLSA Lawsuits While Laying-Off Workers During the Oil Price DownturnThe recent cut in oil prices is good news for automobile drivers and the transportation industry, but may foretell trouble for the energy industry by triggering an increase in the rate of Fair Labor Standard Act ("FLSA") suits against energy-sector employers.

New Wave of FLSA Actions?

• While lower oil prices, meaning lower prices at the pump, is good news for automobile drivers, the recent drop in oil prices could trigger an increase in the number of Fair Labor Standard Act (“FLSA”) suits against employers in the energy sector.

New Wave of FLSA Actions? (cont)

• When oil prices drop, oil and gas companies often cut costs by cutting back on overtime or by laying-off workers.

New Wave of FLSA Actions? (cont)

• Although these measures may help companies weather the oil price downturn, they could also be a catalyst for FLSA claims as laid-off workers turn to the courts to seek redress for allegedly being improperly compensated.

Energy Sector is Vulnerable to Wage-Hour Suits

• Lower/falling oil prices may not affect all kinds of employment cases, but wage-hour suits are a genre of employment law cases that increase dramatically during price fluctuations because energy-sector businesses, particularly oil companies, rely heavily on independent contractors to conduct essential activities such as transporting products, maintenance, and logistics.

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