ATTORNEY ADVERTISING | Paul M. Botros, Esq. | Licensed in Texas and Florida

Paid a Day Rate? You May Be Owed Overtime

If you work in Oil & Gas, Construction, or Field Services and are paid a day rate, you are likely owed overtime pay under federal law.

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Calculate Your Unpaid Overtime

Get an estimate of what you're owed in just 60 seconds. This calculator is based on federal FLSA laws and includes liquidated damages (double your unpaid wages).

How Are You Paid?

$ /hour
hours
Must be your *paid* hours (can be under 40)
weeks
Default is 1 year (52 weeks). Adjust if different.

Did You Perform Work Off-the-Clock?

This includes work before/after shifts, during breaks, or from home that wasn't recorded or paid.

This calculation is an estimate based on applicable labor laws. Your actual recovery may vary based on state laws and specific circumstances.

Understanding Day Rate Overtime Violations

Many employers pay workers a fixed "day rate" - a set amount for each day worked regardless of how many hours they actually work. While day rate pay is legal, employers still must pay overtime when you work more than 40 hours per week. Unfortunately, many employers illegally fail to pay this required overtime compensation.

โš ๏ธ Important: Day Rate Does NOT Eliminate Overtime Rights

Just because you're paid by the day doesn't mean you lose your right to overtime pay. Federal law (the Fair Labor Standards Act) requires overtime compensation for all non-exempt employees who work over 40 hours per week - regardless of whether they're paid hourly, daily, or weekly.

How Day Rate Overtime Should Be Calculated

The Department of Labor requires a specific calculation method for day rate workers:

  1. Calculate your regular hourly rate: Divide your total weekly pay by total hours worked
  2. Determine overtime hours: Any hours over 40 per week
  3. Calculate overtime premium: Regular rate ร— 0.5 ร— overtime hours
  4. Total compensation due: Day rate pay + overtime premium

Example 1: Construction Worker

Day rate: $200/day | Days: 5 | Hours: 50/week

Weekly pay: $200 ร— 5 = $1,000
Regular rate: $1,000 รท 50 = $20/hour
Overtime owed: 10 hrs ร— $10 = $100
Total owed: $1,100/week

Example 2: Oil Field Worker

Day rate: $300/day | Days: 6 | Hours: 72/week

Weekly pay: $300 ร— 6 = $1,800
Regular rate: $1,800 รท 72 = $25/hour
Overtime owed: 32 hrs ร— $12.50 = $400
Total owed: $2,200/week

Example 3: Pipeline Inspector

Day rate: $400/day | Days: 6 | Hours: 60/week

Weekly pay: $400 ร— 6 = $2,400
Regular rate: $2,400 รท 60 = $40/hour
Overtime owed: 20 hrs ร— $20 = $400
Total owed: $2,800/week

The Bottom Line

If you're paid a day rate but work more than 40 hours per week, you're entitled to additional overtime compensation equal to half your regular hourly rate for every overtime hour worked. Many day rate workers are owed thousands in unpaid overtime wages.

Common Day Rate Violations

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No Overtime Payment

Employer pays only the day rate regardless of hours worked, claiming "day rate covers everything." This violates federal law when workers exceed 40 hours per week.

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Incorrect Rate Calculation

Employer fails to properly calculate the regular hourly rate by dividing total compensation by total hours worked, leading to underpayment of overtime.

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Flat Rate Misunderstanding

Employer treats day rate as a "flat rate" that covers unlimited hours, which is illegal under the FLSA for non-exempt employees.

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Long Workday Exploitation

Employer schedules extremely long workdays (12-16 hours) while paying only the day rate, knowing workers will exceed 40 hours per week.

High-Risk Industries for Day Rate Violations

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Construction

Laborers, electricians, plumbers, and contractors often paid day rates for long project days

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Oil & Gas

Field workers, rig hands, mud engineers, and technicians working extended shifts on day rate pay

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Entertainment

Film crews, stagehands, and production assistants working long days on shoots

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Landscaping

Crew workers paid per day regardless of actual hours worked on job sites

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Transportation

Drivers and logistics workers paid day rates for routes exceeding 8 hours

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Manufacturing

Production workers and technicians on day rate pay during busy seasons

When Day Rate Pay is Legal vs. Illegal

โœ… Legal Day Rate Arrangements

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Proper Overtime Calculation

Day rate plus additional overtime compensation for hours over 40

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Exempt Employees

Truly exempt executive, administrative, or professional employees (must meet all exemption tests)

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Independent Contractors

Legitimate independent contractors (not misclassified employees)

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Under 40 Hours

Employees who consistently work 40 hours or fewer per week

โŒ Illegal Day Rate Arrangements

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No Overtime Premium

Day rate only, regardless of hours worked over 40

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Misclassified Workers

Calling employees "contractors" to avoid overtime

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Fake Exemptions

Claiming workers are "exempt" when they don't meet legal requirements

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Flat Rate Schemes

"All-inclusive" day rates intended to avoid overtime obligations

Employer Defenses and Why They Usually Fail

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"We agreed to a day rate"

Why it fails: You cannot waive your right to overtime pay under federal law. Any agreement attempting to waive overtime rights is invalid.

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"The day rate is high enough to cover overtime"

Why it fails: The law requires specific calculation methods. Employers can't just claim the day rate "includes" overtime without proper mathematical justification.

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"Workers are independent contractors"

Why it fails: True independent contractor status requires control over how, when, and where work is performed. Most day rate workers are actually employees.

Time Limits for Day Rate Claims

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2 Years Standard

Standard time limit for filing FLSA claims

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3 Years if Willful

If the violation was willful (employer knew they were breaking the law)

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Time Keeps Running

Each missed overtime payment is a separate violation

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Don't Wait - Time Limits Vary by State!

Federal law provides 2-3 years to file, but state laws may have different deadlines. Every day you delay could mean lost wages you can't recover. Contact us now for a free case evaluation to protect your rights before time runs out!

Frequently Asked Questions

Is it legal for my employer to pay me a day rate?

Yes, day rate pay is legal, but your employer must still pay overtime when you work more than 40 hours per week. The day rate is just a method of calculating your base pay - it doesn't eliminate your right to overtime compensation. Under FLSA regulations, when you work overtime on a day rate, you're entitled to an additional half-time premium for all hours over 40.

How is overtime calculated for day rate workers?

The calculation is: (1) Divide your total weekly pay by total hours worked to get your regular hourly rate, (2) Multiply that rate by 0.5 to get the overtime premium rate, (3) Multiply the premium rate by overtime hours (hours over 40). For example, if you earned $1,500 for 60 hours, your regular rate is $25/hour, overtime premium is $12.50/hour, and you're owed an additional $250 for the 20 overtime hours ($12.50 ร— 20).

Can my employer say the day rate "includes" overtime?

No. Employers cannot claim a day rate "includes" overtime without proper calculation. The Department of Labor requires specific mathematical formulas to prove overtime is included. Simply paying a high day rate doesn't satisfy FLSA requirements. Courts consistently reject employer arguments that day rates are "all-inclusive" unless the employer can demonstrate compliance with DOL calculation methods.

What if I agreed to work for a day rate with no overtime?

You cannot waive your right to overtime pay, even if you agreed to it. Any agreement to work for a day rate without overtime compensation is invalid under federal law. The FLSA protects workers from being coerced into giving up their legal rights. Courts will enforce your right to overtime regardless of what you signed or agreed to verbally.

Do day rate violations apply to oil and gas workers?

Yes. Oil and gas workers paid day rates are entitled to overtime unless they meet specific exemptions (which are narrow and rarely apply to field workers). Common positions like rig hands, mud engineers, field technicians, and pipeline workers are typically non-exempt and entitled to overtime. The industry's use of day rates doesn't change FLSA requirements.

How much can I recover in a day rate violation case?

You can recover unpaid overtime wages for 2-3 years (3 years if willful), plus liquidated damages equal to your unpaid wages (effectively doubling your recovery), plus attorney fees and costs. Because day rate workers often work long hours (50-70+ hours/week), recoveries can be substantial. For example, a worker earning $300/day for 60-hour weeks could be owed $15,000-$20,000+ per year in unpaid overtime.

What if I work different numbers of hours each day?

It doesn't matter if hours vary - overtime is calculated weekly, not daily. As long as you work more than 40 hours in a workweek, you're entitled to overtime premium for all hours over 40, regardless of whether you worked 8, 10, 12, or 16 hours on any particular day. The FLSA uses a weekly calculation period for overtime.

Can I file a claim if I'm still working for my employer?

Yes. Federal law prohibits retaliation for filing wage claims. Many day rate workers successfully file claims while still employed. If your employer retaliates (fires, demotes, reduces hours, or otherwise punishes you), that's a separate legal violation with its own damages. We can discuss strategies to protect your rights, including collective actions where multiple workers file together.

Think You Have a Day Rate Claim?

Day rate violations are Paul M. Botros's specialty. Get a free, confidential case evaluation and find out what you may be owed.

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State-Specific Day Rate Rules

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