Published Date: 09/29/2014
By George Ports
Shell Oil Company and Motiva Enterprises LLC have agreed to pay $4,470,764 in overtime back wages to 2,677 current and former chemical and refinery employees as a result of investigations by the US Department of Labor (USDOL) that found violations of the Fair Labor Standards Act (FLSA). Motiva Enterprises LLC markets Shell gasoline and other products.
The USDOL’s Wage and Hour Division conducted investigations at eight Shell and Motiva facilities in Alabama, California, Louisiana, Texas and Washington. These investigations revealed that the companies violated FLSA overtime provisions by not paying employees for the time spent at mandatory pre-shift meetings and failing to record the time spent at these meetings.
The investigation’s findings showed that those eight Shell Oil and Motiva refineries failed to pay employees for time spent attending mandatory pre-shift meetings. The companies required the employees to come to the meetings before the start of their 12-hour shift. Because the companies failed to consider time spent at mandatory pre-shift meetings as compensable, employees were not paid for all hours worked and did not receive all of the overtime pay of time and one-half their regular rate of pay for hours worked over 40 in a workweek. Additionally, the refineries did not keep accurate time records.
Shell and Motiva have signed settlement agreements that call for training of managers, payroll personnel and human resources personnel on the FLSA’s requirements. The training will stress the importance of requiring accurate recording and pay for all hours worked with emphasis on pre-and post-shift activities.
For more information about federal wage and hour laws, go to http://www.dol.gov/whd/.
If you have wage and hour law questions, please call CAI's Advice & Resolution Team at 919‑878‑9222 or 336‑668‑7746.