822 F. Supp. 2d 874
W.D. Ark.2011Background
- Plaintiffs are hourly Redland employees on oil drilling rigs, alleging FLSA wage and hour violations.
- Before June 2009, employees worked 12-hour shifts Tue–Mon, seven days a week, with 84 hours per week and 44 overtime hours.
- In June 2009, Redland changed the payroll period to Sunday–Saturday but kept the Tue–Mon shift schedule.
- Plaintiffs claim the payroll change was a device to reduce overtime and violate the FLSA.
- DOL conducted an onsite investigation in Jan 2011 and found no FLSA violations, including no overtime evasion, though Plaintiffs were not interviewed.
- The court granted Redland’s motion for summary judgment, dismissing the case with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether pay period change violated the FLSA | Abshire et al. argue the change evaded overtime payments. | Redland claims a legitimate business purpose to standardize payroll; not an evasion. | No genuine dispute; policy had legitimate business purpose. |
| Whether the change was a subterfuge to avoid overtime | Change was designed to reduce overtime specifically for rig workers. | Change applied universally for administrative efficiency; not a subterfuge. | Not supported; no evidence of evasion tied to policy. |
| Whether DOL findings support summary judgment | DOL investigation could indicate FLSA violation and warrant trial. | DOL findings are persuasive but not controlling; investigation showed no violation. | DOL findings weigh in favor of judgment for Redland. |
Key Cases Cited
- Seymore v. Metson Marine, Inc., 194 Cal.App.4th 361 (Cal.Ct.App.2011) (employer cannot evade overtime with biased workweek design)