Overtime Claims Filed By Offshore Oil Rig Workers: Governed by FLSA or California State Law?

The Supreme Court recently ruled unanimously that state wage and hour laws do not apply to offshore drilling workers when federal law addresses the issue in question. In the recent case, Parker Drilling Management Services v. Newton, No. 18-389, the question the Supreme Court was asked to answer was whether California law governs minimum wage and payment for “standby time” for workers on oil rigs working in federal waters off the California shoreline.

When they held that California’s wage and hour laws do not apply, the Supreme Court rejected the Ninth Circuit Court of Appeals’ decision. The Supreme Court concluded that under the Outer Continental Shelf Lands Act (OCSLA), California state law is not applicable as surrogate federal law unless federal law presents a significant void or gap concerning the specific issue. The Supreme Court decision is a decided victory for companies currently operating or servicing oil rigs off the California coast in federal waters.

The Allegations Made in the Wage and Hour Case:

Brian Newton, the plaintiff in the case, worked on oil drilling platforms off the coast of California as an employee of Parker Drilling Management Services, Ltd. Newton alleges that he regularly worked 14-day shifts involving 12 hours of “on duty” hours per day and 12 hours of “standby” per day. During the standby hours, Newton claims he could not leave the platform, yet he was not paid for the standby hours.

Newton filed a class action lawsuit in California state court alleging that the company’s standby policies violated California’s wage and hour laws as well as other claims of labor law violations in connection to Parker Drilling’s failure to provide workers with pay for standby hours. After the case was removed to federal district court, parties involved agreed that the oil drilling platforms where Newton performed his job duties were covered under OCSLA.  

If you are dealing with issues of wage theft and you aren’t sure how to seek justice for the wages you have lost, please get in touch with one of the experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP can help. Get in touch with the employment law office nearest you: San Diego, San Francisco, Sacramento, Santa Clara, Los Angeles, Riverside, Orange or Chicago.