Abshire v. Redland Energy Services, LLC

822 F. Supp. 2d 874, 2011 U.S. Dist. LEXIS 116242, 2011 WL 4633093
CourtDistrict Court, W.D. Arkansas
DecidedOctober 6, 2011
DocketCase No. 10-2170
StatusPublished
Cited by4 cases

This text of 822 F. Supp. 2d 874 (Abshire v. Redland Energy Services, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abshire v. Redland Energy Services, LLC, 822 F. Supp. 2d 874, 2011 U.S. Dist. LEXIS 116242, 2011 WL 4633093 (W.D. Ark. 2011).

Opinion

MEMORANDUM OPINION & ORDER

ROBERT T. DAWSON, District Judge.

Before the Court is Defendant Redland Energy Services, LLC’s (“Redland”) Motion for Summary Judgment (Doc. 16), Memorandum Brief in Support (Doc. 17), and Statement of Facts (Doc. 18); Plaintiffs’ Response in Opposition (Doc. 26) and Memorandum Brief (Doc. 27); and Defendant’s Supplement to Motion and Reply to Plaintiffs’ Response (Doc. 28). For the reasons discussed herein, Defendant’s Motion (Doc. 16) is GRANTED.

I. Background

This matter was instituted on behalf of Plaintiffs Roy Abshire, David L. Cole, William McMurray, J.C. Greenbush, and Steve Trent, individually, and as representatives of all those similarly situated, for alleged violations of the wage and hour requirements of the Fair Labor Standards Act (“FLSA”). Plaintiffs are hourly employees of Redland who worked on oil drilling rigs. Their shift schedule consisted of 12-hour shifts each day, seven days per week from Tuesday through Monday, every other week. Prior to June 2009, Plaintiffs worked according to this schedule approximately 84 hours per workweek, of which 44 hours were overtime hours paid at a rate of time-and-a-half.

In June of 2009, Redland distributed a memorandum to Plaintiffs and all other oil rig workers informing them that the payroll period would be changed to run from Sunday to Saturday rather than Tuesday to Monday. Even though the payroll period changed, Redland kept the rig workers’ Tuesday to Monday shift schedule the same.

Plaintiffs filed a Complaint (Doc. 1), followed by an Amended Complaint (Doc. 3) in November 2010, alleging that Redland’s decision to change the payroll period with[876]*876out altering the shift schedule violated the FLSA. Plaintiffs contend that Redland’s payroll period change was made in order to avoid paying rig workers overtime compensation. To support this contention, Plaintiffs assert that when Redland’s pay period aligned with the rig workers’ shift schedule, all seven consecutive 12-hour work days for rig workers fell in a single given pay period; however, after Redland changed its pay period so that it no longer aligned with the rig workers’ shift schedule, only five consecutive 12-hour work days fell within a single given pay period and the other two 12-hour days in the shift fell in the next pay period.

It is undisputed that both before and after the payroll period change rig employees each worked at least 84 hours over a seven-day period, every other week; but after implementation of the new payroll policy, rig employees received less overtime compensation than before the policy went into effect. It is Redland’s position that it changed the payroll policy for rig workers in order to create uniform payroll administration so that all Redland employees would be on the same payroll schedule.

In January 2011, a few months after Plaintiffs filed the instant lawsuit, the Department of Labor (“DOL”) conducted an onsite FLSA investigation into whether Redland violated the applicable overtime laws. The DOL investigator concluded that Redland had not violated the FLSA in aligning its rig employees’ pay period with that of the rest of the company. The investigator’s Narrative Report (Doc. 16-3) noted that no violations of the FLSA had occurred based on her review of the employer’s records and employee interview statements. Further, the investigator specifically addressed Plaintiffs’ complaint about the company pay period differing from the oil rig crews’ work schedule of Tuesday through Monday each week. The investigator observed in her report: “Overtime is based on the employer’s established work week Sunday through Saturday and not the employee’s work schedule.” She also observed that even though the drilling crews worked Tuesday through Monday, the other Red-land employees, including the “work over crew” and the office staff, worked Sunday through Saturday, which matched the company-wide payroll schedule.

The DOL investigator did not include the named Plaintiffs in her investigation because their lawsuit against Redland was then pending; however, the investigator interviewed other rig workers by telephone who worked the same job and had the same work schedule as the named Plaintiffs. Ultimately, DOL found that Defendant Redland had not committed any violation of the FLSA, including the overtime compensation violation that is the subject of the instant lawsuit.

II. Legal Standard

Summary judgment should be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). In reviewing a summary judgment motion, the court must view the facts and inferences from the facts in the light most favorable to the non-moving party, and the burden is placed on the moving party, to establish both the absence of a genuine issue of material fact and that it is entitled to judgment as a matter of law. See Fed. R.Civ.P. 56(c); Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986); Nat’l. Bank of Commerce of El Dorado, Arkansas v. Dow Chem. Co., 165 F.3d 602 (8th Cir.1999). Once the moving [877]*877party has met this burden, the non-moving party may no longer rest on the allegations in its pleadings, but must set forth specific facts by affidavit and other evidence, showing that a genuine issue of material fact exists. See Fed.R.Civ.P. 56(e).

In order to withstand Defendant’s motion for summary judgment, Plaintiffs must substantiate their allegations with “sufficient probative evidence that would permit a finding in his favor on more than mere speculation, conjecture, or fantasy.” Gregory v. Rogers, 974 F.2d 1006, 1010 (8th Cir.1992).

III. Discussion

Federal regulations state that an employer’s designation of a work week may not be “designed to evade the overtime requirements of the [Fair Labor Standards] Act.” 29 C.F.R. § 778.105. There is little legal authority generally, and none in Arkansas specifically, regarding whether an employer’s decision, to change its employees’ pay period violates the FLSA when that decision results in a decrease in employee overtime compensation.

In Seymore v. Metson Marine, Inc.,

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822 F. Supp. 2d 874, 2011 U.S. Dist. LEXIS 116242, 2011 WL 4633093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abshire-v-redland-energy-services-llc-arwd-2011.