Gilchrist v. Schlumberger

CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 14, 2025
Docket22-50257
StatusPublished

This text of Gilchrist v. Schlumberger (Gilchrist v. Schlumberger) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilchrist v. Schlumberger, (5th Cir. 2025).

Opinion

Case: 22-50257 Document: 85-1 Page: 1 Date Filed: 07/14/2025

United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit

FILED No. 22-50257 July 14, 2025 ____________ Lyle W. Cayce Clerk John Gilchrist; Byron Brockman,

Plaintiffs—Appellees,

versus

Schlumberger Technology Corporation,

Defendant—Appellant. ______________________________

Appeal from the United States District Court for the Western District of Texas USDC No. 1:16-CV-8 ______________________________

Before Jones, Richman, and Ho, Circuit Judges. Per Curiam: John Gilchrist and Byron Brockman sued their former employer, Schlumberger Technology Corp., for failure to pay them overtime in violation of the Fair Labor Standards Act (FLSA). We hold that Gilchrist and Brockman qualify as highly compensated employees exempt from the Fair Labor Standards Act’s (FLSA’s) overtime pay requirement because they performed administrative duties. See 29 U.S.C. § 213(a)(1); 29 C.F.R. § 541.601(a). We therefore REVERSE and REMAND the judgment with instructions to dismiss. Case: 22-50257 Document: 85-1 Page: 2 Date Filed: 07/14/2025

No. 22-50257

I. Background Schlumberger Technology Corp. (Schlumberger) provides oilfield services to clients engaged in the exploration and development of oil and natural gas. Its clients “are oil exploration and development companies who operate oil rigs and well sites and their general business is the drilling of wells.” Gilchrist and Brockman worked for Schlumberger as Measurements While Drilling Field Specialists (MWDs). MWDs give Schlumberger clients “‘downhole’ information such as drilling trajectory, pressure, and temperature,” which the clients use “to determine how to continue drilling and how to best produce hydrocarbons.” MWDs are essential because the data they provide ensures that the directional driller steers the well on the correct path. The potential negative consequences of a mistake by a MWD include loss of productive time, drilling outside the lease, or even a well collision, which could lead to an explosion. If an issue regarding the data or directionality arises, the MWD is “[g]enerally” the first person to identify that issue by calling attention to something in the data log that looks unusual. Thus, the MWD is “providing the client and the directional driller with real-time information without a second layer of review . . . [m]ost of the time” and is “responsible for making real-time decisions that are critical to the drilling operations.” However, the MWD rarely interacts with the client directly; Gilchrist testified that he “didn’t have much involvement with the company man on location, if at all,” the company man being the client’s representative on the rig. When Gilchrist and Brockman worked for Schlumberger, they commenced work at a well site by “rigging up” their equipment, including the computers in their trailer and the cables connecting the computers to the oil rig used to drill wells. After rigging up, Gilchrist and Brockman generally stayed in their trailer and monitored the data that came from the tools hooked

2 Case: 22-50257 Document: 85-1 Page: 3 Date Filed: 07/14/2025

up to the rig. Though the MWDs rigged up their equipment, the driller and rig crew (non-Schlumberger employees) actually controlled the movement of the MWD tools as part of operating the rig. The collected data are decoded with computer software, which determines whether the data fall within the “field acceptance criteria” and displays the corresponding data as green or red accordingly. If the survey came in as green, the MWD “would accept it and . . . share that information with the directional driller,” who would determine “based off of the well plan on his own computer whether or not he needed to make adjustments to the well itself.” If the data came in red, the MWD alerted the directional driller and then ran the survey again. Rerunning the survey required contacting the driller on the rig floor and instructing him to repeat the survey process because the driller “operat[ed] all the controls himself.” Gilchrist and Brockman took between fifteen and fifty surveys per hour for each of their twelve-hour shifts, and they would also continuously monitor gamma logs and other rig data during that time. Brockman testified that he performed quality control of the surveys “by double-checking the information from the tools against the well plan and expected inclination and azimuth of the client . . . as the client was drilling.” He explained that this quality control entailed double-checking that the data “makes the qualifiers, make sure it turns green” and also that the drill string remains “still.” At the end of the job but before sending final surveys to the client, the MWD and the directional driller would conduct “kind of like a QC [quality check]” wherein the MWD would “run [their data] through an Excel file, make sure all the numbers match” for various data points. The MWD would then “gather up all the logs and make sure the well name, everything is in place, then [he] sent it off for QC” at Schlumberger’s office. However, “[i]n most cases” the lead MWD—which was Brockman’s role—was responsible

3 Case: 22-50257 Document: 85-1 Page: 4 Date Filed: 07/14/2025

for ensuring that those reports were complete and accurate before they were sent off for additional quality control. That process involved “remov[ing]” any “erroneous data point[s]” from the data before transmission. In essence, it was the MWDs’ “responsibility” to “pass along quality data.” After the office approved the data, the MWDs themselves sent the data to the client. Then, once the well “reached it’s [sic] total depth,” the MWDs “rig[ged] down,” running a final survey and packing up their tools. The year after their tenures at Schlumberger ended, Gilchrist and Brockman sued the company, arguing that they were not exempt from the FLSA provisions requiring overtime pay. Both men earned well over $200,000 annually, but neither former employee was paid any overtime while employed as an MWD. After a bench trial but before the district court rendered its decision, the identity of two potentially relevant witnesses whom Schlumberger had failed to identify came out in a related case, and Gilchrist and Brockman moved to reopen the evidence. This court ultimately determined that the witnesses’ testimony was privileged, and the district court denied plaintiffs’ motion. In re Schlumberger Tech. Corp., 818 F. App’x at 307-08. The district court then determined that Schlumberger failed to prove that Gilchrist and Brockman were exempt under the various FLSA exemptions urged at trial, including, as relevant to this appeal, the Highly Compensated Employee (HCE) exemption. Schlumberger timely appealed the district court’s decision awarding Gilchrist and Brockman overtime pay. II. Discussion The FLSA’s overtime provision “requires an employer to compensate any covered employee who works in excess of 40 hours in a workweek ‘at a rate not less than one and one-half times the [employee’s] regular rate.’” Dewan v. M-I, L.L.C., 858 F.3d 331, 333-34 (5th Cir. 2017) (quoting 29 U.S.C. § 207(a)(1)). In this case, the employer asserts that the

4 Case: 22-50257 Document: 85-1 Page: 5 Date Filed: 07/14/2025

plaintiffs were exempt from FLSA’s overtime requirements. “With respect to the underlying facts, the employer has the burden of establishing that an exemption applies by a preponderance of the evidence.” Fraser v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Songer v. Dillon Resources, Inc.
618 F.3d 467 (Fifth Circuit, 2010)
Edward W. Dalheim v. Kdfw-Tv
918 F.2d 1220 (Fifth Circuit, 1990)
Florentino Meza v. Intelligent Mexican Marketing
720 F.3d 577 (Fifth Circuit, 2013)
Vasilios Zannikos v. Oil Inspections (U.S.A.), Inc
605 F. App'x 349 (Fifth Circuit, 2015)
Nicole Olibas v. Leslie Kreis
838 F.3d 442 (Fifth Circuit, 2016)
Matthew Dewan v. M-I, L.L.C.
858 F.3d 331 (Fifth Circuit, 2017)
Encino Motorcars, LLC v. Navarro
584 U.S. 79 (Supreme Court, 2018)
Monique Fraser v. Patrick O'Connor & Associ
954 F.3d 742 (Fifth Circuit, 2020)
Daniel Smith v. Ochsner Health System
956 F.3d 681 (Fifth Circuit, 2020)
White v. U.S. Corrections
996 F.3d 302 (Fifth Circuit, 2021)
Hobbs v. EVO
7 F.4th 241 (Fifth Circuit, 2021)
Kelley v. Alpine Site Services
110 F.4th 812 (Fifth Circuit, 2024)
Venable v. Smith International
117 F.4th 295 (Fifth Circuit, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
Gilchrist v. Schlumberger, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilchrist-v-schlumberger-ca5-2025.