Ex-gate guard at BHP Texas shale fields files class action vs subsidiary over underpaid wages & overtime
A “David” is challenging a mining “Goliath” in Texas with the filing of a class action against a subsidiary of BHP Billiton (ASX: BHP) over alleged underpayment of the minimum wage and overtime. The lawsuit comes at a time that the company just reported results from a poor year which saw CEO Andrew Mackenzie’s pay package shrink by half to US$2.2 million (A$2.9 million) and 15,000 jobs axed.
The “David” in this case is Linda Cox, a former gate guard of Chapa Gate Guard Service which was retained by BHP to man the gates at the miner’s shale fields in Texas. She claims Chapa, BHP and BHP Billiton Petroleum breached the Fair Labor Standards Act of 1938, reports Australia Financial Review. The act sets a US$7.25 (A$9.50) per hour minimum wage for non-exempt workers.
In her collective class action, Cox accuses the three of paying her less than the minimum wage and the proper overtime penalties as well as failing to record all of the time she worked. Besides seeking to recover the amount owed her and 50 other gate guards, Cox is also seeking liquidated damages.
The alleged underpayment covered the past three years when Cox was assigned as gate guard at the Dilworth Ranch, part of BHP’s Eagle Ford shale oil operations which BHP acquired from Petrohawk Energy in 2012, reports Sydney Morning Herald. Cox manned one of the ranch’s 25 gates from October 2012 until July 2014 when she resigned.
She points out the gate guards were on call 24/7 to respond to heavy oilfield truck and equipment which pass through the gates. BHP Petroleum ordered them to live on the premises next to the gates at Dilworth so they could always be on hand to watch over the gates.
Cox also complained about the sudden change in the status of the gate guards in January 2016 from employees to independent contractors, although the terms and conditions of the work are identical. A BHP spokesman says the miner is aware of Cox’s legal action but the company is waiting to be served the complaint formally.
VIDEO: The Fair Labor Standards Act (FLSA)
Source: Paychex