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Feds order Firms to Cough up $1.5 million for Not Paying OT to Oilfield Workers

Some 241 oil well service workers in Texas and New Mexico are being paid a total of $1.5 million, including $750,000 in back wages following a federal government investigation into the oil and gas sectors in both states.

Nova Mud Inc., Nova Hardbanding and Nova Sand agreed to pay the workers as a result of the U.S. Department of Labor’s Wage and Hour Division investigation determining that the three commonly owned and operated businesses violated overtime and recordkeeping provisions of the Fair Labor Standards Act, according to the publication Texas Lawyer.

The three firms also agreed to take steps to make sure workers are paid accoding to the law in the future.

“Companies need to understand that failing to pay workers the wages they have rightfully earned will come at high cost to the employer,” said Betty Campbell, Southwest regional administrator for the Department of Labor division based in Dallas.

Ken Bromley, the president of Nova Mud based in Hobbs, New Mexico declined comment.