Nova Mud Inc., Nova Hardbanding LLC and Nova Sand LLC have paid $1.5 million—$750,000 in back wages and an additional, equal amount in liquidated damages—to 241 oil well service workers after an investigation by the U.S. Department of Labor’s Wage and Hour Division. All three commonly owned and operated businesses violated overtime and record-keeping provisions of the Fair Labor Standards Act.

The companies paid employees fixed semi-monthly salaries; without regard to the number of hours they had actually worked, resulting in overtime violations when they worked more than 40 hours in a workweek. In this case, employees routinely worked well in excess of 40 hours per workweek, without being paid overtime.

“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 division. “When employers fail to pay workers legally, it harms workers and their families and puts law-abiding employers at a competitive disadvantage. The liquidated damages paid to workers in this case demonstrate that the Wage and Hour division will continue to use every appropriate enforcement tool to ensure workers are paid what they have earned.”

Nova Mud Inc. and its related companies—Nova Frac Sand LLC and Nova Hardbanding LLC—signed an agreement with the department requiring them to take several proactive measures to ensure workers are paid according to the law in the future. Measures include: setting up an anonymous complaint system for employees; posting information about recordkeeping requirements, and providing training to frontline managers and human resources staff about retaliation in the workplace.

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