Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Oil, Gas Industry Faces Scrutiny for Labor Practices
Author: Scarinci Hollenbeck, LLC
Date: August 16, 2013
Key Contacts
Back
In light of a recent government report that shed light on the prevalence of incorrect worker classification, many companies are coming under fire for their own labor practices. However, some industries are facing more scrutiny than others, particularly the oil and gas industries, a new report reveals.
The Pittsburg Post-Gazette reports that the U.S. Department of Labor has been focusing more attention on oil and gas companies, citing historic patterns of labor and tax law violations as the primary reason for its focus on these sectors. The agency notes that many companies operating in these sectors have demonstrated a history of employee misclassifications, failing to keep viable employment records, and paying employees a day rate without calculating how many hours are worked in a week, the newspaper reports.
In addition, some companies may assume that simply having a contract with workers in which they classify themselves as independent contractors may protect them during an audit or investigation. However, this is not always the case as federal agencies will rely upon the IRS and Labor Department definitions of a contractor, rather than a formal contract signed between workers and employers, the Post-Gazette notes.
Further, many states currently participate in an information-sharing agreement between the Labor Department and the Internal Revenue Service. This means that if companies are audited or cited for violations from one agency, it is also likely that they may soon hear from the other. This can lead to a number of consequences, including fines, penalties, interest, back taxes, and reputational damage. As such, it’s important that companies fully understand how their tax and labor policies fall in line with federal laws, and make potential changes if there are compliance questions. Working with a reputable law firm may help companies better understand their obligations under these laws and establish policies that are sound.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Oil, Gas Industry Faces Scrutiny for Labor Practices
Author: Scarinci Hollenbeck, LLC
In light of a recent government report that shed light on the prevalence of incorrect worker classification, many companies are coming under fire for their own labor practices. However, some industries are facing more scrutiny than others, particularly the oil and gas industries, a new report reveals.
The Pittsburg Post-Gazette reports that the U.S. Department of Labor has been focusing more attention on oil and gas companies, citing historic patterns of labor and tax law violations as the primary reason for its focus on these sectors. The agency notes that many companies operating in these sectors have demonstrated a history of employee misclassifications, failing to keep viable employment records, and paying employees a day rate without calculating how many hours are worked in a week, the newspaper reports.
In addition, some companies may assume that simply having a contract with workers in which they classify themselves as independent contractors may protect them during an audit or investigation. However, this is not always the case as federal agencies will rely upon the IRS and Labor Department definitions of a contractor, rather than a formal contract signed between workers and employers, the Post-Gazette notes.
Further, many states currently participate in an information-sharing agreement between the Labor Department and the Internal Revenue Service. This means that if companies are audited or cited for violations from one agency, it is also likely that they may soon hear from the other. This can lead to a number of consequences, including fines, penalties, interest, back taxes, and reputational damage. As such, it’s important that companies fully understand how their tax and labor policies fall in line with federal laws, and make potential changes if there are compliance questions. Working with a reputable law firm may help companies better understand their obligations under these laws and establish policies that are sound.