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.
- Practices: Tax and Trusts & Estates, Corporate Transactions & Business, Sophisticated Estate Planning & Wealth Preservation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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
When Are New Jersey Business Owners Personally Liable for Corporate Debt?
New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich
Commercial Real Estate Trends to Watch in 2026
Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner
One Big Beautiful Bill: New Tip Income Tax Rules Employers & Workers Need to Know
Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak
One Big Beautiful Bill: New Overtime Tax Rules Employers and Employees Need to Know
Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak
New York’s FAIR Business Practices Act: What the New Consumer Protection Measure Means for Your Business
In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
How to Reduce Legal Risk as Your New Jersey Business Grows in 2026
For many New Jersey businesses, growth is a primary objective for the New Year. However, it is important to recognize that growth involves both opportunity and risk. For example, business expansion often results in complex contracts, an increased workforce, new regulatory requirements, and heightened exposure to disputes. Without proactive planning, even routine growth can lead […]
Author: Ken Hollenbeck
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.