Newell v. Ensign United States Drilling (California), Inc. – Offshore Oil Platform Wage Class Action

Last updated: November 1, 2018 at 19:33 pm

If you believe you qualify to be a class member or would like more information about this class action lawsuit, reach out to Strauss & Strauss, APC by calling (805) 303-8115 or contacting us online today.

What is the case about?

Newell v. Ensign United States Drilling (California), Inc. (“Ensign Drilling”) is an Offshore Oil Platform Wage Class Action against Ensign Drilling. Plaintiff alleges that Ensign Drilling failed to pay California overtime wages to him and all other persons who worked on oil platforms off the California coast. Plaintiff and his co-workers (the “Putative Class”) worked a hitch basis, where they worked periods of one or more weeks on the platforms, followed by one or more weeks spent resting on land. Despite the fact that Plaintiff was restrained to the worksite (the oil platform) for the duration of his hitch, Ensign Drilling typically compensated Plaintiff with pay for only twelve hours each day. The remaining 12 hours were typically not compensated.

Plaintiff alleges that California law applies on the oil platforms at issue here and that Ensign Drilling’s wage-payment scheme violates California law. Seymore v. Metson Marine, Inc., 194 Cal. App. 4th 361, 376 (2011), disapproved of on other grounds by Mendiola v. CPS Sec. Sols., Inc., 60 Cal. 4th 833 (2015) (“California courts have consistently held that an employee required to sleep at the worksite is subject to the employer’s control during sleeping hours.”). Seymore involved employees on boats traveling between oil platforms, who worked 14-day hitches, had to sleep on their assigned boat(s), and were paid for only 12 hours each day. The California Court of Appeal held that all the hours spent by the employees were “hours worked” under California law, because they were required to sleep on the work premises. Id. at 380. Based on this authority, Plaintiff brings alternative claims for California minimum wage and overtime violations, seeking recovery of wages for the 12 hours of uncompensated time each day. Plaintiff also seeks meal and rest period premiums under California law, because the failure to permit Plaintiff to leave the worksite means that Plaintiff was always subject to the control of Defendant and, therefore, never relieved of all duty, as required by California meal and rest period laws. See Augustus v. ABM Sec. Servs., Inc., 2 Cal. 5th 257, 260 (2016). Plaintiff seeks a penalty under Labor Code section 226(e) for Defendant’s failure to include all hours worked by Plaintiff on his paycheck stubs, as required by section 226(a). Plaintiff also sues under the Private Attorneys General Act of 2004, Labor Code sections 2698 through 2699.5 (“PAGA”), seeking civil penalties for the above-mentioned violations of the California Labor Code on behalf of himself and all other similarly aggrieved employees of Defendant Ensign Drilling.

What is the latest update in the case?

The case is currently in progress. No trial date has been set. Ensign Drilling has lost the key legal issue of whether California law applies on the platforms and has appealed that issue to the California Supreme Court. The Supreme Court will decide in the next couple of months whether to take the case. Unless the Supreme Court takes the case, the case will continue to progress in the state court in Kern County, California.

Procedural History

Plaintiff filed his initial Complaint against Ensign Drilling in the Kern County Superior Court on June 22, 2015. He filed a First Amended Complaint on August 3, 2015.

On November 8, 2016, the Court certified the case as a class action for the limited purpose of allowing the parties to summarily adjudicate Ensign Drilling’s key defense that California wage-and-hour laws do not apply on the oil platforms in federal waters off the California coast. The limited certified class was defined as Ensign Drilling’s “non-exempt employees that worked and stayed on oil platforms located in federal waters off the California coast for periods of 24 hours or more.”

On April 28, 2017, Ensign Drilling filed its motion for summary adjudication, asserting that California wage-and-hour laws do not apply on the oil platforms located in federal waters off the coast of California.