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Steptoe & Johnson PLLC: Energy Employers Face Increased Enforcement Activities

By C. David Morrison and Rodney L. Bean 

Representatives of the West Virginia Department of Labor (WVDOL) have begun visiting drilling sites in the state to make sure that all people receiving 1099 income are registered to do business in West Virginia, as required by law.

If not registered, businesses may be subject to fines if they are doing business without registration.  The WVDOL will be checking to see if the project managers, who are responsible for construction of various phases of the drilling site, are both registered to do business and have their West Virginia contractor’s licenses.  To get a license, individuals are required to sit for an exam.

It is expected that drilling companies will be asked to provide a list of their employees working on their sites.  If someone is working on a site that is not listed as an employee, that person will be considered one who receives 1099 income (an independent contractor). 

The WVDOL expects the drilling companies to make sure that the people working on its sites are properly registered and licensed.

Steptoe & Johnson attorneys have experience assisting clients with the WVDOL and have helped clients to get contractors properly registered and licensed so as to avoid disruption in the operations.

To discuss details, contact David Morrison or Rodney Bean.  To learn more, click here to view a webcast on wage and hour issues in the energy industry.

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