Larry Gonzales v. Allied Oil & Gas Services, Llc

MOTION for Partial Summary Judgment

W.D. Tex.December 9, 2016

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION LARRY GONZALES, NELSON MENCHACA, JARON PAUL, SEAN TINDELL, FRANK MENCHACA, LOGAN TOW, JUSTIN BISH and SPENCER WORTHY, Plaintiffs, v. HORIZONTAL WIRELINE SERVICES, LLC; and ALLIED WIRELINE SERVICES, LLC, d/b/a ALLIED- HORIZONTAL WIRELINE SERVICES, LLC, and LARRY ALBERT, SCOTT O- BEIRNE, and JOSEPH SITES, Each Individually and as officers of ALLIED WIRELINE SERVICES LLC Defendants. § § § § § § § § § § § § § § § § § NO. 5:15-CV-00883-DAE DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT Defendants Horizontal Wireline Services, LLC and Allied Wireline Services, LLC (“Allied-Horizontal”), Scott O’Beirne, and Larry Albert (collectively, “Defendants”) file this Motion for Partial Summary Judgment. First, Defendants move for summary judgment on the claims of Plaintiff Larry Gonzales because Gonzales was exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) at all times during his employment with Allied- Horizontal. Second, Defendants move that Defendants Joe Sites, Scott O’Beirne, and Larry Albert be dismissed from this litigation, because Plaintiffs never served Mr. Sites with process in this matter, and have failed to demonstrate that any of these three individuals exercised operational control over any of the Plaintiffs. Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 1 of 13 2 FACTUAL BACKGROUND I. Allied Wireline Services, LLC purchased Horizontal Wireline Services, LLC on February 28, 2014 and is currently doing business as Allied-Horizontal Wireline Services (Declaration of Sulakshana Das, attached hereto as Exhibit A, hereinafter referred to as “Das Dec.” ¶ 2). Allied- Horizontal provides wireline operations to energy sector clients (id. ¶ 3). Allied-Horizontal’s employees design, transport, operate, and oversee the use of complex machinery and explosive technology to perform open-hole, cased-hole, and perforation services for fracking operations throughout the country (id.) Defendant Joseph Sites is CEO of Allied-Horizontal (Deposition of Scott O’Beirne, attached hereto as Exhibit B, hereinafter referred to as “O’Beirne Dep.” at 13:23-25). Defendant Scott O’Beirne is Senior Vice President of Operations for Allied-Horizontal (id. at 5:10-11). Defendant Larry Albert is employed as Vice Chairman for Allied-Horizontal (Das Dec. ¶ 5). Sites, O’Beirne, and Albert - among other individuals and entities - are members of the Limited Liability Corporation currently doing business as Allied-Horizontal (O’Beirne Dep. at 11:3-19). Sites, O’Beirne, and Albert were not involved in setting Plaintiffs’ rates of pay, determining Plaintiffs’ schedules, determining the manner and method of Plaintiffs’ work, and were not responsible for maintaining Plaintiffs’ employment records (Das Dec. ¶ 6). Five individuals report to Mr. Sites - including Mr. O’Beirne and Mr. Albert (O’Beirne Dep. at 13:23-14:3; Das Dec. ¶ 4). Three Regional Managers report to Mr. O’Beirne (O’Beirne Dep. at 14:12-20). Those Regional Managers supervise four Operations Managers in total (id. at 15:3-15). The Field Services Manager - the title held by Plaintiff Gonzales - reports to the Operations Manager, (id. at 15:16-23), and supervises the Engineers for his or her operations region (id. at 15:24-16:1). Mr. Albert supervises five employees (Das Dec. ¶ 5). Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 2 of 13 3 Plaintiff Larry Gonzales was employed from February 16, 2015 to July 7, 2015 (20 weeks, 1 day) as Field Services Manager for the Midland region (id. ¶ 7). In this capacity, among other job duties and responsibilities, Gonzales was responsible for training all Engineers employed by the Company for the Midland region (Deposition of Larry Gonzales, attached hereto as Exhibit C, hereinafter referred to as Gonzales Dep., at 18:25-19:12) (Field Service Manager is responsible for training engineers, and supporting engineers). With one other Field Services Manager, Gonzales supervised 13 crews of operators and engineers - with three total employees on each crew (id. at 49:16-50:8). The supervisory responsibility was split evenly between the two Field Services Managers (id.; see also 51:4-9 (later, both Field Service Managers supervised all crews)). The Company considered that Gonzales directly supervised approximately 20 engineers (O’Beirne Dep. at 60:2-10). As a Field Service Manager, Gonzales visited the crews he supervised at the job site (Gonzales Dep. at 50:8-17). At the job site, he trained new crew members and ensured all employees were following the proper standard operating procedures for safety and operations (id. at 51:15-52:15 (was making sure the operators and engineers were doing things the way Allied-Horizontal expected them to)). He corrected their work if they were not doing it properly (id. at 100:7-12). Gonzales received calls from employees dealing with unfamiliar situations, and would walk them through how to handle it (id. at 77:11-15). The Company expected its engineers to contact Gonzales for direction about how to handle problem situations (id. at 78:22- 25). At the conclusion of the jobs in his region, Gonzales completed audits for the entire job (id. at 99:9-12). When he was not observing and training his crews in the field, Gonzales worked in an office in Midland, Texas (see O’Beirne Dep. at 32:7-13). Gonzales also regularly interacted with Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 3 of 13 4 Allied-Horizontal’s customers, approximately two or three times each week, to understand their thoughts on the job progress and to exchange paperwork (Gonzales Dep. at 92:10-19). If there were any problems at the job, or if the customer was not happy, Gonzales was responsible for discussing it with them (id. at 93:2-6). Gonzales was not involved in hiring employees while he worked as Field Services Manager, due in part to the economic downturn in the energy sector at the time and his short period of time in the position (id. at 65:13-22; see also Das Dec. ¶ 7). He also never confronted a circumstance where someone needed to be fired in the short period of time he was at Allied- Horizontal, and accordingly did not fire any employees while he worked for Allied-Horizontal (Gonzales Dep. at 74:21-75:3). Despite that, Field Services Managers such as Gonzales had the authority to interview prospective hires, conduct disciplinary write-ups, and recommend termination of the employees they supervised if they determined that procedures were not properly followed (O’Beirne Dep. at 20:1-13). Gonzales was paid a monthly salary of between $8,000 and $8,500 (Gonzales Dep. at 59:17-25; Das Dec. ¶ 8). Manual work was not his primary function, and he was not expected to perform such work (O’Beirne Dep. at 28:13-16). ARGUMENT AND AUTHORITIES II. Standard of Review A. Summary judgment is proper if the evidence, viewed in the light most favorable to the nonmoving party, shows that there is no genuine dispute of material fact and the movant is entitled to judgment as a matter of law. FED. R. CIV. P. 56; Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986). A dispute of material fact is “genuine” if the evidence would allow a reasonable jury to find in favor of the non-movant. Id. All reasonable inferences Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 4 of 13 5 must be drawn in favor of the nonmoving party. Matsushita, 475 U.S. at 587-88; see also Reaves Brokerage Co. v. Sunbelt Fruit & Vegetable Co., 336 F.3d 410, 412 (5th Cir. 2003). The moving party bears the burden of identifying the facts in the record that show that there is no genuine issue as to any material fact and that the moving part is entitled to summary judgment as a matter of law. FED. R. CIV. P. 56(c); Edwards v. Your Credit, Inc., 148 F.3d 427, 431 (5th Cir. 1998). If the movant bears the burden of proof on an issue, that party must establish that no dispute of material fact exists regarding any of the essential elements of the claim or defense at issue. Fontenot v. Upjohn, 780 F.2d 1190, 1194 (5th Cir. 1986) (the movant with the burden of proof “must establish beyond peradventure all of the essential elements of the claim or defense to warrant judgment in his favor”). Here, Plaintiffs have not raised a genuine issue of material fact to suggest that Plaintiff Gonzales did not fall within the executive exemption or highly compensated employee exemption from the overtime requirements of the FLSA. Further, Plaintiffs have failed to demonstrate that Defendants Sites, O’Beirne, or Albert are properly named as individual defendants in this matter; they did not serve Mr. Sites with process, and have not proven that any of the individual Defendants exercised operational control over any of the Plaintiffs. Summary Judgment to Defendants is Warranted on Gonzales’s Claims: He B. Was an Exempt Executive Under the FLSA Plaintiff Larry Gonzales was not entitled to overtime pay under the FLSA during his employment with Allied-Horizontal. Employees employed in an executive capacity are exempt from the FLSA’s overtime requirements. To qualify as an exempt executive employee under, an employee must: 1) Be compensated on a salary basis at a rate of not less than $455 per week; Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 5 of 13 6 2) Have the primary duty of management of the enterprise in which the employee is employed or of a customarily recognized department or subdivision thereof; 3) Customarily and regularly direct the work of two or more other employees; and 4) Have the authority to hire or fire other employees or make suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees that are given particular weight. 29 C.F.R. § 541.100 et seq. Here, Plaintiff Gonzales was paid on a salary basis (Gonzales Dep. at 59:17-25; Das Dec. ¶ 8). Gonzales also managed a customarily recognized subdivision of the Company - the Midland region. Management of a “customarily recognized subdivision” includes management of a business sector with “permanent status and continuing function.” Id. § 541.103(a). “Continuity of the same subordinate personnel is not essential to the existence of a recognized unit with a continuing function.” Id. § 541.103(d). An employee may be entitled to the executive exemption even if the workers he supervises come from a pool or from other recognized units, so long as “other factors are present that indicate that the employee is in charge of a recognized unit with a continuing function.” Id. The Midland region that Gonzales oversaw fits this classification. See Pruitt v. Sherrod Servs., 2012 U.S. Dist. LEXIS 193346, *6 (W.D. Tex. Nov. 9, 2012) (Plaintiff’s job duties and responsibilities met executive exemption where he was responsible for overseeing dispatch for region of defendant company); King v. Stevenson Beer Distrib. Co., 11 F. Supp. 3d 772, 782 (S.D. Tex. 2013) (plaintiff managed between seven and thirteen different employees in a sales team based in a specific geographic territory; court Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 6 of 13 7 concluded that the sales team is a recognized subdivision within the company, plaintiff was exempt executive). Within the Midland region, Gonzales supervised and trained between six and 13 crews of three employees - at least 18 employees at any given time - and the Company tasked him with direct supervision of approximately 20 engineers (Gonzales Dep. at 49:16-50:8; O’Beirne Dep. at 60:2-10). Gonzales’s job duties fall within the executive exemption definitions of “management” activities; the regulation describes that “management” includes activities such as training employees, maintaining production or sales records, appraising employees’ productivity and efficiency, and disciplining employees. Id. § 541.102. Gonzales testified that he did just that; he explained that he trained new crew members and ensured all employees were following the proper standard operating procedures for safety and operations (Gonzales Dep. at 51:15- 52:15), corrected employees’ work (id. at 100:7-12), and responded to calls from employees dealing with unfamiliar situations (id. at 77:11-15). These job duties are the job duties of an exempt executive. See Pruitt, 2012 U.S. Dist. LEXIS 193346, *15 (plaintiff’s exempt managerial activities included instructing employees on job duties they are required to carry out for the company, conducting orientation for employees, instructing field employees regarding proper positioning of employees and equipment, and completing reports of events on the job site); King, 11 F. Supp. at 783 (plaintiff’s exempt managerial activities including training salesmen, inspecting and documenting performance, and instructing salesmen on how to perform work). Finally, though Gonzales never exercised his authority to hire or fire employees in the short period of time he was at Allied-Horizontal, he testified that he corrected the employees’ work if they were not doing it properly (Gonzales Dep. at 100:7-12). Furthermore, the Company Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 7 of 13 8 specifically permitted Gonzales the authority to interview, hire, discipline, and fire the Operators and Engineers for the Midland region as needed (O’Beirne Dep. at 20:1-13). There is no dispute of fact on the issue of Gonzales’s authority because Gonzales testified that he had the authority to correct and discipline employees who he determined were not performing their jobs to the Company’s standards (Gonzales Dep. at 100:7-12). This is sufficient support for the final prong of the executive exemption. See King, 11 F. Supp. at 783 (Company documents demonstrated that plaintiff had authority to discipline employees, but plaintiff testified that authority was not taken seriously by every supervisor he reported to; record still supported grant of summary judgment to employer on executive exemption). These job duties meet the requirements for the executive exemption, and Gonzales is not entitled to overtime pay under the FLSA. Summary Judgment to Defendants is Warranted on Gonzales’s Claims: His C. Employment Falls Within the Highly Compensated Employee Exemption to the FLSA Plaintiff Gonzales was also not entitled to overtime pay under the FLSA during his employment with Allied-Horizontal because his employment met the requirements of the highly compensated employee exemption to the FLSA. The regulations provide that an employee whose primary duty is office or non-manual work, and who earns total annual compensation in excess of $100,000.00 in non-discretionary payments (with at least $455 per week paid on a salary basis), will be exempt if he regularly or customarily performs any of the exempt duties of an executive or administrative employee. 29 CFR § 541.601. The undisputed record shows that Gonzales met these requirements while he was employed by Allied-Horizontal. First, Gonzales’s work was primarily non-manual (O’Beirne Dep. at 28:13-16). Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 8 of 13 9 Second, Allied-Horizontal’s records, and Gonzales’s sworn testimony, confirm that Gonzales was paid a monthly salary of between $8,000 and $8,500 (Gonzales Dep. at 59:17-25). Specifically, Gonzales was paid a salary of $4,250.00 every two weeks for the first six weeks of his employment, and $4,000.00 every two weeks for the remaining 14.14 weeks he was employed (Das Dec. ¶ 8, and Das Dec. Ex. 1). The regulations instruct that this amount be pro- rated to calculate the annual compensation Gonzales would have been paid for a year of work with Allied-Horizontal. See 29 C.F.R. § 541.601(b)(3) (“An employee who does not work a full year for the employer . . . may qualify for the exemption under this section if the employee receives a pro rata portion of the minimum amount established [by the regulation], based upon the number of weeks that the employee will be or has been employed.”). Here, if Gonzales had remained employed, he would have been paid a total salary of $104,750.00 for his first year of employment (Das Dec. ¶ 8). That amount exceeds the required minimum $100,000.00 and, accordingly, the minimum-compensation element of the exemption is met. Finally, as demonstrated above, Gonzales customarily performed the duties of an exempt executive. For this exemption to apply, there is no need to determine whether that employee customarily and regularly performed all of the duties of an executive employee. See Karna v. BP Corp. N. Am., U.S. Dist. LEXIS 37517, at *57 (S.D. Tex. Mar. 19, 2013) (partially rev’d on other grounds) (citing 29 C.F.R. 541.601(c) (“[A] highly compensated employee will qualify for exemption if the employee customarily and regularly performs any one or more of the exempt duties or responsibilities of an executive, administrative or professional employee.”)). Here, as described above, Gonzales performed one or more of the job duties of an exempt executive. Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 9 of 13 10 Gonzales met the requirements of the highly compensated employee exemption, and he is accordingly not entitled to overtime pay for the time he was employed by Allied-Horizontal. Summary judgment to Defendants is warranted on Gonzales’s claims. Plaintiffs Failed to Demonstrate That Individual Liability is Appropriate in D. This Matter Defendants Sites, O’Beirne, and Albert should be dismissed from this litigation. First, Defendant Sites has not been served. Rule 5 requires that a person be served with process before that person may be a party to litigation. FED. R. CIV. P. 5. Defendant Sites was never served and, as such, is not a proper party Defendant. Plaintiffs have not demonstrated that Defendants Sites, O’Beirne, and Albert are properly individually liable in this action. To determine whether to assign individual liability under the FLSA, courts in the Fifth Circuit apply the “economic realities” test. To do so, the court considers whether the alleged employer: “‘(1) possessed the power to hire and fire the employees, (2) supervised and controlled employee work schedules or conditions of employment, (3) determined the rate and method of payment, and (4) maintained employment records.’ In cases where there may be more than one employer, the court ‘must apply the economic realities test to each individual or entity alleged to be an employer and each must satisfy the four part test.” Gray v. Powers, 673 F.3d 352, 355 (5th Cir. 2012) (quoting Watson v. Graves, 909 F.2d 1549, 1556 (5th Cir. 1990)). “The dominant theme in the case law is that those who have operating control over employees within companies may be individually liable for FLSA violations committed by the companies.” Martin v. Spring Break '83 Prods., LLC, 688 F.3d 247, 251 (5th Cir. 2012). [The Fifth Circuit] recognize[s] that “individuals ordinarily are shielded from personal liability when they do business in a corporate form, and . . . it should not lightly be inferred that Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 10 of 13 11 Congress intended to disregard this shield in the context of the FLSA.” Id. at 356 (quoting Baystate Alt. Staffing, Inc. v. Herman, 163 F.3d 668, 677 (1st Cir. 1998)). Accordingly, the Fifth Circuit cautions that plaintiff-employees should not “confuse the corporate entity decision of an FLSA employer with the participation of its owners.” Id. That is precisely what Plaintiffs attempt to do here. Plaintiffs have not demonstrated that Albert, O’Beirne, or Sites had the authority to hire or fire Plaintiffs, supervised and controlled Plaintiffs’ work schedules and conditions of employment, set their rates of pay, and maintained their employment records. Importantly, the Fifth Circuit requires this specific evidence, not merely evidence that the individual defendant had the power to hire and fire anyone within the company. For instance, in Gray the Fifth Circuit affirmed summary judgment to the employer on the issue of individual liability where the plaintiff demonstrated that the individual defendant had the power to hire and fire manager-level employees, and suggested to the court that such power implied that he would also have the authority to hire or fire the plaintiff, a lower-level employee. The Court rejected this argument, opining that the individual defendant’s “participation in a joint decision with co-owners of [the Company] proves nothing about whether [that individual] had the authority individually to control employment terms of lower-level employees.” Gray, 673 at 355. The same result is warranted here, where the undisputed record shows that Sites, O’Beirne, and Albert directly supervised individuals other than the Plaintiffs and there were several layers of supervisory responsibility between them and the Plaintiffs (Das Dec. ¶ 4-5; O’Beirne Dep. 14:12-20). The undisputed record further shows that Sites, O’Beirne, and Albert were not involved in setting Plaintiffs’ rates of pay, determining Plaintiffs’ schedules, determining the manner and method of Plaintiffs’ work, and were not responsible for Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 11 of 13 12 maintaining Plaintiffs’ employment records (Das Dec. ¶ 6). Plaintiffs have failed to demonstrate that any of the three Defendants exercised this operational control over any of the Plaintiffs and, accordingly, summary judgment to Defendants on the issue of individual liability is warranted. Gray, 673 F.3d at 355. CONCLUSION III. Defendants respectfully request an order granting summary judgment to Defendants on the claims of Plaintiff Larry Gonzales because Mr. Gonzales was exempt from the overtime requirements of the Fair Labor Standards Act (FLSA) at all times during his employment with Allied-Horizontal. Defendants further request an order granting summary judgment to Defendants on the issue of individual liability and dismissing Joe Sites, Scott O’Beirne, and Larry Albert from this litigation, because Plaintiffs never served Mr. Sites with process in this matter, and have failed to demonstrate that any of these three individuals exercised operational control over any of the Plaintiffs. Defendants further request any relief to which the Court deems they are justly entitled. Dated December 9, 2016 Of Counsel: Claire B. Deason State Bar No. 24087399 Fed. I.D. No. 1724977 cdeason@littler.com; and LITTLER MENDELSON, P.C. 80 South 8th Street 1300 IDS Center Minneapolis MN 55402 612.313.7610 (Telephone) 763.647.7964 (Facsimile) Respectfully submitted, /s/ David B. Jordan David B. Jordan (Attorney-in-Charge) State Bar No. 24032603 Fed. I.D. No. 40416 djordan@littler.com LITTLER MENDELSON, P.C. A PROFESSIONAL CORPORATION 1301 McKinney Street Suite 1900 Houston, TX 77010 713.951.9400 (Telephone) 713.951.9212 (Telecopier) ATTORNEYS FOR DEFENDANTS Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 12 of 13 13 CERTIFICATE OF SERVICE I hereby certify that, on December 9, 2016, I electronically filed the foregoing with the Clerk of Court using the CM/ECF system which will send notification of such filing to the following: Josh Sanford SANFORD LAW FIRM, PLLC One Financial Center 650 S. Shackleford Road, Suite 411 Little Rock, Arkansas 72211 ATTORNEY FOR PLAINTIFFS /s/ David B. Jordan David B. Jordan Case 5:15-cv-00883-DAE Document 34 Filed 12/09/16 Page 13 of 13 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION LARRY GONZALES, NELSON MENCHACA, JARON PAUL, SEAN TINDELL, FRANK MENCHACA, AND LOGAN TOW, Plaintiffs, V. HORIZONTAL WIRELINE SERVICES, LLC; and ALLIED WIRELINE SERVICES, LLC, d/b/a ALLIED-HORIZONTAL WIRELINE SERVICES, LLC, and LARRY ALBERT, SCOTT O-BEIRNE, and JOSEPH SITES, Each Individually and as officers of ALLIED WIRELINE SERVICES LLC, Defendants. § § § § § § § § § § § § § § § § § § Court File No. 5:15-CV-00883-DAE APPENDIX OF RECORD EVIDENCE IN SUPPORT OF DEFENDANTS' MOTION PARTIAL SUMMARY JUDGMENT Pursuant to the Local Rules of Civil Procedure for the United States District Court for the Western District of Texas, Defendants' respectfully submit this Appendix of Record Evidence in support of Defendants' Motion for Partial Summary Judgment. Exhibit Description A Declaration of Sulakshana Das B Excerpts from the Deposition Transcript of Scott O'Beirne, taken on October 26, 2016 C Excerpts from the Deposition Transcript of Larry Gonzales, taken on September 26, 2016 Case 5:15-cv-00883-DAE Document 34-1 Filed 12/09/16 Page 1 of 2 Dated December 9, 2016 Of Counsel: Claire B. Deason State Bar No. 24087399 Fed. I.D. No. 1724977 cdeason@littler.com; and LITTLER MENDELSON, P.C. 1300 IDS Center 80 South 8th Street Minneapolis, MN 55402.2136 612.313.7610 (Telephone) 612.647.7964 (Facsimile) Respectfully submitted, /s/ David B. Jordan David B. Jordan (Attorney-in-Charge) State Bar No. 24032603 Fed. I.D. No. 40416 djordan@littler.com LITTLER MENDELSON, P.C. A Professional Corporation 1301 McKinney Street Suite 1900 Houston, TX 77010 713.951.9400 (Telephone) 713.951.9212 (Telecopier) ATTORNEYS FOR DEFENDANTS CERTIFICATE OF SERVICE I hereby certify that, on December 9, 2016, I electronically filed the foregoing with the Clerk of Court using the CM/ECF system which will send notification of such filing to the following: Josh Sanford SANFORD LAW FIRM, PLLC One Financial Center 650 S. Shackleford Road, Suite 411 Little Rock, Arkansas 72211 ATTORNEY FOR PLAINTIFFS /s/ Claire B. Deason Claire B. Deason Case 5:15-cv-00883-DAE Document 34-1 Filed 12/09/16 Page 2 of 2 EXHIBIT A Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 1 of 26 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION LARRY GONZALES, NELSON § MENCHACA, JARON PAUL, SEAN § TINDELL, FRANK MENCHACA, LOGAN § TOW, JUSTIN BISH and SPENCER § WORTHY, § Plaintiffs, v. HORIZONTAL WIRELINE SERVICES, LLC; and ALLIED WIRELINE SERVICES, LLC, d/b/a ALLIED- HORIZONTAL WIRELINE SERVICES, LLC, and LARRY ALBERT, SCOTTO- BEIRNE, and JOSEPH SITES, Each Individually and as officers of ALLIED WIRELINE SERVICES LLC Defendants. § § § § § § § § § § § § No. 5:15-CV-00883-DAE DECLARATION OF SULAKSHANA DAS My name is Sulakshana Das. I am of sound mind and capable of making this Declaration. I am over the age of eighteen. This declaration is based on my own personal knowledge ofthe facts stated herein. 1. I am currently employed as Director of Human Resources for Allied-Horizontal Wireline Services, LLC. In that capacity, I have personal knowledge of the employment records of the Plaintiffs in this litigation. 2. Allied Wireline Services, LLC purchased Horizontal Wireline Services, LLC on February 28, 2014 and is currently doing business as Allied-Horizontal Wireline Services. 3. Allied-Horizontal provides wireline operations to energy sector clients. Allied-Horizontal's employees design, transport, operate, and oversee the use of complex machinery and Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 2 of 26 explosive technology to perform open-hole, cased-hole, and perforation services for :fracking operations throughout the country. 4. Defendant Joseph Sites is CEO of Allied-Horizontal Wireline Services, LLC. He supervises five employees, including Mr. O'Beime and Mr. Albert. Mr. Sites did not directly supervise any of the Plaintiffs in this litigation. 5. Defendant Larry Albert is employed as Vice Chairman of Allied-Horizontal Wireline Services, LLC. He supervises five employees, and did not directly supervise any of the Plaintiffs in this litigation. 6. Joseph Sites, Scott O'Beime, and Larry Albert were not involved in setting Plaintiffs' rates of pay, determining Plaintiffs' schedules, determining the manner and method of Plaintiffs' work, and were not responsible for maintaining Plaintiffs' employment records. 7. Plaintiff Larry Gonzales was employed by Allied-Horizontal from February 16, 2015 to July 7, 2015 (20 weeks, 1 day). 8. During his tenure with Allied-Horizontal, Larry Gonzales was paid a salary of $4,250.00 every two weeks for the first six weeks of his employment, and $4,000.00 every two weeks for the remaining 14.14 weeks he was employed. Earnings statements listing Mr. Gonzales's pay are attached to this Declaration as Exhibit 1. Had Mr. Gonzales remained employed, he would have been paid a total salary of $104,750.00 for his first year of employment. I declare under penalty of perjury that the foregoing is true and correct. Sulakshana Das Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 3 of 26 EXHIBIT 1 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 4 of 26 8115/2016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Memos Number 79149641 Code Statutory Other Code J- 401k Comp X - Max Elig/comp Check View Earnings Statement Period Beginning Date: 02/16/2015 Period End: 02/28/2015 Pay Date: 02/27/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# '·••~ •• '- -·~• •••-·•- •• •" • .v- ·--- -------·--- - -~ ______ .,. Hours Amount 4,250.00 4,250.00 Amount 874.48 263.50 61.63 Amount 3,050.39 Amount 4,250.00 4,250.00 ALLIED000292[Gonzales] httos:f/oavexaa.ado.com/eXoerts/EmoloveeCheckViewPrintDetail.do?oid=null%7C%7EQDY%7C%7E001660%7C%7E392%7C%7E6382190%3A48%7C%7E1%7C%7E9%7C%7E2015%7C%7EPDQDY091.LDF... 1/1 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 5 of 26 811512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Memos Number 00110378 Code Statutory Other CK 1 - Checking 1 Code J- 401k Comp CheckView Earnings Statement Period Beginning Date: 03/01/2015 Period End: 03/15/2015 Pay Date: 03/13/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours > ·-·~·-- ~.- ........ ··-·~ <• -~·-··---·--~--M-------·-·---·----· Amount 4,250.00 4,250.00 Amount 874.48 263.50 61.62 Amount 3,050.40 0.00 Amount 4,250.00 ALLI ED000293[Gonzales] httos:!/oavexao.ado.com/eXoerts/EmoloveeCheckViewPrintDelail.do?oid=nuii%7C%7EODY%7C%7E001660%7C%7E661%7C%7E6382190%3A48%7C%7E1%7C%7E11%7C%7F?015%7C%7FPOOOY111.1 OF 11? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 6 of 26 8/1512016 Check View X - Max Elig/comp 4,250.00 ALLIED000294[Gonzales] https://payexaq.adp.com/e)(perts/EmployeeCheckViewPrintDetail.do?oid=null% 7C %7EQD Y% 7C% 7E001660% 7C% 7E661% 7C% 7E6382190%3A48% 7C% 7E1% 7C% 7E11% 7C% 7E2015% 7C% 7EPOODY111.1 0 F. ?f'J Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 7 of 26 811512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00130237 Check View Code Statutory Other CK1 -Checking 1 DEN- Dental MED- Medical VCL - Voluntary Ch Life VOL - Voluntary Life VSN - Voluntary Vision Earnings Statement Period Beginning Date: 03/16/2015 Period End: 03/31/2015 Pay Date: 03/31/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount 4,250.00 4,250.00 Amount ~-- o •••- --A - ---·- o -·· --r ~- ~- ¥0,00 ·---- •••--- ·----d---~----• ~-~----- ·-·- -~"-AW0 -~--------- 854.16 259.00 60.57 Amount 2,986.49 12.40 56.50 1.00 16.20 3.68 0.00 ALLIED000295[Gonzales) httos://oavexoo.ado.com/eXoerts/EmDioveeCheckViewPrintDetail.do?oid=nuii%7C%7EODY%7C%7E001660%7C%7E362%7C%7E6382190%3A48%7C%7E1%7C%7E13°k7r.%7F?015%7r.%7FPnonv131! nF 1/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 8 of 26 8/15/2016 Memos Code J- 401k Comp X - Max Elig/comp Check View Amount 4,250.00 4,250.00 ALLIED000296[Gonzales J httos://oavexao.ado.com/eXoerts/EmoloveeCheckViewPrintDetail.do?old:::nuii%7C%7EODY%7C%7E001660%7C%7E362%7C%7E6382190%3A48%7C%7F1%7C%7F1~%7C%7F?01S%7r.%7FPnonY1::!1 1 nF ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 9 of 26 8/1512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept; 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00160427 Check View Code Earnings Statement Period Beginning Date: 04/01/2015 Period End: 04/15/2015 Pay Date: 04/15/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount oA~--~·--- --···-~- - ,_.__ •• ---------------- •• ---~--~---------~~""' ---~-~----···-~-----~--- .. ~"·-----------~~-·~·--·~--·····---------~ Statutory Other K- 401k Employee$ CK1 - Checking 1 DEN- Dental MED- Medical VCL- Voluntary Ch Life VOL- Voluntary Life VSN -Voluntary Vision 4,000.00 4,000.00 Amount 742.65 243.50 56.95 Amount 160.00 2,707.12 12.40 56.50 1.00 16.20 3.68 ALLIED000297[Gonzales] 0.00 httos:/loavexaa.ado.comleXoerts/EmoloveeCheckViewPrintDetail.do?oid=ruii%7C%7EQDY%7C%7E001660%7C%7E766%7C%7Efi.182190"/n~A4R0/n7C:%7F1%7C:%7F1Fi%7C:%7F?01'i%7C:%7FPnonY1Fi11 nF 11? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 10 of 26 8/15/2016 Memos Code J- 401k Comp X - Max Elig/comp Check View Amount 4,000.00 4,000.00 ALLIED000298[Gonzales) httos://oavexaa.ado.com/eXoerts/EmoloveeCheckViewPrintDetail.do?oid=null%7C%7EQDY%7C%7E001660%7C%7E766"/o7C%7E6382190%3A48%7C%7E1%7C%7F1n%7r.%7F?01SOfn7r.%7FPnonv1R11 nF ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 11 of 26 8/15/2016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00180225 Code Statutory Other K - 401 k Employee $ CK 1 - Checking 1 DEN- Dental MED - Medical VCL - Voluntary Ch Life VOL - Voluntary Life VSN -Voluntary Vision CheckView Earnings Statement Period Beginning Date: 04/16/2015 Period End: 04/30/2015 Pay Date: 04/30/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field # Hours Amount 4,000.00 ··---- ·---· -~--- -· ~--·· --~·--~---·--·--··-~--------.. ·--------···--·--··-·-···-. ---- -· -- - ·- .. ~--·. -·· 4,000.00 Amount 742.65 243.50 56.95 Amount 160.00 2,707.12 12.40 56.50 1.00 16.20 3.68 ___ ·---------····--------------------~~ED~~~99~Gon~~~~--~:~~ htlps:/lpayexaQ.adp.com/eXperts/EmployeeCheckViewPrin!Detail.do?oid=null%7C%7EQDY%7C%7E001660%7C%7E357%7C%7E6382190%3A48%7C%7E1%7C%7E18%7C%7E2015%7C%7EPDQOY181.LDF... 1/2 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 12 of 26 8/15/2016 Memos Code J- 401k Camp X - Max Elig/comp Check View Amount 4,000.00 4,000.00 ALLIED000300[Gonzales] httos://oavexao.ado.com/eXoertsfEmoloveeCheckViewPrintDetail.do?oid::::nuii%7C%7EODY%7C%7E001660%7C%7E3.'i7"1n7C%7F63f\/100%::lA4R%7\.%7F1%7r:Ofn7F1R%7r.%7F?n1'i%7r.%7FPnonv1R11 nF ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 13 of 26 8/1512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Memos Number 00180226 Code EB2 - Other Bonus Statutory Other K - 401 k Employee $ CK1 -Checking 1 Code Check View Earnings Statement Period Beginning Date: 04/16/2015 Period End: 04/30/2015 Pay Date: 04/30/2015 Gonzales, larry 1259 SE 4701 Andrews, TX 79714 Field # Hours 3 Amount 791.20 791.20 Amount ___ , ,_ ·'~-~- --~- ---·· ~- -·· ---·--·""'·-·-··-· -~-·· ~----····------------~--···- ·-- --··~ -------·····--···-------- .... ---- 189.89 49.05 11.47 Amount ·--· .... -----·· . 31.65 509.14 - - -- --~----·---- 0.00 Amount ALLIED000301 [Gonzales] https:t/payexaQ.adp.com/eXperts/EmploveeCheckViewPrintDetail.do?oid=nuU%7C%7EQDY%7C%7E001660%7C%7E358%7C%7E6382190%3A48%7C%7E1%7C%7E18%7C%7E2015%7C%7EPDQDY181.LDF... 1/2 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 14 of 26 8/15/2016 J -401k Comp X - Max Eliglcomp Check View ALLIED000302[Gonzales] 791.20 791.20 hltm;·/ln~VP.X:¥1 ~rln.r.nm/P.XnP.ri!::IFmnlnvf!P.f:hAr.kViAWPrintOP.tAil.rln?nirl=nt 111%7(;% 7FOOY% 7f:% 7F001ffi0% 7f:% 7F::I.'iR%7f:% 7Fn:"'?Hl0%::1A4R% 7f:% 7F1% 7f:Ot. 7F'1RO/, 7f"'.Of.. 7F'?01 fiOf, 7r.o1. 7FPnnnV1R1 I nF= ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 15 of 26 8/15/2016 Co. ODY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00200415 Code Statutory Other K- 401k Employee$ CK1 -Checking 1 DEN- Dental MED -Medical VCL - Voluntary Ch Life VOL - Voluntary Life VSN -Voluntary Vision Check View Earnings Statement Period Beginning Date: 05/01/2015 Period End: 05/15/2015 Pay Date: 05/15/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount 4,000.00 4,000.00 Amount • -~ -~ ~~ > -· --·- ··--·-···-----~----~--- ----~~----------~--~-~ ------··------~----------· -·--------· 742.65 243.50 56.95 Amount 160.00 2,707.12 12.40 56.50 1.00 16.20 3.68 ALLIEDDDD303[Gonzalesj 0. 00 -···-~""'-~-~ •• o,~~·---·--u••••• httos://oavexao.ado.com/eXoerts/EmoloveeCheckViewPrintDetai!.do?oid=nuii%7C%7EODY%7C%7E00166D%7C%7E682%7C%7E63R?1llO%::lA4R%7t.%7F1%7t.%7F?notn7r.01n7F?01!'i%7r.OJ.7!=Pnnnv?01 1 n1= 1/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 16 of 26 8/15/2016 Memos Code J- 401k Comp X - Max Elig/comp CheckView Amount 4,000.00 4,000.00 ALLIED000304[Gonzales] https://payexao.ado.com/eXoerts/EmoloveeCheckViewPrintDetail.do?oid==nuii%7C%7EQDY%7C%7E001660%7C%7E682%7C%7E6382190%3A48%7C%7E1%7C%7E20%7C%7E2015%7C%7EPDQDY201.LDF... 2/2 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 17 of 26 8/1512016 Co. QDY File# 001660 Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Clock Number 00220192 Code Statutory Other K- 401k Employee$ CK1 - Checking 1 DEN- Dental MED- Medical VCL - Voluntary Ch Life VOL - Voluntary Life VSN - Voluntary Vision CheckView Earnings Statement Period Beginning Date: 05/16/2015 Period End: 05/31/2015 Pay Date: 05/29/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount 4,000.00 4,000.00 Amount 742.65 243.50 56.95 Amount '- -------- ~- -~--~·~---~---~ ~~«~---·-·-·--~----· -~-- ~ 160.00 2,707.12 12.40 56.50 1.00 16.20 3.68 ALLIED000305[Gonzales] 0. 00 httos://pavexaQ.adp.com/eXoerts/EmployeeCheckViewPrintDetail.do?oid=null%7C%7EQOY%7C%7E001660%7C%7E295%7C%7E6382190%3M8%7C%7E1%7C%7E22%7C%7E2015%7C%7EPDODY221.LDF. 1/'i Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 18 of 26 8/15/2016 Memos Code J -401k Comp X - Max Elig/comp Check View Amount 4,000.00 4,000.00 ALLIED000306[Gonzales] httosJ/oavexaa.ado.com/eXoertsJEmoloveeCheckViewPrintDetail.do?oid=nuii%7C%7EQDY%7C%7E001660%7C%7E295%7C%7E6382190%3A48%7C%7E1%7C%7E22%7C%7F?01S%7l.%7FPnonY??1.1 nF ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 19 of 26 8/1!il2016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00240427 CheckView Code Earnings Statement Period Beginning Date: 06/01/2015 Period End: 06/15/2015 Pay Date: 06/15/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field # Hours Amount ~-·-" ---· ~~- ---~----··---··· -··--·--· -- .~---· __ ,. ______ --·--··-- ---~~-··-~-------~~---__._._,---~---~-------------·-------------·-·--,-----~~-----~- Statutory Other K- 401k Employee$ CK1 -Checking 1 DEN- Dental MED- Medical VCL - Voluntary Ch Life VOL- Voluntary life VSN - Voluntary Vision . ----------- -~- -------- 4,000.00 4,000.00 -~--~~--~- Amount 742.65 243.50 56.94 Amount 160.00 2,707.13 12.40 56.50 1.00 16.20 3.68 ALLIED000307[Gonzales] 0.00 ~--u-••--·----·-•.---- • ·•-••-••-••••-- httos:/Joavexao.ado.com/eXoerts/EmoloveeCheckViewPrin!Detail.do?oid=nuii%7C%7EOOY%7C%7E001660%7C%7Ffiffi%7C%7FnAA?100%::\A4R%7C%7F1%7C%7F?d.Oin7C%7F?01~0/,7C01n7FPnnnv?l111 m:: 1/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 20 of 26 8/15/2016 Memos Code J- 401k Comp X - Max Elig/comp Check View --~ ------ "-- ' -·- --~- __ ,_,_~-----·----- Amount 4,000.00 4,000.00 ALLIED000308[Gonzales] hllos:/foavexaQ.ado.com/eXoerts/EmoloveeChackViewPrintDetail.do?oid=ruii%7C%7EQOY%7C%7E001660%7C%7E656%7C%7E6382190%:>A48%7C:%7F1%7C:%7F?4°t.7r.%7F?01S"t.7r.%7FPnnnv?.ll.11 n1= ?I? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 21 of 26 8/1512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00260202 Check View Code Statutory Other K - 401 k Employee $ CK 1 - Checking 1 DEN- Dental MED - Medical VCL - Voluntary Ch Life VOL - Voluntary Life VSN - Voluntary Vision Earnings Statement Period Beginning Date: 06/16/2015 Period End: 06/30/2015 Pay Date: 06/30/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount 4,000.00 4,000.00 Amount 742.65 243.50 56.95 Amount 160.00 2,707.12 12.40 56.50 1.00 16.20 3.68 ALLIED000309[Gonzales] 0.00 ~·~--·~------~"-"'-- https:l/payexa~.adp.com/eXperls/EmployeeCheckViewPrin!Detail.do?oid=nuii%7C%7EQDY%7C%7E001660%7C%7E280%7C%7E6382190%3A48%7C%7E1%7C%7E26%7C%7F2015%7C%7FPOOOY?n1 I OF 11? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 22 of 26 8/1512016 Memos Code J- 401k Comp X - Max Elig/comp CheckView Amount 4,000.00 4,000.00 ALLI ED00031 O[Gonzales] https://pavexaq.ado.com/eXperts/EmoloveeCheckViewPriniDetail.do?oid=:nuli%7C%7EQDY%7C%7E001660%7C%7E280%7C%7E6382190%3A48%7C%7E1%7C%7E26%7C%7E?01!1%7C%7FPnonv?n11 OF ?/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 23 of 26 8/1512016 Co. QOY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Regular Gross Pay Deductions Federal Income Tax Social Security Medicare Net Pay Number 00290425 CheckView Code Earnings Statement Period Beginning Date: 07/01/2015 Period End: 07/15/2015 Pay Date: 07/15/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount •- -·-- ~-- -· -• • '•·~·-~--·-"·-·-·-···~~ -.•-<··--- ~------------~-•.-- "" ••-• .-,-·~--~~--- _,, •. ·•-••·-~--.- A-~--"'-~---~----.... ------~···--- >•··---"·'·"--> -~ Statutory Other ------··---~-·- ---- -~---- K- 401k Employee$ CK1 -Checking 1 DEN- Dental MED - Medical VSN - Voluntary Vision 40.00 1,846.08 1,846.08 Amount 225.71 109.96 25.72 Amount 73.84 1,338.27 12.40 56.50 3.68 0.00 ALLIED000311[Gonzales] httns·/IMVP.XRn ~rtn ~nm/P.XnArt~/FmnlnvPAC:hP.r.kVii'MIPrinfOAI~il rtn?nirl=mdl%7(:% 7FOOY% 7C:% 7F001nfi00f. 7C:Ofn7Fn??"/~ 7r.0/. 7Ff\.~?1QOO£.~Adll0/. 7r.o1. 7f=1°/. 7r.oJ. 71=?QO/. 7r.•t. 71=?n1t:;Of.. 7r.•I.71=DnnnV?Q1 I n;: 1/? Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 24 of 26 811512016 Memos Code J- 401k Comp X - Max E!ig/comp Check View Amount 1,846.08 1,846.08 ALLIED000312[Gonzales] https://payexa~.adp.com/eXperts/EmployeeCheckViewPrintDetail.do?oid=nuii%7C%7EQDY%7C%7E001660%7C%7E622%7C%7E6382190%3A48%7C%7E1%7C%7E29%7C%7E2015%7C%7EPDQDY291.LDF... 2/2 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 25 of 26 8/1512016 Co. QDY File# 001660 Clock Worked In Dept: 500000 Home Dept: 500000 Allied Wireline Earnings Gross Pay Deductions Net Pay Memos Number 00000000 Code Statutory Other Code B - Healthcare Value CheckView Earnings Statement Period Beginning Date: 12/16/2015 Period End: 12131/2015 Pay Date: 12/31/2015 Gonzales, Larry 1259 SE 4701 Andrews, TX 79714 Field# Hours Amount 0.00 Amount ~ ' ' .- ~ -· -·~A-~ ~ • ~" --·--~ ·-•· • -- ---··•' -----·~---~·-- ---,~----.-- ·- o ---....... ··--·---••>••~--· ""~""'" Amount 0.00 Amount 2,096.82 ALLIED000313[Gonzales] httos:l/oavexao.ado.com/eXoerts/EmoloveeCheckViewPrintDetail.do?oid=nuli%7C%7EQDY%7C%7E001660"/o7C%7E439%7C%7E6382190%3A48%7C%7E1%7C%7E53%7C%7E2015%7C%7EPDQDY531.LDF... 1/1 Case 5:15-cv-00883-DAE Document 34-2 Filed 12/09/16 Page 26 of 26 EXHIBIT B Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 1 of 15 Scott O'Beirne, Corporate Representative 1 2 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION 3 LARRY GONZALES, NELSON ) MENCHACA, JARON PAUL, SEAN) 4 TINDELL, FRANK MENCHACA, ) JUSTIN BISH and SPENCER ) 5 WORTHEY ) PLAINTIFFS ) 6 ) VS. ) CASE NO. 5:15-cv-883-DAE 7 ) HORIZONTAL WIRELINE ) 8 SERVICES, LLC; and ALLIED ) WIRELINE SERVICES, LLC, ) 9 dba ALLIED-HORIZONTAL ) WIRELINE SERVICES, LLC; ) 10 and LARRY ALBERT, SCOTT ) O'BEIRNE, and JOSEPH ) 11 SITES, Each Individually ) and as officers of ALLIED ) 12 WIRELINE SERVICES, LLC ) DEFENDANTS ) 13 14 15 ORAL DEPOSITION OF 16 SCOTT O'BEIRNE, DESIGNATED REPRESENTATIVE OF HORIZONTAL 17 WIRELINE SERVICES, LLC 18 October 26, 2016 19 20 ORAL DEPOSITION OF SCOTT O'BEIRNE, DESIGNATED 21 REPRESENTATIVE OF HORIZONTAL WIRELINE SERVICES, LLC, 22 produced as a witness at the instance of the Plaintiffs 23 and duly sworn, was taken in the above-styled and 24 numbered cause on the 26th day of October, 2016, from 25 10:10 a.m. to 12:34 p.m., before PEGGY C. DONNELL, RMR, DepoTexas, Inc. Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 2 of 15 Scott O'Beirne, Corporate Representative 1 CSR in and for the State of Texas, reported by machine 2 shorthand at the offices of Littler Mendelson, P.C., 3 1301 McKinney Street, Suite 1900, Houston, Texas 77010, 4 pursuant to the Federal Rules of Civil Procedure and the 5 provisions stated on the record or attached hereto. 6 A-P-P E-A-R-A-N-C-E-S 7 FOR THE PLAINTIFFS: 8 Mr. Josh Sanford SANFORD LAW FIRM 9 10 11 One Financial Centre 650 S. Shackleford, Suite 411 Little Rock, Arkansas 72211 Telephone: (501) 221-0088 - Fax: (888) 787-2040 E-mail: josh®sanfordlawfirm.com 12 FOR THE DEFENDANTS: 13 14 15 16 17 18 19 20 21 22 23 24 25 Ms. Claire B. Deason (By videoconference) LITTLER MENDELSON, P.C. 1300 IDS Center 80 s. 8th Street Minneapolis, MN 55402-2136 Telephone: (612) 313 7610 - Fax: (763) 647-7964 E-mail: cdeason®littler.com AND Ms. LaDelle "DeDe" Davenport Mr. Adam Perkins LITTLER MENDELSON, P.C. 1301 McKinney, Suite 1900 Houston, Texas 77010 Telephone: (713) 951-9400- Fax: (713) 951-9212 E-mail: LDavenport®littler.com DepoTexas, Inc. 2 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 3 of 15 Scott O'Beirne, Corporate Representative 1 INDEX 2 PAGE 3 Appearances 2 4 Stipulations 4 5 SCOTT O'BEIRNE, DESIGNATED REPRESENTATIVE OF HORIZONTAL 6 WIRELINE SERVICES, LLC 7 Examination by Mr. Sanford ........................ 4 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Changes and Signature Reporter's Certification EXHIBIT Exhibit 1 Exhibit 2 EXHIBITS DESCRIPTION Copy of Plaintiffs' 30 (b) (6) Notice of Taking Deposition of Corporate Representative of Allied Wireline Services, LLC, d/b/a Allied-Horizontal Wireline Services, LLC, Cause No. 5:15-cv-883-DAE, Copy of 2016 Titled Asset List for WEX cards.xlsx (Bates labeled Allied 000494 (Gonzales) through Allied 000505 (Gonzales) DepoTexas, Inc. 73 75 PAGE 4 47 3 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 4 of 15 Scott O'Beirne, Corporate Representative 1 [Reporter's Note: The reading of Federal 2 Rule 30(b) (5) (A) into the record was 3 waived by all parties present.] 4 SCOTT O'BEIRNE, DESIGNATED REPRESENTATIVE OF HORIZONTAL 5 WIRELINE SERVICES, LLC, 6 having been first duly sworn, testified as follows: 7 EXAMINATION 8 BY MR. SANFORD: 9 10 11 Q. A. Q. Good morning. Good morning. As you know, my name is Josh Sanford. Will 12 you please tell us your name? 13 14 15 16 17 18 19 A. Q. A. Q. A. Q. A. Scott O'Beirne. Spell your last name, please. 0, apostrophe, B-e-i-r-n-e. And do you know why you are here today? Yes, sir. What's that? I'm being deposed for the, the company in the 20 case of Larry Gonzales versus Allied Horizontal. 21 Q. Okay. I'm going to hand you a document that 22 we're going to mark as Exhibit 1. 23 (Exhibit 1 marked.) 24 Q. (BY MR. SANFORD) Can you tell me if you 25 recognize that document there? DepoTexas, Inc. 4 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 5 of 15 Scott O'Beirne, Corporate Representative 1 A. I believe the company was incorporated in May 2 of 2010. 3 Q. And when you say "incorporated," you don't 4 mean that it's a corporation, but you're saying that 5 the, the LLC was formed in 2010? 6 7 8 LLC? 9 10 11 A. Q. A. Q. Yes, sir. Okay. Do you know who are the members of the MS. DEASON: Object to the form. I know some. (BY MR. SANFORD) Go ahead and tell me those 12 that you know. 13 A. Turnbridge Capital. Swift River Investments. 14 Let's see. There would be -- and we're talking at the 15 formation? 16 17 Q. A. No. Today. I'm sorry. Okay. Larry Albert. Joseph Sites. David 18 Otte. Richard Spears. That -- there are -- and I would 19 be on that list. 20 21 Q. A. Okay. And there are some others. I don't have a ... 22 Q. Can you give me an approximation of the total 23 amount of the ownership of the people and entities that 24 you've listed? Like, is this 80 percent of the 25 ownership that you've listed or 20 percent? DepoTexas, Inc. 11 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 6 of 15 Scott O'Beirne, Corporate Representative 1 Q. Is there any other category of employee that 2 you would say provides the logging and perforation work 3 that you've described? 4 A. No. 5 Q. Approximately/ how many operators are employed 6 at Allied right now? 7 A. A hundred and twenty. 8 9 Q. A. And about how many engineers? Sixty to seventy. 10 Q. Sor if wer if we add those together and we say 11 about a hundred and eighty current employees in that 12 part of the business, how many other employees, roughly, 13 are there that don't provide the logging and perforation 14 services? 15 16 A. Q. Our current head count isr give or take, 340. Okay. So, a little more than half of the 17 employees are either engineers or operators? 18 19 A. Q. Yes. Okay. Does Allied have any subsidiary 20 organizations, like either LLCs or incorporated 21 entities? 22 A. No. 23 Q. You told me that you report to Joe Sites. Is 24 he the CEO? 25 A. Yes. DepoTexas, Inc. 13 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 7 of 15 Scott O'Beirne, Corporate Representative 1 Q. Okay. How many other people report to Joe 2 besides you? 3 A. Probably five directly. 4 Q. Okay. Is it fair to say that the operators 5 and engineers are beneath you in the chain of command? 6 7 8 A. Q. Yes. MS. DEASON: Object to form. (BY MR. SANFORD) They are not beneath the CFO 9 in the chain of command, in that they are not in that 10 line of command, correct? 11 A. Correct. 12 Q. Okay. So, there's Joe and then you. And I 13 want to get all the way down to the operators. So, can 14 you talk about the layers of employees between you and 15 the operators? 16 A. In the operations sphere, I have three region 17 managers directly reporting to me. 18 Q. And those are the three people that you said 19 report to you? 20 21 22 23 24 25 A. Q. A. Q. A. Q. Correct. Okay. And so, it's divided geographically? Correct. Okay. What, what three regions are there? Pennsylvania, Oklahoma, and Texas. Okay. So, beneath the Texas - what is the DepoTexas, Inc. 14 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 8 of 15 Scott O'Beirne, Corporate Representative 1 position of the -- did you say regional manager? 2 3 A. Q. Correct. Okay. So, beneath you is the, is the Texas 4 regional manager. Who is beneath the Texas regional 5 manager? 6 A. 7 location. 8 Q. 9 managers? 10 11 A. Q. 12 managers? 13 14 15 16 17 18 19 20 A. Q. A. Q. position directly A. Q. There is an operations manager in each Does that mean there are three operations There are four. So, one of the regions has two operations Yes. Which location is that? Texas. Okay. Who are -- what is the name of the that -- or positions that direct -- that reports to the operation managers? Field service manager. So, if you are familiar with the Plaintiffs in 21 this case, Larry Gonzales would be -- well, he acted in 22 that role? He had a field service manager position? 23 A. Yes. 24 Q. Okay. And then who, who are the direct 25 reports of the field service manager? DepoTexas, Inc. 15 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 9 of 15 Scott O'Beirne, Corporate Representative 1 In what way do field service managers 2 participate in hiring and firing of operators? 3 A. They are typically involved in the interview 4 process. And as part of their job function, they are 5 involved in training new-hire people. And a portion of 6 their job function is to go out on location and observe 7 our operations. So, in the training and the 8 observation, clearly if they see things that are not 9 being done properly, they would have that authority to 10 write up or recommend termination. 11 Q. And would that be the case with all field 12 service managers in the last four years? 13 14 A. Q. Yes. Okay. Describe, please, the training that 15 field service managers give to new operators. 16 A. Specifically would be the procedures that we 17 have at Allied Horizontal, how we do things. We have 18 very well-documented job procedures and checklists and 19 field operations manuals. 20 Q. Is the training is any of it done in an 21 office or is it done on the, on the well site, at the 22 well site? 23 24 A. Q. In all of those places. Okay. How long do operators spend in training 25 in the office? DepoTexas, Inc. 20 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 10 of 15 Scott O'Beirne, Corporate Representative 1 2 A. Q. 3 well? 4 5 A. Q. 6 different. 7 A. And South Texas in the summer. Okay. Is that true for the engineers, as No. Their job function is different. Tell me what the engineers do that's Well, the field engineer is our representative 8 on location, so he's in charge of our entire operation 9 and all of our people that are out there. He is the 10 interface with the client and he's the interface with 11 the other companies that may be out there working in 12 conjunction with us. 13 Q. And being the ranking officer - or officer 14 the ranking employee on a job site prevents him from 15 engaging in work that is physically demanding? 16 17 A. Q. That's not his primary function. Okay. But he does do some of it? 18 A. Perhaps, you know, to help out or doing some 19 troubleshooting. Yes, he may. 20 Q. Okay. And the fact that he represents Allied 21 to the customer, doesn't prevent him from not being 22 exposed to the elements in the same way that the 23 operators are, correct? 24 25 A. I mean, he MS. DEASON: Object to form. DepoTexas, Inc. 28 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 11 of 15 Scott O'Beirne, Corporate Representative 1 2 A. Q. Yes. So, then, how many hours an engineer or 3 operator actually works in a week depends upon whether 4 or not there are jobs to be performed at wells in a 5 given week, correct? 6 7 A. Q. Correct. In what way does the schedule of the field 8 service manager differ from that of the engineer? 9 A. The field service manager primarily works in 10 the office. In such case, he's, you know, 8:00 to 11 5:00-ish type of an office environment schedule. May 12 have to be available for phone calls or things in the 13 evening and they typically rotate weekends off. 14 15 16 17 18 19 20 21 22 Q. A. Q. A. Q. A. Q. A. Q. Is there one field service manager per region? No. How many field service managers are there? At the time of the -- where, I guess? Well, right now how many are there? In what location? In the company? Throughout the company, yes. There's six. Okay. You don't consider the work that the 23 field service managers do to be the actual provision of 24 wireline services to customers, correct? 25 A. No. DepoTexas, Inc. 32 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 12 of 15 Scott O'Beirne, Corporate Representative 1 2 A. Q. Yes. Who were Mr. Gonzales' direct reports while he 3 was the field service manager? 4 5 A. Q. 6 have been? 7 A. Field engineers. Okay. And do you know how many there would There were in the neighborhood of 20. 8 Q. And then in the region associated with 9 Mr. Gonzales would have been 20? 10 11 A. Q. Yes. Okay. Mr. Gonzales was assigned a pickup 12 truck, correct? 13 14 15 16 17 18 A. Q. A. Q. A. Q. 19 correct? 20 21 A. Q. Yes. And that was an F-150? Yes. Do you recognize the name Spencer Worthey? Yes. He was employed by Allied as a mechanic, Yes. What do mechanics do? 22 A. They maintain the DOT vehicles that we have 23 and repair any kind of heavy equipment. Grease 24 injectors, pumps, those types of things. 25 Q. Are you making a distinction such that you're DepoTexas, Inc. 60 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 13 of 15 Scott O'Beirne, Corporate Representative 1 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS 2 SAN ANTONIO DIVISION 3 LARRY GONZALES, NELSON ) MENCHACA, JARON PAUL, SEAN) 4 5 6 7 8 9 10 11 12 13 TINDELL, FRANK MENCHACA, JUSTIN BISH and SPENCER WORTHEY PLAINTIFFS vs. HORIZONTAL WIRELINE SERVICES, LLC; and ALLIED WIRELINE SERVICES, LLC, dba ALLIED-HORIZONTAL WIRELINE SERVICES, LLC; and LARRY ALBERT, SCOTr O'BEIRNE, and JOSEPH SITES, Each Individually and as officers of ALLIED WIRELINE SERVICES, LLC DEFENDANTS ) ) ) ) ) ) CASE NO. 5:15-cv-883-DAE ) ) ) ) ) ) ) ) ) ) ) ) 14 REPORTER'S CERTIFICATE 15 ORAL DEPOSITION OF SCOTT O'BEIRNE, DESIGNATED 16 REPRESENTATIVE OF HORIZONTAL WIRELINE SERVICES, LLC 17 October 26, 2016 18 19 I, Peggy C. Donnell, Certified Shorthand Reporter in 20 and for the State of Texas, hereby certify to the 21 following: 22 That the witness, SCOTT O'BEIRNE, DESIGNATED 23 REPRESENTATIVE OF HORIZONTAL WIRELINE SERVICES, LLC, 24 was duly sworn by the officer and that the transcript of 25 the oral deposition is a true record of the testimony DepoTexas, Inc. 75 Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 14 of 15 Scott O'Beirne, Corporate Representative 76 1 given by the witness; 2 I further certify that pursuant to FRCP Rule 3 30(f) (1) that the signature of the deponent was 4 requested by the deponent or a party before the 5 completion of the deposition, to be returned within 30 6 days from date of receipt of the transcript. 7 If returned, the attached Changes and Signature Page 8 contains any changes and the reasons therefor. 9 I further certify that I am neither attorney nor 10 counsel for, related to, nor employed by any of the 11 parties to the action in which this testimony was taken. 12 Further, I am not a relative or employee of any 13 attorney of record in this cause, nor do I have a 14 financial interest in the action. 15 Subscribed and sworn to on this 16 November, 2016. 17 18 19 20 21 22 23 24 25 Peggy Texas CSR No. 558 Expiration: 12/31/16 DepoTexas - Firm Registration No. 95 13101 Northwest Freeway, Suite 210 Houston, Texas 77040 281-469-5580 DepoTexas, Inc. Case 5:15-cv-00883-DAE Document 34-3 Filed 12/09/16 Page 15 of 15 EXHIBIT C Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 1 of 21 Larry Gonzales 1 2 IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION 3 Larry Gonzales, Nelson * Menchaca, Jaron Paul, * 4 Sean Tindell, Frank * Menchaca, and Logan Tow, * 5 Plaintiffs, * 6 7 8 9 10 11 12 13 14 15 16 vs. Horizontal Wireline Services, LLC; and Allied Wireline Services, LLC, d/b/a Allied-Horizontal Wireline Services, LLC, Defendants. * COURT FILE NO: * 5:15-CV-00883-DAE * * * * * * * ORAL DEPOSITION OF LARRY GONZALES SEPTEMBER 26, 2016 17 ORAL DEPOSITION of LARRY GONZALES, produced 18 as a witness at the instance of the Defendant, and duly 19 sworn, was taken in the above-styled and numbered cause 20 on September 26, 2016, from 9:24 o'clock a.m. to 12:03 21 o'clock p.m. before Becky Ann Olson, in and for the 22 State of Texas, reported by machine shorthand, at the 23 Law Offices of Martinez & Associates, PLLC, 2828 Goliad 24 Road, Suite 125, San Antonio, Texas, 78223, pursuant to 25 the Federal Rules of Civil Procedure. DepoTexas, Inc. Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 2 of 21 Larry Gonzales 1 A P P E A R A N C E S 2 3 FOR THE PLAINTIFF: 4 Mr. Josh Sanford Mr. Steve Rauls 5 SANFORD LAW FIRM, PLLC 650 South Shackleford, Suite 411 6 Little Rock, Arkansas 72211 Telephone: 501-221-0088 7 Fax: 888-787-2040 Email: josh®sanfordlawfirm.com 8 steve®sanfordlawfirm.com 9 FOR THE DEFENDANT: 10 Mr. David B. Jordan LITTLER MENDELSON, P.C. 11 1301 McKinney Street, Suite 1900 Houston, Texas 77010 12 Telephone: 713-951 9400 Fax: 713-951 9212 13 Email: djordan®littler.com 14 WITNESS: 15 LARRY GONZALES 16 CERTIFIED SHORTHAND REPORTER: 17 BECKY ANN OLSON 18 ALSO PRESENT: 19 SCOTT O'BEIRNE, JUSTIN BISH 20 21 22 23 24 25 DepoTexas, Inc. 2 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 3 of 21 Larry Gonzales 1 INDEX 2 PAGE 3 Appearances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Stipulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 LARRY GONZALES 5 Examination by Mr. Jordan .............. 4 6 Examination by Mr. Sanford ............. 102 7 Changes and Signature ........................ 104 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Reporter's Certificate ....................... 106 EXHIBITS NO. DESCRIPTION PAGE Exhibit 1 Earnings Statement 60 TIME USED BY ATTORNEYS ATTORNEY Mr. Jordan Mr. Sanford DepoTexas, Inc. TIME USED 2 hours 29 minutes 0 hours 1 minute 3 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 4 of 21 Larry Gonzales 1 (Time : 9 : 2 4 . ) 2 COURT REPORTER: My name is Becky Olson, CSR, 3 with DepoTexas at 100 Northeast Loop 410, Suite 955, 4 San Antonio, Texas. The date of the deposition is 5 9/26/16, time is 9:24 a.m. and we're at the Law Offices 6 of Martinez & Associates, 2828 Goliad Road, Suite 125, 7 San Antonio, Texas. The deponent's name is Larry 8 Gonzales. And will the attorneys please identify 9 yourself for the record. 10 MR. SANFORD: Josh Sanford for plaintiff and 11 Steve Rauls is here with me. 12 MR. JORDAN: I'm David Jordan on behalf of 13 defendants. 14 LARRY GONZALES, the witness, being duly 15 cautioned and sworn to tell the truth, the whole truth 16 and nothing but the truth, testified as follows: 17 EXAMINATION 18 BY MR. JORDAN: 19 Q. 20 name? 21 22 A. Q. Good morning, sir. Can you please state your Larry Gonzales. Mr. Gonzales, have you ever had your deposition 23 taken before? 24 25 A. Q. No. All right. So I want to go over a few ground DepoTexas, Inc. 4 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 5 of 21 Larry Gonzales 1 2 3 4 A. Q. A. Q. And then Halliburton. All right. Cased Hole, then Allied and Epic. Tell me what is -- well, let me ask you, so 5 these other companies were you an engineer doing 6 wireline work for these other companies? 7 8 A. Q. A couple of them. Which ones? 9 A. Engineer I was -- well, I was an engineer and 10 field service for Halliburton. 11 12 13 14 15 Q. A. Q. A. Q. 16 them? 17 A. Field service what? A field service manager. Okay. And Epic I was an engineer. What about you said Cased Hole was one of No, I was a field -- a field service manager 18 there, too. 19 20 21 22 23 24 25 Q. A. Q. A. Q. A. Q. You were a field service manager with them? Yes. What about for Black Warrior? Engineer. And what about for Allied? Allied I was field service manager. What's the difference between a field service DepoTexas, Inc. 18 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 6 of 21 Larry Gonzales 1 2 3 4 Q. A. Q. A. (BY MR. JORDAN) Is that right? That's right. Where was the shop located? On 1588 south of Midland. I don't even know 5 the address. 6 7 8 Q. A. Q. Okay. Who worked in the shop? Do you mean like the office people? Yeah, what positions were in the shop? 9 A. The gun loaders, mechanics. There was a guy 10 I don't know what his title was. He's the one that 11 handed out supplies and all that. There was a manager. 12 Then there was I guess a dispatcher and salesmen and 13 secretaries, and the quality control. 14 Q. That's the guy you got frustrated with? 15 16 17 18 A. Q. A. No, it was his boss. How many crews did you supervise at Allied? MR. SANFORD: Object to form. Well, at first we had 13. Then we divided 19 them, but there toward the end we were responsible for 20 all. I mean whoever needed it, we'd go to them. 21 Q. (BY MR. JORDAN) Okay. So you said at first 22 you had 13 crews? 23 24 25 A. Q. A. Yeah, and we split them. Who's we? Me and the other FSM. DepoTexas, Inc. 49 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 7 of 21 Larry Gonzales 1 2 3 Q. A. Q. 4 seven? 5 6 A. Q. Who was the other FSM? The last name Flores. So one guy had like six and the other guy had Yeah. And each crew had one engineer and two 7 operators? 8 A. Three. 9 Q. One engineer and three operators. Okay. All 10 right. And then you said - tell me again about how it 11 changed. You said it changed, so you just would help 12 out wherever you could. Were the crews -- 13 A. No, no, it just - whoever was called -- I mean 14 because we kept our own guys and stuff, but there 15 really wasn't work enough, so we kind of mixed it all 16 up. Each service field guy would go around to see 17 other crews. 18 Q. I see. So instead of you having your six and 19 him having his seven 20 A. Yeah. Well, it wasn't working because -- 21 MR. SANFORD: Hold on. Hold on. He was asking 22 you a question. Let him finish his question and then 23 you answer. 24 25 A. Q. Okay. (BY MR. JORDAN) Your lawyer can't hear two DepoTexas, Inc. 50 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 8 of 21 Larry Gonzales 1 things at one time. 2 MR. SANFORD: All I hear is Andrews, Andrews, 3 Andrews. 4 Q. (BY MR. JORDAN) All right. Let's just reset 5 this up. You had -- you said you had - you had split 6 at one point and then you stopped splitting it up and 7 you guys would -- you guys would both rotate through 8 all the crews in the field? 9 10 A. Q. 11 crews? Yes, sir. How long were you supervising your own set of 12 A. I don't know. 13 Q. Most of the time you were at Allied? 14 A. Probably about half. 15 Q. Okay. When you were just supervising your 16 crews, tell me what your job was as the field service 17 manager. 18 A. We'd go out there and, you know, troubleshoot 19 for them if they had problems. Hands-on training the 20 new ones, you know, hands on out in the field. We'd 21 show them how to, you know, do everything proper and a 22 safe manner. You know, make sure they were following 23 the SOPs. 24 25 Q. A. What's an SOP? The way the company wants everything done, I DepoTexas, Inc. 51 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 9 of 21 Larry Gonzales 1 mean as far as their safety and the way -- they have 2 certain ways of doing things. Like putting a gun arm 3 and a gun together or putting a gun together. You put 4 your charges on and you put your -- then you put the 5 tubing and you put your wire on it. It's just a detail 6 it was a book that everybody had that tells you how 7 to do every step of the job. 8 Q. All right. So SOP means standard operating 9 procedures? 10 11 A. Q. Yes. All right. So when you said you make sure 12 they're following the SOPs, you'd make sure that the 13 operators and the engineers were doing things the way 14 that Allied expected them? 15 16 A. Q. 17 manager? 18 A. Yes, sir. What else would you do as a field service We were just the go-between between the office 19 and the engineers, you know. The engineer would come 20 to us and we'd go to the office. 21 Q. When you say the office, do you mean the 22 manager of the shop or who? 23 24 25 A. Q. A. No, the manager. Who was your manager out there? I think it's William Glenn. DepoTexas, Inc. 52 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 10 of 21 Larry Gonzales 1 you this. Would guys normally report to the shop and 2 then drive out to the site or would there be a 3 situation where an operator might meet you out at the 4 site? Was that unusual? 5 A. No, that's unusual. They always parked their 6 vehicle at the shop and go from there. 7 Q. But it could be would it ever be that you 8 would go from one site to another site without going 9 back to the shop? 10 11 A. Q. 12 jobs? Yeah. Okay. So you might be on the road for multiple 13 A. Depending what you're doing, yeah. 14 Q. Let's talk about your compensation for a 15 minute. How were you paid at Allied? 16 A. What do you mean? 17 Q. How were you compensated? 18 A. Monthly. 19 20 21 22 23 24 Q. A. Q. A. Q. A. Okay. You were paid every month? Yes. Okay. A salary? Yes. Okay. How much was the salary? It started at 85, but it went down to 8,000 25 real quick. DepoTexas, Inc. 59 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 11 of 21 Larry Gonzales 1 finish. Q. (BY MR. JORDAN) Go ahead. 2 3 4 5 6 A. MR. SANFORD: Objection. Now go ahead. I did audits and reported what I seen. Whatever happened to it, I didn't know. Q. (BY MR. JORDAN) Did you ever do did you 7 ever do performance evaluations for guys? No. 8 9 A. Q. Okay. Did you ever recommend the company get 10 rid of someone or promote someone or demote someone out 11 at Allied? 12 A. No. 13 Q. Were there people hired while you were at 14 Allied? Were there operators or engineers hired while 15 you were out there or were they more like downsizing 16 while you were out there? 17 MR. SANFORD: Object to form. 18 A. No, they let a bunch of them go, but there was 19 one or two that were hired. 20 Q. (BY MR. JORDAN) Okay. How did those guys get 21 hired; do you know? 22 23 A. Q. I don't know. Could anybody be a f ld service manager? Do 24 you think I could pull it off? 25 MR. SANFORD: Object to form. DepoTexas, Inc. 65 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 12 of 21 Larry Gonzales 1 Q. How would you coordinate that? Were you 2 instructed by your supervisor or did you and the other 3 field service manager just coordinate between you? 4 A. We just got together between us to see who was 5 covering one side of the field and what that week 6 that week he had been spending his time in Texas and 7 I'd go up to New Mexico or vice versa. It was just a 8 thing between me and him. 9 10 11 Q. A. Q. You just worked it out between you? Yes. Okay. You said while you were at Allied you 12 never had to fire anyone, right? 13 MR. SANFORD: Object to form. 14 Q. (BY MR. JORDAN) Is that what you said? 15 16 17 MR. SANFORD: MR. JORDAN: MR. SANFORD: Same objection. What's your objection? Using the language that he never 18 had to fire someone implied that he had the authority 19 or ability. 20 21 22 Q. MR. JORDAN: I didn't ask for his implication. (BY MR. JORDAN) Did you fire anyone? MR. SANFORD: Okay. That's a different 23 question. I'll withdraw my objection. 24 25 Q. A. (BY MR. JORDAN) Did you fire him? No, sir. DepoTexas, Inc. 74 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 13 of 21 Larry Gonzales 1 Q. Okay. You were never in a circumstance where 2 there was someone that needed to be fired, correct? 3 4 A. Q. Correct. All right. Did you attend meetings with 5 management at Allied? 6 7 8 9 10 11 A. Q. A. Q. A. Q. Meetings between me and management? Yes. No. Who was your manager? William Glenn. Did you and the other service manager ever meet 12 with Mr. Glenn, I mean even periodically? 13 A. During the safety meetings, but never like us 14 three in one room, no. 15 Q. Okay. Did you ever meet with others from a 16 management -- did you ever have other manager meetings 17 like with the quality control guys at Allied? 18 A. We had one or two meetings where we'd go over 19 the quality control issues. 20 21 22 Q. A. Q. How often would you have those meetings? Maybe two while I was there. When you're out there on these jobs - like 23 when you're the engineer out on these jobs, is it - 24 are the steps to follow relatively routine or do things 25 occur in every job that requires someone to adapt? DepoTexas, Inc. 75 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 14 of 21 Larry Gonzales 1 happens in the well, I mean he's got to learn to adapt 2 to it. I mean sometimes they're fracking and they'll 3 leave sand in the hole and he's got to learn to adapt. 4 When he hits that sand and, you know, gets stuck or 5 something, you know, he's got to learn to adapt. You 6 know, things change out there. You get stuck in a hole 7 or something. 8 Q. Does it just require experience to understand 9 what to do in those situations? 10 11 A. Q. Yes, sir. Do you find yourself getting calls from guys 12 that sort of confront situations they've never dealt 13 with before and you have to tell them - walk them 14 through how to handle it? 15 16 A. Q. Yeah, that's when we have to go out there. How often -- how often in a given day do you 17 talk to your engineers -- strike that. If you're an 18 engineer out at Allied, how often are you talking to 19 your field service manager? 20 A. It depends if they run into any kind of trouble 21 out there. I mean they don't talk to us all the time. 22 I mean just when they have troubles. 23 Q. Okay. And so when they have troubles -- you 24 gave one example about hitting sand. What are -- can 25 you give me three other examples of things that you DepoTexas, Inc. 77 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 15 of 21 Larry Gonzales 1 might run into? 2 A. If their line breaks and they get stuck in the 3 goose tubes or they just get locked. The plug gets 4 hung up somehow and they don't know in the well 5 head. I mean just different little things like that. 6 I mean they've got to learn to adapt real quick. 7 Q. Are there different ways to manage different 8 situations? Like there's different ways to fix 9 problems and you have to help them decide which 10 which method they should use to fix the problem? 11 A. Oh, yeah. 12 13 14 Q. A. MR. SANFORD: Object to form. (BY MR. JORDAN) Go ahead. Go ahead. Yeah, I mean there's - that's when you get 15 together with the engineer to discuss it and see what 16 the proper way or the best way to get out of the 17 situation you're in. 18 Q. Okay. And -- and how much -- are engineers 19 allowed to make decisions about how to fix problems 20 without talking to you? 21 A. At Allied, no. 22 23 24 25 Q. A. Q. A. They're supposed to call you? Supposed to call the field guy, field manager. And that's you? Yes. DepoTexas, Inc. 78 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 16 of 21 Larry Gonzales 1 our phones. 2 Q. Okay. So the laptop you said was to download 3 stuff. What do you mean? 4 A. Yeah, just like the tickets. Because we have 5 to go see customers about tickets and, you know, the 6 jobs -- the job deal, the prog and everything. That 7 tells you what's going on on the job and what they're 8 doing, you know, but usually we'd just download it on 9 our phones. 10 Q. What were you saying? So you'd also go talk to 11 customers? 12 13 14 A. Q. A. Yes. How often would you do that? It depends. I mean it wasn't a set deal. It 15 was maybe two or three times a week. 16 Q. And what were you seeing customers about? 17 A. Just, you know, their thoughts on the job or, 18 you know, delivering logs to them. Just different -- 19 various deals. 20 Q. So when you say delivering logs, what do you 21 mean by that? 22 A. Their logs to the well. We log them -- like 23 with radiation, you know, tell them what the formation 24 looked like and everything. We'd deliver anywhere from 25 three to six copies to them so they could dispute, you DepoTexas, Inc. 92 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 17 of 21 Larry Gonzales 1 layoffs and different things over there at Allied? 2 3 A. Q. No. You never had to score the operators or the 4 engineers? 5 A. The only thing I did was that audit. I did it 6 on location 7 8 9 10 Q. A. Q. A. But you -- and that was -- I'm sorry, I interrupted you. Go ahead. That wasn't -- it was an overall deal. It 11 wasn't just one person or I didn't do it for one 12 person. It was overall for the whole job. 13 Q. Right. So, you never were involved in scoring 14 or deciding, you know, the skills that different 15 operators or engineers had? 16 A. No. That was above me. 17 Q. Well, that would have been Glenn who was the 18 only guy above you, right? Is that right? 19 A. Right. 20 21 22 Q. A. Q. Was Glenn ever in the field? I've never seen him in the field. And that's where the operators and engineers do 23 their work, right? 24 25 A. Q. Right. How often did you need to reprimand employees DepoTexas, Inc. 99 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 18 of 21 Larry Gonzales 1 for doing things incorrectly? 2 MR. SANFORD: Object to form. 3 4 A. Q. I never had to reprimand anybody. (BY MR. JORDAN) You never had to reprimand 5 anybody? 6 7 8 A. Q. No. People always did things they were supposed to? MR. SANFORD: Object to form. 9 A. No, I'd correct them, but it wasn't something 10 that was real unsafe or they're going to get hurt or 11 something. I mean I'd just correct what they were 12 doing. 13 Q. (BY MR. JORDAN) Is it -- did engineers - did 14 the engineers ever need to reprimand anybody that was 15 working for you? 16 17 18 19 A. Q. A. Q. 20 who? 21 22 A. Q. No, not that I can recall. Did you ever have engineers fire anyone? No, they couldn't. They had to ask management. Okay. And when you say management, that means Glenn. Okay. But would the engineers ever go to Glenn 23 and say hey, I want to fire someone that you know of? 24 A. That -- that I know of, no. If they did, I 25 didn't know about it. DepoTexas, Inc. 100 Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 19 of 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Larry Gonzales IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION Larry Gonzales, Nelson * Menchaca, Jaron Paul, * Sean Tindell, Frank * Menchaca, and Logan Tow, * Plaintiffs, * vs. * COURT FILE NO: * 5:15-CV-00883-DAE Horizontal Wireline * Services, LLC; and * Allied Wireline * Services, LLC, d/b/a * Allied-Horizontal * Wireline Services, LLC, * Defendants. * REPORTER'S CERTIFICATE ORAL DEPOSITION OF LARRY GONZALES SEPTEMBER 26, 2016 16 I, Becky Ann Olson, Certified Shorthand Reporter 17 in and for the State of TeKas, do hereby certify to the 18 following: 19 That the witness, LARRY GONZALES, was duly sworn 20 by the officer and that the transcript of the oral 21 deposition is a true record of the testimony given by 22 the witness; 23 I further certify that pursuant to FRCP Rule 30 24 (f) (1) that the signature of the deponent: 106 25 ____ x ____ was requested by the deponent or a party OepoTexas Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 20 of 21 Larry Gonzales 107 1 before the completion of the deposition and returned 2 within 30 days from date of receipt of the transcript. 3 If returned, the attached Changes and Signature Page 4 contains any changes and the reason therefor; 5 was not requested by the deponent or a 6 party before the completion of the deposition. 7 I further certify that I am neither attorney nor 8 counsel for, related to, nor employed by any of the 9 parties to the action in which this testimony was 10 taken. 11 Further, I am not a relative or employee of any 12 attorney of record in this cause, nor do I have a 13 financial interest in the action. 14 Subscribed and sworn to on this the 29th of 15 September, 2016. 16 17 18 19 20 21 22 23 24 25 Bee Texas Expiration Date: 12/31/17 DepoTexas - Firm Registration No. 539 100 N.E. Loop 410, Suite 955 San Antonio, Texas 78216 (210) 481-7575 DepoTexas Case 5:15-cv-00883-DAE Document 34-4 Filed 12/09/16 Page 21 of 21