A federal judge in Texas ruled a Houston-based drilling company must pay $363,422 in back wages and liquidated damages to a group of “directional drillers consultants” misclassified as independent contractors, according to court records.

The workers had sued Premier Directional Drilling arguing they were not adequately compensated for overtime in excess of 40 hours per week.

Premier had argued the workers were highly skilled, made their own decisions and were paid up to $300,000 per year

However, Judge David Alan Ezra using a five-factor test found the workers’ investment in the job was significantly less than Premier’s and that Premier had near complete control over workers’ pay and schedules — both factors pointing to independent contractor status.

Another factor — permanency of relationship — favored independent contractor status given that only two workers spent more than 10 months working for Premier. However, the other two factors were neutral.

The five-factor test included “(1) the degree of control exercised by the alleged employer; (2) the extent of the relative investments of the worker and the alleged employer; (3) the degree to which the worker’s opportunity for profit or loss is determined by the alleged employer; (4) the skill and initiative required in performing the job; and (5) the permanency of the relationship.”

The judge did not take into account a contract signed by the workers indicating that they were independent contractors. Court documents also noted that Premier employed the same types of workers as both independent contractors and W-2 employees.

Case number is 5:16-CV-417-DAE.