WADE, Chief Justice. The defendant, Standard Gilsonite Company, appeals from a judgment awarding plaintiffs a penalty under
Section 34-10-6(a), U.C.A.1953 of $2,715.00 for separating the three plaintiffs from its payroll without paying them the wages
due for such services within 24 hours after demand therefor. 1 In addition to the penalty above mentioned, the trial court
awarded plaintiffs as past due wages $1,000.00. Defendant claims that on September 1, 1959, an oral agreement was negotiated by the company with Elba Justice for mining
of ore in an old mine at a specified rate per ton. Thereafter, Justice informed the company that 'mucking' and 'timbering'
would be necessary before actual mining could be commenced. Elba Justice commenced such preliminary operation on September
7, and was joined by his son, Lawrence, on September 8, and by Arthur Averett on September 15. They continued at this preliminary
work until September 30, when they demanded $1,000.00 as accumulated wages for the three of them. This the company refused,
and now claims that it believed that no employer-employee relationship existed, but that the services rendered were merely
preliminary to commencement of the oral contract which had been negotiated. Plaintiffs rendered their last services on October
1, 1959, and after failing to reach a settlement with the company, commenced this action on November 30 of that year. The
trial court tried the issues and made findings and entered judgment in favor of the plaintiffs on all of the issues.