JOURNAL ARTICLE

No Circuit Breakers Here: The Fifth Circuit Adopts Amalgamated Definition of "Commission" Severing Overtime Hopes for Cable Technicians.

  • Published In: Tulane Maritime Law Journal, 2023, v. 47, n. 2. P. 599 1 of 3

  • Database: Academic Search Ultimate 2 of 3

  • Authored By: Kundrat, Jaclyn A. 3 of 3

Abstract

This article analyzes the United States Court of Appeals for the Fifth Circuit’s decision in *Taylor v. HD & Associates, L.L.C.*, which addressed whether cable technicians employed by HD & Associates (a subcontractor for Cox Communications) qualify for overtime protections under the Fair Labor Standards Act (FLSA) and whether their pay structure falls under the bona fide commission exemption. The Fifth Circuit held that the cable technicians are covered by the FLSA but that HD & Associates did not waive the bona fide commission exemption, which applies because the technicians’ compensation—based on a point system tied to customer charges—is a commission decoupled from hours worked. Adopting a four-element definition of “commission” from a prior district court case, the Fifth Circuit concluded that the exemption applies, thereby exempting the employer from paying overtime wages. The decision aligns with precedent from other circuits but raises questions about the practical impact of the commission definition on employees’ overtime rights and may influence compensation practices in industries with irregular work hours and performance-based pay.

Additional Information

  • Source:Tulane Maritime Law Journal. 2023/05, Vol. 47, Issue 2, p599
  • Document Type:Article
  • Subject Area:Social Sciences and Humanities
  • Publication Date:2023
  • ISSN:1048-3748
  • Accession Number:166101085

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