Articles

Employment Law Alert - New California Law Requires Written Commission Agreements

January 20, 2012

Effective January 1, 2013, AB 1396 will require that all employers doing business in California provide employees with a written contract for commissions that comprise all or any part of the employee’s compensation.

The agreement must state the method by which commissions will be computed, when they are deemed earned and how they will be paid.  The employer must provide a signed copy of the commission agreement to the employee and obtain a written receipt from the employee.  If the commission agreement expires, the employee will continue to earn commissions on the same terms so long as he/she works for the employer, unless the agreement is replaced by another written agreement or the employment ends.  Prudent employers should be sure that written commission agreements which comply with the law are in place before work starts on January 1, 2013.

Berliner Cohen’s employment law attorneys are experienced in drafting and revising commission agreements that accurately reflect the working realities of your business and comply with state and federal law.

For more information, please contact any member of Berliner Cohen’s Employment Law Group.

Roberta S. Hayashi
roberta.hayashi@berliner.com

Christine H. Long
christine.long@berliner.com

Kara L. Arguello
kara.arguello@berliner.com

Kate Wilson
kate.wilson@berliner.com

Lisa Gorecki
lisa.gorecki@berliner.com

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