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Employment Law Alert – New California Law Requires Written Commission Agreements

January 20, 2012 |
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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

Christine H. Long

Kara L. Arguello

Kate Wilson

Lisa Gorecki


©2012 Berliner Cohen.  This article is not intended to and does not constitute legal advice or a solicitation for the formation of an attorney-client relationship and no attorney-client relationship is created through your use of the Berliner Site or your receipt of the materials.

Berliner Cohen’s experienced employment law attorneys advise and represent employers and managers on a full range of legal issues affecting the workplace, including harassment and discrimination, unfair competition and trade secrets, wrongful discharge, wage and hour issues, and labor disputes.  Berliner Cohen is one of the largest and oldest law firms in San Jose serving the business and regulatory needs of private business and public agencies in Northern California.  For 45 years, the Firm has developed the special expertise required by a diverse client base consisting of nationally recognized business interests and a number of Silicon Valley’s largest national and multinational corporations, new ventures, leading real estate developers and brokerages, cutting-edge technology companies, healthcare and other service providers, banking and financial institutions, municipalities, public agencies and individuals.  Berliner Cohen also meets the growing demands of the Central Valley with its expanding office in Merced.