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FMG Law Blog Line

Beware If You Have Commissioned Employees in California – New Law Takes Effect in 2013

Posted on: December 27th, 2012

By: Brad Adler

For those employers that have operations in California, remember that California’s new commission contract law takes effect January 1, 2013.  Under State Law 1396, employers who pay commissions to their employees are required to enter into written commission agreements with them.  The agreement must describe the terms of the commission structure, including the method by which commissions will be calculated.  Employers must have employees sign the agreement and then provide a copy to each employee.  Employers also should note that, when a commission agreement expires for a current employee without being replaced by another agreement, the terms of the expired agreement will control.

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