Employers must put all commission agreements in writing by January 1, 2013. By that time, any employee hired to perform work for commissions in California must receive a written contract that includes the method for calculating and paying the commissions.
Passed in 2012, this mandate of AB 1396 applies to employers located inside and outside California. It amended Labor Code Section 2751, which previously applied only to employers with no fixed California location.
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Tags: AB 1396, commission agreements, commissioned employees, Labor Code section 2751, HR Allen Consulting Services, HR Informant, California employers, CalChamber