California Labor Code Section 2751
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Have a written contract with the employee regarding commissions that is signed by the employer.
California labor code section 2751. Read this complete california code labor code lab 2751 on westlaw. Employers with california employees who receive commission payments as part or all of their compensation have just weeks to ensure that their commission plans comply with the new requirements of california labor code section 2751. Effective january 1 2013 any commission plan entered into between a company and an employee performing services in california must be in writing and explicitly set forth the method by which the commissions are to be computed and paid.
This new law requires employers that pay california employees commissions to do the following. If that section is not applicable then this determination shall be governed as follows. A whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid.
A whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Ca labor code 2751 through 2015 leg sess.
2751 a whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid. Ca labor code 2751 2017 a whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid. Ca labor code 2751 through 2012 leg sess a by january 1 2013 whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid.
The contract of employment. And c for all other purposes in the labor code by borello. Findlaw codes may not reflect the most recent version of the law in your jurisdiction.
The agreement must explain the method by which the commissions shall be computed and paid. As many employers know california s new written commission agreement law labor code section 2751 became effective on january 1 2013. California labor code section 2751.
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