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California Commissions

02.21.2013

Effective January 1, 2013, California employers who pay employees on a commission basis must supply their employees with written contracts setting forth the method for determining the commission as well as the method of payment. Employers must also provide each employee with a copy of the contract and keep a signed receipt of the contract for each employee. The law is unclear on many points, including when the commissions are deemed earned and when commissions are due on termination of employment. Employers with commissioned employees in California should carefully review all current commission agreements and plans and ensure appropriate documents are in place.

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