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Avoid Year-End Time Crunch by Drafting Commissions Agreements Now - An article by our friend Olivia Goodkin

Posted by Admin Posted on June 20 2012

Olivia Goodkin is a friend of ours at Greenberg Glusken, a law firm in Los Angeles that covers a wide spectrum of legal issues and area, including employment law.
She recently sent over a link to one of her articles regarding commission payments to employees and some changes to the legal requirements for doing so.
We strongly urge that our clients who pay their employees on a commission basis familiarize themselves with the article and the changes in law.
Here is an excerpt of the beginning of her article, with a link to the full text:

"Beginning January 1, 2013, all companies that pay commissions to employees providing services in California must have written contracts detailing how commissions are computed and paid.  This potentially burdensome law was passed at the end of last year, and so far has received little attention.  We urge employers to prepare now to comply with this law, to avoid a time crunch at the end of the year.

The specifics of the new law

Under the new law: (1) All employees paid at least in part by commissions must be provided with a written contract that includes an explanation of how the commissions are calculated and when they are paid; and (2) A copy of the signed contract must be given to the employee and the employer must keep a signed acknowledgement of receipt of the contract. "

- Provided by Olivia Goodkin

Full Article