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Commission Contracts Must be In Writing – It’s Now the Law

A new California law requires that any employee who is paid commissions must receive the terms in writing, says LA employment lawyer Eric Grover.

03/15/2013 // Los Angeles, CA, USA // Keller Grover LLP // Eric Grover // (Blog)

Effective January 1, 2013, a new law requires all businesses to present all commission employees with a written commission agreement. Labor Code section 2751 requires that the way commissions are calculated and paid must be detailed in the agreement. If any part of your compensation is based on commission and you haven’t received a written commission plan from your employer, talk to them. Contact an employment lawyer to help protect your rights if your employer doesn’t comply.

Media Information:

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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 Codes

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