Beginning In 2013 CA Requires Written Commission Agreements For Employees

Effective Jan. 1, 2013, employees who perform any work in California and who are paid in whole or in part on a commission basis must be provided a written agreement setting forth the method by which their commissions will be computed and paid by their employer. This requirement will apply to all employers with employees who are: (1) providing "services to be rendered within" California, and (2) paid commissions, regardless of whether the employer has a fixed place of business in California. Thus, out-of-state companies that have no physical facilities in California will be subject to this requirement with respect to any commissioned employees who work in California. Likewise, employees whose primary office or work location is out of state but who nonetheless render part of their commissioned services in California will be subject to this requirement.