Key Change: AB 1396 and Written Commission Agreements


All Employers and Commissioned Employees


January 1, 2013


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Starting January 1, 2013, all in-state and out-of-state employers must have written agreements in place for employees who are paid commissions for services provided within the State of California. Information included in these agreements need to provide the method by which the commissions will be computed and paid. With each new employee, the employer must provide a signed copy of the written statement to the employee and obtain a counter-signed “receipt” of the written statement and return it to the employee.

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