Attention California Employers: New Employment Laws Affecting Your Business Take Effect On January 1, 2013


With the stroke of several employee-friendly pens, Governor Brown enacted a number of new laws in California that take effect on January 1, 2013. These laws further expand the rights of employees in California, and further increase the burdens on employers. This is a brief synopsis of the new employment laws that are most likely to affect your business, and that require changes to your policies and practices.

Commission Agreements Must Be in Written Contracts Signed by the Employee -

If you are an employer who pays commissions to employees, it is no longer enough to have an oral agreement to pay commissions or to include a description of a commission plan in an employee handbook or other form of mass communication to employees. Effective January 1, 2013, Labor Code section 2751 requires all employers who pay commissions to employees performing services in California to put the commission agreement in a written contract that describes the method by which the commissions are computed and paid. The employer must give a copy of the signed contract to the employee and retain a written, signed acknowledgement from the employee that she or he received a copy of the contract. In addition, if the written commission contract expires, and the parties continue to work under the terms of the expired contract, its terms are presumed to remain in full force and effect until the written contract is expressly superseded by a new written contract or the employment is terminated by either party...

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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