Don’t Forget: Put Commission ​​Agreements in Writing

Commission Agreements Deadline


Any employee hired to perform work for commissions in California must receive a written contract that includes the method for calculating and paying the commissions. The requirement to put commission agreements in writing was a result of AB 1396, which took effect January 1, 2013.

This law applies to employers located inside and outside California. It amended Labor Code Section 2751, which previously applied only to employers with no fixed California location.

Although the legal requirement appears simple and straightforward, a number of potential pitfalls within the law could result in wage-and-hour claims filed against employers. CalChamber’s white paper "Don’t Forget: Put Commission Agreements in Writing" covers this critical information:

  • What is a "Commission?"
  • Recordkeeping and Procedures for Compliance
  • Employer Pitfalls
  • Best Practices

About CalChamber

As a not-for-profit, CalChamber is a business advocate and expert HR compliance resource for California employers. Our legislative presence at the State Capitol means we know California employment laws inside and out. We monitor, analyze and report changes as they happen, turning our expertise into products and services that help businesses more easily understand and comply with complex laws and regulations.​


Free White Paper