Employer Alert: New California Law Governs Commission Pay Arrangements

Many California businesses, including some aviation charter operators and aircraft sales companies, pay commissions to their sales personnel as all or part of the employee's compensation.  Although the law was enacted last year, as of January 1, 2013, all employers with salespersons in the State of California must set forth the commission pay arrangements in a written contract. With the law going into effect in less than a month, now is the time for employers to make sure all employees who receive a commission have a written agreement with the company.