California Labor Code Section 2751
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California Laws > Labor Code > California Labor Code Section 2751
2751. (a) Whenever an employer enters into a contract of employment
with an employee for services to be rendered within this state and
the contemplated method of payment of the employee involves
commissions, the contract shall be in writing and shall set forth the
method by which the commissions shall be computed and paid.
(b) The employer shall give a signed copy of the contract to every
employee who is a party thereto and shall obtain a signed receipt
for the contract from each employee. In the case of a contract that
expires and where the parties nevertheless continue to work under the
terms of the expired contract, the contract terms are presumed to
remain in full force and effect until the contract is superseded or
employment is terminated by either party.
(c) As used in this section, "commissions" has the meaning set
forth in Section 204.1. For purposes of this section only,
"commission" does not include any of the following:
(1) Short-term productivity bonuses such as are paid to retail
(2) Temporary, variable incentive payments that increase, but do
not decrease, payment under the written contract.
(3) Bonus and profit-sharing plans, unless there has been an offer
by the employer to pay a fixed percentage of sales or profits as
compensation for work to be performed.
Last modified: February 22, 2013