Monday, January 07, 2013

AB1396 Commissioned Employees/ New Pregnancy Leave Laws

AB 1396 went into effect Jan 1 2013. The new law requires employers in and out of California who pay commission to:

1. Have a written agreement in place

2. Include a method for calculating and paying commissions

3. Are signed by employees and

4. Are documented with an employee acknowledgement form

The California Employers Association recommends

1. Keep it short

2. Avoid expiration dates

3. Copies of the commission agreements and acknowledgement of receipt should be kept in employees file.

4. Consider attaching a job description

Include the following

Employees name, title and date agreement was signed.

Name of company representative and date agreement was signed by this person.

Quotas and commission rate calculation. Include when commissions are earned. Impact of termination on commissions.

Please consult your attorney or human resource professional.

New laws have taken effect Dec 30 around employers requirement to provide pregnancy leave .

Among other things they have redefined the 4 month requirement and expanded the responsibility of employers.

If you have more information on how to comply with these new laws please let me know. This is required of all employers with 5 or more employees.

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116


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