Contracts signed by both parties, the sales rep and the business, are now required by the State of California. NetCommissions provides you with a comprehensive solution to this challenge.
On New Year ’s Day, Jan. 1, 2013, The Bill AB1396 sponsored by the Assembly Committee On Labor And Employment of the State of Californian legislature becomes effective.
This law basically stipulates that all companies who employ Sales Reps (anyone paid commissions) in the State of California will be obligated to provide them with a Plan Document (contract) that details the methods used in computing and paying their sales commissions. This law applies to all companies that have sales reps on commission plans in California, irrespective of whether the company is domiciled in California or not.
Interestingly, this bill requires both parties to be furnished with a signed contract (plan doc) that includes not only the signature of the sales rep, but the corporation as well.
The language of the law focuses only Sales Commissions and Sales Incentive payouts.
Sales Performance Management solutions like NetCommissions provide businesses with an automated option for Sales Commission Plan documentation, circulation and approval.
Here is the Bill in its enitrety
LEGISLATIVE COUNSEL'S DIGEST
DIGEST KEYVote: majority Appropriation: no Fiscal Committee: no Local Program: no
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1.The Legislature hereby finds and declares that this bill is enacted in light of the holding in Lett v. Paymentech, Inc. (N.D.Cal. 1999) 81 F.Supp.2d 992 and that the intent of this bill is to restore the employee protections that had been in effect prior to that holding by making Section 2751 of the Labor Code apply with equal force to employers with a fixed place of business in the state and to employers who do not have a fixed place of business in the state.
SEC. 2.Section 2751 of the Labor Code is amended to read: