Exclusively Employment Law

California’s Laws Regarding Written Commission Agreements

by | Aug 9, 2018 | Wage and Hour

Originally Published on August 9, 2018; Updated/Revised on November 1, 2019


If you are an exempt or non-exempt employee who (a) performs services in California; and (b) is compensated on a commission basis, then California law requires your employer to provide you with a written commission agreement. It is not enough for your employer to simply describe the commission terms in the company’s employee handbook.

Below are some other requirements with which your employer must comply under California law:

No. 1: The written commission agreement must set forth the method by which your commissions will be computed and paid.

No. 2: Your employer must give you a copy of the written commission agreement, signed by your employer, and obtain a signed receipt from you.

No. 3: If your written commission agreement expires and you and your employer continue to work under the terms of the expired written commission agreement, the terms of that written commission agreement will continue to remain in full force and effect until you and your employer enter into another written commission agreement or until your employment is terminated.

No. 4: A written commission agreement must be provided to you, regardless of whether all or just a portion of your compensation consists of commissions. So long as your compensation involves commissions in some way, you are entitled to a written commission agreement.

No. 5: The above requirements apply to all employers that have commissioned employees who render services in California, regardless of whether or not the employer itself is located in California.

Click here to read “Failure to Pay Commission Payments and California Law.

If you believe that your employer is not complying with California’s laws regarding written commission agreements, call 916-612-0326 or email ([email protected]) Finley Employment Law today. We serve clients throughout California, including Sacramento, Folsom, Roseville, Granite Bay, and Elk Grove.

The information in this blog post is for general informational and advertising purposes only and is not, nor is it intended to be, legal advice. Instead, you should speak with a California employment attorney for advice regarding your individual situation.