What are the rules governing the payment of employee commissions?

Employees in California who receive commissions as part of their payment for services are protected by specific labor and employment laws. These laws determine when commissions are owed, how much must be paid, and when employers can withhold or reduce payments. It is important for both employers and employees to understand their rights and responsibilities regarding commissions. Employees in California who receive commission must receive a written contract. This agreement must lay out the commission rate, payment schedule, circumstances under which payment is expected, and any other relevant details. The contract must also include a period of time in which the employee must have exclusive access to customers or clients. Employees must be paid their full commission, even if they leave the employer before fulfilling their duties. Employers can legally withhold payment or reduce commissions only in cases where the employee does not perform their duties to an acceptable standard. Employers are also required to pay commissions as soon as practicable. California labor code requires payment within a reasonable amount of time – usually 30 days – from the date of sale if the total commission due is $600 or less. For commissions over $600, employers must pay commissions quarterly. Finally, employers are required to keep records of commissions for at least three years. These records must include dates of payment, amount paid, and any other relevant details. Employers in California may not retaliated against employees who attempt to exercise their rights under the state’s commission laws.

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What are the rules governing the payment of employee commissions?

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