BILL NUMBER: SB 1370	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ducheny

                        FEBRUARY 19, 2010

   An act to amend Section 2751 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1370, as introduced, Ducheny. Employment contract requirements.

   Existing law requires an employer who has no permanent and fixed
place of business in the state and who enters into a contract of
employment involving commissions as a method of payment with an
employee for services to be rendered within the state to put the
contract in writing and to set forth the method by which the
commissions are required to be computed and paid. An employer who
does not comply with those requirements is liable to the employee in
a civil action for triple damages.
   This bill would make this contract requirement applicable to all
employers entering into a contract of employment involving
commissions as a method of payment with an employee for services to
be rendered in the state.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2751 of the Labor Code is amended to read:
   2751.   (a)    Whenever  any 
 an  employer  who has no permanent and fixed place
of business in this State  enters into a contract of
employment with an employee for services to be rendered within this
 State   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
 each such   the  contract to every
employee who is a party thereto and shall obtain a signed receipt for
the contract from each employee.
    (c)    As used in this section, "commissions"
does not include short term productivity bonuses such as are paid to
retail clerks; and it does not include 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.