BILL NUMBER: AB 2675	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 23, 2012
	PASSED THE ASSEMBLY  AUGUST 29, 2012
	AMENDED IN SENATE  AUGUST 15, 2012
	AMENDED IN ASSEMBLY  APRIL 16, 2012

INTRODUCED BY   Assembly Member Swanson

                        MARCH 5, 2012

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



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2675, Swanson. Employment contract requirements.
   Existing law requires that whenever an employer enters into a
contract of employment with an employee for services to be rendered
within this state and the contemplated method of payment of the
employee involves commissions, the contract must be in writing and
set forth the method by which the commissions are to be computed and
paid.
   This bill would exempt from this requirement temporary, variable
incentive payments that increase, but do not decrease, payment under
the written contract.


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 an employer enters into a contract of
employment with an employee for services to be rendered within this
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 the contract to every
employee who is a party thereto and shall obtain a signed receipt
for the contract from each employee. In the case of a contract that
expires and where the parties nevertheless continue to work under the
terms of the expired contract, the contract terms are presumed to
remain in full force and effect until the contract is superseded or
employment is terminated by either party.
   (c) As used in this section, "commissions" has the meaning set
forth in Section 204.1. For purposes of this section only,
"commission" does not include any of the following:
   (1) Short-term productivity bonuses such as are paid to retail
clerks.
   (2) Temporary, variable incentive payments that increase, but do
not decrease, payment under the written contract.
   (3) 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.