Seyfarth Synopsis: There are many different ways to pay employees in California. What is the scoop behind paying commissions? What are commission agreements and how have courts deciphered their coded mysteries? Read on for the most current intelligence from the SIA (Seyfarth Intelligence Agency).

Rogue Nation: The Rough Terrain Surrounding Commissions

What are commissions? Labor Code Section 204.1 defines a
Continue Reading ComMISSION Impossible: The Pitfalls of California Commission Agreements

By: Emily Schroeder 

In a recent blog post, we discussed how recent California judicial court decisions may erode the once-solid foundation of traditional incentive pay systems. Specifically, Armenta v. Osmose and Bluford v. Safeway held that while a piece rate compensated employees for their “productive time”—time spent actually working on piece-rate tasks—the piece rate did not compensate them for
Continue Reading Commission Pay Post-Peabody

As many employers know, California’s new written commission agreement law (Labor Code Section 2751) became effective on January 1, 2013.  This new law requires employers that pay California employees “commissions” to do the following:

1.    have a written contract with the employee regarding commissions that is signed by the employer;

2.    include in the contract the method for


Continue Reading Got It In Writing? Rules for Commissioned Employee Pay Agreements