When an employee's pay includes commissions, Labor Code §2751 requires the employer to:
Explanation
Labor Code §2751(a) requires that where an employee's compensation involves commissions, the contract be in writing and set forth the method by which the commissions are computed and paid, and §2751(b) requires the employer to give the employee a signed copy and obtain a signed receipt. (a) treats the paperwork as a reason to abandon commissions, which the section neither requires nor encourages. (b) sends a payroll document to the licensing board. (d) would violate nothing about commissions but runs into the general rule that wages are payable by check or cash at the employee's option. Note §2751(c): a short-term productivity bonus and a temporary variable incentive that increases but does not decrease pay are not commissions for this purpose.
Law Reference: Labor Code §2751(a), (b); §204.1This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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