EmploymentQuestion 1098 of 1605
When an employee's pay includes commissions, Labor Code §2751 requires the employer to:
a.Avoid paying commissions at all
b.Report commissions to the CSLB
c.Provide a written commission agreement describing how commissions are computed and paid, and obtain the employee's signed receipt
d.Pay commissions only in cash
Explanation
Labor Code §2751 requires that when an employee's compensation involves commissions, the employer must put the commission arrangement in a signed written contract that explains the method of computing and paying the commissions, and give the employee a signed copy. This protects both parties by documenting the pay terms.
Law Reference: Labor Code §2751 (commission agreements)Practice all 1605 questions free — no signup required.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)