Commission Sales Agreements: Drafting Strategies for Ensuring Compliance with California Regulations
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When it comes to how you draft your commission agreements in California, you can't afford to take any chances - especially since a new law, A.B. 1396, affects employers' drafting obligations in a major way.
Commissions can be a great way to boost your sales staff's entrepreneurial spirit because a commission-based compensation strategy rewards them for their hard work and gives them the incentive needed to help grow your business.
But questions often arise about how the language in commission-based sales agreements should be interpreted - and the litigation it takes to get those questions answered can be extremely costly for employers. For instance, having a commission agreement that doesn't specify or fails to adequately define when commissions are earned and what happens upon termination of employment can have disastrous consequences for employers. Plus, even where the agreement's language is very clear, there are also public policy issues that may limit your ability to restrict or take away commissions.
For these reasons, and a host of others, it's crucial for you to get up to date on the latest rules so you can make sure you're in compliance.
Participate in this interactive webinar, and you'll learn:
- How A.B. 1396 affects California employers that use commission sales agreements
- The key legal elements for a well-drafted commission sales agreement
- When you may legally "charge back" commissions in light of recent California court decisions
- The legal distinctions between straight commission and a salary-plus-bonus compensation plan in California
- When a commission is generally "earned" in California
- Common mistakes to avoid when drafting commission agreements
- Key provisions your sales commission agreements should always address, including what happens to a commission when a sale has been cancelled or renegotiated
- When a commission is owed upon termination
- Whether you can modify an agreement's terms during a commission year
- What a "windfall provision" looks like and when a judge may find such a contract clause violates public policy
- When it's proper to classify sales employees as exempt from state and federal minimum wage and overtime requirements
- What to do for workweeks when sales employees don't earn enough commissions to meet California wage requirements
- As a bonus for attending, you'll get a sample commission plan template!
- And much more!!
In just 90 minutes, you'll learn how to balance the motivating power of sales commission agreements with the rules you need to follow under California law. Register now for this informative event especially for California HR professionals.
About your presenter:
Allen M. Kato is an attorney in the Employment Practices Group of Fenwick &West LLP in San Francisco. His practice concentrates exclusively on representing management in wage and hour, equal employment opportunity, wrongful termination, privacy, unfair competition, and trade secret matters, and litigating individual and class action lawsuits before courts and agencies. He also trains managers and human resources professionals on a regular basis.
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This presentation is also available in a recorded format, in CD version, as shown in the pricing options below.
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|Licenses / Designations / Educational Credits:||PHR / SPHR Re-Certification Credits|
All US States: 1.5
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||BLR® is the leader in helping organizations, and their employees, reduce safety, environmental and employment compliance-related legal exposure, stay on the right side of law, and achieve their full potential. We offer best-in-class compliance product and services that includes news, information & analysis, best practice guidance, employee training and turn-key tools delivered in a wide range of formats from online applications, live events and websites to books, CD's, Video, Posters and newsletters geared to all sized organizations and industries.
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