Recently, California Governor Brown also signed Assembly Bill No. 1396 (“AB 1396”) into law. Effective January 1, 2013, whenever a California-based and/or non-California-based employer enters into a contract of employment with an employee for services to be rendered in California and the method of payment involves commissions, the contract must (1) be in writing, (2) set forth how the commissions will be calculated and (3) how the commissions will be paid. The employer is required to provide a signed copy of the contract to the employee and must receive the employee’s signature on the contract in return. In the case of a contract that expires, but the parties still continue to work under the terms of the expired contract, the contract terms are assumed to have remained in full force and effect until the contract is superseded or the employment is terminated by either party.