Existing statutory law, which was held invalid by Lett v. Paymentech, Inc., 81 F.Supp.2d 992 (N.D. Cal. 1999), requires an employer who has no permanent and fixed place of business in California and who enters into a contract of employment with an employee to be paid by commission for services to be rendered in California, to put the contract in writing and to set forth the method by which the commissions are required to be computed and paid. An employer who does not comply with those requirements is liable to the employee in a civil action for triple damages.
The stated intent of this bill is to restore the employee protections that had been in effect prior to Lett by making Sections 2751 and 2752 of the Labor Code apply with equal force to employers with a fixed place of business in the state as they do to employers who do not have a fixed place of business in the state.
This bill would therefore, by January 1, 2012, make this requirement for a written commission contract applicable to all employers contracting with an employee for services to be rendered in the state who will be paid on a commission basis.
Amends Section 2751 of the Labor Code.
Enrolled and to the Governor on 09/03/10.