Under current California law, when an employee enters into an employment contract and the method of paying involves commissions, the contract must be in writing and must set forth the method by which the commissions are to be computed and paid. The new law, effective January 1, 2013, clarifies the definition of commissions that require written commission agreements to explain that temporary incentive payments are exempt from this regulation. Specifically, AB 2675 amends Labor Code 2751 to make clear that the following are not considered "commissions" requiring a written agreement (1) short-term productivity bonuses such as those paid to retail clerks, (2) temporary, variable incentive payments that increase, but do not decrease, payment under written contract, and (3) bonus and profit sharing plans, unless there has been an offer by the employer to pay a fixed percentage of sales or profits as compensation for work to be performed.