Hunton Employment & Labor Perspectives

On September 30, 2012, California Governor Jerry Brown announced that he had signed AB 2675, involving “employment contract requirements.”  This bill amends Labor Code § 2751, which requires any employment contract for services to be rendered in California that “involves commissions” to “be in writing and set forth the method by which the commissions are to be computed and paid.”  AB 2675 adds an important exemption to the definition of “commission” that will substantially reduce the possibility that the statute could be applied to non-commission compensation plans.