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State Employment Law Articles
Article Index » california » wage & hour » Commissions
Report Link Button Up Those Commission Plans.
Fisher & Phillips, LLP - October 01, 2009
An employer recently found itself in the unenviable position of defending a lawsuit brought by a former sales employee, who alleged that the employer owed him a commission of 20% on a $12 million deal he brokered with AT&T. After three and a half years of litigation, an appellate court ruled in the employer's favor because the salesperson's employment agreement contained two critical provisions. Would your company's commission plan pass the same test? Nein v. HostPro, Inc.
Report Link California Court of Appeal Rules Employment Contract Barred Recovery of Post-Termination Commissions.
Jackson Lewis LLP - June 15, 2009
Affirming summary judgment in favor of an employer, the California Court of Appeal has held that the plain language of an employment agreement barred a salesperson’s recovery of commissions following his termination of employment. Nein v. HostPro, Inc., No. B199497 (Cal. Ct. App. June 4, 2009). The Court also held that the agreement precluded the plaintiff’s claim for breach of the implied covenant of good faith and fair dealing, for state Labor Code violations for failing to pay wages, and for violations of the state Unfair Competition Law.
Report Link Commission and Bonus Plans: Is a Deal a Deal?
Shaw Valenza LLP - March 25, 2008
Commissions and bonuses are forms of "wages" in California. The Labor Code imposes on employers a number of obligations regarding payment of wages. For example, wages must be paid within a specified time period after they are earned. Employees who quit or are terminated typically must be paid their final wages on their last day of employment or penalties may accrue. Wages must be included in the "regular rate" of pay, which is used to calculate overtime. They also must be detailed on the "wage statement" that is furnished employees with every paycheck.

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