Commissions: Drafting and Enforcing Commission Plans in California (San Francisco)

Starting January 1, 2013, Section 2751 of the California Labor Code required that all commission plans be in writing and signed by the employee. Those employers with already-existing robust, written commissions plans were ahead of the curve and well-prepared for the requirement, but many companies struggled in the final weeks of December 2012 to get plans into place just before (or after) the deadline, and some are still working to do so. The good news is that, once in place, commission plans are an excellent way to reward sales personnel for their hard work and to incent their future work growing the business – aligning their compensation and company success in key ways. However, a poorly-drafted or incomplete commission plan can backfire, creating personnel and business headaches and driving legal costs through the roof.

Join us on May 7 in Mountain View or May 8 in San Francisco for a two-hour seminar focused exclusively on commission plans – drafting complete and enforceable plans and administering them in accordance with the law. Key questions your speakers will address include:

• What does Labor Code Section 2751 require of employers;
• What are the most common pitfalls in defective sales commissions agreements and how to avoid them;
• What rights, if any, does an employer have to modify sales commissions terms during the commission year;
• What is a sales commission, when is it "earned," and when may the employer change a commission plan to affect vesting;
• How should employers treat commissions upon termination;
• When will courts re-write "unconscionable" provisions; and
• How is the commission plan related to the sales employee's potential exempt classification.

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