AB 1396: New Commission Contract Law - Effective Jan. 1, 2013
By Giles House, Vice President of Marketing Communications and Products Sales reps in California? Are you ready for the new law? Unlike many new year resolutions that typically last only a few weeks (or days in my case), this one is here to stay. It's called AB 1396, and it affects you if you have any employees in California that receive commissions.
What is AB 1396?
AB 1396 went into effect January 1, 2013. The new law requires organizations to create a contract between the employer and employee stating how commissions will be calculated and paid. The employer must also retain an acknowledged copy of the contract. The signed agreement will remain effective until a new agreement is signed or employment ceases, irrespective of any plan expiry dates. Find full details on AB 1396 here.
What should you do?
If you're an existing CallidusCloud customer, don't panic. Our software has plan distribution and tracking capabilities; just get in touch with your account manager and make sure you've got it. Then it's easy to distribute, manage and track your plans, and comply with AB 1396. If you're not an existing CallidusCloud customer, we can still help. With our easy to use Commissions software, you can be up and running quickly and achieving many more benefits -in addition to compliance with AB 1396. For more information, reach out to us at firstname.lastname@example.org or call +1 (866) 812-5244.