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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 118237
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Hi,I am an insurance broker in California that gets paid

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Hi, I am an insurance broker in California that gets paid a guaranteed salary (not a draw) plus commission on new business and renewals, but I am not under written contract. I also receive commission overrides on another broker's business since I assist with him.  Based on AB1396, shouldn't I be under contract? Thank you in advance.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Under the new law, ANY commissioned employee must have a written contract regarding commissions and how they are paid and when they are due. Commission wages are defined by the law as compensation paid to any person for services rendered in the sale of an employer’s property or services, based proportionately upon the amount or value thereof. So whether the employer routinely pays commissions or does so only on an intermittent or occasional basis, this law requires written contracts.

You need to let your employer know again and tell them to double check this with their corporate counsel, because it could end them up in trouble.

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Customer: replied 3 years ago.

Thank you for this information for your prompt reply. The answer is what I expected to read but just wanted to confirm.

Thank you very much.