Two More Proposed Legislative Changes-Commission Agreements & A New Leave of Absence

SB 1304 (DeSaulnier) – This bill requires private employers to permit employees to take up to 30 days of paid leave for an organ donation and up to five days of paid leave for a bone marrow donation.  The bill also prohibits retaliation against employees who take this leave, and would authorize an employee to bring a civil action to enforce the provisions of this bill.  Though this bill is certainly well-intentioned and designed to encourage organ and bone marrow donations, many groups, including the California Chamber of Commerce, oppose the bill because a new private sector mandate is not the correct policy to advance an otherwise laudable goal.  As small business bankruptcies are at an all-time high in this state, many argue that increasing the cost of doing business in an already costly environment is not a good idea to pursue at this time.  After passing the Senate Judiciary Committee, this bill has been forwarded to the Senate Appropriations Committee. I didn’t think we needed one more leave of absence law! It will probably pass.
 

SB 1370 (Ducheny) – This bill requires that employees who are paid by commission are provided with a written contract on the terms and conditions of employment.  Under existing law, contracts must be in writing if 1) the employer has no permanent and fixed place of business in California, 2) the employer is entering into a contract of employment with an employee for services to be rendered within California, and 3) the contemplated method of payment involves commissions. Under this legislation, any and all employment contracts that envision commissions as a form of payment must be in writing, regardless of where the employer is located and/or where the employee’s services are to be performed.  This bill was passed by the Senate Committee on Labor and Industrial Relations, and awaits referral to the full Senate.

I have discussed written commission agreements soooo many times. The laws are getting tighter. A number of clients have commission people outside of California. This will also impact the automobile industry am RV dealers who use individuals for special sales events.