Navigating employment laws when it comes to commissions can be confusing, and many don’t know the statues in place.
Unless otherwise provided for in a collective bargaining agreement, section 204.1 of the California Labor Code mandates that commissions paid to car dealership salespeople be paid once every calendar month. That monthly payday must be designated in advance by the employer as the regular payday. The commissions paid to a salesperson must represent the “proportional percentage of their sales for that month.” It must be readily and reasonably calculable.
Contact our California Labor and Employment Lawyers today.