Bill Text: CA AB2675 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Employment contract requirements.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-30 - Chaptered by Secretary of State - Chapter 826, Statutes of 2012. [AB2675 Detail]

Download: California-2011-AB2675-Amended.html

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BILL NUMBER: AB 2675	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2012
	AMENDED IN ASSEMBLY  APRIL 16, 2012

INTRODUCED BY    Committee on Labor and Employment 
 (   Assembly Members Swanson (Chair),
Alejo, Allen, Furutani, and Yamada   ) 
 Assembly Member   Swanson 

                        MARCH 5, 2012

   An act to amend  Section 1727 of the Labor Code, relating
to public contracts   Section 2751 of the Labor Code,
relating to employment  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2675, as amended,  Committee on Labor and Employment
  Swanson  .  Public works: prevailing wage
rates: penalty assessment.   Employment contract
requirements.  
   Existing law requires that whenever an employer enters into a
contract of employment with an employee for services to be rendered
within this state and the contemplated method of payment of the
employee involves commissions, the contract must be in writing and
set forth the method by which the commissions are to be computed and
paid.  
   This bill would exempt from this requirement temporary, variable
incentive payments that increase, but do not decrease, payment under
the written contract.  
   Existing law regulating public works contracts requires the
awarding body of a public works contract to withhold and retain all
amounts required to satisfy any civil wage and penalty assessment
issued by the Labor Commissioner before making payments to the
contractor of money due under the contract.  
   This bill would specify that upon receipt of a final order that is
no longer subject to judicial review, the retained amounts necessary
to satisfy the final order shall be deemed forfeited by the
contractor or subcontractor. 
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 2751 of the   Labor
Code   is amended to read: 
   2751.  (a)  By January 1, 2013, whenever  
Whenever  an employer enters into a contract of employment with
an employee for services to be rendered within this state and the
contemplated method of payment of the employee involves commissions,
the contract shall be in writing and shall set forth the method by
which the commissions shall be computed and paid.
   (b) The employer shall give a signed copy of the contract to every
employee who is a party thereto and shall obtain a signed receipt
for the contract from each employee. In the case of a contract that
expires and where the parties nevertheless continue to work under the
terms of the expired contract, the contract terms are presumed to
remain in full force and effect until the contract is superseded or
employment is terminated by either party.
   (c) As used in this section, "commissions" has the meaning set
forth in Section 204.1.  "Commissions"   For
purposes of this section only, "commission"  does not include
 short-term   any of the following: 
    (1)     Short-term  productivity
bonuses such as are paid to retail clerks  ; and it does not
include bonus   .  
   (2) Temporary, variable incentive payments that increase, but do
not decrease, payment under the written contract. 
    (3)     Bonus  and profit-sharing
plans, unless there has been an offer by the employer to pay a fixed
percentage of sales or profits as compensation for work to be
performed. 
  SECTION 1.    Section 1727 of the Labor Code is
amended to read:
   1727.  (a) Before making payments to the contractor of money due
under a contract for public work, the awarding body shall withhold
and retain therefrom all amounts required to satisfy any civil wage
and penalty assessment issued by the Labor Commissioner under this
chapter. The amounts required to satisfy a civil wage and penalty
assessment shall not be disbursed by the awarding body until receipt
of a final order that is no longer subject to judicial review.
   (b) If the awarding body has not retained sufficient money under
the contract to satisfy a civil wage and penalty assessment based on
a subcontractor's violations, the contractor shall, upon the request
of the Labor Commissioner, withhold sufficient money due the
subcontractor under the contract to satisfy the assessment and
transfer the money to the awarding body. These amounts shall not be
disbursed by the awarding body until receipt of a final order that is
no longer subject to judicial review.
   (c) Upon receipt of a final order that is no longer subject to
judicial review, the retained amounts necessary to satisfy the final
order shall be deemed forfeited by the contractor or subcontractor.