Commissions, Incentive Payments and Bonuses Under California Law

Commissions, incentive payments and bonuses present special problems under California law. A majority of employers (and lawyers) are unaware of them. The reason is that there has been little litigation over these issues, as yet. For the same reason, there are often no judicial precedents or guidelines.

The analyses and recommendations in this White Paper are based, in a number of instances, on our best prediction as to how courts are likely to rule. In places, our recommendations are moderately conservative. We would be more aggressive if a client were confronted with a lawsuit, but one of the objectives of counseling is to avoid litigation.