New York State Legislature Imposes New Standards For Written Employment Agreements With Commissioned Salespersons

Recently, the New York State Legislature mandated written employment agreements for commissioned salespersons. Moreover, the New York Court of Appeals will consider what type of employee and what type of compensation is covered under the wage deduction provisions of the New York Labor Law. Employers should be aware of the compliance issues raised by these events.

New York State Legislature Amends Labor Law to Require Written Employment Agreements for Commissioned Salespersons

Effective October 16, 2007, Section 191(1) of the New York Labor Law will require that employers of commissioned salespersons reduce the terms of employment to a writing signed by both the employer and the employee.1 The amendment represents a significant change in the nature of employment agreements between commissioned salespersons and employers, and in employers’ duties in relation to those agreements.