Existing statutory law, which has been held invalid by existing case law, requires an employer who has no permanent and fixed place of business in the state and who enters into a contract of employment involving commissions as a method of payment with an employee for services to be rendered within the state to put the contract in writing and to set forth the method by which the commissions are required to be computed and paid. An employer who does not comply with those requirements is liable to the employee in a civil action for triple damages.
California AB 1396 (20112012) — Employment contract requirements.
Existing statutory law, which has been held invalid by existing case law, requires an employer who has no permanent and fixed place of business in the state and who enters into a contract of employment involving commissions as a method of payment with an employee for services to be rendered within the state to put the contract in writing and to set forth the method by which the commissions are required to be computed and paid. An employer who does not comply with those requirements is liable to the employee in a civil action for triple damages.
Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
AB 1396 L. & E. Assembly Third Reading By SWANSON — 51–28 (pass) · lower
Do pass, but re-refer to the Committee on Judiciary. — 5–1 (pass) · upper
3rd Reading AB1396 Committee on L. & E. (Swanson) By Leno — 25–12 (pass) · upper
Sponsors
Committee on Labor and Employment — primary (person)
Timeline
The legislative action history — every referral, reading, and vote.
2011-02-28 Read first time. To print. reading-1
2011-03-01 From printer. May be heard in committee March 31.
2011-03-21 Referred to Com. on L. & E. referral-committee
2011-04-13 In committee: Hearing postponed by committee.
2011-05-05 From committee: Do pass. (Ayes 5. Noes 1.) (May 4). committee-passage, committee-passage-favorable
2011-05-09 Read second time. Ordered to third reading. reading-2, reading-1
2011-05-26 Read third time and amended. Ordered to third reading. (Page 1552.) reading-3, reading-1, amendment-passage
2011-05-31 Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 28. Page 1632.) reading-3, reading-1, passage
2011-05-31 In Senate. Read first time. To Com. on RLS. for assignment. reading-1
2011-06-08 Referred to Coms. on L. & I.R. and JUD. referral-committee
2011-06-23 From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 1.) (June 22). Re-referred to Com. on JUD. referral-committee, committee-passage, committee-passage-favorable
2011-07-06 From committee: Do pass. (Ayes 4. Noes 1.) (July 5). committee-passage, committee-passage-favorable
2011-07-07 Read second time. Ordered to third reading. reading-2, reading-1
2011-08-29 Read third time. Passed. Ordered to the Assembly. (Ayes 25. Noes 12. Page 2076.). reading-3, reading-1, passage
2011-08-29 In Assembly. Ordered to Engrossing and Enrolling. committee-passage
2011-09-01 Enrolled and presented to the Governor at 3:30 p.m.
2011-10-07 Approved by the Governor. executive-signature
2011-10-07 Chaptered by Secretary of State - Chapter 556, Statutes of 2011.
Source
OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/1e0b557f-cb1b-401f-bc90-1519e8689e96. Confidence: reported (aggregated from official California legislature records).