Commissioned Salespersons Must Now Have Written Agreements

October 1, 2007

New York Labor Law Section 191 (c) has been amended, effective October 16, 2007, to require that employers place the terms of employment for commissioned salespersons in writing. Such “terms” include a description of how salary, drawing account, wages, commissions and all other monies earned and payable are to be calculated. Likewise, the written agreement must describe how such monies are to be paid if the employment relationship is terminated by either party. These agreements must be

  1. signed by both the employer and employee
  2. kept on file by the employer for at least three years
  3. provided to the New York State Department of Labor upon request.

The new law also makes it clear that employers without written agreements for their commissioned sales persons place themselves in great risk, as the NYS Department of Labor will view the terms of employment as presented by the employee as controlling should that employee file a wage complaint. It is therefore imperative that New York employers make sure they are in compliance with these new requirements as soon as possible.

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