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NYS Labor Law Modified to Require Written Agreements for Commissioned Salespersons

Section 191 of the New York State Labor Law was recently amended.  The actual text of the new law (which I have set out in bulleted form) is as follows:

• "THE AGREED TERMS OF EMPLOYMENT SHALL BE REDUCED TO WRITING, SIGNED BY BOTH THE EMPLOYER AND THE COMMISSION SALESPERSON, KEPT ON FILE BY THE EMPLOYER FOR A PERIOD NOT LESS THAN THREE YEARS AND MADE AVAILABLE TO THE COMMISSIONER UPON REQUEST.

• SUCH WRITING SHALL INCLUDE A DESCRIPTION OF HOW WAGES, SALARY, DRAWING ACCOUNT, COMMISSIONS AND ALL OTHER MONIES EARNED AND PAYABLE SHALL BE CALCULATED.

• WHERE THE WRITING PROVIDES FOR A RECOVERABLE DRAW, THE FREQUENCY OF RECONCILIATION SHALL BE INCLUDED.

• SUCH WRITING SHALL ALSO PROVIDE DETAILS PERTINENT TO PAYMENT OF WAGES, SALARY, DRAWING ACCOUNT, COMMISSIONS AND ALL OTHER MONIES EARNED AND PAYABLE IN THE CASE OF TERMINATION OF EMPLOYMENT BY EITHER PARTY.

• THE FAILURE OF AN EMPLOYER TO PRODUCE SUCH WRITTEN TERMS OF EMPLOYMENT, UPON REQUEST OF THE COMMISSIONER, SHALL GIVE RISE TO A PRESUMPTION THAT THE TERMS OF EMPLOYMENT THAT THE COMMISSIONED SALESPERSON HAS PRESENTED ARE THE AGREED TERMS OF EMPLOYMENT."

Lots of folks are hoping to make a few dollars writing contracts for employers by scaring them with this new amendment.  I suspect that most reasonably intelligent human resources professionals can figure this one out.

Full post as published by Strategic HR Lawyer on October 30, 2007 (boomark / email).