The new law requires employers who pay employees via commission to (1) have a written contract with the employee regarding commissions (2) include the method for calculating the commissions (3) require the employee to sign a "receipt" retained by the employer.
Also, the contract remains in effect until a new commission plan has superseded it or employment terminates, even if the old plan expires.
Finally, the law attempts to define commission and excludes bonuses, but then includes bonuses that are a percentage of sales or profits. Now, commissions aren't percentages of profits. So, some bonuses will be included in this provision.
I predict a lot of work for SV drafting commission plans in 2012.
The law takes effect 1/1/13. The text is here.