Organizations with sales teams in California: Are you ready for AB 1396?
This new contract law requires employers who pay commissions to California-based employees to enter into written commission contracts with those employees — regardless of whether you, the employer, is in California or not.
Well, as of two days ago, that law is in effect. So if you haven’t gotten on board yet, don’t fret. We’ve got a few solutions that’ll help ease you into the process.
Capabilities in Xactly Incent
AB 1396 requires multiple signatures and approvals of commission contracts. While an actual signature is not required, you can still waste valuable time manually typing or signing each individual document.
With Xactly Incent, you can speed up the process by:
- Modifying a plan document template to include a cover letter signed by an executive
- Grabbing plan templates under myMessages or eDocs & Approvals
- Embedding images (such as signatures or company logos) in the template
- Going up the hierarchy up to 5 levels for approvals
- Viewing declined/accepted plan documents
Capabilities in Xactly Express
One important thing the new law requires is a page of terms and conditions. With Express, you can place one at the beginning of every plan document.
You can also automatically create the same one for multiple reps, which the admin can customize as needed. As of yet, we don’t have too many options for AB 1396 in Express, but plan to provide more capabilities in the future.
One thing we do know for certain is that implementing this new law can be as simple and straightforward as clicking a few buttons. As far as this new commission contract is concerned, Xactly can help make the process for you a little less painful.
Evan Ellis is Chief Operating Officer for Xactly.