California Commission Laws: Employees vs Independent Contractors

Can independent contractors legally earn commissions in California? The answer is more complicated than you might think. In this episode of Big Blend Radio's "California Employment Law" Podcast, San Diego employment attorney Ward Heinrichs explores the intersection of California commission laws and independent contractor classification under AB5. The discussion examines who can legally receive commissions, the distinctions between employees and independent contractors, and why written commission agreements are essential for protecting both workers and businesses. Ward explains how California law treats commission-based compensation, the legal protections available to commissioned employees, and why certain professions—including attorneys, brokers, and some exempt workers—may operate differently under the law. The conversation also covers outside salespersons, expense reimbursement, multi-state employment considerations, and how AB5 continues to shape California's workforce. Whether you're an employer, salesperson, business owner, or independent contractor, this episode offers valuable insights into navigating California's evolving employment landscape. 📖 Read Ward's article: https://www.bigblendmediahouse.com/p/... 🌐 Learn more about Ward Heinrichs: https://bestemploymentattorneysandieg... 🔗 Connect with Ward on LinkedIn:   / ward-heinrichs   📘 Explore the California Employment Law Digital Podcast Magazine: https://www.bigblendmediahouse.com/p/... 🎧 Listen to more California Employment Law Podcast episodes: https://www.bigblendmediahouse.com/p/... Chapters 00:00 Introduction: Independent Contractors and Commission Pay 00:53 Understanding AB5 and Independent Contractors 01:27 Attorneys as Independent Contractors 02:16 Can Independent Contractors Earn Commissions? 03:11 Realtors, Brokers, and Commission-Based Work 04:23 Sales, Business Ownership, and Independent Contractors 06:16 Commission Definitions Under California Law 08:03 Who Can Legally Receive Commissions? 08:12 The Keyes Motors Case Explained 09:24 Consumer Protection and Commission Structures 13:19 Bonuses vs. Commissions 13:51 AB5 Exemptions and Sales Professionals 14:54 Outside Salespersons and Employee Status 15:58 Expense Reimbursement for Sales Employees 16:34 Multi-State Employment and California Law 18:18 Cross-Border Sales and Compliance Issues 18:39 Final Thoughts and Looking Ahead #CaliforniaEmploymentLaw #IndependentContractors #AB5 #CommissionPay #EmploymentLaw #CaliforniaLaborLaw #SalesProfessionals #BusinessOwners #WorkplaceLaw #HRCompliance #WardHeinrichs #BigBlendRadio