Fair Labor Standards Act (FLSA): Federal law establishing standards for wage payments, overtime, recordkeeping, and labor conditions. Crucial for determining commission payment timing and minimum wage requirements.
Internal Revenue Code: Federal tax regulations affecting how commissions are taxed and reported, including withholding requirements and tax implications for both employer and employee.
FICA (Federal Insurance Contributions Act): Federal law requiring social security and Medicare tax contributions on commission payments, affecting both employer and employee obligations.
State Labor Laws: Varying by state, these laws govern employment relationships, including commission payments, timing, and disclosure requirements specific to each jurisdiction.
State Sales Commission Laws: State-specific regulations governing commission agreements, such as California's Labor Code Section 2751 requiring written commission agreements.
Independent Contractor Classification: Federal and state guidelines determining whether a sales representative should be classified as an employee or independent contractor, affecting tax and benefit obligations.
Commission Payment Regulations: Laws governing the timing, calculation, and structure of commission payments, including requirements for post-termination commissions and charge-backs.
Contract Formation Requirements: State-specific contract law principles governing formation, enforcement, and interpretation of commission agreements.
Software Licensing Requirements: Industry-specific regulations governing software sales, licensing, and distribution that may affect commission calculations and terms.
Data Protection Laws: State and federal regulations governing data privacy and protection, particularly relevant for software sales and customer information handling.
