Arizona sales representative employment contract template

View and compare the Free version and the Pro version.

priceⓘ
Download Price
free
pro
price
$0
$1.99
FREE Download

Help Center

Need to learn how to convert downloaded contract DOCX files to PDF or add electronic signatures? Please visit our Help Center for detailed guidance.

How Arizona sales representative employment contract Differ from Other States

  1. Arizona law requires prompt payment of commissions to sales representatives upon contract termination, which is more strictly enforced than in many other states.

  2. Arizona imposes penalties for late commission payments, including up to three times the unpaid amount, unlike most states that lack such specific statutory penalties.

  3. Arizona statutes mandate written sales representative agreements for commission-based roles, providing additional legal clarity compared to some states that allow oral agreements.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for sales representatives in Arizona?

    A: Yes. Arizona law specifically requires a written agreement outlining commission terms for sales representatives.

  • Q: Are there penalties for late commission payments in Arizona?

    A: Yes. Employers may owe up to three times the unpaid commission amount if payments are late or withheld unlawfully.

  • Q: Can an Arizona sales representative contract be terminated at will?

    A: Generally yes, unless the contract specifies otherwise. However, all commissions earned before termination must still be paid.

HTML Code Preview

Arizona Sales Representative Employment Contract

This Arizona Sales Representative Employment Contract (the “Agreement”) is made and effective as of [Date], by and between [Employer Legal Name], a [State of Incorporation] corporation with its principal place of business at [Employer Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Address] (“Employee”).

1. Employment

* The Employer hereby employs the Employee as a Sales Representative and the Employee hereby accepts such employment.

* Job Type:

* Option A: Inside Sales Representative.

* Option B: Outside Sales Representative.

* Option C: Territory Sales Representative, responsible for the territory of [Specify Territory within Arizona].

* Option D: Account-Based Sales Representative, responsible for the following accounts: [List of Accounts].

* Job Responsibilities: Employee's responsibilities include, but are not limited to:

* Prospecting for new clients within the assigned territory/market.

* Conducting sales presentations and product demonstrations.

* Meeting or exceeding predefined sales targets and quotas.

* Managing and nurturing existing customer relationships.

* Reporting sales activity and progress to management.

* Preparing quotations and contracts for prospective clients.

* Maintaining accurate and up-to-date records in the CRM database.

* Attending trade shows, industry events, and conferences as required.

* Submitting timely and accurate expense reports.

* Following up on orders and ensuring timely collections.

* Other duties as assigned by Employer.

2. Work Location and Travel

* Primary Work Location:

* Option A: The Employee's primary work location shall be at the Employer's office located at [Office Address in Arizona].

* Option B: The Employee's primary work location shall be within the assigned sales territory of [Specify Territory within Arizona].

* Option C: Hybrid/Remote Work: Employee may work remotely [Number] days per week, subject to Employer's policies. The primary work location is considered [Employee's Home Address or Designated Co-working Space].

* Travel Requirements:

* The Employee will be required to travel within [Specify Territory/Region within Arizona] to perform the duties of this position.

* Use of Personal Vehicle:

* Option A: The Employee will use their personal vehicle for business travel. Employee must maintain a valid Arizona driver's license and insurance coverage as required by Arizona law.

* Option B: The Employer will provide a company vehicle for the Employee's use.

* Reimbursement: The Employee will be reimbursed for business mileage at the current IRS standard mileage rate and for other reasonable and necessary travel expenses incurred in accordance with the Employer's expense reimbursement policy.

3. Employment Classification and Work Hours

* Full-Time Employment: The Employee is employed on a full-time basis.

* Exempt/Non-Exempt Status:

* Option A: Exempt: The Employee is classified as exempt from overtime pay under the Fair Labor Standards Act (FLSA) and Arizona law.

* Option B: Non-Exempt: The Employee is classified as non-exempt and is entitled to overtime pay at a rate of one and one-half times their regular rate of pay for all hours worked over 40 in a workweek.

* Typical Workweek: The typical workweek for this position is [Number] hours per week.

* Wage Payment: The Employee will be paid in accordance with Arizona law regarding wage payment timing and permissible deductions.

4. Compensation

* Base Salary/Wage:

* Option A: Annual Salary: The Employee's annual base salary shall be [Dollar Amount], payable in accordance with the Employer's payroll schedule.

* Option B: Hourly Wage: The Employee's hourly wage shall be [Dollar Amount].

* Arizona Minimum Wage Compliance: The base salary/wage complies with Arizona's minimum wage law.

* Commission Structure: The Employee will be eligible to earn commissions based on the following structure:

* Commission Rate: [Percentage]% of Net Sales Revenue.

* Calculation Method: Commissions are calculated on [Specify: Gross Sales, Net Sales, Revenue, etc.] received by the Employer.

* Eligibility: Commissions are earned upon [Specify: Order Placement, Shipment, Payment Received, etc.].

* Payment Frequency: Commissions will be paid [Specify: Monthly, Quarterly, etc.].

* Clawback/Recovery Policy: In the event of a customer refund or bad debt, commissions previously paid may be subject to clawback or recovery. The specific terms are outlined in [Specify Document, e.g., Commission Plan Document].

* Threshold/Quota Requirements: Commissions are payable only if the Employee meets a minimum sales quota of [Dollar Amount or Units] per [Time Period].

* Split Commissions: In cases of team sales, the commission will be split as follows: [Specify Split Percentage or Method].

* Acceptable Deductions: Any deductions from commissions will be made in compliance with Arizona law.

* Payment Timeframes: Commissions will be paid within [Number] days after the end of the [Month/Quarter] in which the sale closed, adhering to Arizona's Regulation of Unpaid Wages for sales commissions.

5. Bonus and Incentive Plans

* Bonus/Incentive Plans: The Employee may be eligible to participate in the Employer's bonus/incentive plans, subject to meeting the qualifying criteria and schedules outlined in [Specify Document, e.g., Bonus Plan Document].

* Sign-on Bonus:

* Option A: Sign-on bonus of [Dollar Amount] payable according to the following schedule: [Specify Payment Schedule]. Repayment required if employment terminates within [Number] months.

* Option B: No sign-on bonus.

6. Benefits

* Health Insurance: The Employee will be eligible to participate in the Employer's health insurance plan, subject to the terms and conditions of the plan.

* Dental and Vision Insurance: The Employee will be eligible to participate in the Employer's dental and vision insurance plans, subject to the terms and conditions of the plans.

* Paid Time Off (PTO): The Employee will accrue paid time off (vacation and sick leave) in accordance with the Employer's PTO policy and Arizona's Paid Sick Time Law.

* Accrual Rate: [Specify Accrual Rate].

* Usage: PTO may be used for vacation, illness, or other personal reasons, subject to the Employer's PTO policy.

* Holidays: The Employee will be entitled to paid holidays as designated by the Employer.

* 401(k)/Retirement Plan: The Employee will be eligible to participate in the Employer's 401(k) or other retirement plan, subject to the terms and conditions of the plan.

* Expense Reimbursement: The Employee will be reimbursed for reasonable and necessary sales-related expenses incurred in the performance of their duties, subject to the Employer's expense reimbursement policy.

* Mobile Phone/Laptop/Car Allowance:

* Option A: Mobile Phone Allowance: The Employee will receive a mobile phone allowance of [Dollar Amount] per month.

* Option B: Laptop: The Employee will be provided with a company-issued laptop.

* Option C: Car Allowance: The Employee will receive a car allowance of [Dollar Amount] per month.

* Workers' Compensation: The Employee is covered by the Employer's workers' compensation insurance policy, as required by Arizona law.

7. Sales Targets and Performance Metrics

* Sales Targets: The Employee will be assigned sales targets and performance metrics as determined by the Employer. These targets will be communicated to the Employee and may be adjusted from time to time.

* Review Process: The Employee's performance will be reviewed on a [Quarterly/Annual] basis.

* Territory Changes: The Employer reserves the right to make changes to the Employee's assigned territory.

* Missed Quotas: Failure to meet sales targets may result in performance improvement plans or other disciplinary action, up to and including termination of employment, consistent with Arizona's at-will employment doctrine.

8. Code of Conduct

* Compliance: The Employee shall comply with all applicable laws, regulations, and company policies, including but not limited to anti-bribery laws, the Arizona Consumer Fraud Act, and laws regarding false advertising or misrepresentation.

* Ethics: The Employee shall conduct themselves with honesty, integrity, and professionalism in all interactions with clients, colleagues, and the public.

* Record-Keeping: The Employee shall maintain accurate and complete records of all sales activities, orders, and expenses.

9. Confidentiality and Proprietary Information

* Confidential Information: The Employee acknowledges that they will have access to confidential and proprietary information of the Employer, including customer lists, pricing details, leads, sales strategies, and marketing materials.

* Non-Disclosure: The Employee agrees to hold all confidential information in strict confidence and not to disclose it to any third party, either during or after their employment with the Employer.

* Post-Employment: This confidentiality obligation shall survive the termination of the Employee's employment.

10. Non-Solicitation

* Non-Solicitation: The Employee agrees that during their employment and for a period of [Number] months following the termination of their employment, they will not directly or indirectly solicit any of the Employer's clients or employees to leave the Employer, acknowledging Arizona’s stance on the limited enforceability of non-compete agreements. This restriction is limited to protecting legitimate business interests and is reasonable in scope, duration, and geographic area.

11. Intellectual Property

* Ownership: Any sales materials, proposals, or promotional content created by the Employee during their employment shall be the sole and exclusive property of the Employer.

12. Restrictive Covenants

* Non-Compete: The Employee agrees that during their employment and for a period of [Number] months following the termination of their employment, they will not engage in any business activity that is directly competitive with the Employer's business within [Specify Geographic Area within Arizona], but only to the extent that such restriction is reasonable in scope, duration, and geographic area and protects the Employer’s legitimate business interests, in accordance with Arizona law.

13. Reporting Duties

* Reports: The Employee shall submit regular sales reports, pipeline forecasts, and other reports as required by the Employer.

* CRM Usage: The Employee shall maintain accurate and up-to-date records in the Employer's CRM system.

* Lead Handling: The Employee shall follow the Employer's lead handling protocols.

14. Termination

* At-Will Employment: The Employee's employment is at-will, meaning that either the Employer or the Employee may terminate the employment relationship at any time, with or without cause, and with or without notice, subject to the notice requirements below.

* Resignation Notice: The Employee shall provide the Employer with [Number] days' written notice of their intention to resign.

* Grounds for Dismissal: The Employer may terminate the Employee's employment for cause, including but not limited to poor performance, commission fraud, or ethics violations.

* Commission Payment Upon Termination: The Employee will be paid any earned but unpaid commissions in accordance with Arizona law, within [Specify Timeframe] of termination.

* Final Paycheck: The Employee's final paycheck will be issued in accordance with Arizona law.

* Return of Property: Upon termination of employment, the Employee shall immediately return all company property, including customer lists, samples, electronics, and other materials.

15. Arizona Employment Requirements

* Employment Verification: The Employee must provide documentation to verify their eligibility for employment in the United States, as required by law (I-9 and E-Verify, if applicable).

* Pay Period Notice: The Employee acknowledges receipt of notice of the Employer's pay periods.

16. Anti-Discrimination and Harassment

* Equal Opportunity: The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, sex, age (40+), religion, national origin, disability, or any other protected characteristic under the Arizona Civil Rights Act.

* Harassment: The Employer prohibits all forms of harassment in the workplace.

17. Dispute Resolution

* Negotiation: The parties agree to attempt to resolve any disputes arising out of or relating to this Agreement through good faith negotiation.

* Mediation/Arbitration:

* Option A: The parties agree to submit any unresolved disputes to mediation in [City, Arizona].

* Option B: Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration in [City, Arizona] in accordance with the Arizona Uniform Arbitration Act. The parties agree to waive their right to a jury trial.

18. Data Privacy

* Client Data: The Employee shall comply with all applicable laws and regulations regarding the privacy and security of client data, including Arizona's data breach notification statutes.

19. Monitoring Consent

* Monitoring: The Employee acknowledges that the Employer may monitor or record sales calls or in-person activities, subject to Arizona's one-party consent audio recording law.

20. Occupational Safety

* Safety: The Employee shall comply with all applicable occupational safety requirements for offsite and field sales activities.

21. Acknowledgment

* Handbook: The Employee acknowledges receipt of the Employer's employee handbook and sales policy manual(s) and agrees to comply with all applicable policies and procedures.

22. Entire Agreement

* This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

[Employer Legal Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

[Employee Full Legal Name]

Signature: ____________________________

Date: ____________________________

Related Contract Template Recommendations