California sales representative employment contract template

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How California sales representative employment contract Differ from Other States

  1. California law requires that sales representative contracts for commissions be in writing, unlike some other states.

  2. California imposes strict deadlines for payment of earned commissions after contract termination, ensuring prompt compensation.

  3. Non-compete clauses are generally unenforceable in California, providing greater post-employment freedom for sales representatives.

Frequently Asked Questions (FAQ)

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

    A: Yes, California law mandates written contracts detailing commission payments for sales representatives.

  • Q: Are non-compete clauses enforceable in California sales representative contracts?

    A: No, California generally prohibits the enforcement of non-compete clauses in employment agreements.

  • Q: How soon must commissions be paid after contract termination in California?

    A: Commissions must be paid within the timeframe specified in the contract or promptly after the relationship ends.

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California Sales Representative Employment Contract

This California Sales Representative Employment Contract (the "Agreement") is made and entered into 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 Legal Name], residing at [Employee Address] ("Employee").

1. Employment

  • Option A: Employer hereby employs Employee as a Full-Time Sales Representative.
  • Option B: Employer hereby employs Employee as a Part-Time Sales Representative.

2. Job Responsibilities

  • The Employee's primary responsibilities will include, but are not limited to:
    • Prospecting and generating new leads.
    • Managing existing customer accounts.
    • Meeting or exceeding sales quota targets.
    • Conducting in-person and virtual sales presentations.
    • Preparing and negotiating proposals.
    • Maintaining CRM systems.
    • Providing product training/education to clients.
    • Attending relevant trade shows.
    • Reporting sales performance metrics.

3. Territory

  • Option A: The Employee's assigned territory is the State of California.
  • Option B: The Employee's assigned territory is [Specific Region/Counties].
  • Option C: The Employee's assigned territory is national.

4. Reporting Structure

  • The Employee will report directly to [Supervisor Name], [Supervisor Title].

5. Key Performance Indicators (KPIs)

  • The Employee's performance will be evaluated based on the following KPIs:
    • Sales targets ([Specific Target]).
    • Revenue benchmarks ([Specific Benchmark]).
    • Lead generation targets ([Number of Leads]).

6. Work Location

  • Option A: The Employee's position is field-based.
  • Option B: The Employee's position is office-based at [Office Address].
  • Option C: The Employee's position is remote-based.

7. Employment Status and Hours

  • The employment is full-time. The expected weekly hours are [Number].
  • Option A: The Employee is expected to be in the office [Number] days per week.
  • Option B: The Employee will follow a flexible schedule, subject to manager approval.
  • Overtime will be compensated in accordance with California law. Employee must accurately record all working hours. Meal and rest breaks will be provided as required by California law.

8. Compensation

  • The Employee's base salary is [Dollar Amount] per [Year/Month], payable [Frequency of Payment].
  • Method of payment: [Direct Deposit/Check].
  • The Employee is eligible for commissions as outlined in the attached Commission Plan (Exhibit A), which is fully incorporated herein, adhering to California Labor Code Section 2751.

9. Bonuses and Incentives

  • The Employee may be eligible for bonuses and incentive programs as determined by Employer. Details are provided in Exhibit B.

10. Employee Benefits

  • The Employee is eligible for the following benefits, subject to Employer's policies:
    • Health, dental, and vision coverage.
    • 401(k) plan.
    • Paid sick leave, in compliance with California Paid Sick Leave law.
    • Vacation time: [Number] days per year.
    • Paid family leave as required by California law.
    • Bereavement Leave as required by California law.
    • Paid holidays: Federal and California State holidays.

11. Business Expenses

  • The Employee will be reimbursed for all necessary business expenses in accordance with California Labor Code Section 2802. All expenses must be pre-approved and properly documented. This includes travel, meals, lodging, client entertainment, and required equipment.

12. Company Property

  • The Employee will be provided with the following company property: [Laptop, Phone, Tablet, Car Allowance Details]. All company property must be returned upon termination of employment.

13. Confidentiality and Data Privacy

  • The Employee agrees to maintain the confidentiality of all client information, trade secrets, and other proprietary information. This obligation survives termination of employment and complies with CCPA.

14. Intellectual Property

  • All sales materials, customer data, and processes developed during employment are the property of the Employer. Use of the Employer's intellectual property in personal social media or outside activities requires written pre-approval.

15. Non-Competition and Non-Solicitation

  • Employee acknowledges that non-compete agreements are generally unenforceable in California. This Agreement does not contain a non-compete clause.
  • Option A: The Employee agrees not to solicit the Employer's clients for [Number] years following termination of employment.
  • Option B: The Employee agrees not to solicit the Employer's employees for [Number] years following termination of employment.

16. At-Will Employment

  • The employment relationship is at-will. Either party may terminate the employment relationship at any time, with or without cause or advance notice, subject to any obligations outlined in the Commission Plan.

17. Termination Procedures

  • Upon termination, the Employee must return all company property. Final wages and outstanding commissions will be paid in accordance with California law.
  • Option A: Employee agrees to provide [Number] weeks’ notice.
  • Option B: Employer will provide [Number] weeks’ severance pay in the event of termination without cause.

18. Anti-Discrimination and Anti-Harassment

  • Employer is an equal opportunity employer and prohibits discrimination and harassment based on race, color, religion, sex, gender identity, sexual orientation, age, disability, national origin, marital status, veteran status, or any other protected characteristic under California's Fair Employment and Housing Act (FEHA). Employer's mandatory harassment prevention policies and training are in accordance with California’s AB 1825 and SB 1343 requirements.

19. Ethical Conduct

  • The Employee will comply with all relevant state and industry ethical guidelines, including restrictions on business gifts, entertainment of clients, and compliance with the California Unfair Competition Law and applicable anti-kickback or anti-bribery statutes.

20. Data Protection and Privacy

  • The Employee will adhere to company policies on the protection and permissible uses of customer and prospect data in compliance with CCPA and all local privacy laws, including protocol for data breach notification.

21. Territory Reassignment

  • The Employer reserves the right to reassign or reduce the Employee's territory. Commissions on sales in transferred regions or with transferred accounts will be handled as described in the Commission Plan (Exhibit A).

22. Sales Reporting

  • The Employee will provide regular sales reports, forecasts, and pipeline management updates, and participate in sales meetings, trainings, and product knowledge updates.

23. Expense Reports

  • The Employee will submit expense reports in accordance with company policy. Reimbursement will be made within the timeframe required by California law.

24. Licensing and Registration

  • Option A: The Employee is required to maintain the following licenses/registrations: [List of Licenses/Registrations].
  • Option B: Not applicable.

25. Internal Complaint Procedures

  • The Employer has established internal complaint procedures and whistleblower protections pursuant to California Labor Code 1102.5.

26. Dispute Resolution

  • Any disputes arising out of or relating to this Agreement will be resolved through good-faith negotiation, mediation, or binding arbitration in [City, County, State], in accordance with California law.

27. Workers' Compensation and Safety

  • The Employer maintains Workers’ Compensation insurance coverage and complies with Occupational Safety and Health (Cal/OSHA) obligations.

28. Vehicle Use

  • If driving is required, the Employee must maintain valid driver’s license and insurance. Employer follows protocols for insurance and liability related to use of personal or company vehicles, as defined in company policy.

29. Diversity and Inclusion

  • Employer is committed to diversity, inclusion, and accommodations for employees with disabilities (per ADA and FEHA) and religious accommodation.

30. Acknowledgments

  • The Employee acknowledges receipt and understanding of the following: Commission Plan (Exhibit A), Anti-Harassment Training Completion Certificate, Employee Handbook. These documents are incorporated into this Agreement.

31. Modification of Compensation or Benefits

  • Employer reserves the right to modify compensation or benefits in accordance with California Labor Code.

32. Language of Contract

  • This Agreement is written in English. If the Employee's principal language is not English, a translation will be provided upon request, as required by California law.

33. Eligibility to Work

  • The Employee must be legally eligible to work in the United States.

34. Background Checks

  • Option A: Employment is contingent upon successful completion of a background check.
  • Option B: Not applicable.

35. Entire Agreement

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

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]

Date: [Date]

[Employee Legal Name]

Signature: ____________________________

Date: [Date]

Exhibits:

  • Exhibit A: Commission Plan
  • Exhibit B: Bonus and Incentive Program Details

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