Delaware sales representative employment contract template

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How Delaware sales representative employment contract Differ from Other States

  1. Delaware law mandates that commissions must be paid within 30 days after they become due, ensuring faster compensation than in many other states.

  2. Non-compete clauses in Delaware contracts must meet strict reasonableness criteria to be enforceable, offering employees more protection.

  3. Delaware requires written contracts for sales representatives earning commissions, unlike some states that allow verbal agreements.

Frequently Asked Questions (FAQ)

  • Q: Is a written sales representative contract required in Delaware?

    A: Yes, Delaware law requires a written contract for sales representatives who earn commissions on sales.

  • Q: How soon must commissions be paid under a Delaware sales representative contract?

    A: Commissions must be paid within 30 days after they become due under Delaware law.

  • Q: Are non-compete agreements in Delaware enforceable in sales representative contracts?

    A: Non-compete clauses are enforceable in Delaware only if they are reasonable in scope, duration, and geographic area.

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Delaware Sales Representative Employment Agreement

This Delaware Sales Representative Employment Agreement ("Agreement") is made and effective as of [Date], by and between [Employer Name], a [State] corporation with its principal place of business at [Employer Address] ("Employer"), and [Employee Name], residing at [Employee Address] ("Employee").

Full-Time Employment:

  • Option A: Employee shall be employed by Employer on a full-time basis.
  • Option B: Employee shall be employed by Employer on a part-time basis. (Note: Full-time is assumed if not specified, adjust all terms accordingly)

Employment Status:

  • Option A: Employee's position is classified as exempt under Delaware and federal wage laws.
  • Option B: Employee's position is classified as non-exempt under Delaware and federal wage laws and is subject to overtime pay requirements. (Applicability to sales roles depends on specific duties).

Position and Job Description:

  • Employee is hired as a Sales Representative. The Employee’s primary responsibilities include but are not limited to:
    • Direct sales of [Products/Services].
    • Managing sales territory of [Delaware County/Statewide/Region].
    • Achieving monthly/quarterly/annual sales targets/quotas of [Sales Targets].
    • Customer prospecting, lead generation and pipeline management.
    • Direct client presentations, negotiation, and closing.
    • Account maintenance and regular progress reporting.
  • Sales Channels:
    • Option A: Inside Sales
    • Option B: Outside Sales
    • Option C: B2B
    • Option D: B2C
  • Industry Sector Focus: [Industry Sector]
  • Travel Requirements:
    • Option A: Travel within Delaware is required.
    • Option B: Travel within Delaware and adjoining states is required.
    • Option C: No travel is required.
  • Reporting Lines: Employee will report to [Supervisor Name] and the management team.

Work Location and Equipment:

  • Primary Work Location:
    • Option A: Office located at [Office Address].
    • Option B: Field-based.
    • Option C: Hybrid (combination of office and field).
    • Option D: Remote.
  • Equipment Provided by Employer: [List of Equipment] (e.g., laptop, phone, CRM access). If a vehicle is required, state vehicle policy.
  • Reimbursement Policies: Employer will reimburse Employee for reasonable travel and client entertainment expenses consistent with Delaware tax and wage reimbursement laws.

Working Hours:

  • Standard working hours are [Number] hours per week, from [Start Time] to [End Time], Monday through Friday.
  • Expectations for attendance at company and client events.
  • Overtime (if non-exempt): Overtime will be compensated in compliance with the Fair Labor Standards Act and Delaware law.

Compensation:

  • Base Salary:
    • Option A: \$[Salary Amount] per year.
    • Option B: \$[Hourly Wage] per hour.
  • Commission Structure: [Detailed Commission Structure, including formula, frequency of payments, reporting/auditing of sales achievements, definition of "closed" sale, and clawback conditions. Reference Delaware Code Title 19, Ch. 11 §1107A regarding commission payment upon termination.]
  • Non-Recoverable Draw:
    • Option A: Employee will receive a non-recoverable draw against commissions of \$[Draw Amount] per [Pay Period].
    • Option B: No draw will be provided.
  • Bonus/Incentive Programs: [Detailed explanation of bonus programs, incentives, spiffs, and profit-sharing plans, including calculation and eligibility criteria.]

Benefits:

  • Health, Dental, and Vision Insurance: [Details of health, dental, and vision insurance, if offered.]
  • Paid Time Off: [Details of paid time off policy.]
  • Sick Leave: [Details of sick leave policy, in compliance with Delaware’s Healthy Workplaces Act.]
  • Holidays: [List of paid holidays.]
  • Retirement Plan: [Details of 401(k) or similar retirement plan, if offered.]
  • Professional Development: [Details of professional sales training or certification programs, including reimbursement policies.]

Expense Reimbursement:

  • Employer will reimburse Employee for reasonable and necessary business expenses incurred in connection with Employee’s duties, subject to Employer’s expense reimbursement policy.
  • Requirements for timely expense submission and approval.

Required Licenses/Certifications: [List of any required sales licenses or industry certifications.]

Confidentiality:

  • Employee agrees to hold confidential all customer lists, pricing, proprietary sales strategies, contracts, and other sensitive company/client data.
  • This obligation survives termination of employment.

Non-Solicitation:

  • Employee agrees not to solicit Employer’s clients or employees during and for a period of [Number] months after termination of employment.

Intellectual Property:

  • All customer data, sales presentations, marketing collateral, and other materials created by Employee in the course of employment are the sole property of Employer.

Non-Compete:

  • Option A: Employee agrees not to engage in any business that competes with Employer within [Geographic Scope, e.g., Delaware, Specific Counties] for a period of [Duration, e.g., 6 months, 12 months] after termination of employment. [Ensure this complies with Delaware’s doctrine of reasonableness. Consider separate consideration if implemented mid-employment as required by Delaware law]
  • Option B: No non-compete agreement is required.

Anti-Discrimination:

  • Employer is an equal opportunity employer and complies with Delaware’s Discrimination in Employment Act and all other applicable laws.

Workplace Conduct:

  • Employee shall adhere to Employer’s code of conduct and ethical guidelines.
  • Policies on anti-bribery, appropriate use of company systems, and social media representation.

Data Protection:

  • Employee shall comply with all applicable Delaware and federal privacy laws in handling client information.

At-Will Employment:

  • Employee's employment is at-will, meaning either party may terminate the employment relationship at any time, with or without cause or notice, subject to applicable Delaware law.

Termination:

  • Procedures for employer- and employee-initiated termination.
  • Required notice period (if any): [Number] days.
  • Final pay and commission settlement (timing and process).
  • Return of company equipment, files, and customer materials.

Discipline:

  • Company procedures for progressive discipline, suspension, performance improvement plans, and grounds for immediate dismissal consistent with Delaware labor precedents.

Workers' Compensation:

  • Employee acknowledges Delaware’s Workers’ Compensation statutes and procedures for reporting workplace injury.

Dispute Resolution:

  • This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
  • Any dispute arising out of or relating to this Agreement shall be resolved in the courts of Delaware, prioritizing negotiation and mediation before litigation.

Vehicle Use:

  • Option A: If Employee uses a company or personal vehicle for sales duties, Employee shall maintain a valid Delaware driver’s license and insurance.
  • Option B: Vehicle use is not required for this position.

Conflicts of Interest:

  • Employee shall report any business opportunities or conflicts of interest to Employer.
  • Company policies for accepting gifts, entertainment, or compensation from third parties.

Onboarding and Training:

  • Detailed onboarding and training expectations.
  • Requirement for regular mandatory sales team meetings located in Delaware.
  • Performance review schedules linked to compensation or continued employment.

Employee Handbook:

  • Employee acknowledges receipt and review of the Employer’s Delaware-specific employee handbook, code of conduct, and all applicable sales procedures.

Compliance Training:

  • Employee shall complete all required Delaware-specific compliance training (e.g., anti-harassment, ethics, fair competition, data security).

Modification of Terms:

  • Employer reserves the right to modify territory, sales quotas, incentive programs, and reporting protocols upon written notice, within bounds permitted by Delaware law.

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.

Amendment:

  • This Agreement may be amended only by a writing signed by both parties.

Severability:

  • If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

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

_______________________________

[Employer Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

_______________________________

[Employee Name]

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