Hawaii sales representative employment contract template

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How Hawaii sales representative employment contract Differ from Other States

  1. Hawaii requires written commission agreements for sales representatives, whereas some states permit oral agreements.

  2. Hawaii law imposes specific deadlines for payment of earned commissions after termination, unlike other states with less strict timelines.

  3. Hawaii prohibits retaliation against sales reps who pursue lawful claims for owed commissions, offering added legal protection.

Frequently Asked Questions (FAQ)

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

    A: Yes, Hawaii law mandates that sales representatives must have a written contract outlining the terms of employment and commissions.

  • Q: What happens if a sales representative is terminated in Hawaii?

    A: The employer must pay all earned commissions within a specified timeframe after termination, as mandated by Hawaii law.

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

    A: Non-compete clauses may be restricted or unenforceable in Hawaii, especially if they excessively limit an employee’s future employment.

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Hawaii Sales Representative Employment Agreement

This Hawaii Sales Representative Employment Agreement (the “Agreement”) is made and effective as of [Date], by and between:

[Employer Legal Name], a [State] [Entity Type] with its principal place of business at [Employer Hawaii Address] (“Employer”),

and

[Employee Legal Name], residing at [Employee Hawaii Address] (“Employee”).

Position and Duties

  • The Employer hereby employs the Employee as a Full-Time Sales Representative.
  • The Employee's duties shall include, but not be limited to:
    • Lead generation.
    • Territory management within Hawaii.
    • Conducting product presentations.
    • Negotiating and closing sales.
    • Achieving sales targets.
    • Account management.
    • Post-sale client support.
    • Maintaining CRM records.
    • Attending local trade shows.
    • Ensuring compliance with company pricing.
    • Representing the company with Hawaii-based clients and partners.

Territory, Products, and Accounts

  • The Employee's sales territory shall be:
    • Option A: The island of [Island Name].
    • Option B: The region of [Region Description] within Hawaii.
  • The Employee shall be responsible for selling the following product lines:
    • Option A: [Product Line 1]
    • Option B: [Product Line 2]
  • The Employee shall target the following industries:
    • Option A: [Industry 1]
    • Option B: [Industry 2]
  • The Employee shall manage the following key accounts:
    • Option A: [Key Account 1]
    • Option B: [Key Account 2]

Reporting Structure and Communication

  • The Employee shall report to:
    • Option A: The Hawaii Sales Manager, [Manager Name].
    • Option B: The mainland HQ at [Location].
  • Sales meetings will be held:
    • Option A: Weekly.
    • Option B: Bi-weekly.
    • Option C: Monthly.
  • Performance reviews will be conducted:
    • Option A: Quarterly.
    • Option B: Annually.
  • Expectations for in-person client visits are:
    • Option A: [Number] visits per week.
    • Option B: As needed based on client requirements.
  • Digital communication standards are: [Description of Standards].

Employment Status and Working Hours

  • The Employee's employment is classified as full-time under Hawaii Revised Statutes §388-1.
  • The Employee's standard working hours are [Number] hours per week, from [Start Time] to [End Time], Monday through Friday.
  • The Employee may have scheduling flexibility for on-site client meetings, subject to Employer approval.
  • The Employee is entitled to a minimum 30-minute meal break after five hours of work, and 10-minute rest breaks per four hours of work, as per HRS 387-1.

Compensation

  • The Employee's compensation shall be:
    • Option A: An annual base salary of [Dollar Amount], payable in accordance with Hawaii direct deposit rules under HRS §388-2.5.
    • Option B: An hourly wage of [Dollar Amount], payable in accordance with Hawaii semi-monthly or monthly requirements.
  • The Employee is eligible for commissions as follows:
    • Eligibility: [Description of Eligibility].
    • Sales Quota: [Sales Quota Details].
    • Commission Calculation Formula: [Commission Formula].
    • Payout Timeline: [Payout Schedule].
    • Handling of Unpaid Commissions Upon Resignation/Termination: Compliant with HRS §388-6 and relevant Hawaii case law.

Expense Reimbursement

  • The Employer will reimburse the Employee for reasonable and necessary sales expenses, including:
    • Travel between islands.
    • Client entertainment.
    • Lodging.
    • Per diems.
    • Use of personal vehicle.
    • Mileage rates consistent with IRS and local Hawaii practices.
  • All expenses must be documented with receipts and submitted for approval in accordance with company policy and in compliance with Hawaii Wage Standards Division opinions.

Benefits

  • The Employee is entitled to the following benefits, in compliance with Hawaii law:
    • Prepaid health care coverage (minimum standards per Hawaii Prepaid Health Care Act, HRS Ch. 393).
    • Required TDI (Temporary Disability Insurance) coverage.
    • Compliance with Hawaii Family Leave Law (HRS Ch. 398).
    • Worker’s compensation insurance.
    • State holidays.
    • Vacation: [Vacation Policy Details].
    • Sick Leave: [Sick Leave Policy Details].
    • Paid Time Off: [PTO Policy Details].
    • Retirement Plan: [Retirement Plan Details, if applicable].
    • Sales Training: [Sales Training Details].
    • Potential Relocation or Housing Allowances: [Relocation/Housing Details, if applicable].

Intellectual Property

  • The Employee agrees to assign to the Employer all intellectual property rights to sales strategies, customer lists, marketing plans or materials developed during employment, with a carve-out for pre-existing client contacts.

Confidentiality

  • The Employee agrees to maintain the confidentiality of proprietary sales data, client lists, trade secrets, and competitive information obtained in the course of work.

Client Relationships and Non-Solicitation

  • Client relationships developed during employment are the property of the Employer.
  • The Employee agrees not to solicit the Employer's clients for a period of [Number] months after termination of employment, specific to clients contacted during their tenure. This clause is subject to strict compliance with Hawaii law regarding non-compete clauses, which are limited or void unless reasonable in scope, duration, and geography under HRS §480-4 and applicable Hawaii Supreme Court rulings.

Outside Activities

  • The Employee is prohibited from engaging in moonlighting or outside sales work that competes with the Employer.

Company Property

  • The Employee is permitted to use company-provided sales tools, vehicles, marketing materials, devices, and communication technology for business purposes only.

Compliance with Laws

  • The Employee shall comply with all applicable laws, including the Hawaii Unfair Trade Practices Act and state-specific anti-bribery, anti-kickback, and fair marketing rules.

Professional Conduct

  • The Employee shall maintain standards of professional conduct, interactions with Hawaii-based clients, and adherence to cultural sensitivity and local etiquette.

At-Will Employment

  • The Employee's employment is at-will, and may be terminated by either party at any time, with or without cause, subject to Hawaii law.
    • Voluntary Resignation: [Notice Period Required].
    • Employer-Initiated Termination: [Notice Period or Pay in Lieu].
  • Final pay, including commission payout timing, will be in accordance with HRS §388-3.
  • Upon termination, the Employee shall return all company property.
  • Potential severance offers will be determined on a case-by-case basis.

Criminal Convictions

  • The Employee shall immediately notify the Employer if convicted of or charged with any offense that could affect licensure or eligibility to work in Hawaii.

Dispute Resolution

  • Any disputes arising out of this Agreement shall be resolved through good faith negotiation and mediation, prioritizing Hawaii ADR practices. The legal venue for any legal action shall be the courts of the State of Hawaii.

Anti-Discrimination

  • The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, religion, sex, national origin, age, disability, ancestry/national origin, gender identity/expression, marital status, sexual orientation, religion, and disability in compliance with Hawaii law.

Plain Language

  • This Agreement is intended to comply with Hawaii’s plain language requirements (if applicable under HRS §487D).

Schedules and Addenda

  • Commission plans, regional assignment maps, or additional company-specific policies are outlined in the following schedules and addenda: [List of Schedules and Addenda].

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

____________________________
[Employer Legal Name]

By: [Name]

Title: [Title]

____________________________
[Employee Legal Name]

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