Illinois sales representative employment contract template

Illinois Sales Representative Employment Contract

This Illinois 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 Business Address], Email: [Employer Email], Phone: [Employer Phone] (the "Employer"),

and

[Employee Legal Name], residing at [Employee Address], Email: [Employee Email], Phone: [Employee Phone] (the "Sales Representative").

1. Employment

The Employer hereby employs the Sales Representative, and the Sales Representative hereby accepts employment with the Employer, as a full-time Sales Representative.

2. Job Duties and Responsibilities

The Sales Representative shall perform the following duties and responsibilities, primarily within the Illinois market:

• Prospecting Illinois-based business leads through various channels (cold calling, networking, referrals, etc.).
• Customer relationship management, including building and maintaining relationships with existing and potential clients.
• Product or service presentations tailored to local Illinois industry practices.
• Territory management within the specified Illinois geographic region of [Specific Geographic Region].
• Maintaining accurate and up-to-date records in the Employer’s CRM database [CRM Name].
• Preparing and submitting regular sales reports to [Reporting Manager Name] on a [Reporting Frequency] basis.
• Participating in regional trade shows and local industry events in Illinois.
• Achieving individual and team sales quotas as defined by the Employer.
• Documenting all client visits, travel, and mileage in compliance with Illinois labor law and IRS substantiation guidelines.
• Option A: The Sales Representative will focus on selling [Product/Service 1].
• Option B: The Sales Representative will focus on selling [Product/Service 2].

3. Company Property

The Sales Representative shall be responsible for the proper care and use of all company property, including but not limited to electronic devices (laptop, phone), samples, and marketing materials. The Sales Representative shall comply with all customer privacy and information security policies under Illinois law, including the Illinois Biometric Information Privacy Act (if applicable).

4. Reporting Structure

The Sales Representative shall report directly to [Supervisor Name], [Supervisor Title]. Performance evaluations will be conducted [Frequency, e.g., annually]. The Employer will provide goal-setting and mentorship opportunities specific to the sales team.

5. Work Location and Territory

The principal work location(s) will be [Principal Work Location(s)] within Illinois. The Sales Representative’s territory is defined as [Specific Territory Boundaries]. The Sales Representative is expected to work [Percentage]% in the field, [Percentage]% in the office, and [Percentage]% remotely.

6. Expense Reimbursement

The Employer shall reimburse the Sales Representative for reasonable and necessary business expenses incurred in connection with the performance of their duties, including but not limited to client entertainment and travel, in accordance with the Illinois Wage Payment and Collection Act requirements and IRS substantiation guidelines. All expenses must be pre-approved by [Approving Manager Name].

• Option A: Mileage will be reimbursed at the current IRS standard mileage rate.
• Option B: Mileage will be reimbursed at a rate of [Dollar Amount] per mile.

7. Employment Type and Work Hours

This is a full-time employment position. The Sales Representative is expected to work approximately [Number] hours per week. The Sales Representative's work schedule may be flexible to accommodate sales cycles. Rest and meal breaks will be provided in accordance with Illinois law.

• Option A: The Sales Representative is exempt from overtime pay.
• Option B: The Sales Representative is non-exempt from overtime pay and will be paid at a rate of 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.

8. Compensation

The Sales Representative shall receive the following compensation:

• Base Salary/Hourly Wage: [Dollar Amount] per [Year/Hour].
• Commissions: Commissions will be calculated as follows: [Commission Calculation Formula].
• Bonuses: The Sales Representative may be eligible for bonuses based on performance criteria established by the Employer.
• Payment Frequency: The Sales Representative will be paid [Payment Frequency, e.g., bi-weekly].
• Commission Payout Timing: Commissions will be paid [Commission Payout Schedule]. The terms "earned" vs. "paid" commission are defined as follows: [Definitions of "Earned" and "Paid"].
• Clawback Provisions/Chargebacks: [Description of Clawback Provisions/Chargebacks, if any].
• Deductibles and Withholdings: All required deductions and withholdings will be made in accordance with applicable law.
• Commissions Upon Termination: Commissions earned but not yet paid at the time of termination will be paid in accordance with the Illinois Sales Representative Act (820 ILCS 120/).

9. Benefits

The Sales Representative shall be eligible for the following benefits:

• Health Insurance: [Description of Health Insurance Coverage].
• Dental Insurance: [Description of Dental Insurance Coverage].
• Vision Insurance: [Description of Vision Insurance Coverage].
• 401(k) or Illinois Secure Choice Retirement Plan: [Description of Retirement Plan].
• Vacation and Sick Leave: [Description of Vacation and Sick Leave Policy, including reference to Illinois Paid Leave for All Workers Act].
• Paid Illinois Public Holidays: [List of Paid Holidays].
• Sales Incentive Trip Eligibility: [Description of Eligibility Requirements].
• Professional Development Allowance: [Dollar Amount] per [Year].
• Mileage Reimbursement: Reimbursed as per IRS guidelines.
• Expense Account: [Description of Expense Account Rules].
• Other Perks: [List of Other Perks].

10. Intellectual Property

All customer lists, sales strategies, and business information developed or acquired during employment shall remain the property of the Employer and are protected as trade secrets under the Illinois Trade Secrets Act. The Sales Representative shall not use or remove any company IP for personal use, including digital sales records.

11. Confidentiality and Non-Disclosure

The Sales Representative agrees to hold confidential all proprietary information, client contacts, pricing, strategic data, and agreements of the Employer. This obligation shall survive termination of employment. The Sales Representative shall comply with all applicable data privacy laws, including the Illinois Biometric Information Privacy Act (if applicable).

12. Non-Solicitation

The Sales Representative agrees not to solicit the Employer’s customers, key accounts, or employees for a period of [Number] months following termination of employment within a radius of [Number] miles from [Business Location], in accordance with the Illinois Freedom to Work Act.

• Option A: This Non-Solicitation clause applies to customers and employees actively engaged with during the last [Number] months of employment.
• Option B: This Non-Solicitation clause does not apply to employees earning less than the statutory salary threshold defined by Illinois law.

13. Non-Compete

The Sales Representative agrees not to compete with the Employer for a period of [Number] months following termination of employment. This clause is only enforceable if the employee's salary meets the legal minimum requirements under the Illinois Freedom to Work Act, if adequate consideration is given, and if the scope is reasonable. Employer must provide a mandatory disclosure about the non-compete rights and a rescission period of 14 days before signing.

• Option A: This Non-Compete agreement does not apply if the Sales Representative's salary is below [Dollar Amount].
• Option B: This Non-Compete agreement only applies to the sale of [Specific Products/Services].

14. Behavioral and Ethics Standards

The Sales Representative shall comply with the Employer’s code of conduct, refrain from bribery or unethical inducements, and adhere to the Equal Pay Act and Illinois Human Rights Act (prohibiting discrimination). The Sales Representative shall also abide by the Employer’s rules on the use of company vehicles, if applicable, and participate in compliance and anti-harassment training as required.

15. At-Will Employment and Termination

This is an at-will employment relationship, meaning either party may terminate the employment relationship at any time, with or without cause or notice, subject to the following:

• Notice Requirements: [Notice Period Required, if any].
• Last Pay Date: The Sales Representative will receive their final paycheck, including all earned commissions and unused PTO, in accordance with Illinois law.
• Severance: [Description of Severance Terms, if any].
• Return of Company Property: The Sales Representative shall immediately return all company property upon termination.
• Commission Reconciliation: A final commission reconciliation will be conducted within [Number] days of termination.

16. Workplace Injuries and Accidents

The Sales Representative shall promptly report and document any workplace injuries, accidents in the field, or customer complaints, in accordance with the Illinois Workers’ Compensation Act.

17. Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through:

• Internal Grievance Procedure: [Description of Internal Grievance Procedure].
• Negotiation: The parties shall first attempt to resolve the dispute through good faith negotiation.
• Mediation: If negotiation fails, the parties agree to participate in mediation.
• Option A: The parties agree to binding arbitration under Illinois law.

Governing Law and Venue: This Agreement shall be governed by and construed in accordance with the laws of the State of Illinois. The venue for any legal action shall be [County, Illinois].

18. Compliance

The Sales Representative shall comply with all applicable federal and Illinois-specific labor, tax, and licensing requirements, including Illinois state sales regulations and anti-fraud provisions.

19. Addenda and Modifications

This Agreement may be modified only by a written agreement signed by both parties.

20. 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, between the parties with respect to such subject matter.

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

____________________________

[Employer Legal Name]

By: ____________________________

[Employer Representative Printed Name]

Title: [Employer Representative Title]

Date: ____________________________

____________________________

[Employee Legal Name]

By: ____________________________

[Employee Printed Name]

Title: Sales Representative

Date: ____________________________