Indiana sales representative employment contract template
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How Indiana sales representative employment contract Differ from Other States
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Indiana law mandates payment of commissions within 14 days after due date or contract termination, unlike some states with longer periods.
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Under Indiana Code §24-4.6-2-4, sales representatives have a statutory right to recover treble damages if unpaid commissions are withheld.
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Indiana does not require written contracts but strongly recommends them to avoid disputes, whereas some states require written agreements by law.
Frequently Asked Questions (FAQ)
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Q: Is a written sales representative contract required in Indiana?
A: Indiana law does not require written agreements but recommends them to clarify terms and minimize disputes.
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Q: What happens if an Indiana sales representative is not paid commissions on time?
A: If commissions are not paid within 14 days, the representative may claim up to three times the amount owed as damages.
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Q: Can a sales representative recover attorney fees under Indiana law?
A: Yes, Indiana law allows prevailing sales representatives to recover reasonable attorney fees along with damages.
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Indiana Sales Representative Employment Contract
This Indiana Full-Time Sales Representative Employment Agreement (the “Agreement”) is made and entered into as of [Date] by and between [Employer Legal Name], a business entity registered in Indiana with its principal place of business at [Employer Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Address] (“Employee”).
Position and Responsibilities
- The Employer hereby employs Employee as a Sales Representative.
- The Employee accepts such employment and agrees to perform the duties and responsibilities assigned to them by the Employer.
- These duties include, but are not limited to:
- Prospecting for and qualifying new leads within the assigned territory.
- Conducting in-person and/or remote sales presentations to prospective clients.
- Negotiating and closing sales of [Products/Services].
- Managing existing customer accounts within the territory.
- Meeting or exceeding assigned sales targets or quotas.
- Developing and implementing territory sales strategies.
- Participating in trade shows and local business events in Indiana.
- Maintaining accurate and up-to-date records in the company CRM system.
- Providing ongoing follow-up and support to customers.
- Option A: Provide additional duties: [List of Additional Duties]
- Option B: The duties can be changed as needed.
Territory
- The Employee’s primary sales territory shall be [Specific Indiana County/City Boundaries].
- Employee will be expected to travel within the assigned territory.
- Mileage reimbursement will be provided at the rate of [Dollar Amount] per mile, which meets or exceeds the Indiana Department of Labor guidelines.
- Option A: Employee's assigned territory may be changed.
- Option B: No travel is required.
Reporting
- The Employee will report directly to [Supervisor Name and Title].
- The Employee will be required to submit the following reports:
- Weekly sales pipeline report
- Monthly expense report
- Other reports as requested
- Option A: Report frequency can be changed.
- Option B: The method used to deliver report: [Method, e.g., Email, Direct Upload]
Employment Type and Work Schedule
- The Employee’s employment is full-time, as defined under Indiana wage and hour laws (IC 22-2).
- The standard work week will be [Number] hours per week.
- Option A: The employee work schedule is [Work Schedule, e.g., Monday - Friday, 9:00 AM - 5:00 PM].
- Option B: The employee work schedule is flexible.
Overtime
- As a [Exempt/Non-Exempt] employee under the Fair Labor Standards Act (FLSA) and Indiana law, the employee [is/is not] eligible for overtime pay.
- If eligible, overtime will be paid at a rate of one and one-half (1.5) times the Employee’s regular rate of pay for all hours worked in excess of forty (40) hours in a workweek.
- Option A: Overtime must be pre-approved.
- Option B: Overtime will not be compensated.
Compensation
- The Employee will receive the following compensation:
- Base Salary: [Dollar Amount] per [Year/Month/Pay Period].
- Commission: A commission will be paid according to the attached commission schedule (Exhibit A).
- Commissions are earned when [Milestone for Earning Commission, e.g., sale is completed, order is shipped, payment is received].
- Commissions are payable [Frequency of Payment, e.g., monthly, quarterly].
- In accordance with Indiana Wage Payment Statute (IC 22-2-5), all earned and unpaid commissions will be paid at the time of final wage payment upon termination of employment.
- Bonus: [Description of Bonus Structure].
- Draw: [Details of any draw against commissions, including whether recoverable or non-recoverable].
- Accelerators: [Details of any commission accelerators].
- Eligibility for contests: [Details of any contest eligibility].
- Option A: Commission can be updated base on performance.
- Option B: No commission will be paid.
Payment Method and Frequency
- The Employee will be paid via [Direct Deposit/Check].
- The Employee will be paid [Frequency of Payment, e.g., bi-weekly, monthly].
- All applicable federal and Indiana taxes will be withheld from the Employee’s pay.
- Option A: Pay stub will be delivered via mail.
- Option B: Pay stub will be delivered electronically.
Benefits
- The Employee will be eligible for the following benefits, subject to the terms and conditions of the Employer’s benefit plans:
- Health Insurance
- Dental Insurance
- Vision Insurance
- 401(k) or Indiana-compliant retirement plan
- Paid Vacation
- Sick Leave
- Holidays recognized in Indiana
- Reimbursement for business expenses (mileage, client entertainment, cell phone, travel, etc.).
- Training
- Vehicle/Transportation Allowance: [Dollar Amount and Terms].
- Option A: Employees can accrue more time off.
- Option B: Additional benefits: [List of Additional Benefits]
Sales Tools and Resources
- The Employer will provide the Employee with the following sales tools and resources:
- Laptop
- Phone
- Marketing materials
- Demo kits
- The Employee is responsible for the proper use and maintenance of these resources.
- All company property must be returned upon termination of employment.
- Option A: The employee is responsible for the equipment.
- Option B: Employee can purchase the equipment upon termination.
Non-Solicitation
- During the term of employment and for a period of [Number] months following termination, the Employee agrees not to directly solicit any of the Employer’s clients or customers with whom the Employee had contact during their employment. This restriction is specifically limited to solicitation of clients or customers within Indiana.
- Option A: This restriction applies nationwide.
- Option B: This clause does not exist.
Confidentiality
- The Employee agrees to hold confidential all proprietary information of the Employer, including sales data, customer lists, pricing, supplier information, and sales methodologies.
- This obligation of confidentiality shall survive the termination of employment, as permitted under the Indiana Uniform Trade Secrets Act (IC 24-2-3).
- Option A: The information is not considered confidential after termination.
- Option B: Confidentiality restrictions can be waived.
Non-Compete (If Applicable)
- Employee agrees that during employment and for [Number] months after termination, within [Specific Indiana Geographic Area, no broader than assigned territory], Employee will not engage in [Specific Sales Activities Restricted, clearly defined].
- This non-compete clause is narrowly tailored and reasonable under Indiana law, restricting only actual sales activities.
- The parties acknowledge that the “blue pencil” doctrine applies in Indiana courts, allowing a court to modify an overbroad restriction to make it enforceable.
- Option A: Non-compete clause does not exist.
- Option B: Non-compete clause is waived.
Conduct and Performance Standards
- The Employee agrees to comply with the Employer’s ethics policy and all applicable company policies and procedures.
- The Employee agrees to conduct themselves in a professional and ethical manner, upholding customer care and honesty in all representations.
- The Employee agrees to report any expense irregularities or potential violations of company policy.
- Option A: Conduct standards can be changed.
- Option B: The employee agrees to attend ethics training.
Outside Employment and Conflict of Interest
- The Employee agrees not to engage in any outside employment or activities that create a conflict of interest with the Employer.
- The Employee shall not engage in sales activities for a competitor of the Employer during the term of employment, or after termination if restricted by a valid non-compete agreement.
- Option A: The employee must report outside employment.
- Option B: Outside employment must be pre-approved.
Termination
- Voluntary Resignation: The Employee may terminate employment by providing [Number] days’ written notice to the Employer.
- Termination for Cause: The Employer may terminate employment for cause, including but not limited to:
- Fraud or misrepresentation
- Violation of company policy
- Failure to meet sales targets or quotas
- Misconduct
- Termination Without Cause: The Employer may terminate employment without cause.
- Final Paycheck: Upon termination, the Employee will receive a final paycheck in accordance with Indiana law, including all earned and unpaid wages and commissions.
- Return of Materials: The Employee must return all company property upon termination.
- Post-Employment Obligations: The Employee’s obligations under the Non-Solicitation and Confidentiality clauses of this Agreement shall survive termination.
- Option A: Employee can receive severance pay.
- Option B: The employee is entitled to COBRA benefits.
Governing Law and Jurisdiction
- This Agreement shall be governed by and construed in accordance with the laws of the State of Indiana.
- Any dispute arising out of or relating to this Agreement shall be resolved in the state or federal courts located in [Specific Indiana County].
- The parties agree to first attempt to resolve any disputes through negotiation or mediation before initiating legal action.
- Notices required under this Agreement shall be sent to the following addresses:
- Employer: [Employer Address]
- Employee: [Employee Address]
- Option A: Arbitration is mandatory.
- Option B: Jury trials are waived.
Anti-Discrimination and Equal Employment Opportunity
- The Employer is an equal opportunity employer and complies with all applicable Indiana and federal anti-discrimination laws.
- The Employer does not discriminate on the basis of race, color, religion, sex, age, national origin, disability, veteran status, or any other protected characteristic under Indiana law.
- The Employer is committed to providing a workplace free from harassment and to promoting diversity and inclusion.
- Option A: Diversity training is required.
- Option B: Employee is given the opportunity to self-identify.
Worker’s Compensation and Safety
- The Employee is covered by the Employer’s worker’s compensation insurance policy in accordance with Indiana law.
- The Employer is committed to maintaining a safe working environment and complies with Indiana Occupational Safety and Health Administration (IOSHA) standards.
- Option A: Employee is responsible for reporting injuries.
- Option B: Employee is entitled to safety training.
Background Checks and Driver’s License (If Applicable)
- The Employee is subject to a [Criminal Background Check/Driver’s License Check].
- If the Employee is required to use a personal vehicle for work, the Employee must maintain minimum liability insurance as required by Indiana law.
- The Employer will reimburse the Employee for business use of their personal vehicle as described in Section 2.
- Option A: Employee must maintain specific insurance.
- Option B: Employer provides a company car.
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.
- This Agreement may be amended only by a written instrument signed by both parties.
- The parties acknowledge that this contract is adjustable and optional elements may be tailored for the specific sales role, territory, compensation system, or company policies unique to the Indiana market or sales profession.
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: ____________________________
Exhibit A: Commission Schedule
[Detailed Commission Calculation and Payment Terms]