Iowa sales representative employment contract template
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How Iowa sales representative employment contract Differ from Other States
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Iowa law specifically protects sales representatives' rights to timely commission payments, with statutory penalties for late payment.
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Iowa enforces strict requirements on contract termination, mandating clear written notice and specifying allowable circumstances.
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Under Iowa Code, sales representatives may be entitled to exemplary damages if their commissions are wrongfully withheld by employers.
Frequently Asked Questions (FAQ)
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Q: Are written contracts required for sales representatives in Iowa?
A: While not strictly required, written contracts are highly recommended in Iowa to clarify commission terms and legal rights.
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Q: How soon must Iowa employers pay commissions after contract termination?
A: Iowa law requires employers to pay earned commissions within 30 days of contract termination or when they are due.
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Q: Can Iowa sales representatives claim additional damages for unpaid commissions?
A: Yes, Iowa allows exemplary damages up to three times the unpaid commissions if withholding is found to be intentional.
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Iowa Sales Representative Employment Agreement
This Iowa Sales Representative Employment Agreement (the "Agreement") is made and effective as of [Date], by and between [Employer Full Legal Name], a [State of Formation] [Business Type, e.g., Corporation], with its principal place of business at [Employer Address] ("Employer"), and [Employee Full Legal Name], residing at [Employee Address] ("Employee").
Position
- Option A: Sales Representative
- Option B: Senior Sales Representative
- Option C: Regional Sales Manager
- Responsibilities: Employee will be responsible for prospecting, lead generation, visiting clients, presenting products or services, negotiating deals, closing sales, post-sale support/follow-up, and maintaining client relationships within the assigned territory.
- Nature of Role:
- Option A: Outside Sales
- Option B: Inside Sales
- Option C: Combination of Inside and Outside Sales
Territory
- Geographic Area: [Describe Iowa Territory, e.g., Central Iowa, Des Moines Metro Area, etc.]. May include multi-state territories as [List states].
- Travel Requirements: Employee is expected to travel within the assigned territory in Iowa and potentially [list surrounding regions] to meet with clients and prospects. [Describe specific travel expectations, e.g., Overnight travel up to X nights per month.]
- Sales Quota: Employee will be subject to a sales quota as determined by Employer. Current quota: [State sales quota, e.g., $X in sales per quarter.]
- Reporting: Employee will submit regular sales reports as required by Employer. [Specify frequency, e.g., Weekly, Bi-weekly, Monthly].
Full-Time Employment
- Full-Time Status: This is a full-time position.
- Working Hours: Employee's standard working hours will be [Number] hours per week, generally from [Start Time] to [End Time], Monday through Friday. This includes time spent in the field for client meetings and customer visits.
- Overtime: This position is [Exempt/Non-Exempt] from overtime pay under the Fair Labor Standards Act (FLSA) and Iowa law. [If Non-Exempt, state overtime rate and conditions]. Rationale: [Explain if exempt - e.g., Outside Sales Exemption]
- Meal and Rest Breaks: Employee is entitled to meal and rest breaks in accordance with Iowa law. [Specify break times and duration].
- Time and Attendance Tracking: Employee will track their time and attendance using [Specify method, e.g., Company Timekeeping System].
Compensation
- Base Salary: Employee will receive a base salary of [Dollar Amount] per [Year/Hour], payable [Frequency, e.g., Bi-weekly].
- Commission: Employee will be eligible to earn commissions based on the following structure: [Detailed commission structure, including calculation methodology, e.g., X% of gross sales, tiered commission rates based on sales volume].
- Bonus/Incentives: Employee may be eligible for bonuses or incentives based on [Specific criteria, e.g., exceeding sales quotas, new client acquisition, client retention].
- Payment Timing: Commissions will be paid [Payment Timing, e.g., monthly, quarterly] on [Define Trigger, e.g., receipt of payment from customer, date of sale].
- Clawback/Chargeback: [State whether clawbacks/chargebacks are applicable and under what conditions. If applicable, provide a detailed explanation].
- Pay Frequency and Method: Employee will be paid [Frequency, e.g., bi-weekly] via [Method, e.g., direct deposit]. Itemized pay statements will be provided as required by Iowa law.
Benefits
- Health Insurance: Employer will provide health insurance coverage as per the company's health insurance plan.
- Dental and Vision Insurance: Employer will provide dental and vision insurance coverage as per the company's plan.
- Life and Disability Insurance: Employer will provide life and disability insurance coverage as per the company's plan.
- Retirement Plan: Employer offers a [401(k) or other retirement plan] with [Employer Contribution Details].
- Vacation/Paid Time Off: Employee will accrue vacation/paid time off according to the company's policy. [Specify accrual rate and maximum amount].
- Sick Leave: [State sick leave policy. Note Iowa does not mandate paid sick leave.]
- Holidays: Employee will be entitled to paid holidays as designated by Employer. [List recognized holidays].
- Travel/Mileage Reimbursement: Employee will be reimbursed for travel and mileage expenses at the rate of [Dollar Amount] per mile or [Describe other arrangement, e.g., company vehicle].
- Company Vehicle/Car Allowance: [State whether a company vehicle is provided or a car allowance is provided. If so, provide details.]
- Expense Reimbursement: Employee will be reimbursed for reasonable and necessary business expenses, subject to company policy and with proper substantiation.
- Sales Training/Continuing Education: Employer will provide [Describe any sales training, trade conference, or continuing education support].
Non-Solicitation
- Non-Solicitation: During the term of employment and for a period of [Number] months following termination of employment, Employee shall not directly or indirectly solicit any of Employer's customers or employees located in Iowa.
Non-Competition
- Option A: Non-Compete Clause Included
- Non-Competition: During the term of employment and for a period of [Number] months following termination of employment, Employee shall not engage in any business or employment that is directly competitive with the business of Employer within [Define Geographic Scope within Iowa, e.g., a X mile radius of Des Moines, Iowa]. This restriction applies to [Specifically define the scope of prohibited activities].
- Option B: No Non-Compete Clause
Confidentiality and Trade Secrets
- Confidentiality: Employee acknowledges that they will have access to confidential information and trade secrets of Employer, including customer lists, pricing information, and sales strategies.
- Protection of Trade Secrets: Employee agrees to hold all confidential information in strict confidence and not to disclose it to any third party during or after the term of employment, consistent with the Iowa Uniform Trade Secrets Act.
Intellectual Property
- Ownership: All intellectual property developed by Employee in the course of their employment, including customer data, sales materials, and marketing plans, shall be the sole property of Employer.
- Return of Property: Upon termination of employment, Employee shall immediately return all company property, including all intellectual property, to Employer.
Authority and Limitations
- Contract Execution: Employee is not authorized to execute contracts on behalf of Employer without express written authorization.
- Pricing Discretion: Employee's pricing discretion is limited to [Specify limitations, e.g., X% below list price].
- Compliance: Employee shall comply with all company sales policies, product disclaimers, and ethical sales practices.
CRM System
- Use of CRM: Employee is required to use Employer's CRM system and promptly report all leads and sales activities.
Conduct Standards
- Compliance with Laws: Employee shall comply with all applicable municipal, state (Iowa Code Chapter 91), and federal laws, including the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Title VII of the Civil Rights Act, Age Discrimination in Employment Act (ADEA), and Americans with Disabilities Act (ADA).
Dispute Resolution
- Progressive Discipline: Employer will follow a progressive discipline policy.
- Mediation/Arbitration: Any disputes arising out of or relating to this Agreement shall be [Choose: subject to mediation/ settled by binding arbitration] in [City, Iowa].
- Jurisdiction and Venue: Iowa law shall govern this agreement. The exclusive venue for any legal action shall be in [County] County, Iowa.
At-Will Employment
- At-Will Employment: This is an at-will employment agreement, meaning that either party may terminate the employment relationship at any time, with or without cause or notice, except as otherwise required by law.
Termination
- Notice: [Specify notice requirements, if any, for termination by either party.]
- Final Wage Payment: Upon termination, Employee will receive all earned but unpaid wages in accordance with the Iowa Wage Payment Collection Act.
- Exit Interview: Employee shall participate in an exit interview.
- Return of Property: Employee shall return all company property.
- Commission Reconciliation: All commissions earned but not yet paid will be reconciled and paid according to the terms of this Agreement.
Sales Activities Compliance
- Compliance with Statutes: Employee shall comply with all applicable local, state, and federal statutes regulating sales activities, including the Iowa Consumer Fraud Act and Do-Not-Call (DNC) registry rules.
- Licensing/Registration: [State any licensing or registration requirements, if applicable.]
- Safety Policies: Employee shall adhere to all company safety policies and OSHA standards for in-person sales visitations.
Data Privacy
- Data Privacy: Employee shall comply with all applicable data privacy laws and company policies regarding the handling of customer information.
Equal Employment Opportunity
- Equal Opportunity: Employer is an equal opportunity employer and does not discriminate based on race, color, religion, sex, national origin, age, disability, or any other protected characteristic under federal or Iowa law.
Anti-Harassment/Anti-Retaliation
- Harassment and Retaliation: Employer prohibits harassment and retaliation in the workplace.
Amendments, Assignment, and Severability
- Amendments: This Agreement may be amended only in writing and signed by both parties.
- Assignment: This Agreement may not be assigned by Employee without the prior written consent of Employer.
- Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
Incorporation by Reference
- Incorporation: The following documents are incorporated into this Agreement by reference: [List documents, e.g., Commission Plan, Employee Handbook, Sales Policy Manual].
Probationary Period/Performance Review
- Probationary Period: [State whether there is a probationary period and the terms].
- Performance Review: Employee will be subject to performance reviews [Specify frequency, e.g., quarterly, annually].
Advancement/Transfer
- Advancement: Eligibility and process for advancement or transfer to other sales teams will be based on [State criteria, e.g., performance, experience, availability of positions].
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Employer Full Legal Name]
By: [Name of Authorized Representative]
Title: [Title of Authorized Representative]
[Employee Full Legal Name]
Signature:
Date: