Kentucky sales representative employment contract template
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How Kentucky sales representative employment contract Differ from Other States
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Kentucky law requires employers to pay all earned commissions within thirty days after termination, which may differ from other states’ timelines.
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Kentucky provides statutory protections against retaliation for sales representatives who assert their commission rights, while other states may not.
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Specific notice requirements for commission plan changes are mandated under Kentucky law, unlike many other states with more general provisions.
Frequently Asked Questions (FAQ)
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Q: What are the commission payment rules for Kentucky sales representatives?
A: Employers must pay all earned commissions within thirty days after the sales representative’s termination, per Kentucky state law.
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Q: Are non-compete clauses enforceable in Kentucky sales rep contracts?
A: Non-compete clauses are enforceable in Kentucky if they are reasonable in scope, duration, and geographic area, and protect legitimate business interests.
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Q: Is written notice required before modifying a commission plan in Kentucky?
A: Yes, Kentucky law generally mandates that employers provide advance written notice of any changes to commission structures or payment terms.
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Kentucky Sales Representative Employment Contract
This Kentucky Sales Representative Employment Contract (the “Agreement”) is made and entered into as of [Date] by and between [Employer Legal Name], a [State] [Entity Type, e.g., corporation] with its principal place of business at [Employer Address] (“Employer”), and [Employee Legal Name], residing at [Employee Address] (“Employee”).
Position and Responsibilities
- The Employer hires the Employee as a Sales Representative.
- Responsibilities:
- Option A: Generating leads through various channels.
- Option B: Contacting and visiting prospective and existing clients.
- Option C: Conducting presentations and product demonstrations.
- Option D: Preparing quotations and proposals.
- Option E: Negotiating contracts and closing sales.
- Option F: Monitoring market trends and competitor activities.
- Option G: Maintaining and developing client relationships.
- Option H: Submitting regular sales reports to [Supervisor Name].
- Sales Type:
- Option A: Inside Sales
- Option B: Outside Sales
- Option C: Both Inside and Outside Sales
- Territory: The Employee's sales territory shall be [Specific Geographic Region within Kentucky or Multi-State Area].
- Industry Focus: [Specific Industry, e.g., Pharmaceuticals, Consumer Goods].
- Required Certifications/Licenses: [List any required professional certifications or licenses].
Reporting Structure
- The Employee will report directly to [Supervisor Name], [Supervisor Title].
- Department: [Department Name]
- Sales Support: Available resources include [List available sales support resources, e.g., CRM access, marketing materials].
- Sales Meetings: The Employee will attend sales meetings [Frequency, e.g., weekly, monthly] in [Format, e.g., person, virtual].
Work Location and Travel
- Primary Work Location: [City, Kentucky].
- Travel Requirements:
- Option A: The Employee is expected to travel within Kentucky as required to perform their duties.
- Option B: The Employee is expected to travel within [Specific Geographic Region] as required to perform their duties.
- Mileage Reimbursement:
- Option A: The Employee will be reimbursed for mileage at the current IRS rate.
- Option B: The Employee will receive a car allowance of [Dollar Amount] per month.
- Company Vehicle:
- Option A: A company vehicle will be provided for business use.
- Option B: No company vehicle will be provided.
- Documentation Requirements: The Employee must submit accurate mileage logs and receipts for all expenses.
Home Office/Remote Work
- Option A: The Employee is permitted to work remotely.
- The Employer will provide the following equipment: [List provided equipment, e.g., laptop, phone].
- The Employee is responsible for maintaining client data security in compliance with Kentucky privacy laws.
- Option B: Remote work is not permitted.
Full-Time Status and Work Hours
- The Employee is a full-time employee.
- Regular Work Hours:
- Option A: The Employee's regular work hours are [Start Time] to [End Time], [Days of the Week].
- Option B: The Employee's work hours are flexible but must average [Number] hours per week.
- Time Tracking: [Specify time tracking requirements, if any].
Compensation
- Base Compensation:
- Option A: The Employee's annual salary is [Dollar Amount], payable [Frequency, e.g., bi-weekly].
- Option B: The Employee's hourly wage is [Dollar Amount], payable [Frequency, e.g., bi-weekly].
- Commission/Incentive Program:
- Commission Rate: [Percentage] of [Commissionable Products/Services].
- Commission Accrual/Vesting: [Specify accrual and vesting conditions].
- Draw Against Commission:
- Option A: The Employee will receive a draw of [Dollar Amount] per [Time Period] against future commissions.
- Option B: There is no draw against commission.
- Minimum Sales Targets: The Employee must achieve a minimum sales target of [Dollar Amount] per [Time Period].
- Spiff/Bonus Programs: [Describe any spiff or bonus programs].
- Payout Schedule: Commissions will be paid [Frequency, e.g., monthly].
- Termination: Commissions earned but not yet paid at the time of termination will be paid in accordance with KRS 337.055.
- Overtime Pay:
- Option A: The Employee is exempt from overtime pay under the FLSA.
- Option B: The Employee is eligible for overtime pay at a rate of 1.5 times their regular hourly rate for hours worked over 40 in a workweek.
Expense Reimbursement
- Eligible Expenses: [List eligible expenses, e.g., travel, client entertainment, office supplies].
- Pre-Approval: Expenses exceeding [Dollar Amount] require pre-approval from [Supervisor Name].
- Documentation: The Employee must submit receipts and expense reports for all reimbursed expenses.
- Reimbursement Timeline: Reimbursement will be provided within [Number] days of submission of the expense report.
Benefits
- Health Insurance: [Describe health insurance plan or ACA compliance].
- Dental Insurance: [Describe dental insurance plan].
- Vision Insurance: [Describe vision insurance plan].
- Retirement Plan: [Describe retirement plan, e.g., 401(k)].
- Paid Time Off:
- Vacation: [Number] days per year.
- Sick Days: [Number] days per year.
- Holidays: [List recognized Kentucky state and federal holidays].
- Other Leave: [Specify policies on bereavement leave, jury duty, parental leave].
- Sales Perks: [List any unique sales perks, e.g., conference attendance reimbursement].
Confidentiality
The Employee agrees to maintain the confidentiality of all Employer information, including customer lists, pricing, sales methodologies, and trade secrets, consistent with the Kentucky Uniform Trade Secrets Act.
Post-Termination: The Employee's confidentiality obligations will continue [Number] years after termination of employment.
Intellectual Property/Publicity
Any intellectual property developed by the Employee in connection with their employment shall be the property of the Employer.
The Employee may not use the Employer's trademarks or materials without prior written consent.
Non-Solicitation
The Employee agrees not to solicit the Employer's clients or employees for a period of [Number] [Months/Years] following termination of employment within [Specific Geographic Region], consistent with Kentucky law.
Non-Compete
- Option A: The Employee agrees not to engage in any competitive business activity within [Specific Geographic Region] for a period of [Number] [Months/Years] following termination of employment. This clause is narrowly tailored to protect legitimate business interests consistent with Kentucky law.
- Option B: There is no non-compete clause in this agreement.
Outside Business Activity
The Employee may not engage in any outside business activity that competes with the Employer's business.
At-Will Employment
The Employee's employment is at-will, meaning that either party may terminate the employment relationship at any time, with or without cause or notice, subject to the terms of this Agreement.
Termination
- Voluntary Resignation: The Employee must provide [Number] days written notice of resignation.
- Termination for Cause: [Define what constitutes cause for termination, consistent with Kentucky law].
- Termination Without Cause: The Employer may terminate the Employee's employment without cause.
- Final Wage/Commission Payment: Final wages and commissions will be paid in accordance with Kentucky law.
- Return of Property: Upon termination, the Employee must return all company property, including records, client files, and devices.
Anti-Discrimination/Harassment
The Employer is an equal opportunity employer and prohibits discrimination and harassment based on race, color, religion, sex, age, disability, national origin, sexual orientation, gender identity, or any other protected characteristic, in compliance with Title VII, the Kentucky Civil Rights Act, and applicable local ordinances.
Occupational Health and Safety
The Employee will comply with all applicable OSHA and Kentucky OSH Program requirements.
Workers' Compensation
The Employee is covered by the Employer's workers' compensation insurance as required by Kentucky law.
Dispute Resolution
Any disputes arising out of or relating to this Agreement shall be resolved through good-faith negotiation, then mediation, and if unresolved, arbitration in accordance with Kentucky law. Venue for any dispute shall be [County, Kentucky].
Governing Law and Venue
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Kentucky.
Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
Amendment
This Agreement may be amended only in writing signed by both parties.
Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.
Employee Signature: ____________________________ Date: ____________
Employee Printed Name: [Employee Printed Name]
Employer Signature: ____________________________ Date: ____________
Employer Printed Name: [Employer Printed Name]
Acknowledgment of Receipt of Employee Handbook:
I acknowledge that I have received a copy of the Employee Handbook and any referenced sales policy addenda.
Employee Signature: ____________________________ Date: ____________