Louisiana sales representative employment contract template
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How Louisiana sales representative employment contract Differ from Other States
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Louisiana law mandates timely payment of commissions upon contract termination, with strict deadlines not always found in other states.
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The Louisiana Sales Representative Act provides specific protections and penalties for failure to pay commissions, differing from many states.
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Non-compete agreements in Louisiana are more narrowly interpreted and strictly regulated compared to most other U.S. states.
Frequently Asked Questions (FAQ)
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Q: Are sales representative employment contracts in Louisiana required to be in writing?
A: While written contracts are not strictly mandatory, a written agreement is highly recommended for clarity and legal protection.
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Q: What happens if commissions are not paid after contract termination in Louisiana?
A: The employer may be liable for unpaid commissions, interest, and additional penalties under the Louisiana Sales Representative Act.
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Q: Are non-compete clauses enforceable in Louisiana sales representative contracts?
A: Yes, but only if they meet strict statutory requirements, including limited duration, defined territory, and specific business activities.
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Louisiana Sales Representative Employment Contract
This Louisiana Sales Representative Employment Contract (the “Agreement”) is made and effective as of [Date] by and between [Employer Full Legal Name], with a principal place of business at [Employer Address] (“Employer”), and [Sales Representative Full Legal Name], residing at [Sales Representative Address] (“Sales Representative”).
1. Employment
- Option A: Employer hereby employs Sales Representative as a Full-Time Sales Representative.
- Option B: Employer hereby employs Sales Representative as a Part-Time Sales Representative working [Number] hours per week.
2. Responsibilities
- The Sales Representative shall have the following responsibilities:
- Prospecting for new clients and generating leads within the designated Louisiana territory of [Specify Parishes/Municipalities].
- Preparing and delivering sales presentations.
- Closing sales and achieving agreed-upon quotas or revenue targets of [Specific Quota/Revenue Target].
- Maintaining ongoing relationships with clients.
- Managing the assigned territory of [Specify Parishes/Municipalities] within Louisiana.
- Providing regular sales reports to [Manager Name/Title] on a [Daily/Weekly/Monthly] basis.
- Maintaining accurate and up-to-date records in the Employer’s CRM system.
- Providing timely follow-up with clients.
- Attending trade shows and sales events as required.
- Complying with all company sales policies and price lists.
- Developing and maintaining a strong knowledge of regional products, services, competitor landscape, and local market conditions specific to Louisiana.
3. Work Location & Travel
- Option A: The Sales Representative’s primary work location will be [Address], with fieldwork expected within the assigned territory in Louisiana.
- Option B: The Sales Representative’s primary work location will be remote, with fieldwork expected within the assigned territory in Louisiana.
- Travel within the assigned territory is required.
- Option A: Employer will provide a company vehicle.
- Option B: Sales Representative will use their own vehicle and will be reimbursed at the rate of [Dollar Amount] per mile, consistent with Louisiana law, for all business-related travel expenses.
- Other travel-related expenses (e.g., lodging, meals) will be reimbursed according to Employer's expense reimbursement policy. All expenses must be documented with receipts.
4. Work Schedule & Classification
- The Sales Representative’s full-time work schedule is [Number] hours per week.
- The typical work schedule is [Days of the week], from [Start Time] to [End Time].
- All overtime work must be pre-approved in writing by [Manager Name/Title]. Overtime will be paid in accordance with Louisiana wage and hour law (one-and-one-half times the regular rate for hours worked over 40 in a workweek, unless exempt).
- Option A: The Sales Representative is classified as an EXEMPT employee.
- Option B: The Sales Representative is classified as a NON-EXEMPT employee.
5. Compensation
- The Sales Representative will receive a base salary of [Dollar Amount] per [Pay Period].
- Pay cycles are semi-monthly, paid on the [Day] and [Day] of each month, in accordance with Louisiana pay frequency statutes.
- Payment will be made via [Direct Deposit/Check].
- In addition to the base salary, the Sales Representative will be eligible for commissions and/or incentives as described below.
6. Commission & Incentive Structure
- The Sales Representative will earn a commission of [Percentage] of the gross sales price for [Specific Products/Services].
- Commissions are earned when [Define Earning Conditions, e.g., customer payment is received, the sale is fully executed].
- Commissions will be paid on a [Monthly/Quarterly] basis.
- Commissions will be paid within [Number] days of the end of the [Month/Quarter] in which they are earned.
- In the event of customer payment delinquency, cancellations, or account adjustments, commission payments may be subject to adjustment or recovery per Louisiana law.
- Any commission disputes must be submitted in writing to [Manager Name/Title] within [Number] days of the commission statement date.
- Option A: A draw against commissions of [Dollar Amount] per [Pay Period] will be provided. This draw is [Recoverable/Non-Recoverable].
- Option B: No draw against commissions will be provided.
- Option A: A [Monthly/Quarterly/Annual] bonus of [Dollar Amount] will be paid upon achieving [Specific Performance Metric].
- Option B: No bonus structure will be in effect.
7. Benefits
- The Sales Representative will be eligible for the following benefits:
- Health insurance
- Dental insurance
- Vision insurance
- Short-term disability insurance
- Long-term disability insurance
- 401(k) or other retirement program
- Expense reimbursement policies
- Paid vacation leave ([Number] days per year)
- Paid sick leave ([Number] days per year)
- Family leave as required by law
- State and federal holidays
- [Other Benefits]
- Details of these benefits are outlined in the Employer’s Benefits Summary.
8. Advances & Commission Recovery
- Advances on commissions, if provided, are subject to recovery if an account fails to pay or cancels per Louisiana law.
- The impact of employment termination on unpaid commissions will be handled in accordance with La. R.S. 23:631 et seq., requiring prompt payment of earned wages and commissions upon termination.
9. Sales Targets & Evaluation
- The Sales Representative will be evaluated based on the following criteria:
- Achievement of sales quotas ([Percentage])
- New client acquisition ([Number] per [Month/Quarter])
- Customer retention rate ([Percentage])
- Territory growth ([Percentage])
- Minimum Activity Requirements: Sales Representative must complete a minimum of [Number] sales calls per week.
- The Sales Representative will participate in regular meetings with [Manager Name/Title] on a [Daily/Weekly/Monthly] basis to discuss performance.
10. Company Property
- The Employer will provide the following tools, equipment, and materials:
- Cell phone
- Laptop
- Business cards
- Demo products
- [Other Items]
- Permissible personal use of company property is limited to [Description of Permitted Use].
- All company property must be returned to the Employer upon termination of employment.
11. Compliance
- The Sales Representative shall comply with all applicable federal and Louisiana state employment laws, anti-bribery and anti-kickback statutes, and any applicable industry-specific Louisiana regulations or certifications.
- If the Sales Representative is selling insurance, they must maintain a valid Louisiana insurance producer/solicitor license.
12. Confidentiality
- The Sales Representative agrees to maintain the confidentiality of all client lists, pricing information, trade secrets, marketing strategies, customer data, and other proprietary information of the Employer.
- This confidentiality obligation shall survive the termination of this Agreement.
13. Non-Solicitation
- The Sales Representative agrees not to solicit any clients or employees of the Employer for a period of [Number] [Months/Years] following the termination of this Agreement within the following Louisiana parishes/municipalities: [Specify Parishes/Municipalities].
14. Non-Compete
- The Sales Representative agrees not to engage in any sales activities that directly compete with the Employer within the following Louisiana parishes/municipalities: [Specify Parishes/Municipalities] for a period of [Number] [Months/Years] following the termination of this Agreement.
- This non-compete clause is narrowly tailored to comply with Louisiana Revised Statutes § 23:921.
15. Intellectual Property
- All customer data, sales plans, and developed strategies belong exclusively to the Employer.
16. At-Will Employment
- The Sales Representative’s employment is at-will, as recognized in Louisiana, meaning that either party may terminate the employment relationship at any time, with or without cause, and with or without notice, unless otherwise specified in a separate written agreement.
17. Termination
- Either party may terminate this Agreement by providing [Number] days’ written notice to the other party.
- Upon termination, the Sales Representative will be entitled to all earned but unpaid commissions and wages, paid in accordance with La. R.S. 23:631 et seq.
- The Sales Representative shall return all confidential information and property of the Employer upon termination.
- Option A: Documentation of the reason for discharge will be provided.
- Option B: Documentation of the reason for discharge will not be provided.
18. Expense Reimbursement
- The Sales Representative shall submit expense reports, supported by receipts, to [Manager Name/Title] on a [Monthly/Quarterly] basis.
- Any disputed reimbursements will be resolved by [Procedure for Resolving Disputes].
19. Permitted & Prohibited Conduct
- The Sales Representative shall engage in ethical sales practices and comply with the Louisiana Unfair Trade Practices and Consumer Protection Law (LUTPA).
- Side-selling, dual employment, or acceptance of gifts/kickbacks is prohibited.
20. Anti-Discrimination & Anti-Harassment
- The Employer is an equal opportunity employer and prohibits discrimination and harassment based on race, color, religion, sex, national origin, age, disability, genetic information, or any other protected characteristic under Louisiana and federal law.
21. Dispute Resolution
- Any disputes arising out of or relating to this Agreement shall be resolved through good-faith negotiation.
- Option A: If negotiation fails, the parties agree to participate in mediation.
- Option B: Any unresolved disputes shall be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
- This Agreement shall be governed by and construed in accordance with the laws of the State of Louisiana. Exclusive jurisdiction and venue for any legal action shall be in the [Parish Name] Parish Court.
22. Workers’ Compensation & Insurance
- The Employer will maintain workers’ compensation insurance as required by Louisiana law.
- The Sales Representative shall comply with all occupational safety rules.
- If driving is required, the Sales Representative must maintain adequate automobile insurance.
- Drug testing policies will be implemented consistent with Louisiana law.
23. Training & Education
- Option A: The Employer will provide periodic training and continuing education as required by industry standards.
- Option B: The Sales Representative is responsible for obtaining and maintaining all necessary licenses and certifications at their own expense.
24. Equal Opportunity & Accommodation
- The Employer is an equal opportunity employer and provides reasonable accommodations for disabilities as required by Louisiana and federal law.
25. Modifications
- Any modifications to this Agreement must be in writing and signed by both parties.
- Changes to this agreement require a certified copy be provided to the employee under Louisiana law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Employer Full Legal Name]
By: [Employer Representative Name]
Title: [Employer Representative Title]
[Sales Representative Full Legal Name]
Signature: ____________________________
Date: [Date]