Maryland sales representative employment contract template

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How Maryland sales representative employment contract Differ from Other States

  1. Maryland law requires that final commissions be paid within 45 days after contract termination, which is stricter than some other states.

  2. Maryland has specific statutes protecting sales representatives’ right to commissions, including mandatory triple damages for unpaid commissions in some cases.

  3. Maryland requires all commission agreements to be in writing for enforceability, while some states allow oral agreements to be valid.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract mandatory for sales commission agreements in Maryland?

    A: Yes, Maryland law requires commission agreements for sales representatives to be in writing to be legally enforceable.

  • Q: What happens if a company fails to pay earned commissions in Maryland?

    A: The sales representative may claim up to triple damages plus attorney’s fees if the employer fails to pay earned commissions.

  • Q: When must commissions be paid after contract termination in Maryland?

    A: Commissions must be paid within 45 days following contract termination or as specified in the contract, whichever is earlier.

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Maryland Sales Representative Employment Contract

This Maryland Sales Representative Employment Contract ("Agreement") is made and entered into as of [Date] by and between [Company Legal Name], a [State of Incorporation] corporation with its principal place of business at [Company Address] ("Company"), and [Employee Legal Name], residing at [Employee Address] ("Employee").

Position

Option A: The Company hereby employs Employee as a [Inside/Outside] Sales Representative specializing in the sale of [Product/Service Line].

Option B: The Employee shall hold the position of Sales Representative with the primary responsibility of selling Company’s [Product/Service Line] to [Specific Client Segment].

Duties

The Employee shall perform the following duties specific to sales within the State of Maryland, including but not limited to:

  • Client prospecting and lead generation within the assigned territory.
  • Cold calling and outreach to potential customers.
  • Conducting in-person and virtual meetings with prospective and existing clients.
  • Providing product demonstrations and presentations.
  • Managing and developing the assigned geographic territory or client segments.
  • Preparing and delivering proposals, quotes, and sales agreements.
  • Negotiating terms and conditions with clients.
  • Managing client accounts and building strong relationships.
  • Documenting all sales activities and progress in the Company's CRM system.
  • Reporting market trends, customer feedback, and competitive information to management.
  • Attending industry events, trade shows, and conferences.
  • Compliance with all applicable industry-specific licensing and training requirements in Maryland [If Applicable, specify the licensing or training, e.g., Maryland Insurance Administration licensing].
  • Adherence to the Company’s sales processes and ethical standards.

Territory

Option A: The Employee's assigned geographic territory shall be [Specify Territory, e.g., Baltimore City and Baltimore County, Maryland].

Option B: The Employee's assigned client segment shall be [Specify Client Segment, e.g., Hospitals in the State of Maryland].

All Maryland-specific travel expenses will be reimbursed in accordance with Company policy and Maryland law.

The Company reserves the right to modify the Employee's territory or client segment as business needs require.

Employment Type and Hours

This is a full-time employment position.

Option A: The standard work hours are [Number] hours per week, typically from [Start Time] to [End Time], Monday through Friday.

Option B: Due to the nature of outside sales, the employee will be expected to work the necessary hours to meet the goals of the position, including some hours outside of normal business hours.

Overtime work may be required from time to time and shall be compensated in accordance with Maryland law. Overtime is paid at 1.5 times the regular rate of pay for all hours worked over 40 in a work week, unless the employee is exempt. Commissions are included when calculating overtime pay in Maryland.

Work Location

Option A: The Employee's primary work location shall be the Company's office located at [Company Address] in Maryland.

Option B: The Employee will work remotely from a location within the State of Maryland.

Option C: The Employee will be field-based, primarily working from client locations within their assigned territory.

Expense reimbursements for mileage, client entertainment, parking, and tolls will be processed in accordance with Company policy and Maryland state guidelines.

Compensation

Option A: Base Salary and Commission: The Employee shall receive an annual base salary of [Dollar Amount], payable [Frequency, e.g., bi-weekly]. In addition, the Employee will be eligible to earn commissions based on the Company's commission plan, as outlined in Exhibit A attached hereto.

Option B: Commission Only: The Employee's compensation shall be solely based on commissions earned according to the Company's commission plan, as outlined in Exhibit A attached hereto.

The commission plan outlines the commission formula, milestone or quota-based bonuses, and the timing of commission payouts.

The Company reserves the right to modify the commission plan at any time, with reasonable notice to the Employee.

Clawback provisions, if applicable, are detailed in the commission plan (Exhibit A).

All commission payments will comply with Maryland wage payment laws, including the requirement to pay earned commissions upon termination of employment per MD Code Ann., Labor & Employment § 3-505.

Payroll Period

The Company's payroll period is [Weekly/Biweekly/Monthly]. Payment will be made promptly and according to Maryland law.

Benefits

The Employee is eligible to participate in the Company's benefits program, subject to the terms and conditions of each plan. Benefits may include:

  • Health insurance [Specify cost-sharing details]
  • Dental insurance [Specify cost-sharing details]
  • Vision insurance [Specify cost-sharing details]
  • 401(k) or other retirement plan [Specify matching details]
  • Vacation and paid time off [Specify accrual policy]
  • Sick leave, in compliance with the Maryland Healthy Working Families Act [Specify accrual, use, and carryover policies]
  • Holidays [List observed holidays]
  • Parental/Family leave, aligned with Maryland and federal FMLA requirements.

Sales Quota/Performance Targets

The Employee's sales quota or performance targets will be [Specify Quota or Targets].

Quota adjustment processes, evaluation periods, and expectations for maintaining Maryland sales tax compliance are outlined in Exhibit B.

The Company will provide written expectations for sales performance.

The Company requires compliance with all Maryland consumer protection statutes regarding the use and disclosure of customer contact data.

Intellectual Property

All client lists, presentation materials, sales scripts, and business development strategies created during the Employee's employment shall be the sole property of the Company. The Employee agrees to assign all rights to such intellectual property to the Company.

The Company's proprietary data is protected under the Maryland Uniform Trade Secrets Act.

Confidentiality

The Employee agrees to maintain the confidentiality of all Company information, including pricing, client lists, sales strategies, and trade secrets.

This confidentiality obligation extends [Number] years after termination of employment.

The Employee will return or destroy all confidential materials upon termination of employment.

Exclusive Employment

Option A: The Employee's employment with the Company is exclusive. The Employee shall not engage in any other employment or business activity that conflicts with the interests of the Company.

Option B: Outside employment is permitted, so long as it does not directly compete with the business of the Company, or interfere with the Employee’s ability to fulfill the duties of their role.

Any restrictive covenants, including non-compete agreements, shall be enforceable only to the extent permitted by Maryland law. Maryland law generally prohibits non-competes for employees earning at or below 150% of the Maryland minimum wage.

Non-solicitation clauses regarding clients and co-workers are included in Exhibit C.

Code of Conduct and Performance Expectations

The Employee shall adhere to the Company's Code of Conduct and Performance Expectations, which reflect Maryland and federal anti-discrimination and anti-harassment laws.

The Employee shall comply with all applicable sales-specific ethical obligations as governed by industry norms or local regulations.

Compliance with Company Policies

The Employee shall comply with all Company policies and procedures, including those related to sales activities and expense reporting.

The Employee shall comply with Maryland-specific sales licensing or continuing education requirements, where applicable. [If Applicable, specify the requirements].

Reporting and Documentation

The Employee shall maintain accurate and up-to-date records of all sales activities in the Company's CRM system.

The Employee shall submit expense reports in a timely manner and in accordance with Company policy.

The Employee shall disclose any potential conflicts of interest.

At-Will Employment

The Employee's employment with the Company is at-will, meaning that either party may terminate the employment relationship at any time, with or without cause or notice, subject to the provisions below for notice of termination.

Termination

Option A: Termination for Cause: The Company may terminate the Employee's employment for cause, as defined in Exhibit D.

Option B: Termination without Cause: The Company may terminate the Employee's employment without cause, with [Number] days' written notice.

Option C: Resignation: The Employee may resign from employment with [Number] days' written notice to the Company.

Upon termination, the Employee shall return all Company property.

Final payment of wages, commissions, and accrued time off will be made in accordance with Maryland law.

Dispute Resolution

Any disputes arising out of or relating to this Agreement shall be resolved through good faith negotiation.

This Agreement shall be governed by and construed in accordance with the laws of the State of Maryland. Venue for any legal action shall be in [County], Maryland.

Option A: Mediation: If negotiation fails, the parties agree to attempt to resolve the dispute through mediation.

Option B: Arbitration: Any unresolved dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.

Anti-Retaliation

The Company prohibits retaliation against employees who report concerns about wage/commission or compliance matters.

The Company adheres to Maryland's General Health & Safety and wage laws.

Occupational Safety and Worker's Compensation

The Company will provide a safe working environment and maintain worker's compensation insurance as required by Maryland law.

The Company will also maintain liability insurance coverage as applicable to field-based Maryland sales roles.

Data Privacy

The Employee shall comply with the Company's data privacy policies and all applicable laws, including Maryland's Personal Information Protection Act.

The Company may monitor the use of company-issued devices and electronic communications.

Company Vehicle

[If applicable] The Employee is provided with a company vehicle, and they will abide by all company vehicle use policies, including maintenance, insurance, and driving record requirements.

Modifications and Amendments

This Agreement may be modified or amended only by a written instrument signed by both parties.

Notices

All notices required under this Agreement shall be in writing and delivered to the parties at their respective addresses set forth above.

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.

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

[Company Legal Name]

By: [Name of Authorized Signatory]

Title: [Title of Authorized Signatory]

[Employee Legal Name]

Signature: _______________________________

Date: [Date]

Exhibits:

  • Exhibit A: Commission Plan
  • Exhibit B: Sales Quota/Performance Targets Details
  • Exhibit C: Non-Solicitation Agreement
  • Exhibit D: Definition of Cause for Termination

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