Massachusetts sales representative employment contract template
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How Massachusetts sales representative employment contract Differ from Other States
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Massachusetts law mandates timely commission payments upon contract termination, ensuring faster post-termination payments than many other states.
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The Massachusetts Sales Representatives Law imposes specific penalties on employers who fail to pay commissions as agreed, including mandatory treble damages and attorney fees.
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Massachusetts provides statutory rights and protections to independent sales representatives that are broader than those in many other states.
Frequently Asked Questions (FAQ)
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Q: Does Massachusetts require commissions to be paid after contract termination?
A: Yes, Massachusetts law requires prompt payment of all earned commissions after the contract ends as per statutory deadlines.
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Q: Are written sales representative contracts mandatory in Massachusetts?
A: While not always mandatory, written contracts are highly recommended to clarify obligations and protect both parties’ interests.
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Q: What penalties do employers face for not paying commissions in Massachusetts?
A: Employers may owe triple the owed amount plus attorney fees if commissions are not paid as required by Massachusetts law.
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Massachusetts Sales Representative Employment Contract
This Massachusetts Full-Time Sales Representative Employment Contract (the "Agreement") is made and entered into as of [Date], by and between [Employer Legal Name], a [State] [Entity Type] with its principal place of business at [Employer Address] (the "Employer"), and [Employee Legal Name], residing at [Employee Address] (the "Employee").
Position and Job Description:
- The Employer hires the Employee as a Sales Representative.
- Job Description Options:
- Option A: The Employee will be responsible for selling [Products/Services] in the territory of [Territory], targeting the market segment(s) of [Market Segments]. Responsibilities include client prospecting, lead generation, cold calling, account management, customer relationship maintenance, sales presentations, contract negotiations, product demonstrations, pipeline reporting, CRM usage, and post-sale follow-up. The Employee must achieve defined sales quotas or targets, participate in mandatory industry training, attend trade shows, and report to [Title of Sales Manager].
- Option B: The Employee will focus on the [Product Line] product line, managing existing accounts and generating new leads through [Specific Lead Generation Methods]. The Employee is expected to achieve a sales quota of [Sales Quota Amount] per [Time Period].
Place of Work and Travel:
- The Employee's primary place of work will be:
- Option A: On-premises at [Employer Address].
- Option B: Field/Home-based.
- Option C: Hybrid - [Number] days per week on-premises and [Number] days remote.
- Travel Requirements:
- Option A: Travel is required. Estimated frequency: [Frequency of Travel].
- Option B: Travel is not required.
- Travel Expense Reimbursement: The Employer will reimburse all reasonable and necessary travel expenses incurred by the Employee in performing their duties, in accordance with the Employer's travel expense policy and Massachusetts law. Allowable travel modes include [Allowed Travel Modes]. Mileage will be reimbursed at the IRS standard rate.
Employment Type and Work Hours:
- The Employee's employment is full-time.
- Standard Weekly Hours: [Number] hours per week.
- Flexible Work Hours:
- Option A: No flexible work hours.
- Option B: Flexible work hours are permitted with prior approval from [Title of Manager].
- Break/Meal Policies: The Employee will be provided with meal and rest breaks in accordance with Massachusetts wage and hour laws.
- Overtime Compensation: The Employee will be paid overtime at a rate of 1.5 times their regular hourly rate for all hours worked over 40 in a workweek, as required by Massachusetts law. Commission-based pay will be factored into overtime calculations as per Massachusetts regulations.
Compensation:
- Base Salary: [Salary Amount] per [Pay Period].
- Commission:
- Option A: [Commission Rate]% of [Basis for Commission Calculation, e.g., Gross Sales]. Commissions are earned when [Definition of When Commissions Are Earned, e.g., upon shipment of product] and paid [Payment Schedule, e.g., monthly].
- Option B: Tiered commission structure as outlined in Exhibit A.
- Claw-back Provision:
- Option A: If a sale is cancelled or refunded within [Number] days, the commission will be clawed back.
- Option B: No claw-back provision.
- Bonus:
- Option A: Eligible for bonuses as determined by the Employer, based on performance against specific goals.
- Option B: Not eligible for bonuses.
- Draw Against Commission:
- Option A: A recoverable draw of [Draw Amount] per [Pay Period] will be provided.
- Option B: A non-recoverable draw of [Draw Amount] per [Pay Period] will be provided.
- Option C: No draw will be provided.
- Massachusetts Wage Act Compliance: All wages and commissions will be paid in accordance with the Massachusetts Wage Act.
Benefits:
- Health Insurance: [Health Insurance Plan Details].
- Dental Insurance: [Dental Insurance Plan Details].
- Vision Insurance: [Vision Insurance Plan Details].
- 401(k) or Retirement Plan: [Retirement Plan Details].
- Paid Sick Leave: The Employee is entitled to paid sick leave in accordance with the Massachusetts Earned Sick Time Law.
- Vacation: [Number] days of paid vacation per year.
- Holidays: [List of Paid Holidays].
- Parental Leave: The Employee is entitled to parental leave as provided by applicable Massachusetts and federal law.
- Expense Reimbursement: As detailed in Section 2.
- Cell Phone/Technology Stipend: [Stipend Amount] per [Pay Period].
- Education/Training Reimbursement: Reimbursement for approved continued education/training expenses, subject to the Employer's policy.
Non-Solicitation:
The Employee agrees not to solicit, directly or indirectly, any customers, employees, or suppliers of the Employer during the term of employment and for a period of [Number] months following termination of employment within the geographic area of [Geographic Area, e.g., Massachusetts].
Non-Compete:
- Option A: Employee agrees to the following non-compete agreement, which complies with the Massachusetts Noncompetition Agreement Act (MNAA):
- Employee will not engage in [Specific Restricted Activities] within [Geographic Scope] for a period of [Number, not exceeding 12] months following termination.
- Employee's annualized earnings exceed the minimum threshold under the MNAA.
- Employer will provide garden leave pay (or other mutually agreed upon consideration) during the restricted period.
- Employee has the right to consult with counsel prior to signing this Agreement.
- Employer provides 10 business days' notice prior to the non-compete becoming effective upon termination.
- Option B: There is no non-compete agreement.
Intellectual Property and Confidentiality:
All client lists, customer data, marketing materials, business strategies, and proprietary sales methods developed during employment are the property of the Employer. The Employee agrees to protect confidential information during and after employment. The Employee's use of personal contacts or social media for business development must comply with Employer policies.
Anti-Discrimination and Anti-Harassment:
The Employer is committed to providing a workplace free of discrimination and harassment based on race, color, religious creed, national origin, sex, gender identity, sexual orientation, age, disability, or any other protected category under Massachusetts law. This policy applies to all employment practices, sales activities, and customer interactions.
At-Will Employment:
The Employee's employment is at-will, meaning that either the Employee or the Employer may terminate the employment relationship at any time, with or without cause or notice, subject to the final pay provisions outlined below and compliance with the Massachusetts Wage Act.
Termination:
- Permissible Grounds: Termination may occur voluntarily, for cause, without cause, due to layoff, or job abandonment.
- Notice Period:
- Option A: The Employee is required to give [Number] days' written notice of resignation. The Employer is not required to provide notice of termination.
- Option B: No notice period is required.
- Return of Property/Client Information: Upon termination, the Employee must immediately return all Employer property and client information.
- Outstanding Commissions: Outstanding commissions earned, but not yet paid, at the time of termination will be calculated and paid in accordance with the Massachusetts Wage Act, including deadlines for payment of sales commissions.
- Dispute Resolution: The parties agree to attempt to resolve any disputes arising from this Agreement through negotiation and Massachusetts-based mediation or arbitration before resorting to litigation.
- Final Pay: Final wages, including earned but unpaid commissions, will be paid within the timeframe mandated by Massachusetts law. A final wage statement and information regarding benefits continuation options (COBRA and Massachusetts “mini-COBRA”) will be provided.
Compliance with Employer Policies and Procedures:
The Employee agrees to comply with all Employer policies and procedures, including those related to anti-bribery, anti-kickback, and ethical sales conduct consistent with industry norms and Massachusetts requirements.
Compliance with Laws and Licensing:
The Employee agrees to comply with all applicable Massachusetts and federal laws and licensing rules for the industry, including any required licenses for sales of [Specific Products/Services, e.g., insurance, pharmaceuticals].
Employment Eligibility Verification and Background Check:
This offer of employment is contingent upon successful completion of employment eligibility verification and [if applicable] a satisfactory background check and driving record review.
Workplace Safety and Workers' Compensation:
The Employer provides a safe workplace and complies with all applicable Massachusetts workplace safety regulations. The Employee is covered by workers' compensation insurance. The Employee must report any occupational injuries immediately. The Employer’s policy on compliant vehicle use (if applicable), insurance, and indemnification is [reference document or policy].
Use of Devices and Data Privacy:
The Employee's use of Employer and personal devices, CRM systems, and access to Employer sales systems is subject to the Employer's policies and must comply with Massachusetts data privacy laws. Customer data privacy rules must be strictly followed.
Paid Family and Medical Leave (PFML):
The Employee is covered by the Massachusetts Paid Family and Medical Leave Act. This Agreement shall be interpreted and applied in coordination with the Employer’s PFML policies.
Governing Law and Venue:
This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts. Exclusive jurisdiction and venue for any disputes arising from this Agreement shall be in [County Name] County, Massachusetts.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Employer Legal Name]
By: [Name of Authorized Representative]
Title: [Title of Authorized Representative]
[Employee Legal Name]
Signature:
Date: