Michigan sales representative employment contract template
View and compare the Free version and the Pro version.
Help Center
Need to learn how to convert downloaded contract DOCX files to PDF or add electronic signatures? Please visit our Help Center for detailed guidance.
How Michigan sales representative employment contract Differ from Other States
-
Michigan law requires prompt payment of commissions to sales representatives upon contract termination, with strict penalty provisions.
-
The Michigan Sales Representative Commission Act governs commission disputes and provides for attorneys’ fees and punitive damages.
-
Non-compete and non-solicitation clauses in Michigan are subject to strict reasonableness standards and judicial scrutiny.
Frequently Asked Questions (FAQ)
-
Q: Are written employment contracts mandatory for sales representatives in Michigan?
A: Written contracts are not mandatory, but they are strongly recommended for clarity and legal protection for both parties.
-
Q: What happens if my employer fails to pay my commissions after termination in Michigan?
A: You can seek double damages plus attorney’s fees under Michigan law if your commissions are not paid promptly after termination.
-
Q: Can a Michigan sales representative contract include non-compete clauses?
A: Yes, but non-compete clauses must be reasonable in scope, duration, and geography, and are subject to court review.
HTML Code Preview
Michigan Sales Representative Employment Contract
This Michigan Sales Representative Employment Contract (the “Agreement”) is made and entered into as of [Date], by and between [Employer Full Legal Name], a [State] [Entity Type, e.g., Corporation], with its principal place of business at [Employer Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Address] (“Employee”).
1. Position and Job Duties
- The Employer hires the Employee as a Sales Representative.
- The Employee’s core job duties include, but are not limited to:
- Territory management within Michigan.
- Prospecting new clients.
- Account management.
- Product/service presentations and demonstrations.
- Contract negotiations.
- Market analysis.
- Regular client visits.
- Participation in trade shows.
- Lead generation.
- Strict adherence to company and industry-specific sales procedures.
2. Sales Targets and Performance Metrics
- Option A: The Employee's annual sales target is [Dollar Amount] in revenue.
- Option B: The Employee's sales quota will be determined annually based on market conditions and communicated to the Employee in writing.
- Performance will be evaluated based on the following metrics:
- Total sales revenue
- Number of new clients acquired
- Account retention rate
- Meeting individual and team goals
3. Territory and Travel
- The Employee’s primary sales territory is [Specific Michigan region, e.g., Southeast Michigan].
- The Employee is expected to travel within Michigan.
- Option A: The Employee will use a personal vehicle for travel. Mileage reimbursement will be provided at the IRS standard rate.
- Option B: The Employer will provide a company vehicle.
4. Sales Tools and Resources
- The Employer will provide the following sales tools:
- Laptop computer
- Mobile phone
- CRM system access ([CRM System Name])
- Marketing materials
- Option A: The company owns all devices. Employee agrees to follow the company's security and data privacy policies.
- Option B: Employee-owned devices are permitted, subject to IT approval and security protocols.
5. Work Location
- Option A: The Employee’s primary work location is the Employer's office at [Employer Address].
- Option B: The Employee will work remotely from a home office located in [Michigan City].
- Remote work is subject to the Employer's telework policy.
6. Employment Type and Work Hours
- The Employee’s employment is full-time.
- The standard work hours are [Number] hours per week, typically from [Start Time] to [End Time], Monday through Friday.
- Employee understands and agrees to abide by Michigan's Workforce Opportunity Wage Act.
7. Compensation
- The Employee’s base salary is [Dollar Amount] per year, payable [Payment Frequency, e.g., bi-weekly].
- The Employee is eligible for commissions.
- Commission Structure:
- The commission rate is [Percentage]% of net sales revenue.
- Commissions are earned on completed sales.
- Commissions are paid [Payment Schedule, e.g., monthly], within [Number] days of the end of the month.
- Commission Structure:
- Bonus opportunities may be offered at the Employer’s discretion.
- Post-termination commissions will be paid in accordance with Michigan Public Act 251 of 1992.
8. Benefits
- The Employee is eligible for the following benefits:
- Health insurance
- Dental insurance
- Vision insurance
- 401(k) retirement plan
- Paid vacation
- Sick leave, consistent with Michigan Paid Medical Leave Act.
- Holidays: [List of Holidays]
- Other perks:
- Mileage reimbursement
- Mobile phone allowance
9. Training and Onboarding
- The Employer will provide training on products, sales processes, and industry regulations.
- Employee is responsible for continuing education as needed to maintain compliance.
10. Reporting Structure
- The Employee reports to [Supervisor Name], [Supervisor Title].
- The Employee will submit sales reports [Frequency, e.g., weekly], in the format specified by the Employer.
- Employee is responsible for maintaining accurate data in the CRM system.
11. Intellectual Property
- All intellectual property developed by the Employee in connection with their employment is the property of the Employer.
- The Employee agrees not to solicit the Employer’s customers or employees during or after employment.
12. Confidentiality
- The Employee agrees to maintain the confidentiality of the Employer’s customer lists, pricing, and other confidential information.
- The Employee understands the Michigan Uniform Trade Secrets Act applies to this agreement.
13. Non-Compete
- The Employee agrees not to compete with the Employer for a period of [Number] months following termination of employment, within a radius of [Number] miles of [City, Michigan], or within [Specific Geographic Area].
- This non-compete agreement is subject to Michigan law (MCL 445.774a) and must be reasonable in scope, duration, and geography.
14. Conflicts of Interest
- The Employee agrees to disclose any potential conflicts of interest to the Employer.
- The Employee agrees to comply with all anti-bribery and anti-kickback laws.
15. Company Property
- The Employee agrees to return all company property upon termination of employment.
- This includes demo equipment, samples, client lists, and sales devices.
16. Termination
- Employment is at-will, meaning either party may terminate the employment relationship at any time, with or without cause, subject to the notice provisions below.
- Option A: Employer requires [Number] days' written notice from the Employee for voluntary resignation.
- Option B: Employer requires [Number] days' written notice for termination without cause.
- Upon termination, the Employee will receive final wages and commissions in accordance with Michigan law.
17. Dispute Resolution
- This Agreement shall be governed by the laws of the State of Michigan.
- Any disputes arising out of or relating to this Agreement shall be resolved in the state or federal courts located in [Michigan County] County, Michigan.
- Option A: Disputes will be resolved through binding arbitration in accordance with the rules of the American Arbitration Association.
- Option B: The parties agree to first attempt to resolve disputes through mediation.
18. Anti-Discrimination and Harassment
- The Employer is an equal opportunity employer and prohibits discrimination based on race, color, religion, sex, national origin, age, disability, height, weight, marital status, or any other protected characteristic under Michigan’s Elliott-Larsen Civil Rights Act.
- The Employer has a zero-tolerance policy for harassment.
19. Workers’ Compensation
The Employee is covered by the Employer’s workers’ compensation insurance in accordance with Michigan law.
20. Notification of Changes to Commission Structure
The Employer will provide the Employee with written notice of any changes to the commission structure at least [Number] days prior to the effective date of the change.
21. Document Retention and Cooperation
The Employee agrees to retain all sales-related documents as required by the Employer and to cooperate with the Employer in any regulatory compliance matters.
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]
[Employee Full Legal Name]
Signature: ____________________________