Minnesota 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 Minnesota sales representative employment contract Differ from Other States
-
Minnesota law requires written contracts for sales representatives selling wholesale products, unlike many other states.
-
Minnesota mandates prompt payment of commissions after contract termination, with penalties for late payments.
-
Terminating a sales representative in Minnesota may require advance written notice, as specified by statute.
Frequently Asked Questions (FAQ)
-
Q: Is a written contract required for sales representatives in Minnesota?
A: Yes, Minnesota law requires written contracts for sales representatives who sell wholesale products.
-
Q: What happens if commissions are paid late after contract termination in Minnesota?
A: Employers may be liable for double the unpaid commission amount if payment is late under Minnesota law.
-
Q: How much notice is needed to terminate a sales representative in Minnesota?
A: Statutes often require written notice, typically not less than 90 days, before terminating a sales representative.
HTML Code Preview
Minnesota Full-Time Sales Representative Employment Agreement
This Minnesota Full-Time Sales Representative Employment Agreement (the “Agreement”) is made and effective as of [Date] by and between:
- [Company Name], a [State of Incorporation] corporation with its principal place of business at [Company Address], [City], [State] [Zip Code] (Minnesota Business Registration Details: [Registration Number, if applicable]), hereinafter referred to as the “Company,”
and
- [Sales Representative Name], residing at [Sales Representative Address], [City], [State] [Zip Code], hereinafter referred to as the “Sales Representative.”
1. Employment
- Option A: The Company hereby employs the Sales Representative as a full-time Sales Representative.
- Option B: The Company agrees to engage the Sales Representative as a full-time Sales Representative.
2. Position and Duties
- The Sales Representative shall serve as a full-time Sales Representative in the [Industry, e.g., Pharmaceuticals, Insurance, Technology, Manufacturing, etc.] industry.
- The Sales Representative’s duties include, but are not limited to:
- Prospecting and cold calling.
- Lead generation.
- Client meetings.
- Product or service presentations.
- Sales negotiations.
- Order processing.
- Customer relationship management.
- Attending trade shows or regional events.
- Submission of sales reports.
- Maintenance of CRM systems.
- Achievement of territory or account-based sales targets.
- Managing post-sale customer service.
- Adherence to applicable industry regulations (e.g., insurance sales licensure, if relevant).
3. Territory
- Option A: The Sales Representative’s territory shall be [Geographic Region, e.g., the Twin Cities Metro Area, Southern Minnesota].
- Option B: The Sales Representative’s territory shall consist of the following Minnesota counties/metro areas: [List of Counties/Metro Areas].
- Option C: The Sales Representative’s territory shall consist of the following client account lists: [List of Client Accounts].
- The Sales Representative is expected to travel [Within State/Out of State].
- Option A: The Company will provide a company-provided vehicle.
- Option B: The Sales Representative will be reimbursed for mileage at the rate of [Dollar Amount] per mile, consistent with IRS or Minnesota state standard.
4. Supervision and Reporting
- The Sales Representative shall report to the [Title, e.g., Regional Sales Manager].
- Sales meetings will be held [Frequency, e.g., weekly, bi-weekly] via [Method, e.g., Zoom, in-person].
- Performance reviews will be conducted [Frequency, e.g., annually, semi-annually].
5. Employment Status and Hours
- Employment is full-time.
- The Sales Representative will work a minimum of [Number] hours per week.
- The standard weekly schedule is [Days of the Week], [Start Time] to [End Time].
- Overtime eligibility:
- Option A: The Sales Representative is eligible for overtime pay in compliance with Minnesota law (Minnesota Statutes 177.23 and 177.25).
- Option B: The Sales Representative is not eligible for overtime pay due to being an exempt employee under Minnesota law.
- Meal and Rest Breaks:
- The Sales Representative is entitled to meal breaks in accordance with Minnesota law for shifts over 8 hours.
- The Sales Representative is entitled to rest breaks, allowing for restroom use, as per Minnesota law.
- Option A: Work outside of standard business hours is expected.
- Option B: Work outside of standard business hours is not expected.
6. Compensation
- Minimum Compensation:
- Option A: Base Annual Salary: [Dollar Amount].
- Option B: Hourly Wage: [Dollar Amount].
- Commission/Bonus Structure: [Detailed description of commission or bonus structure, including dollar amounts or percentages].
- Commission Payment Timeline: [Frequency of commission payments, e.g., monthly, quarterly].
- Commission Eligibility: Commissions are earned upon [e.g., contract signing, invoice, payment, delivery].
- Charge-back/Claw-back Terms: [Detailed terms if sales deals are canceled or defaulted].
- Commissions Upon Termination: Commissions due at termination will be paid within the next regularly scheduled payday, in compliance with Minnesota Statutes 181.13 and 181.145.
- Other Compensation:
- Performance Bonuses: [Description of performance bonus structure].
- Contest Rewards: [Description of contest rewards].
- Reimbursement of travel/entertainment expenses: [Detailed policy, including requirement for receipts].
- Option A: Company Credit Card: [Details of company credit card usage].
- Option B: Expense Account: [Details of expense account usage].
- Pay Cycle: [Bi-weekly, monthly, etc.].
- Method of Payment: [Paper check, direct deposit].
- Wage Statements: Detailed wage statements, listing deductions, overtime, commissions, etc., will be provided in compliance with Minnesota law.
7. Employee Benefits
- Group Health Insurance: [Details of coverage].
- Dental Insurance: [Details of coverage].
- Vision Insurance: [Details of coverage].
- Life Insurance: [Details of coverage].
- Disability Insurance: [Details of coverage].
- Company Contributions to Retirement Plans: [401k, SEP IRA, other; details of contributions].
- Paid Time Off (PTO): [Vacation accrual policy, sick leave, details regarding Minnesota's Earned Sick and Safe Time requirements].
- Company-Observed Holidays: [List of holidays, including Minnesota-specific state holidays].
- Parental/Family Leave: In accordance with Minnesota law.
- Sales Training and Professional Development Reimbursement: [Details of reimbursement policy].
- Option A: Travel Allowance: [Dollar amount].
- Option B: Communication Allowance (Cell Phone, Internet): [Dollar amount].
- Wellness Benefits: [Description of wellness benefits].
- Benefits Upon Termination: [Clarification of changes to benefits upon termination of employment].
8. Sales Materials, Tools, Equipment, and Resources
- The Company will provide the following:
- Laptop.
- Access to CRM system: [Name of CRM system].
- Sales presentation/demo kits.
- Option A: Company Car: [Details].
- Option B: Car Allowance: [Dollar Amount].
- Company Phone.
- Branded materials.
- Policies for use and return upon termination: [Detailed policies].
- Liability for loss/damage: [Detailed policy].
- Product/Pricing Authority: [Representation guidelines, discount limits, restrictions on commitments].
- Industry Licensing Requirements: The Sales Representative must comply with all applicable industry licensing requirements in Minnesota (e.g., insurance, real estate).
9. Confidential Information and Intellectual Property
- Confidential Information includes, but is not limited to: client lists and contacts, pricing, marketing strategies, and any proprietary information, protected under Minnesota’s Uniform Trade Secrets Act.
- Confidentiality, non-disclosure, and duration of obligations post-employment: [Detailed terms, specific to sales representative’s access to client/customer data and pricing].
- Prohibition on unauthorized use, reproduction, disclosure, or retention of customer lists or business information. Minnesota’s “inevitable disclosure” doctrine applies.
- Intellectual Property: Any sales processes, materials, or documentation developed by the Sales Representative in the scope of employment belong to the Company.
10. Restrictive Covenants
- Non-Solicitation/Non-Compete: Referencing Minnesota Statutes 181.988 (prohibiting non-compete clauses, effective July 1, 2023). Any client or employee non-solicit, if used, must be reasonable in scope, duration, and geography.
- Option A: Employee Non-Solicitation: The employee shall not solicit any of the employer's employees for [Number] months after termination of this agreement.
- Option B: Client Non-Solicitation: The employee shall not solicit any of the employer's clients located in [City], [State] for [Number] months after termination of this agreement.
11. Professional Standards and Conduct
- Compliance with applicable federal and state consumer protection, anti-bribery, and anti-kickback rules.
- Compliance with company sales policies and ethics codes.
- Accurate record-keeping of orders and customer communications.
- Mandatory training as required by employer or law (including anti-harassment and anti-discrimination training, and industry-specific compliance modules).
12. Termination
- Employment is at-will, as recognized in Minnesota.
- Option A: Notice Period: [Number] days' notice required for termination by either party.
- Option B: No Notice Period: The company may terminate the employee at any time for any reason.
- Reasons for Immediate Dismissal: Gross misconduct, willful violation of company policy, fraud, theft, etc.
- Voluntary Resignation: [Procedures for resignation].
- Final Accounting of Commissions/Bonuses: [Procedures for final accounting].
- Return of Property: All company property, customer records, etc., must be returned upon termination.
- Handling of Ongoing Sales: [Procedures for handling sales in the pipeline for post-termination compensation].
- Option A: Severance: [Details of severance, if offered].
- Option B: No Severance: The employee shall not be entitled to any severance pay at the time of termination.
- Compliance with Minnesota’s final pay and notice regulations.
13. Dispute Resolution
- Governed by Minnesota law.
- Venue/Jurisdiction: State or federal courts in Minnesota.
- Internal Procedures: HR or compliance officer, then mediation or arbitration before litigation if appropriate.
- Mandatory arbitration must comply with Minnesota and federal (FAA) law and not waive statutory rights.
14. Equal Employment Opportunity, Anti-Discrimination, and Harassment
- Covers all applicable Minnesota-protected classes (race, color, creed, religion, national origin, sex, marital status, disability, sexual orientation, gender identity, age, genetic information, status with regard to public assistance, etc.).
- Complaint procedures and disciplinary actions for violations.
15. Data Privacy
The Sales Representative must comply with all federal and state data privacy laws regarding customer information (such as the Minnesota Government Data Practices Act, where relevant).
16. Compliance with Minnesota Employment Law
- Workers’ compensation insurance.
- Unemployment insurance.
- Minimum wage standards.
- Safe and healthy work environment consistent with Minnesota OSHA regulations.
- Mandatory Disclosures: Wage notice requirements under Minnesota Statutes 181.032.
- Both parties must sign and acknowledge receipt of all supporting policies, handbooks, or code of conduct referenced in this Agreement.
17. Modification, Assignment, and Amendment
- As per Minnesota contract law.
- Merger/Integration Clause: This Agreement constitutes the entire agreement between the parties.
18. Governing Law
This Agreement shall be governed by the laws of the State of Minnesota.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Company Name]
By: ____________________________
[Name of Authorized Representative]
Title: [Title of Authorized Representative]
____________________________
[Sales Representative Name]