New Mexico sales representative employment contract template
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How New Mexico sales representative employment contract Differ from Other States
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New Mexico requires all sales representative agreements regarding commissions to be in writing for legal enforceability.
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The New Mexico Sales Representative Act enforces timely commission payments and mandates penalties for delayed payments.
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Post-termination commission payment deadlines are strictly defined in New Mexico, differing from more flexible terms in some states.
Frequently Asked Questions (FAQ)
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Q: Is a written contract necessary for sales representatives in New Mexico?
A: Yes, New Mexico law requires sales representative commission agreements to be in writing to be enforceable.
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Q: How soon must commissions be paid after contract termination in New Mexico?
A: Commissions must be paid within 45 days after termination or by the contract deadline, whichever is later.
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Q: Are there penalties for late commission payments in New Mexico?
A: Yes, employers may owe up to three times the unpaid commission amount plus attorney’s fees for violations.
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New Mexico Sales Representative Employment Agreement
This New Mexico Sales Representative Employment Agreement (the "Agreement") is made and entered into as of [Date], by and between [Employer Legal Name], a [State of Incorporation] corporation with its principal place of business at [Employer Address] ("Employer"), and [Employee Full Legal Name], residing at [Employee Address] ("Employee").
1. Position and Duties
- The Employer hereby employs the Employee as a Sales Representative.
- Option A: General Sales Representative.
- Option B: Senior Sales Representative.
- Employee's duties include, but are not limited to:
- Identifying and soliciting potential customers within the assigned territory of [Specific Territory in New Mexico].
- Regular travel throughout New Mexico and, if applicable, [Out-of-State Travel Details].
- Presenting and demonstrating products/services: [Specific Product/Service Lines].
- Negotiating sales terms and preparing/submitting quotes and proposals.
- Managing customer relationships and processing orders.
- Meeting sales targets/quotas as defined by the Employer.
- Reporting sales activity using [CRM System Name].
- Maintaining accurate customer/prospect databases.
- Submitting expense reports promptly.
- Protecting sensitive customer information.
- Complying with all applicable industry regulations and the New Mexico Unfair Practices Act.
- The Employee will perform in-person visits, attend trade shows, conduct virtual sales calls, and participate in industry/networking events within New Mexico as directed by the Employer.
- Physical sales office/worksite location: [Office Address or Remote Work Designation]. Remote work and travel policies: [Reference to Company Policy Document].
2. Full-Time Employment
- Employee's employment is full-time as defined under New Mexico law.
- Option A: Standard work hours are [Start Time] to [End Time], Monday through Friday. Expected weekly schedule: 40 hours.
- Option B: Hours may vary based on business needs, but will average 40 hours per week.
- Break/rest period requirements per New Mexico labor law will be adhered to. Mandatory meal period: [Meal Period Details].
3. Compensation
- Base Salary: [Dollar Amount] per [Pay Period], subject to standard payroll deductions.
- Commission Structure:
- Commission Rate: [Percentage]% of [Qualifying Sales Definition].
- Payment Schedule: Commissions are paid [Frequency, e.g., monthly, quarterly] on [Date or Timeframe] following the end of the earning period, in compliance with New Mexico's payment of wages statutes.
- Clawback/Chargeback Policy: [Details of Clawback/Chargeback Policy, if any]. Definition of "earned" commission: [Specific Definition].
- Bonus Potential: [Details of Bonus Structure, if any].
- Minimum Wage Compliance: The Employer will ensure that total compensation meets or exceeds New Mexico's minimum wage requirements.
- Overtime Eligibility: [Exempt or Non-Exempt under FLSA and New Mexico law]. If non-exempt, overtime will be paid at 1.5 times the regular rate for hours worked over 40 in a workweek.
- Pay Frequency and Payment Method: [Frequency, e.g., Bi-weekly], via [Direct Deposit or Check]. Earned Wage Access rules will be followed according to New Mexico law. Final pay will be provided in accordance with New Mexico law upon separation.
4. Benefits
- Group Health Insurance: [Details of Health Insurance Plan].
- Dental and Vision Plans: [Details of Dental and Vision Plans].
- Retirement/401(k) Options: [Details of Retirement/401(k) Plan].
- Paid Time Off (PTO): [Number] days per year.
- Sick Leave: Accrual of sick leave in compliance with New Mexico's Healthy Workplaces Act.
- Holidays: [List of Recognized New Mexico Holidays].
- Sales Training and Certification Reimbursement: [Details of Reimbursement Policy].
- Auto Allowance/Company Car: [Details of Auto Allowance or Company Car Policy, if applicable]. Mileage reimbursement will be at the IRS standard rate or [Employer-Specific Rate].
- Wellness/Employee Assistance Programs: [Details of Programs, if any].
5. Job-Related Tools
- The Employer will provide the following tools:
- Mobile Phone
- Laptop
- CRM/Lead Generation Software: [Software Name].
- Sales Collateral
- Demo Products
- The Employer is responsible for the maintenance of these tools. The Employee is responsible for their proper use and return upon termination of employment.
6. Licenses and Registrations
- The Employee is required to maintain the following licenses/registrations: [List of Required Licenses/Registrations, if any].
7. Legal Compliance
The Employee shall comply with all applicable laws, rules, and regulations, including anti-corruption and anti-kickback rules, the New Mexico Unfair Practices Act, and any local ordinances related to sales activities in New Mexico.
8. Confidentiality
The Employee acknowledges that during their employment, they will have access to confidential business information, including customer lists, pricing, product strategies, and trade secrets. The Employee agrees to maintain the confidentiality of this information both during and after employment.
- Option A: Carve-outs will be compliant with New Mexico’s “blue-pencil” doctrine.
- Option B: No carve-outs.
9. Intellectual Property
All sales materials, client databases, strategies, and written proposals created as part of the Employee's duties are the sole property of the Employer. The Employer owns all rights to any company trademarks/logos used by the Employee.
10. Non-Solicitation
The Employee agrees not to solicit customers or employees of the Employer for a period of [Number] months following termination of employment. This restriction is narrowly tailored to comply with New Mexico law regarding non-compete agreements and applies only to:
- Option A: Customers the employee directly serviced during their employment.
- Option B: Any customer of the Employer.
This clause does not constitute a broad non-compete and is enforceable only to the extent permitted by New Mexico law.
11. Anti-Harassment and Equal Opportunity
The Employer is an equal opportunity employer and prohibits harassment and discrimination based on gender, race, national origin, age, sexual orientation, disability, veteran status, or any other protected characteristic under New Mexico and federal law. The Employer complies with the New Mexico Human Rights Act.
12. Reporting Structure and Performance
- The Employee will report to [Supervisor Name].
- Performance reviews will be conducted [Frequency, e.g., annually].
- Sales quota achievement will be evaluated [Frequency, e.g., quarterly] based on [Specific Criteria].
- Progressive discipline and performance-improvement plans will be implemented as needed.
13. Code of Conduct and Ethics
The Employee shall comply with the Employer's code of conduct and ethics policies. The Employee is obligated to report suspected unlawful behavior and is protected under New Mexico whistleblower laws.
14. Termination
- Employment is at-will, as permitted under New Mexico law, unless otherwise agreed in writing.
- Option A: The Employee may resign with [Number] days' written notice.
- Option B: The Employer may terminate employment with or without cause.
- Final wage and commission payout will be made in accordance with New Mexico statute.
- Severance Policy: [Details of Severance Policy, if any].
- Upon termination, the Employee must return all company property, sales materials, and data.
- Termination for Cause: Examples of cause include fraud, misconduct, failure to meet quotas, or violation of laws or company policy.
- New Mexico discharge procedures will be followed.
15. Post-Termination Obligations
Outstanding leads, commissions, pipeline activity, and ongoing customer relationships will be handled as follows: [Specific Procedures]. All records and information related to these items will be transferred to the Employer.
16. Dispute Resolution
Any disputes arising under this Agreement shall be resolved through mediation/arbitration prior to litigation. This Agreement shall be governed by New Mexico law, and legal venue shall be in [County], New Mexico.
17. Workers' Compensation and Safety
The Employer provides workers' compensation coverage as required by New Mexico law. The Employer complies with the New Mexico Occupational Health and Safety Act (OSHA) and maintains a drug/alcohol policy: [Reference to Company Policy Document]. Optional mental health resources for employees: [Details of Resources, if any].
18. Payroll Taxes
Payroll taxes will be withheld at the federal and New Mexico state level. The Employer is responsible for local gross receipts tax or any statutory deductions specific to New Mexico employment and sales compensation.
19. Modifications
The Employer reserves the right to unilaterally modify company policies in accordance with New Mexico employment practices, provided advance notice is given.
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: ____________________________
____________________________
[Employee Full Legal Name]