New York sales representative employment contract template

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How New York sales representative employment contract Differ from Other States

  1. New York law mandates timely payment of commissions to sales representatives, with strict penalties for late payments not always present in other states.

  2. Written contracts outlining commission details are required in New York, whereas some states permit oral agreements or less specific documentation.

  3. New York grants sales representatives enhanced statutory rights to recover unpaid commissions, including potential double damages and legal fees, which vary across states.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for sales representatives in New York?

    A: Yes, New York law requires all sales representative agreements to be in writing, outlining commission terms and payment schedules.

  • Q: How soon must commissions be paid after contract termination in New York?

    A: Commissions must be paid within five business days after they become due, as specified by New York labor law.

  • Q: Can sales representatives recover damages for unpaid commissions in New York?

    A: Yes, they may recover up to double the unpaid amount and attorney’s fees if the company willfully withholds commissions.

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New York Sales Representative Employment Contract

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

1. Position

The Employer hereby employs Employee as a Sales Representative.

  • Option A: Full-time Employment
    • Employee's employment shall be on a full-time basis.
  • Option B: Part-time Employment (Note: Part-time employment may affect benefits eligibility)
    • Employee's employment shall be on a part-time basis, approximately [Number] hours per week.

2. Job Description

Employee shall perform the following duties:

  • Prospecting and lead generation
  • Client presentations and product/service demonstrations
  • Account management
  • Territory development
  • Regular sales reporting
  • Sales goal achievement
  • Order processing
  • CRM usage
  • Market intelligence gathering
  • Competitive analysis
  • Ongoing client relationship management
  • Other duties as assigned by Employer.

3. Territory

Employee's assigned territory is:

  • Option A: Geographic Region
    • [Specific Geographic Region, e.g., New York City Metropolitan Area]
  • Option B: Sector
    • [Specific Sector, e.g., Healthcare, Financial Services]
  • Option C: Account Type
    • [Specific Account Type, e.g., Enterprise Accounts, Small Business Accounts]

4. Work Location and Travel

  • Option A: In-Person Sales Activity
    • Employee is required to work in the office [Number] days per week.
    • Employee is expected to travel [Percentage] of the time.
    • Field visits are expected [Frequency, e.g., weekly, monthly].
  • Option B: Remote Sales Activity
    • Employee is permitted to work remotely.
    • Employee is expected to travel [Percentage] of the time.
    • Field visits are expected [Frequency, e.g., weekly, monthly].
  • Employer will reimburse Employee for all reasonable and necessary business expenses incurred in connection with Employee's duties, in accordance with Employer's expense reimbursement policy and New York law.

5. Reporting Structure

Employee shall report directly to [Supervisor Name], whose title is [Supervisor Title].

6. Sales Quotas and Performance Review

  • Employee is expected to meet or exceed sales quotas as established by Employer. Specific quotas and KPIs will be communicated separately.
  • Employee's performance will be reviewed [Frequency, e.g., annually, semi-annually].

7. Compliance and Licensing

  • Option A: Industry Specific Compliance
    • Employee shall comply with all applicable industry-specific regulations and licensing requirements, including [Specific Regulations/Licenses, e.g., FINRA licenses, Real Estate licenses].
  • Option B: No Industry Specific Compliance
    • No specific industry compliance or licensing is required for this position.

8. Work Hours

  • Employee's full-time work week shall be approximately [Number, generally 35-40] hours per week.
  • Standard work hours are [Start Time] to [End Time], Monday through Friday.
  • Employee may be required to work overtime as needed. All overtime work must be approved in advance by [Supervisor Name].
  • Employee is entitled to meal and rest breaks in accordance with New York Labor Law Articles 5 and 6.
  • Employer will adhere to New York State Minimum Wage and Wage Theft Prevention Act (WTPA) notice requirements.

9. Compensation

  • Base Salary: [Dollar Amount] per [Pay Period, e.g., year, month].
  • Commission:
    • Option A: Commission Based on Revenue
      • [Percentage]% of eligible revenue generated by Employee.
      • Eligible revenue is defined as [Specific Definition of Eligible Revenue, e.g., net sales, gross profit].
      • Commissions will be paid [Payment Timing, e.g., monthly, quarterly].
    • Option B: Commission Based on Other Metrics
      • [Specify Metric and Payment Structure].
    • Clawbacks and chargebacks for client returns/cancellations will be handled according to the following policy: [Detailed Policy on Clawbacks/Chargebacks].
  • Bonus:
    • Employee is eligible for a bonus of up to [Dollar Amount or Percentage] based on performance. Specific bonus criteria will be communicated separately.
  • Non-Discretionary Incentive Plans: [Describe any non-discretionary incentive plans].
  • Non-Cash Compensation: [Describe any non-cash compensation, e.g., stock options, company car].
  • Pay Frequency: [Weekly, Bi-weekly, Semi-monthly, Monthly].
  • Method of Payment: [Direct Deposit, Check].
  • Overtime Pay: Employee shall be paid overtime in accordance with New York law.
  • Timing of Commission Payments Upon Termination: Commissions earned but not yet paid at the time of termination will be paid in accordance with New York law, no later than the next regular payday.

10. Benefits

Employee is eligible for the following benefits, subject to the terms and conditions of the applicable benefit plans:

  • Health Insurance
  • Vision Insurance
  • Dental Insurance
  • Short-Term Disability Insurance
  • Long-Term Disability Insurance
  • Life Insurance
  • Retirement/401(k) Plan
  • Paid Time Off (PTO): [Number] days per year (vacation, sick, and personal days).
  • New York Statutory Holidays
  • Family and Medical Leave (in accordance with applicable law)
  • Compliance with NYC’s Paid Safe and Sick Leave Law
  • Potential for transportation or travel expense reimbursement (in accordance with Employer's policy)
  • Training Allowances: [Dollar Amount] per year.
  • Professional Development Budgets for Sales Training: [Dollar Amount] per year.

11. Expenses

Employer will reimburse Employee for all reasonable and necessary business expenses incurred in connection with Employee's duties, in accordance with Employer's expense reimbursement policy and New York law.

12. Confidentiality

Employee acknowledges that during the course of employment, Employee will have access to confidential information, including client lists, pricing strategy, sales playbooks, proprietary product/service information, and internal marketing/sales strategies. Employee agrees to keep such information confidential and not to disclose it to any third party during or after employment. This confidentiality obligation shall survive termination of this Agreement for a period of [Number] years. Sales-related trade secrets are protected under New York law.

13. Ownership of Customer Lists and Data

All customer lists, contacts, and any materials or data generated during employment are the sole property of Employer. Employee shall not download, copy, or use such information upon departure from Employer.

14. Restrictive Covenants

  • Non-Solicitation: Employee agrees not to solicit any of Employer's clients or employees for a period of [Number] years following termination of employment. This restriction applies to the following categories of clients: [Specific Categories of Clients, e.g., existing clients, prospective clients].
  • Non-Compete:
    • Option A: No Non-Compete
      • There is no non-compete clause in this agreement.
    • Option B: Limited Non-Compete (Note: Enforceability of non-compete agreements is strictly limited in New York)
      • Employee agrees not to engage in any business that directly competes with Employer within [Specific Geographic Area] for a period of [Number] years following termination of employment. This restriction is limited to [Specific type of work].
  • Non-Disclosure: Employee shall maintain the confidentiality of all Employer’s confidential information, trade secrets, and proprietary data, as defined in Section 12 above, indefinitely.

15. Behavioral Expectations

Employee shall comply with all applicable state and federal fair sales practices, anti-bribery/anti-corruption statutes, and prohibitions on deceptive sales or misrepresentation as set out in New York General Business Law.

16. Policies

Employee shall comply with all of Employer's policies, including:

  • Code of Conduct
  • Anti-Harassment Policy (including sexual harassment policy per New York Labor Law section 201-g)
  • Anti-Discrimination Policy
  • Equal Employment Opportunity Policy (explicitly referencing categories protected under New York State and City Human Rights Law: age, race, gender, gender identity, sexual orientation, marital status, disability, domestic violence victim status, familial status, military status, etc.)
  • Privacy Policy
  • Mandatory paid sexual harassment prevention annual training.

17. Employment At-Will

Employee's employment is at-will, meaning that either Employer or Employee may terminate the employment relationship at any time, with or without cause or notice, subject to applicable New York law and the terms of this Agreement.

18. Termination

  • Voluntary Resignation: Employee must provide Employer with [Number] weeks' written notice of resignation.
  • Employer-Initiated Termination: Employer may terminate Employee's employment with or without cause, subject to applicable law.
  • Progressive Discipline:
    • Option A: Progressive Discipline
      • Employer will follow a progressive discipline policy, which may include verbal warnings, written warnings, and suspension, prior to termination for cause.
    • Option B: No Progressive Discipline
      • Employer is not required to follow a progressive discipline policy.
  • Required Written Notices: Employer will provide all required written notices as mandated by the Wage Theft Prevention Act.
  • Administrative Offboarding Steps: Employee must complete all required administrative offboarding steps, as directed by Employer.
  • Final Paycheck Delivery: Final paycheck will be delivered according to New York law, no later than the next regular payday.
  • Commission Payout Rules at Separation: Commissions earned but not yet paid at the time of termination will be paid in accordance with Section 9 of this Agreement and New York law.
  • Return of Company Property: Employee must return all company property (laptops, samples, mobile devices, access credentials, etc.) upon termination.

19. Dispute Resolution

  • Disputes arising out of or relating to this Agreement shall be resolved through good faith negotiation and mediation, prior to resorting to litigation.
  • This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflict of laws principles.
  • Exclusive jurisdiction and venue for any legal action arising out of or relating to this Agreement shall be in the state or federal courts located in [County Name] County, New York.
  • Arbitration:
    • Option A: Agreement to Arbitrate
      • Any dispute arising out of or relating to this Agreement shall be settled by binding arbitration in [City, State] in accordance with the rules of the American Arbitration Association.
    • Option B: No Agreement to Arbitrate
      • The parties do not agree to resolve disputes through arbitration.

20. Insurance and Safety

  • Employer maintains workers’ compensation insurance in accordance with New York law.
  • Employer complies with New York Disability Benefits Law and Paid Family Leave obligations.
  • Employee shall adhere to all applicable New York State and OSHA standards for occupational safety, including safe travel and field visit requirements.

21. Additional Provisions

  • Employee's employment is not contingent on any illegal quotas or sales practices.
  • Employer commits to fair labor practices and accurate wage statement provisions.
  • Remote/Hybrid Work Expectations: [Specify expectations for remote/hybrid work, including provision of sales technology, CRM access, and confidentiality in home or travel settings].
  • The company has policies for Commission, Bonus, or Expense Adjustment. These policies will be provided upon request.

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

[Employer Name]

By: [Employer Representative Name]

Title: [Employer Representative Title]

[Employee Name]

Signature: ____________________________

Date: ____________________________

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