North Carolina sales representative employment contract template

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How North Carolina sales representative employment contract Differ from Other States

  1. North Carolina law requires payment of earned sales commissions within 30 days after the contract terminates, ensuring prompt compensation.

  2. Non-compete clauses in North Carolina must be reasonable in scope, duration, and geographic area to be enforceable against sales representatives.

  3. North Carolina provides civil remedies and allows for double damages if employers willfully fail to pay owed commissions to sales representatives.

Frequently Asked Questions (FAQ)

  • Q: Are written sales representative contracts required in North Carolina?

    A: No, but written contracts are strongly recommended to clarify commission terms and protect both parties’ rights.

  • Q: What happens if my employer does not pay my commissions on time in North Carolina?

    A: You can sue for unpaid commissions and may be entitled to double damages if your employer's failure is willful.

  • Q: Can a North Carolina employer enforce a non-compete agreement on sales representatives?

    A: Yes, but the non-compete must be reasonable in duration, territory, and necessary to protect legitimate business interests.

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North Carolina Sales Representative Employment Contract

This North Carolina Full-Time 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], hereinafter referred to as “Employer,” and [Employee Full Legal Name], residing at [Employee Address], hereinafter referred to as “Employee.”

1. Position:

  • Option A: Full-Time Sales Representative
  • Option B: Senior Sales Representative
  • Job Responsibilities: Employee shall perform the following duties:
    • Identifying and qualifying leads.
    • Developing and maintaining client relationships.
    • Conducting in-person and remote sales presentations.
    • Preparing and negotiating sales contracts or proposals.
    • Meeting specified individual and team sales quotas or targets.
    • Providing timely sales reports and pipeline updates.
    • Participating in product or service training sessions.
    • Attending trade shows and industry events as required.
    • Accurately inputting client and sales data into designated CRM software.
    • Following up on outstanding accounts.
    • Maintaining an in-depth knowledge of company offerings and competitive landscape.

2. Territory:

  • Option A: The Employee’s sales territory shall be [Description of Territory], focusing on [Specific North Carolina Regions].
  • Option B: The Employee’s sales territory shall be the entire State of North Carolina.
  • Exclusivity: Employee shall adhere to all territory exclusivity or sharing arrangements.

3. Reporting:

  • Option A: The Employee will report directly to [Manager Name and Title].
  • Option B: The Employee will report to the [Department Name] department and receive direction from [Manager Name and Title].

4. Work Location:

  • Option A: The primary work location is [Employer Address] in North Carolina.
  • Option B: This is a remote position; however, regular travel within North Carolina for client visits is required.
  • Travel: Employee shall be reimbursed for travel expenses in accordance with Employer’s expense reimbursement policy.

5. Employment Type and Work Hours:

  • Employment Type: Full-Time.
  • Minimum Weekly Hours: 40 hours per week.
  • Overtime: Overtime eligibility and payment shall be consistent with the North Carolina Wage and Hour Act. Overtime must be approved in advance by [Manager Name].
  • Attendance: Attendance at internal and customer-facing meetings is mandatory.

6. Compensation:

  • Option A: Base Salary: [Amount] per year, payable [Frequency, e.g., bi-weekly].
  • Option B: Hourly Wage: [Amount] per hour.
  • Commission:
    • Commission Rate: [Percentage] of [Eligible Products/Services].
    • Calculation Formula: [Detailed Calculation Formula].
    • Clawback Provisions: [Description of Clawback Provisions, if any] for refunds or cancellations.
    • Payment Schedule: Commissions are paid [Frequency, e.g., monthly].
    • Post-Termination Commissions: Post-termination commission rights shall be governed by the North Carolina Sales Representative Commission Contracts Act N.C. Gen. Stat. § 66-190 et seq.
  • Bonus:
    • Option A: Performance bonuses may be awarded at the discretion of the Employer.
    • Option B: Employee is eligible for a [Description of Bonus, e.g., quarterly bonus] based on [Criteria].
  • Draw Against Commissions:
    • Option A: No draw against commissions will be provided.
    • Option B: A draw of [Amount] per [Frequency] will be provided and reconciled against earned commissions.
  • Frequency of Pay: [Weekly, Bi-Weekly, Monthly].
  • Method of Payment: [Direct Deposit, Check].
  • Payroll Deductions: Mandatory payroll deductions will be made in accordance with North Carolina and federal law.

7. Benefits:

  • Medical Insurance: [Description of Coverage].
  • Dental Insurance: [Description of Coverage].
  • Vision Insurance: [Description of Coverage].
  • Paid Vacation: [Number] days per year.
  • Sick Leave: [Number] days per year.
  • Bereavement Leave: [Number] days per occurrence, consistent with North Carolina law.
  • North Carolina Statutory Holidays: Observed per North Carolina law.
  • Expense Reimbursement: Reimbursement for reasonable and necessary business expenses will be provided in accordance with Employer’s policy.
  • Retirement Plan: [Description of Retirement Plan, e.g., 401(k)] (if applicable).
  • Company Vehicle/Allowance: [Description of Vehicle or Allowance] (if applicable).
  • Continuing Education/Sales Training: [Description of Support].
  • Workers’ Compensation: Coverage will be provided per North Carolina rules.
  • Eligibility and Enrollment: Benefits eligibility and enrollment are subject to Employer’s policies and plan documents.

8. Confidentiality:

  • All client lists, pricing details, and business methods learned or developed during employment are confidential and are the property of the Employer.
  • Employee shall not disclose any confidential information to any third party.
  • Confidentiality obligations shall survive the termination of this Agreement.
  • Employee agrees to comply with the North Carolina Trade Secrets Protection Act (N.C. Gen. Stat. § 66-152 et seq.).

9. Ownership of Accounts:

All customer accounts, sales leads, and business relationships developed during employment are the property of the Employer.

10. Return of Property:

Upon termination of employment, Employee shall promptly return all company materials, property, and data to the Employer.

11. Standards of Conduct:

  • Employee shall adhere to all company standards of conduct, including but not limited to: anti-bribery policies, truthful representation of products/services, compliance with state and federal consumer protection laws, adherence to company marketing brand guidelines, and safeguarding of customer and prospect data as defined by North Carolina privacy laws.
  • Employee shall not engage in any outside business activities that create a conflict of interest.

12. Performance Review and Discipline:

  • Performance Review: Employee’s performance will be reviewed [Frequency, e.g., annually].
  • Probationary Period: [Description of Probationary Period, if any].
  • Progressive Discipline: Employer may utilize a progressive discipline policy for performance issues.

13. Non-Competition:

  • Option A: Employee agrees that during the term of employment and for a period of [Number] months following termination, Employee will not, directly or indirectly, solicit clients or employees of the Employer within a [Description of Geographic Area]. This restriction is reasonable in time, territory, and scope, and is necessary to protect the Employer’s legitimate business interests under North Carolina law.
  • Option B: No non-compete agreement is required for this position.

14. At-Will Employment:

Employment is at-will, and either party may terminate the employment relationship at any time, with or without cause or notice, subject to the notice period below.

15. Termination:

  • Notice Period: [Number] days' written notice is required from either party to terminate employment.
  • Offboarding Process: Employee shall cooperate with the Employer’s offboarding process.
  • Final Pay: Final pay, including any earned but unpaid commissions, will be paid in accordance with North Carolina law.
  • Return of Property: Upon termination, employee is required to return all company property.

16. Leave of Absence:

  • Leave of Absence: Employee may be eligible for leave of absence under the Family and Medical Leave Act (FMLA) and any other applicable North Carolina leave laws.
  • Company Policies: The Employer may have company-specific leave or accommodation policies for disability, pregnancy, or military service.

17. Equal Opportunity Employment:

The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, religion, sex, age, disability, genetic information, or any other protected category under applicable North Carolina and federal law.

18. Dispute Resolution:

  • Dispute Resolution: Any disputes arising out of or relating to this Agreement shall first be addressed through good faith negotiation. If negotiation is unsuccessful, the parties agree to attempt mediation or arbitration.
  • Governing Law and Venue: This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina. The venue for any legal action shall be in [County Name] County, North Carolina.

19. Industry-Specific Requirements:

Employee shall comply with all applicable regulatory, insurance, and professional licensing requirements for the [Industry] sales industry in North Carolina, including [Specific Regulations or Requirements].

20. Statutory Notices:

Employee acknowledges receipt of notices regarding workers’ compensation, wage payment, and unemployment insurance, as required by North Carolina law.

21. Acknowledgement:

Employee acknowledges receipt and understanding of the North Carolina wage notice, commission plan details, company handbook, and code of conduct.

22. Entire Agreement:

This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written, relating to the subject matter hereof.

23. Severability:

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

24. Amendment:

This Agreement may be amended only by a written instrument signed by both parties.

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: ____________________________

Date: [Date]

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