North Dakota sales representative employment contract template

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How North Dakota sales representative employment contract Differ from Other States

  1. North Dakota Statutes require prompt payment of commissions upon contract termination, with specific timelines and penalties for late payment.

  2. Non-compete agreements in North Dakota are generally unenforceable, whereas other states may allow broader restrictions.

  3. North Dakota mandates that contracts specifying commission rates must be in writing, providing stronger protections to sales representatives.

Frequently Asked Questions (FAQ)

  • Q: Is a written contract required for sales representatives in North Dakota?

    A: Yes, North Dakota law mandates that commission-based sales representative agreements be in writing for enforceability.

  • Q: Are non-compete clauses enforceable in a North Dakota sales representative contract?

    A: Generally, non-compete clauses are not enforceable in North Dakota, except in a few limited statutory circumstances.

  • Q: How soon must commissions be paid after contract termination in North Dakota?

    A: Commissions must be paid within thirty days of contract termination or within thirty days of becoming due, whichever is later.

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North Dakota Sales Representative Employment Contract

This North Dakota Sales Representative Employment Contract (the “Agreement”) is made and entered into as of [Date], by and between [Company Name], a [State] [Entity Type] with its principal place of business at [Company Address] (“Company”), and [Sales Representative Name], residing at [Sales Representative Address] (“Representative”).

Position and Territory

Option A: Employment Position

The Company hereby employs Representative as a full-time Sales Representative.

Option B: Independent Contractor

Note: Classifying a Sales Representative as an Independent Contractor may have significant legal and tax implications and should be carefully considered with legal counsel. Misclassification can result in penalties.

Option A: Territory

The Representative’s primary sales territory shall be [Specific Territory within North Dakota, e.g., Western North Dakota, Fargo Metropolitan Area].

Option B: Territory

The Representative's sales territory shall include the following states: North Dakota and [List of other states if applicable].

Job Responsibilities

The Representative shall perform the following duties:

  • Direct sales of Company’s products/services to assigned customer segments.
  • Lead generation and cold calling.
  • Client visits and product demonstrations.
  • Sales presentations and negotiation of sales deals.
  • Order processing and achievement of sales targets/quotas.
  • Documentation of sales activities in CRM systems ([CRM System Name]).
  • Regular territory reporting and market analysis.
  • Customer relationship management.
  • Attending trade shows and local events.
  • Gathering client feedback.
  • Coordination with internal marketing, supply, and support teams.
  • Maintaining product and industry knowledge.
  • Complying with branding and pricing guidelines.
  • Participating in required sales and product training sessions.

Reporting and Performance Reviews

Option A: Reporting Structure

The Representative shall report to [Job Title of Supervisor].

Option B: Reporting Structure

The Representative shall report to [Department].

Option A: Key Performance Indicators

The Representative's performance will be evaluated based on the following KPIs: [List of KPIs, e.g., Sales quota achievement, new customer acquisition, customer retention rate].

Option B: Key Performance Indicators

The Representative's performance will be evaluated based on qualitative standards.

Option A: Meeting Frequency

Sales meetings will be held [Frequency, e.g., Weekly, Bi-weekly, Monthly].

Option B: Meeting Frequency

Sales meetings will be held as needed.

The Representative shall submit time and expense reports with supporting receipts [Frequency, e.g., Weekly, Bi-weekly, Monthly].

Work Location and Travel

Option A: Work Location

The Representative's primary work location shall be the Company's North Dakota office located at [Company Address].

Option B: Work Location

The Representative's primary work location shall be remote/home-based.

Option C: Work Location

The Representative's work location shall be hybrid.

The Representative is expected to travel within the sales territory.

Option A: Vehicle and Expenses

The Company will provide a company vehicle for business use.

Option B: Vehicle and Expenses

The Representative will use their personal vehicle and be reimbursed for mileage at the current IRS rate, in accordance with North Dakota law.

Option C: Vehicle and Expenses

The Representative will use their personal vehicle and be reimbursed at a rate of [Amount] per mile.

Option A: Additional Expenses

The Representative will receive a daily allowance of [Amount] for travel-related expenses, in addition to a fuel card.

Option B: Additional Expenses

The Representative will be reimbursed for reasonable and necessary travel-related expenses with supporting receipts.

Option A: Company Provided Equipment

The Company will provide a mobile phone and laptop for business use.

Option B: Company Provided Equipment

The Company will provide sales materials as needed.

Employment Classification and Hours

The Representative's employment is full-time, with a minimum expected work week of 40 hours.

Option A: Exempt Status

The Representative is classified as an exempt employee and is not eligible for overtime pay.

Option B: Non-Exempt Status

The Representative is classified as a non-exempt employee and is eligible for overtime pay in accordance with North Dakota wage and hour laws.

The Representative's daily/weekly schedule shall be [Specify Schedule].

The Representative is expected to maintain a flexible work schedule due to the nature of field sales.

The Representative will adhere to North Dakota’s regulations for meal and rest breaks.

Compensation

The Representative's annual base salary is [Amount], payable [Pay Interval, e.g., monthly, semi-monthly, bi-weekly].

Option A: Commission Structure

The Representative will also be eligible for commissions as follows: [Detailed Commission Formula, e.g., Percentage of Sales, Flat Rate per Sale, Tiered Commission Structure].

Commissions will be paid [Timing of Payment, e.g., monthly, quarterly].

Sales are attributed based on [How Sales are Attributed, e.g., Date of Order, Date of Shipment].

Option A: Clawback Policy

Commissions on canceled or refunded sales may be subject to clawback or chargeback.

Option B: Clawback Policy

Commissions on canceled or refunded sales are not subject to clawback or chargeback.

Option B: Bonus Structure

The Representative may be eligible for bonuses based on performance, quota achievement, or new client acquisition.

[Explain Bonus Structure and Criteria]

Option C: Draw

The Representative will receive a draw against future commissions of [Amount] per [Time Period].

All payments will be made via direct deposit, as required by North Dakota law.

Final paycheck will be issued according to North Dakota’s regulations upon separation of employment.

Benefits

The Representative is eligible for the following benefits:

  • Group health, vision, and dental insurance.
  • Life and disability insurance.
  • 401(k) or other retirement plan.
  • Paid time off in accordance with North Dakota law.
  • State and federal holidays observed.
  • Sick leave.
  • Unpaid family/medical leave.
  • Jury duty or National Guard/military service leave.
  • Option A: Vehicle Allowance
    Vehicle Allowance of [Amount] per [Pay Period]
  • Option B: Vehicle Allowance
    Company Fuel Card.
  • Option C: Mobile Phone Allowance
    Mobile Phone Allowance of [Amount] per [Pay Period]
  • Option D: Sales Training Reimbursement
    Company Sales Training Reimbursement up to [Amount].
  • Option E: Professional Dues
    Payment of Professional Dues as approved by management.

Intellectual Property

All sales-related intellectual property and client data, including prospect lists, pricing information, presentations, and sales methodologies, are the sole property of the Company.

The Representative shall return all sales collateral and proprietary information upon termination of employment.

Confidentiality and Non-Disclosure

The Representative shall maintain the confidentiality of customer information, pricing, business plans, and competitive intelligence.

The Representative has a duty of loyalty to only represent the Company’s products/services.

The Representative shall not engage in external consulting or side sales activities without the Company’s prior written consent.

Post-Termination Restrictions

Note: North Dakota law (NDCC §9-08-06) generally prohibits non-competition agreements for employees. Consult legal counsel before including any restrictive covenants.

Option A: Client Non-Solicitation

For a period of [Number] months following termination, the Representative shall not solicit or attempt to solicit any customers of the Company with whom the Representative had direct contact during their employment. This applies only to the territory within North Dakota.

Option B: Confidentiality

The Representative shall continue to maintain the confidentiality of the Company’s confidential information after termination of employment.

At-Will Employment

The Representative’s employment is at-will, meaning that either party may terminate the employment relationship at any time, with or without cause, subject to North Dakota law.

Option A: Notice Period

The terminating party shall provide [Number] days written notice of termination.

Option B: Notice Period

No notice is required for termination.

Upon termination, the Representative shall receive final compensation and return all Company property.

Commissions on post-termination sales will be paid according to North Dakota law and the commission structure outlined in this Agreement.

Anti-Discrimination and Harassment

The Company is an equal opportunity employer and complies with all state and federal anti-discrimination and anti-harassment laws, including the North Dakota Human Rights Act.

The Company prohibits discrimination based on race, color, religion, sex, national origin, age, disability, marital status, public assistance status, or participation in lawful off-duty conduct.

Legal and Ethical Conduct

The Representative shall conduct all sales activities in a legal and ethical manner.

The Representative shall comply with all applicable North Dakota licensing or permit requirements for regulated product categories (e.g., insurance, tobacco, alcohol).

Data Protection

All customer data, records, and confidential materials collected in North Dakota shall be handled according to state and industry privacy and data protection standards.

Safety and Vehicle Policy

The Representative shall comply with all state traffic and safety laws while driving in North Dakota.

The Representative shall report any accidents immediately to the Company.

Internal Reporting and Investigation

The Company has an internal complaint, reporting, and investigation process for alleged harassment or policy breaches.

The Company provides for employee coverage for work-related injuries under North Dakota workforce safety and insurance laws.

Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of North Dakota.

Any disputes arising out of or relating to this Agreement shall be resolved through good faith negotiation.

Option A: Mediation

If negotiation fails, the parties shall attempt to resolve the dispute through mediation before resorting to litigation.

Option B: Arbitration

If negotiation fails, the parties agree to resolve the dispute through binding arbitration.

The venue for any legal action shall be in [County Name] County, North Dakota.

Compliance with North Dakota Law

No terms in this Agreement violate North Dakota’s prohibition on employment-related fees.

No unlawful wage deductions will be made.

Other Terms

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

Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

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

Waiver: No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced.

Counterparts: This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Electronic Signatures: Electronic signatures shall be accepted as legally binding in accordance with North Dakota law.

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]

Signature:

Date:

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