Pennsylvania sales representative employment contract template
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How Pennsylvania sales representative employment contract Differ from Other States
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Pennsylvania law specifically requires timely payment of commissions to sales representatives after termination, with set deadlines for payment.
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In Pennsylvania, failure to pay sales commissions on time may result in mandatory payment of exemplary (punitive) damages and attorney’s fees.
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Pennsylvania statutes provide a broader definition of ‘commission’ for sales representatives than many other states, ensuring wider coverage.
Frequently Asked Questions (FAQ)
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Q: Is written sales representative employment contract required in Pennsylvania?
A: While not legally required, a written contract is strongly recommended to clarify payment, duties, and commission structure.
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Q: What penalties apply if commissions are not paid on time in Pennsylvania?
A: If commissions are not paid within 14 days of becoming due after termination, employers may owe exemplary damages up to three times the commission.
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Q: Can a Pennsylvania sales representative sue for unpaid commissions?
A: Yes, sales representatives can take legal action to recover unpaid commissions along with potential damages and attorney fees.
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Pennsylvania Sales Representative Employment Contract
This Pennsylvania Sales Representative Employment Contract (the “Agreement”) is made and entered into as of [Date] by and between [Employer Full Legal Name], located at [Employer Full Address] (“Employer”), and [Employee Full Legal Name], residing at [Employee Full Address] (“Employee”).
1. Employment
- The Employer hereby employs the Employee as a Sales Representative (Full-Time), and the Employee hereby accepts such employment.
- Option A: This is a full-time position.
- Option B: This is a part-time position with [Number] hours per week.
2. Duties
- The Employee's primary duties shall include, but are not limited to:
- Prospecting and acquiring new clients.
- Maintaining and growing existing customer relationships.
- Presenting company products/services.
- Negotiating and closing sales deals.
- Meeting established sales targets/quotas.
- Following up on leads.
- Logging all contact notes into [CRM System].
- Attending relevant industry events.
- Generating sales reports.
- Participating in sales meetings.
- Complying with the Employer’s code of business conduct.
- The Employee will focus on the [Industry Focus] industry.
- The Employee will be responsible for selling the following product lines: [Product Lines].
- Note: The sales of [Specific Product] requires adherence to [Specific Regulation, e.g., FDA regulations].
- The Employee’s assigned territory/region is: [Territory/Region].
- Option A: The territory is exclusive.
- Option B: The territory is non-exclusive.
- The position requires travel within [Geographic Area].
3. Work Location and Schedule
- The Employee's designated office location is [Office Location].
- Option A: The Employee is eligible for remote work.
- Option B: Remote work is not permitted for this position.
- The standard weekly hours are [Number].
- Option A: A flexible schedule is available subject to Employer approval.
- Option B: Overtime may be required and will be compensated according to Pennsylvania law.
- Meal and rest breaks will be provided in accordance with Pennsylvania wage and hour laws.
- The Employee will be required to use [Timekeeping Method] for tracking work hours.
4. At-Will Employment and Termination
- Employment is at-will, as governed by Pennsylvania law. This means that either the Employee or the Employer may terminate the employment relationship at any time, with or without cause or notice, subject to the terms of this Agreement.
- Option A: The Employee is required to provide [Number] days written notice of resignation.
- Option B: The Employer is required to provide [Number] days written notice of termination, unless for cause.
- Layoff procedures will be in accordance with applicable Pennsylvania law.
5. Compensation
- The Employee's base annual salary is [Dollar Amount] or [Hourly Wage], which is no less than Pennsylvania's minimum wage.
- The Employee will also be eligible for commissions, as described below:
- Commission Rate: [Commission Rate].
- Commission Basis: [Commission Basis, e.g., Gross Sales, Net Profit].
- Qualifying Criteria: [Qualifying Criteria for Commission].
- Timing of Commission Payments: [Payment Schedule, e.g., Monthly, Quarterly].
- Method of Commission Payments: [Payment Method, e.g., Direct Deposit].
- Post-Termination Commission Payout: Commissions earned but not yet paid as of the date of termination will be paid in accordance with the Pennsylvania Wage Payment and Collection Law.
- Option A: The Employee is eligible for spiffs or bonuses based on [Performance Metrics].
- Option B: Performance incentives will be determined on a quarterly/annual basis.
- Clawback/Repayment Rules: [Clawback Rules, if applicable].
6. Benefits
- The Employee is eligible for the following benefits, subject to the Employer’s benefit plan documents:
- Health, vision and dental insurance.
- Employer retirement plan (401(k) or equivalent).
- Paid time off (vacation, sick leave, personal days).
- Paid public holidays according to Employer policy.
- Parental/family leave (if offered).
- The Employer will reimburse the Employee for reasonable business expenses, including:
- Travel: [Travel Expense Policy].
- Mileage will be reimbursed at the current IRS rate or [Specific rate], compliant with Pennsylvania regulations.
- Client meetings: [Client Meeting Expense Policy].
- Meals: [Meal Expense Policy].
- Lodging: [Lodging Expense Policy].
- Travel: [Travel Expense Policy].
- The Employee is covered by Pennsylvania workers’ compensation insurance.
- The Employer participates in the Pennsylvania unemployment insurance program.
7. Reporting Structure and Territory
- The Employee will report to [Supervisor Name], [Supervisor Title].
- The Employee's sales territory boundaries are as defined in Section 2 above.
- Customer List Ownership: All customer lists and information are the sole property of the Employer.
- Upon termination, the Employee shall return all customer lists and information to the Employer.
8. Confidentiality
- The Employee acknowledges that during the course of employment, the Employee will have access to confidential information, including but not limited to trade secrets, proprietary information, pricing data, sales strategies, and customer lists.
- The Employee agrees to hold all such information in strict confidence and not to disclose it to any third party, either during or after employment.
9. Intellectual Property
- All sales collateral, client documentation, and marketing materials created by the Employee during employment are the sole property of the Employer.
10. Non-Solicitation and Non-Disclosure
- Non-Solicitation: During the term of employment and for a period of [Number] months following termination of employment, the Employee shall not solicit, directly or indirectly, any customers or employees of the Employer. The geographic scope of this non-solicitation provision is limited to [Geographic Scope]. This restriction is necessary to protect the Employer's legitimate business interests.
- Non-Disclosure: The Employee agrees not to disclose any confidential information of the Employer to any third party during or after the term of employment.
- The parties agree that if a court of competent jurisdiction finds any portion of this Section to be unreasonable, the court may modify or "blue pencil" this Section to make it enforceable to the fullest extent permitted by Pennsylvania law.
11. Company Property
- The Employee will be provided with the following company property: [List of Company Property, e.g., Vehicle, Laptop, Cell Phone, CRM System].
- Upon termination of employment, the Employee shall immediately return all company property to the Employer.
12. Record Keeping and Compliance
- The Employee shall maintain accurate records of all sales activity and expenses.
- The Employee shall promptly report all sales activity and expenses to the Employer.
- The Employee shall comply with all internal controls and audit policies of the Employer.
13. Anti-Discrimination and Equal Employment Opportunity
- The Employer is an equal opportunity employer and does not discriminate on the basis of race, color, age, sex, religion, ancestry, national origin, handicap/disability, or any other protected category under the Pennsylvania Human Relations Act (PHRA).
14. Dispute Resolution
- Any dispute arising out of or relating to this Agreement shall be resolved through negotiation. If negotiation fails, the parties agree to attempt mediation before resorting to litigation. The laws of the Commonwealth of Pennsylvania shall govern this Agreement, and the exclusive jurisdiction for any legal action shall be in the courts of [County Name] County, Pennsylvania.
15. Legal Compliance
- This Agreement shall be interpreted and enforced in accordance with the laws of the Commonwealth of Pennsylvania, including the Pennsylvania Wage Payment and Collection Law, the Pennsylvania Human Relations Act, and all other applicable state and federal laws.
16. 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 of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
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[Employer Representative Name], [Employer Representative Title]
Employer
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[Employee Full Legal Name]
Employee