Rhode Island sales representative employment contract template
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How Rhode Island sales representative employment contract Differ from Other States
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Rhode Island law requires employers to pay all earned commissions to sales representatives within 30 days of termination.
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The Rhode Island Sales Representative Act prohibits employers from requiring representatives to waive their right to commissions through contract.
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Failure to pay commissions in Rhode Island may result in double damages and attorney’s fees, unlike in many other states.
Frequently Asked Questions (FAQ)
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Q: Are written sales representative contracts required in Rhode Island?
A: While not strictly required, written contracts are strongly recommended to clearly outline rights and prevent disputes.
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Q: What happens if an employer fails to pay commissions on time in Rhode Island?
A: The employer may be liable for double the amount due plus reasonable attorney's fees under state law.
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Q: Can an employer make a Rhode Island sales rep waive their right to commissions?
A: No, Rhode Island law prohibits waivers of sales representatives’ rights to receive earned commissions.
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Rhode Island Sales Representative Employment Contract
This Rhode Island Full-Time Sales Representative Employment Agreement (the "Agreement") is made and entered into as of this [Date] by and between [Employer Name], a [State of Incorporation] corporation with its principal place of business at [Employer Address], hereinafter referred to as "Employer," and [Employee Name], residing at [Employee Address], hereinafter referred to as "Employee."
1. Position and Duties:
- The Employer hereby employs Employee as a Sales Representative.
- The Employee's primary duties will include, but are not limited to:
- Prospecting for new clients.
- Client acquisition through outbound and inbound sales activities.
- Conducting in-person and electronic presentations of Employer’s products/services.
- Developing and maintaining expert knowledge of Employer’s products/services.
- Account management of assigned accounts.
- Negotiating contracts with clients.
- Closing sales and ensuring customer satisfaction.
- Following up with clients post-sale.
- Managing assigned territory or accounts: [Specify Territory/Accounts].
- Maintaining accurate and up-to-date records in the Employer's CRM system.
- Achieving specific sales targets and quotas as set by the Employer.
- Participating in industry events and representing the Employer professionally.
- Reporting to designated supervisors as required: [Specify Reporting Frequency & Supervisor].
- Role Type:
- Option A: Inside Sales
- Option B: Outside Sales
- Option C: Both Inside and Outside Sales
- Territory:
- Option A: Rhode Island - [Specific Geographic Area within RI]
- Option B: Assigned accounts within Rhode Island - [Specify Account Types/Industries]
- Option C: Other: [Specify Territory Definition]
2. Full-Time Status and Work Location:
- Employee's position is a full-time position, requiring approximately [Number] hours per week.
- Primary work location: [Employer Address or Specific Location in RI].
- Option A: Primarily In-Person
- Option B: Primarily Remote
- Option C: Hybrid - [Specify Hybrid Arrangement]
3. Compensation:
- Annual base salary: [Dollar Amount], payable [Frequency - e.g., weekly, bi-weekly].
- Commissions:
- Commission Percentage: [Percentage] of [Specify Basis for Commission - e.g., gross sales, net profit].
- Vesting: [Specify Vesting Schedule, if any].
- Draw: [Specify Draw Amount and Repayment Terms, if any].
- Accelerators: [Specify Sales Levels and Accelerated Commission Rates, if any].
- Payment Schedule: Commissions will be paid [Frequency - e.g., monthly, quarterly] following [Specify Triggering Event - e.g., sale, payment by customer].
- Commissions Upon Termination: Employer will comply with R.I. Gen. Laws § 28-6.2-1 regarding prompt payment of commissions upon termination.
- Bonuses/Spiffs:
- Eligibility: [Specify Eligibility Criteria].
- Timing: [Specify Payment Schedule].
4. Benefits:
- Health Insurance: [Specify Health Insurance Options and Eligibility Date].
- Dental Insurance: [Specify Dental Insurance Options and Eligibility Date].
- Vision Insurance: [Specify Vision Insurance Options and Eligibility Date].
- Paid Time Off (PTO):
- Vacation: [Number] days per year.
- Sick Leave: [Number] days per year, in compliance with Rhode Island law.
- Holidays: [List of Company Holidays], including Rhode Island state holidays.
- Rhode Island Temporary Disability Insurance (TDI) and Temporary Caregiver Insurance (TCI): Employee is eligible for TDI/TCI as required by Rhode Island law.
- Retirement Plan: [Specify Retirement Plan Details, e.g., 401(k) with Employer Match].
5. Tools, Equipment, and Technology:
- Employer will provide the following: [List of Equipment, e.g., Laptop, Mobile Phone, CRM License].
- Employee is responsible for the care, security, and return of all provided equipment upon termination of employment.
6. Non-Solicitation:
- During the term of employment and for a period of [Number] months following termination, Employee agrees not to solicit, directly or indirectly, any customers of the Employer located in Rhode Island with whom Employee had contact during their employment. This includes refraining from taking or using customer lists for solicitation purposes.
7. Restrictive Covenants:
- Option A: Non-Compete Agreement. Recognizing Rhode Island’s “Noncompetition Agreement Act” (R.I. Gen. Laws §§ 28-58-1 et seq.), a separate Non-Compete Agreement will be provided if applicable.
- Option B: No Non-Compete Agreement. No non-compete agreement is required for this position.
8. Confidentiality:
- Employee agrees to hold all client information, proprietary leads, pricing, trade secrets, sales strategies, and other confidential data of the Employer in strict confidence, in accordance with Rhode Island's Uniform Trade Secrets Act.
9. Customer and Business Relationships:
- All customer and business relationships developed by Employee during the course of employment are the property of the Employer.
10. Reporting Structure:
- Employee will report directly to [Name and Title of Supervisor].
- Reporting Frequency: [Specify Reporting Frequency - e.g., weekly, monthly].
- Sales Meetings: Employee is expected to attend sales meetings [Specify Frequency].
- Sales Training: Employee is expected to participate in Employer-provided sales training.
11. Performance Expectations:
- Minimum sales volume: [Specific Sales Target].
- Pipeline activity: [Specific Pipeline Metrics].
- Client engagement metrics: [Specific Client Engagement Metrics].
- Underperformance: Failure to meet performance expectations may result in progressive discipline, up to and including termination.
12. At-Will Employment:
- Employment is at-will, and either party may terminate the employment relationship at any time, with or without cause, subject to the notice period outlined below.
13. Termination:
- Termination with Cause: Employer may terminate employment for cause, including but not limited to: [List Examples of Cause - e.g., misconduct, insubordination, violation of company policy].
- Termination without Cause: Employer may terminate employment without cause.
- Resignation: Employee must provide [Number] weeks' written notice of resignation.
- Final Pay: Employer will comply with Rhode Island law regarding final pay, including owed commissions, to be paid on the next regular payday.
- Return of Property: Employee must return all company property upon termination.
14. Discrimination and Retaliation:
- Employer complies with the Rhode Island Fair Employment Practices Act, including provisions for race, color, religion, sex, gender identity, sexual orientation, age, disability, and veteran status. Employer has anti-harassment and complaint procedures in place.
15. Rhode Island Workplace Laws:
- Employer complies with all applicable Rhode Island workplace laws, including paid sick and safe leave requirements, wage theft notification, and electronic records retention requirements.
16. Occupational Safety and Health:
- Employer is committed to providing a safe work environment and complies with occupational safety and health provisions relevant to outside sales, including safe driving practices.
17. Expenses:
- Employer will reimburse Employee for reasonable and necessary business expenses incurred in the performance of duties, in accordance with company policy. This includes mileage reimbursement for personal vehicle use at the IRS standard rate. All expenses are subject to documentation and approval. Client entertainment and gift policies are detailed in [Specify Policy Document].
18. Commission Wage Disclosure:
- Employee acknowledges receipt of a written statement outlining the commission calculation method as required by Rhode Island law.
19. Governing Law and Dispute Resolution:
- This Agreement shall be governed by and construed in accordance with the laws of the State of Rhode Island. Any dispute arising out of or relating to this Agreement shall be resolved through [Specify Dispute Resolution Process - e.g., negotiation, mediation, arbitration]. The exclusive forum for any legal proceedings shall be the state or federal courts located in Rhode Island.
20. Worker's Compensation:
- Employee is covered by the Employer's worker's compensation insurance as required by Rhode Island law.
21. Background Checks:
- Employment is contingent upon successful completion of a background check, in accordance with Rhode Island’s Ban the Box law, if applicable.
22. Updates to Agreement:
- Employer reserves the right to update this Agreement in response to changes to Rhode Island employment or labor law.
23. Entire Agreement:
- This Agreement constitutes the entire agreement between the parties and supersedes any prior verbal or written offers or understandings. All handbooks, codes of conduct, or additional sales policy documents referenced herein are incorporated by reference.
24. Severability:
- If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
____________________________
[Employer Name]
By: ____________________________
[Employer Representative Name and Title]
____________________________
[Employee Name]
Acknowledgment of Receipt:
I acknowledge that I have received a copy of this Sales Representative Employment Agreement and all referenced disclosures.
____________________________
[Employee Name]
Date: [Date]