South Dakota sales representative employment contract template
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How South Dakota sales representative employment contract Differ from Other States
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South Dakota law mandates timely payment of post-termination commissions, with penalties for late payments not common in other states.
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The statute of limitations for commission disputes in South Dakota is explicitly defined, offering clearer deadlines than many other states.
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South Dakota prohibits certain restrictive covenants, like non-competes, more stringently than some states in sales representative agreements.
Frequently Asked Questions (FAQ)
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Q: Are commission payments required after a South Dakota sales representative is terminated?
A: Yes, South Dakota law requires employers to pay commissions earned before termination within a specified timeframe.
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Q: Is a written contract mandatory for sales representatives in South Dakota?
A: While not mandatory, a written contract is strongly recommended to protect both parties and clarify commission terms.
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Q: Can a sales rep claim penalties for late commission payments under South Dakota law?
A: Yes, South Dakota statutes provide for penalties if an employer fails to pay post-termination commissions on time.
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South Dakota Sales Representative Employment Contract
This South Dakota Sales Representative Employment Contract (the “Agreement”) is made and entered into as of [Date] by and between [Legal Company Name], a [State of Incorporation] corporation with its principal place of business at [Company Address] (“Company”), and [Employee Full Legal Name], residing at [Employee South Dakota Address] (“Employee”).
1. Position and Job Description:
The Company hereby employs Employee as a Sales Representative.
Option A: Employee's primary responsibilities shall include, but are not limited to:
- Client acquisition and lead generation within the designated territory.
- Conducting product presentations and demonstrations.
- Territory management, including sales planning and execution.
- Relationship building with existing and prospective clients.
- Contract negotiation and order processing.
- Post-sale follow-up and customer service.
- Reporting sales activities and progress to management.
- Meeting or exceeding sales targets as defined by the Company.
- Participating in sales training programs as required by the Company.
- Compliance with Company sales procedures and codes of conduct.
Option B: (Detailed industry-specific job description to be inserted here based on the specific products or services offered and the target market).
2. Territory:
The Employee's sales territory shall consist of:
Option A: All of the state of South Dakota.
Option B: The following counties within South Dakota: [List of South Dakota Counties].
Option C: The following cities within South Dakota: [List of South Dakota Cities].
Option D: A multi-state region including South Dakota and the following states: [List of States].
Travel Requirements:
- Option A: Employee will be required to travel within the designated territory to visit clients and attend sales meetings. Travel outside of South Dakota may be required on occasion.
- Option B: Employee will be primarily responsible for remote or phone-based sales activities, with occasional in-person customer visits as needed.
3. Reporting Structure:
Employee shall report directly to [Direct Supervisor Name and Title].
Employee will be required to participate in regular sales team meetings, scheduled as follows: [Meeting Schedule].
4. Work Location:
Employee's primary work location shall be:
Option A: The Company's designated office located at [Company South Dakota Office Address].
Option B: Remote work, subject to the Company's Remote Work Policy, which is incorporated herein by reference. (Note: The Remote Work Policy should address equipment provision, expense reimbursement, use of personal vehicles, home office security and confidentiality, and South Dakota state tax considerations).
5. Employment Type and Working Hours:
Employee's employment is full-time.
Standard working hours are [Number] hours per week, from [Start Time] to [End Time], Monday through Friday.
Option A: Employee may be eligible for a flexible schedule, subject to approval by their supervisor.
Option B: Employee is [Exempt/Non-Exempt] from overtime under South Dakota wage and hour law. Overtime must be authorized in advance by [Designated Authority]. Overtime will be compensated at a rate of [Overtime Rate] per hour.
6. Compensation:
Employee shall receive a [Salary/Hourly Wage] of [Amount] per [Pay Period].
Payment Method: [Direct Deposit/Check].
Pay Frequency: [Weekly/Bi-Weekly/Monthly].
Overtime Eligibility: (If non-exempt, reiterate the overtime details from Section 5, including calculation and approval procedures).
7. Incentive Compensation (Commissions and Bonuses):
Employee shall be eligible for commissions based on the following structure:
- Commission Rate: [Commission Rate Percentage] on [Eligible Products/Services].
- Sales Quota/Targets: [Specific Sales Targets].
- Timing and Calculation of Commission Payments: Commissions will be calculated and paid [Payment Frequency] based on [Calculation Method].
- Claw-back/Chargeback Rules: In the event of customer returns or cancellations, commissions may be subject to claw-back or chargeback according to the following policy: [Detailed Policy].
- South Dakota Law: Earned commissions will be paid in accordance with South Dakota statute §60-11-3 upon termination of employment.
Bonus Opportunities:
Employee may be eligible for bonuses or sales contests as determined by the Company. Details of such opportunities will be communicated separately.
8. Benefits:
Employee shall be eligible for the following benefits, subject to the terms and conditions of the Company's benefit plans:
- Medical, Dental, and Vision Coverage
- Company 401(k) or Retirement Benefits
- Paid Time Off (PTO)
- Sick Leave
- Holidays
- Expense Reimbursement (as detailed in Section 9)
- Sales-Related Tools or Devices
Breach/Remedy Process: Any denial of benefits will be subject to the Company's internal appeal process.
9. Business Expense Reimbursement:
Employee shall be reimbursed for reasonable and necessary business expenses incurred in connection with their duties, subject to the Company's Expense Reimbursement Policy.
Travel and Mileage Reimbursement: Mileage reimbursement will be at the rate of [Mileage Rate] per mile, compliant with Company policy or IRS mileage rules.
Receipts and Documentation: All expenses must be supported by receipts or other adequate documentation.
Tax Reporting: Expenses will be reported for tax purposes in accordance with applicable South Dakota and federal laws.
10. Materials and Equipment:
The Company will provide Employee with the following materials and equipment: [List of Materials and Equipment].
Company Vehicle:
- Option A: Employee will be provided with a company vehicle. Employee is responsible for the safe use and maintenance of the vehicle.
- Option B: Employee will use their personal vehicle for business purposes and will be reimbursed for mileage as outlined in Section 9.
Return of Property: Upon termination of employment, Employee shall promptly return all Company property in good condition, subject to normal wear and tear.
11. Confidentiality:
Employee acknowledges that during their employment, they will have access to confidential and proprietary information of the Company, including but not limited to: customer lists, pricing, business strategies, marketing plans, proprietary forms or presentations, competitive intelligence, and product information (collectively, “Confidential Information”).
Employee agrees to maintain the confidentiality of all Confidential Information both during and after their employment with the Company.
Duration and Scope: This confidentiality obligation shall continue indefinitely after termination of employment.
Trade Secrets: Employee understands that certain Confidential Information constitutes trade secrets under South Dakota law.
12. Intellectual Property:
Employee agrees that all sales collateral, custom pitches, presentations, reports, and other materials created by Employee during their employment shall be the sole and exclusive property of the Company.
13. Non-Solicitation:
Employee agrees that during their employment and for a period of [Number] months following termination of employment, they will not directly or indirectly solicit any customers or employees of the Company.
Geographic Scope: This non-solicitation restriction shall apply within the state of South Dakota.
14. Non-Compete (Optional):
(Note: Non-compete agreements are subject to strict scrutiny under South Dakota law and must be reasonable in time, scope, and geography).
Option A: Employee agrees that during their employment and for a period of [Number] months following termination of employment, they will not directly or indirectly engage in any business that competes with the Company's business within the following geographic area: [Geographic Area].
Option B: (If no non-compete is included, state "No Non-Compete Restriction").
15. Anti-Discrimination and Anti-Harassment:
The Company is an equal opportunity employer and does not discriminate on the basis of race, sex, age, religion, national origin, disability, military status, or any other characteristic protected by South Dakota or federal law.
The Company prohibits harassment of any kind.
Reporting Procedures: Any employee who believes they have been subjected to discrimination or harassment should report it to [Designated Contact Person or Department].
16. Compliance with Laws:
Employee shall comply with all applicable South Dakota and federal laws, including but not limited to fair labor standards, wage and hour compliance, data privacy obligations, and anti-spam laws.
17. Disciplinary Action and Performance Improvement:
The Company may take disciplinary action, up to and including termination of employment, for reasons including but not limited to sales target underperformance, customer complaints, compliance violations, and ethical breaches.
The Company may implement a Performance Improvement Plan (PIP) to address performance issues.
18. Employment At-Will:
Employee's employment is at-will, meaning that either the Employee or the Company may terminate the employment relationship at any time, with or without cause or notice, subject to applicable laws.
Final Wage Payment: Upon termination, Employee will receive their final wage payment, including any earned commissions, in accordance with South Dakota statute §60-11-3.
19. Dispute Resolution:
The parties agree to attempt to resolve any disputes arising out of or relating to this Agreement through good faith negotiation.
Option A: (Mediation/Arbitration Clause - Consider adding a clause requiring mediation or arbitration prior to initiating legal action).
Governing Law and Venue: This Agreement shall be governed by and construed in accordance with the laws of the State of South Dakota. The venue for any legal action relating to this Agreement shall be in [County Name], South Dakota.
20. Code of Conduct and Company Policies:
Employee shall adhere to the Company's Code of Conduct and all other applicable Company policies.
Workplace Safety: Employee shall comply with the Company's workplace safety policies.
21. Drug and Alcohol Policy:
Employee shall comply with the Company's Drug and Alcohol Policy.
22. Outside Employment:
Employee shall not engage in any outside employment or business ventures that could conflict with their duties as a Sales Representative for the Company.
23. Modification of Agreement:
The Company may modify this Agreement, including sales targets, compensation structures, or incentive plans, upon providing Employee with [Number] days' written notice. Such modifications must comply with South Dakota state law.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.
[Legal Company Name]
By: [Name of Authorized Representative]
Title: [Title of Authorized Representative]
[Employee Full Legal Name]
Signature: _______________________________
Date: _______________________________