Texas sales representative employment contract template

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How Texas sales representative employment contract Differ from Other States

  1. Texas law strictly governs the timing of commission payments after termination, providing more protection for sales representatives.

  2. Non-compete and non-solicitation clauses are subject to specific Texas statutes, requiring careful drafting to ensure enforceability.

  3. Texas contracts must explicitly address at-will employment status and cannot contradict state public policy on wage and labor rights.

Frequently Asked Questions (FAQ)

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

    A: A written contract is not legally required but is strongly recommended to clarify commission terms and employment conditions.

  • Q: How does Texas law protect sales representatives' commissions after termination?

    A: Texas law mandates timely payment of earned commissions following contract termination and allows recovery of unpaid commissions.

  • Q: Are non-compete clauses in Texas sales representative contracts enforceable?

    A: Non-compete clauses are enforceable in Texas only if they are reasonable in time, geography, and scope, and protect legitimate interests.

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Texas Sales Representative Employment Contract

This Texas Sales Representative Employment Contract (the "Agreement") is made and effective as of [Date], by and between [Employer Legal Name], a [State of Formation] [Entity Type], with its principal place of business at [Employer Business Address] ("Employer"), and [Employee Legal Name], residing at [Employee Address] ("Employee").

1. Employment

  • The Employer hereby employs the Employee as a full-time Sales Representative, and the Employee hereby accepts such employment. This is not an independent contractor agreement.

2. Job Description

  • The Employee’s primary responsibility is to solicit and obtain orders for the Employer’s products/services. Specific responsibilities include, but are not limited to:
    • Client prospecting and lead generation.
    • Territory management within [Specify Texas territory: e.g., North Texas, DFW area, etc.].
    • Conducting sales calls and meetings.
    • Providing product/service demonstrations.
    • Preparing and submitting sales proposals.
    • Negotiating and closing deals.
    • Maintaining CRM system records.
    • Achieving specific sales targets or quotas tailored to Texas markets.
    • Attending trade shows/conferences relevant to the company’s sector within Texas.
    • Acting as a company ambassador in compliance with Texas business practices.

3. Geographic Scope

  • The Employee’s sales activities will primarily be conducted within [Specify geographic scope, e.g., the State of Texas, specific counties in Texas, or a multi-state region including Texas].
  • Travel Requirements:
    • Option A: Employee is expected to travel [Number] days per week within the assigned territory.
    • Option B: Employee is not required to travel.
    • Option C: Employee is required to travel outside of Texas [Specify locations].

4. Reporting Structure

  • The Employee will report directly to [Supervisor Name], [Supervisor Title].
  • Reporting Frequency and Format:
    • Option A: Weekly sales reports are due every Friday by 5:00 PM, submitted via [Reporting method, e.g., email, CRM].
    • Option B: Monthly sales reports are due on the last day of each month, submitted via [Reporting method, e.g., email, CRM].

5. Work Location and Remote Work

  • The Employee will primarily work [Specify primary work location: e.g., from the Employer’s office, remotely from home, a combination of both].
  • Remote Work (if applicable):
    • Option A: If working remotely, the Employee is responsible for maintaining a secure home office environment, adhering to company data security policies and Texas privacy statutes.
    • Option B: If working remotely, the Employer will provide necessary equipment (laptop, phone, etc.).

6. Employment Status and Working Hours

  • The Employee's employment status is full-time, W-2 employee.
  • Normal Business Hours: [Start Time] AM to [End Time] PM, Monday through Friday.
  • Overtime: Overtime eligibility will be determined according to Texas and federal law. [Specify if the employee is exempt or non-exempt from overtime].
  • Breaks:
    • Option A: The Employer provides a [Duration] minute lunch break and two [Duration] minute rest breaks.
    • Option B: The Employee is responsible for managing their own breaks within company policy and legal requirements.

7. Compensation

  • Base Salary: [Dollar Amount] per year, payable [Frequency, e.g., bi-weekly, monthly].
  • Commission:
    • Option A: Commission will be calculated at [Percentage] of net sales.
    • Option B: Commission will be calculated according to the attached Commission Plan (Exhibit A).
    • Commission Clawback: In the event of returned or refunded sales, commissions may be subject to clawback as outlined in Exhibit A.
    • Commissions will be paid [Frequency, e.g., monthly, quarterly].
  • Bonus/Incentive Programs:
    • Option A: The Employee is eligible for a [Bonus Type, e.g., quarterly] bonus based on achievement of specific sales targets. Details are outlined in Exhibit B.
    • Option B: The Employee is not eligible for a bonus.
  • Payroll Requirements:
  • Paychecks will be issued [Method, e.g., direct deposit, paper check] on [Day of the week] [Frequency, e.g., bi-weekly].

8. Benefits

  • The Employee is eligible for the following benefits, subject to eligibility requirements and waiting periods:
    • Medical Insurance: [Specify medical insurance details or state "as outlined in the employee handbook"].
    • Dental Insurance: [Specify dental insurance details or state "as outlined in the employee handbook"].
    • Vision Insurance: [Specify vision insurance details or state "as outlined in the employee handbook"].
    • 401(k) Retirement Plan: [Specify 401(k) details or state "as outlined in the employee handbook"].
    • Paid Vacation: [Number] days per year.
    • Sick Days: [Number] days per year.
    • Holidays: [List recognized Texas holidays].
    • Mileage/Transportation Allowance: [Specify allowance amount or policy].
    • Mobile Phone Reimbursement: [Specify reimbursement policy].
    • Sales Training: [Specify sales training program].

9. Client Account Ownership

  • Leads and customers will be assigned to the Employee based on [Specify criteria, e.g., geographic territory, industry specialization].
  • Upon termination of employment, all client accounts and associated information remain the property of the Employer.

10. Intellectual Property and Work Product

  • All materials generated by the Employee during the course of employment, including customer lists, sales materials, pricing data, and prospect records, are the exclusive property of the Employer and are protected under the Texas Uniform Trade Secrets Act.

11. Confidentiality

  • The Employee agrees to maintain the confidentiality of all company sales data, pricing strategies, partner/customer information, and other proprietary materials, both during and after the term of employment.

12. Non-Solicitation and Non-Disclosure

  • The Employee agrees not to solicit the Employer’s clients or employees for a period of [Number] months following termination of employment.
  • Non-Compete:
    • Option A: The Employee agrees not to engage in any business that competes with the Employer within [Geographic area, e.g., the State of Texas, specific counties] for a period of [Number] months following termination of employment. This clause is intended to be reasonable in scope and duration and is enforceable to the extent permitted by the Texas Business and Commerce Code.
    • Option B: The Employer will not enforce a non-compete agreement.

13. Compliance

  • The Employee agrees to comply with all applicable federal and Texas laws, including the Texas Labor Code, Chapter 21, regarding workplace discrimination and harassment. The Employer is an Equal Opportunity Employer and prohibits discrimination based on race, color, religion, sex, national origin, age, disability, or any other protected category under federal or Texas law.

14. At-Will Employment and Termination

  • This is an at-will employment agreement, meaning that either the Employer or the Employee may terminate the employment relationship at any time, with or without cause.
  • Resignation: The Employee agrees to provide [Number] days written notice of resignation.
  • Termination by Employer: The Employer may terminate the Employee's employment for cause, including but not limited to poor performance, misconduct, or violation of company policy.
  • Final Pay: Upon termination, the Employee will receive their final paycheck in accordance with the Texas Payday Law.

15. Dispute Resolution

  • The parties agree to first attempt to resolve any disputes through good-faith negotiation. If negotiation fails, the parties agree to participate in mediation in [City, Texas].
  • Any legal action arising from this Agreement shall be brought in the state or federal courts located in [County, Texas], and Texas law shall govern the interpretation and enforcement of this Agreement.

16. Occupational Health and Safety

  • The Employee agrees to adhere to all applicable Texas and OSHA guidelines for field-based or in-office sales roles.

17. Company Ethics and Anti-Bribery

  • The Employee agrees to adhere to the Employer’s code of conduct and anti-bribery policies.

18. Conflict of Interest and Outside Employment

  • The Employee agrees to avoid any business activities that compete with or divert business from the Employer within Texas. Any outside employment must be disclosed to and approved by the Employer.

19. Representations and Warranties

  • The Employee represents and warrants that they possess a valid Texas driver’s license (if required for the role) and are eligible to work in the United States.
  • The Employee represents and warrants that they possess any required licenses or certifications to legally sell the products in Texas, including [Specify Required Licenses or Certifications].

20. General Provisions

  • Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral.
  • Amendments: 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.
  • Assignment: This Agreement may not be assigned by the Employee without the prior written consent of the Employer.
  • Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
  • Force Majeure: Neither party shall be liable for any failure to perform its obligations under this Agreement to the extent that such failure is caused by a force majeure event.
  • Notice: All notices under this Agreement shall be in writing and delivered by certified mail or email to the addresses listed above.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

____________________________
[Employer Legal Name]

By: ____________________________
[Employer Representative Name]

Title: [Employer Representative Title]

____________________________
[Employee Legal Name]

Date: ____________________________

Exhibits:

  • Exhibit A: Commission Plan
  • Exhibit B: Bonus/Incentive Program (If Applicable)

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