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Commission Agreement

This Commission Agreement provides a starting point for drafting commission agreements for sales personnel.
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3.8 (5 reviews)
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Document Overview

This Commission Agreement provides a starting point for drafting commission agreements for sales personnel. It is intended for private employers hiring on an at-will basis.

It is based on federal law and does not address all potential state law distinctions; thus, you should check any relevant state and local laws.

When drafting a commission agreement, you should pay particular attention to specifying when the employee earns the commission and at what point an employee's right to receive a commission ends.

What does this Commission Agreement provide?

  • The ability for you to clearly set out the terms and conditions of commission payment, customised to your business needs;

  • The ability to customise your commission payment structure;

  • Information regarding applicable durations, deadlines or end events; and

  • Procedures regarding termination and dispute resolution.

Other names for Commission Agreement include:

  • Commission Contract
  • Sales Commission Agreement
  • Free Commission Agreement

Must the agreement be in writing?

In California, commission agreements must be in writing and the writing must reflect at least the method by which employers will compute and pay commissions.

The employer must give the employee a signed copy of the agreement and the employer must obtain a signed receipt from each commissioned employee acknowledging that the employee received a signed copy of the agreement.

What happens if the agreement expires?

If the contract expires and the employee continues working for the employer, the terms of the expired contract are presumed to remain in effect. See Cal. Lab. Code § 2751.

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Here's what people say about Lawpath’s Commission Agreement
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Very easy to createThe document was easy to create and perfect for my needs.
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Private user
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Easy and clearI had assigned the whole morning to sorting out an agreement as i have little practical experience on how to do this. I got the job done to my satisfaction in under 45 minutes.
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Private user
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So quick and easy and just what i needed!The document was so easy to create and perfect for my needs. I would definietly recommend lawpath to anyone looking for an easy online service agreement.
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Hodi
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Easy and effectiveIt was soo easy and up to the point of the law the truest deed is.
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Gerry
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So easyIt is a breeze drafting documents, sending for signature etc. Wonderful service
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