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Commission Agreement

This Commission Agreement provides a starting point for drafting commission agreements for sales personnel.
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4.3 (8 reviews)
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Under 15 minutes

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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Great website!Great website! So easy to use and very understandable for a new business owner
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Hayley
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Super easy!That was such an easy way to create a mobile phone policy!
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Private user
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So helpfulAbsolutely amazing, so easy to use, so helpful, will defiantly be using again!!!
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katie
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Excellent experienceGreat service, the document is spot on and the on call lawyer service was perfect! Thank you lawpath
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Michael Milloy
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Super easy to use and very comprehensive!This document was easy to create and i will use it again!
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Sambad1111
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Excellent tool for quick workI have been writing content for 14 hours today to get my website ready in time for my launch in 4 days. This service saved me time and will allow me to sleep tonight knowing my payment gateway will be in order before the launch event.
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Joshua Waddell
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Simple & fastGives a great framework to start with. Saves time.
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Christy
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EasySeems ok, easy process. Although i wish the would display prices upfront.
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