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Are you a sales representative who is not
getting paid the commissions that you have rightfully
earned? Is there a dispute as to the correct amount of
sales commissions you are owed? Did your principal
terminate your sales representative contract after you
procured a large business deal in order to avoid paying
you commissions?
Fortunately there are laws in Michigan
and other states which protect independent sales
representatives from manufacturers or suppliers who
refuse to pay commissions on business procured by the
sales agent. Many states also have statutes which allow
a sales representative to recover penalty damages and
attorney fees when a principal fails to pay commissions
in a timely manner. For instance, M.C.L. 600.2961,
Michigan’s Sales Representatives Commission Act (“SRCA”),
requires a principal to pay all commissions due at the
time of termination within 45 days after termination,
and to pay all commissions which become due after
termination within 45 days after such commissions become
due. A principal that is found to have intentionally
failed to pay the commissions within these time limits
is liable not only for the overdue commissions, but also
for penalty damages equal to 2 times the amount of
unpaid commissions, or $100,000, whichever is less. A
prevailing party is also entitled to recover reasonable
awarded attorney fees and court costs under the SRCA.
The sales representative attorneys at the
Law Offices of Randall J. Gillary, P.C. have
successfully handled hundreds of cases involving unpaid
and overdue commissions including post-termination sales
commissions. We have successfully tried many cases. We
have also favorably resolved many cases through
alternative dispute resolution (“ADR”) such as
arbitration, facilitation, and mediation. In many
instances ADR can reduce the time and expense of
recovering unpaid commissions, as compared to going to
trial. We are well prepared to handle your case through
its conclusion, whether by trial or by ADR.
Our clients include:
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Automotive sales representatives
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Computer and software sales
representatives
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Industrial equipment sales
representatives
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Individual sales representatives
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Sales representative firms and
agencies
SALES
REPRESENTATION CONTRACT DRAFTING & NEGOTIATION
The Law Offices of Randall J. Gillary,
P.C. can help you create an effective sales
representation agreement for use with your
employer/principal and offer guidance in negotiating a
current contract.
You will receive advice from one of the
foremost legal experts in the field on the following
subjects:
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Terms and conditions which should be
included in your sales representation agreement
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Instances when you may be better off
without a written sales representation agreement
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Employee compensation/commission
plans
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Unilateral contracts
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Exclusive territory/exclusive
accounts
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Changes in ownership of the principal
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Call reports
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Commission rates
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Arbitration clauses
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Successor liability
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Non-competition agreements
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Appropriation of house accounts
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Termination – The most important part
of your contract
Contact the Law Offices of Randall J.
Gillary, P.C. if you are not being paid all of the sales
commissions you have earned or if you need assistance
with creating or negotiating a sales representative
contract. Please
contact us or call the Troy, Michigan office at
(248) 528-0440 to set up an appointment. |
