Offer Letter To Commissioned Salesperson

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[LETTERHEAD]

[DATE]

[NAME AND ADDRESS]

[Re: [Offer of Employment/Employment Agreement]]

Dear [EMPLOYEE NAME]:

We are very pleased to offer you a position with [EMPLOYER NAME][, a [STATE] [ENTITY
TYPE]]. This offer of employment is conditioned on the satisfactory completion of certain
requirements, as more fully explained below. This [offer letter/employment agreement]
outlines the key terms of our offer of employment to you [and overrides anything said to you
during your interview or any other discussions about your employment with [EMPLOYER
NAME]]. [Your employment is subject to your satisfactory completion of a [NUMBER]-
[month/week/day] probationary period. Upon your successful completion of this
probationary period, you will be considered a regular employee, but your employment will
remain at-will both during and after the probationary period, as discussed further below.]

You will be hired as a [full-time/part-time] [salesperson/[POSITION]] [working [NUMBER]


days a week, specifically [SCHEDULE]]. This is [an exempt/a nonexempt] position. You will
begin working on [START DATE], your start date.

In your capacity as [a salesperson/[POSITION]], you will [DESCRIPTION OR LIST OF JOB


DUTIES]. You will report directly to [POSITION], currently [NAME], or another individual
designated by [EMPLOYER NAME]'s [POSITION]. [You agree to devote your full business
time and best efforts to the performance of your duties and to the furtherance of
[EMPLOYER NAME]'s interests.]

In consideration of your services, you will be paid [a [salary/non-recoverable draw] of $


[AMOUNT] per [week/month/year]/on an hourly basis at the rate of $[AMOUNT] per hour],
payable [PAY SCHEDULE] in accordance with [EMPLOYER NAME]'s standard payroll
practices and subject to all withholdings and deductions as required by law. [If you work
over 40 hours in a particular workweek, you also will receive overtime pay for the hours you
work over 40 in that workweek at a rate of one and one-half times your regular rate of pay,
also payable in accordance with [EMPLOYER NAME]'s standard payroll schedule and
practices, and subject to all withholdings and deductions as required by law. Your regular
rate of pay will be calculated as follows: [CALCULATION].]

[In addition, you will be eligible to participate in [EMPLOYER NAME]'s [COMMISSION


PLAN][, a copy of which is enclosed herewith].

OR
In addition, you will be eligible to earn commissions on [DESCRIPTION OF SALES,
REVENUE OR PROFITS ON WHICH CALCULATION OF COMMISSIONS ARE BASED].
Your commissions shall be calculated as follows: [[NUMBER]% of [DETAILED DEFINITION
OF SALES, REVENUE OR PROFITS ON WHICH CALCULATION OF COMMISSIONS
ARE BASED] [minus [ADJUSTMENTS BEFORE COMMISSIONS ARE EARNED][[AND]
CHARGEBACKS FOR RETURNS OR CANCELLED ORDERS BEFORE COMMISSIONS
ARE EARNED]]].

[Your non-recoverable draw will be reconciled with your commissions as follows: [DETAILS
OF RECONCILIATION SCHEDULE AND CALCULATION].]

[If more than one [salesperson/[POSITION]] performs work relating to a particular sale, the
[DEPARTMENT NAME] manager has discretion to split the commission among the
employees who performed work relating to that sale.]

Commissions are earned when [payment has been received from the [client/customer] in
full/the final order is processed/[OTHER CONDITIONS NECESSARY (NOT IN THE
CONTROL OF THE EMPLOYER OR SALESPERSON) BEFORE A COMMISSION MAY
BE EARNED]]. [Notwithstanding the foregoing, you must be employed by [EMPLOYER
NAME] to earn a commission, and you may not earn commissions after your employment
with [EMPLOYER NAME] has terminated, regardless of the reason for the termination.]

For the sake of clarity, some examples are:

[EXAMPLES]

These examples are illustrative only and not exhaustive.

Commissions will be paid in arrears on the first regular payday following the payroll period
in which they were earned. If any commissions you earn are to be paid following your
termination of employment, [EMPLOYER NAME] will mail the commission payment to you
at your home address on file with [EMPLOYER NAME]'s Human Resources Department
[immediately/within [NUMBER] days after the commission is earned, but in no event more
than 30 days following termination of employment/on the first regular payday following the
payroll period in which the commission is earned].

[You will be eligible to participate in any benefit plans and programs in effect from time to
time, including [vacation/paid time off (PTO),] [[EMPLOYER NAME]'s [health insurance,]
[life insurance,] [and] [disability insurance] plans,] [OTHER BENEFITS,] and other fringe
benefits as are made available to other similarly situated [EMPLOYER NAME] employees,
in accordance with and subject to the eligibility criteria and other provisions of such plans
and programs. [EMPLOYER NAME] reserves the right to amend or cancel any employee
benefit plan or program at any time in its sole discretion, subject to the terms of the
applicable employee benefit plan or program and applicable law.

You will be subject to all applicable employment and other policies of [EMPLOYER NAME],
as outlined in [EMPLOYEE HANDBOOK AND POLICIES] and elsewhere.
[Your employment will be at will, meaning that you and [EMPLOYER NAME] may
terminate the employment relationship at any time, with or without cause, and with or
without notice.

OR

Your employment may be terminated by [EMPLOYER NAME] for cause at any time and
without prior notice. Your employment also may be terminated by [EMPLOYER NAME]
without cause at any time and without prior notice; provided, however, that if your
employment is terminated without cause, you shall be entitled to receive [TERMINATION
OR SEVERANCE BENEFIT(S)] [if you sign a release of claims [in the form annexed
hereto/to be provided by [EMPLOYER NAME] on the termination of your employment/in a
form acceptable to [EMPLOYER NAME]]]. For purposes of this agreement "cause" means:
[CAUSE DEFINITION]. You are free to terminate your employment at any time, so long as
you provide [NUMBER] weeks advance written notice to [POSITION/DEPARTMENT].]

This employment offer is contingent on all of the following:

1. Verification of your right to work in the United States, as demonstrated by your


completion of the Form I-9 upon hire and your submission of acceptable documentation
(as noted on the Form I-9) verifying your identity and work authorization within three
days of starting employment. For your convenience, a copy of the Form I-9's List of
Acceptable Documents is enclosed for your review.
2. [[EMPLOYER NAME] receiving [NUMBER] references [from former employers] [(one
of which must be from your current employer)] that it considers satisfactory. Please
provide [NAME/DEPARTMENT AND CONTACT INFORMATION] with the names and
contact details of your references as soon as possible, if you have not already done so.]
3. [Satisfactory completion of a background investigation, for which the required notice
and consent forms are attached to this letter.]
4. [Your execution of [EMPLOYER NAME]'s [OTHER AGREEMENT(S) TO BE
EXECUTED PRIOR TO COMMENCING WORK]. A copy of each is attached to this
letter.]
5. [[A medical report that [EMPLOYER NAME] considers satisfactory, from a doctor
chosen (and paid for) by [EMPLOYER NAME]/[EMPLOYER NAME] or its insurers being
satisfied with your responses to the medical questionnaire, which will be sent to you after
you accept this offer].]
6. [[EMPLOYER NAME] receiving verification that you hold the following
qualification(s): [QUALIFICATIONS AND MEANS OF VERIFICATION].]
7. [Your passing the following examination(s) [on the [first/first or second] attempt]:
[EXAMINATIONS].]

This offer will be withdrawn if any of the above conditions are not satisfied. [Please do not
resign from your current job until you receive confirmation from [EMPLOYER NAME] that
these conditions have been met.]

By accepting this offer, you confirm that you are able to accept this job and carry out the
work that it would involve without breaching any legal restrictions on your activities, such as
restrictions imposed by a current or former employer. You also confirm that you will inform
[EMPLOYER NAME] about any such restrictions and provide [EMPLOYER NAME] with as
much information about them as possible, including any agreements between you and your
current or former employer describing such restrictions on your activities. You further
confirm that you will not remove or take any documents or proprietary data or materials of
any kind, electronic or otherwise, with you from your current or former employer to
[EMPLOYER NAME] without written authorization from your current or former employer. If
you have any questions about the ownership of particular documents or other information,
discuss such questions with your former employer before removing or copying the
documents or information.

All of us at [EMPLOYER NAME] are excited at the prospect of you joining our team. If you
have any questions about the above details, please call me immediately. If you wish to
accept this position, please sign below and return this [offer letter/letter agreement] to
[me/[NAME, POSITION AND CONTACT INFORMATION]] within [NUMBER] days. This
offer is open for you to accept until [DATE], at which time it will be deemed to be withdrawn.

I look forward to hearing from you.

[SIGNATURE PAGE FOLLOWS]

Very truly yours,

   

[EMPLOYER NAME]
 

By:________________
 
[NAME]

[TITLE]

 
Agreed to and accepted:

   

 
By:_____________

[EMPLOYEE NAME]  

 
cc [HUMAN RESOURCES REPRESENTATIVE

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