Commission / Sales Compensation Agreement - Kansas

Commission / Sales Compensation Agreement — Kansas Employee

Scope Gate

This agreement is for a Kansas employee. It is not an independent sales-
representative agreement and does not establish employee status, exempt status,
minimum-wage compliance, overtime compliance, tax treatment, or post-employment
restrictions. Those issues require separate review.

1. Parties and Term

2. Covered Business

3. Commission Formula

Select and complete one or more:

• ☐ Percentage: [____]% of [defined revenue / gross margin / other: ____]
• ☐ Tiered: [________________________________]
• ☐ Flat amount: $[____] per [________________________________]
• ☐ Team or split formula: [________________________________]
• ☐ Other: [________________________________]

Define every formula input, including taxes, shipping, credits, discounts,
currency conversion, renewals, expansions, and partial performance:
[________________________________].

4. Earning Event

A commission becomes earned only when all selected, objectively measurable
conditions are satisfied:

• ☐ Binding customer contract is executed
• ☐ Employer accepts the order
• ☐ Product is delivered or service milestone is completed
• ☐ Customer payment is received and no longer subject to reversal
• ☐ Return or cancellation period of [____] days expires
• ☐ Other: [________________________________]

The employee who receives credit is determined as follows:
[________________________________].

K.S.A. § 44-313(c) includes employee compensation determined on a commission
basis in wages. This agreement therefore distinguishes an amount that has not
yet satisfied the earning event from an earned commission that remains payable.

5. Calculation Statement and Payment

The employer will calculate earned commissions for each period ending
[________________________________] and pay them on the regular payday of
[________________________________]. The schedule must comply with the at-least-
monthly rule and the pay-period cutoff in K.S.A. § 44-314(a), (h).

Each statement will show:

6. Returns, Cancellations, and Adjustments

Before a commission is earned, the formula treats these events as follows:

After a commission is earned, no chargeback or deduction will be taken unless
a Kansas-licensed attorney confirms a route permitted by the complete text of
K.S.A. § 44-319. The parties do not treat a label such as “clawback” or
“negative commission” as an independent deduction authorization.

7. Draw or Advance

☐ No draw or advance applies.

☐ The employer will advance $[____] per [____]. The parties intend it as:
☐ recoverable employer advance ☐ nonrecoverable guaranteed payment.

If recoverable, repayment will occur only under this signed agreement and only
to the extent permitted by K.S.A. § 44-319(b), (e):
[________________________________].

The employer will provide an accounting of opening balance, advances,
repayments, and closing balance for each period.

8. Disputes and Conceded Amounts

The employee must identify a calculation dispute in writing to
[________________________________] with supporting records. The employer will
respond by [__/__/____] or within [____] days.

If the employer concedes any wages are due, K.S.A. § 44-316 requires
unconditional payment no later than the regular payday next following the
concession. Unless payment is made by binding settlement agreement, acceptance
does not release the disputed balance.

9. Separation

Separation does not alter the earning definition in Section 4. The employer
will identify:

• commissions earned before separation;
• transactions still awaiting an earning event;
• later events that satisfy or fail that event; and
• the calculation and payment date for each item.

K.S.A. § 44-315(a) requires earned wages after discharge, quit, or resignation
no later than the next regular payday on which the employee would have been
paid if still employed. Counsel must review any proposed treatment of pending
transactions or post-separation events before execution.

10. Prospective Changes

The employer may propose a prospective plan change by written notice delivered
on [________________________________]. No change will retroactively alter a
completed earning event or authorize a deduction. The effect of a change on
work already performed but not yet earned must be stated here and approved by
Kansas counsel: [________________________________].

11. Records and Acknowledgments

• ☐ Employee received the formula and earning-event definitions before the plan period
• ☐ Employer identified the regular payday and calculation period
• ☐ Any recoverable advance is stated in a signed written agreement
• ☐ Employer will retain transaction and calculation records
• ☐ The parties identified all incorporated plans or schedules below

Incorporated schedules: [________________________________].

12. General Terms

This agreement addresses commission compensation only. It does not modify any
separate employment agreement except as expressly identified here:
[________________________________]. Amendments must be in a writing signed by
the parties. If a provision is unenforceable, the remaining provisions remain
effective to the extent permitted by law. Kansas law governs without deciding
venue, arbitration, or jury-waiver questions not stated in a separately
reviewed agreement.

13. Signatures

Official Sources

• Kansas Revisor — K.S.A. § 44-313
• Kansas Revisor — K.S.A. § 44-314
• Kansas Revisor — K.S.A. § 44-315
• Kansas Revisor — K.S.A. § 44-316
• Kansas Revisor — K.S.A. § 44-319