Commission / Sales Compensation Agreement - North Dakota

NORTH DAKOTA EMPLOYEE COMMISSION COMPENSATION AGREEMENT

Product boundary: Use this agreement only for an employee. It does not
classify an independent sales representative or create an independent-
contractor relationship. It does not replace an offer letter, handbook,
benefit plan, equity award, restrictive-covenant agreement, or required wage
notice.

1. Counsel and payroll compliance gate

2. Parties, position, and term

This Commission / Sales Compensation Agreement is between:

Nothing in this plan changes the separately documented employment relationship,
term, or termination rights except as expressly approved here:
[____________________________________________________________]

3. Commission vocabulary

Complete every definition before signing.

A commission is not labeled earned, vested, due, forfeited, or recoverable
unless the completed plan states the factual trigger and counsel confirms its
effect.

4. Compensation structure

A. Base compensation

B. Commission formula

Select and complete the formula used.

☐ Percentage of [GROSS REVENUE / NET REVENUE / GROSS MARGIN / OTHER]

☐ Tiered commission

☐ Flat amount per qualifying transaction

C. Bonus or accelerator

5. Crediting and earning rules

A commission becomes earned only when every selected condition is satisfied:

☐ Customer signs the identified agreement

☐ Employer accepts the order

☐ Product or service is delivered or performed

☐ Customer pays the identified amount

☐ Return, cancellation, approval, or contingency period ends

☐ Employee remains employed through [EVENT], after counsel review

☐ Other: [________________________________]

Account and transaction allocation

6. Statements and payment

The employer will provide a commission statement for each calculation period
showing the transactions, credits, formula, adjustments, amount earned, amount
paid, and open items.

All wages due must be paid at least once each calendar month on regular agreed
paydays designated in advance under N.D.C.C. § 34-14-02. This plan's payment
schedule must be administered consistently with that rule and all other
applicable wage-and-hour requirements.

7. Draws, advances, clawbacks, and chargebacks

A. Draw or advance

☐ None

☐ Nonrecoverable draw of $[________] per [________]

☐ Recoverable advance of $[________] per [________], subject to the written
authorization and withholding analysis below

B. Adjustment event

C. Withholding authorization

No draw recovery, clawback, chargeback, offset, or deduction may be taken unless
counsel and payroll determine it fits N.D.C.C. § 34-14-04.1 or another
controlling authority.

☐ Advance paid to the employee, documented here:
[____________________________________________________________]

☐ Recurring deduction authorized in writing:
[____________________________________________________________]

☐ Nonrecurring deduction authorized in writing with its source specifically
identified:
[____________________________________________________________]

☐ Damage, breakage, shortage, or negligence deduction authorized by the
employee at the time of deduction:
[____________________________________________________________]

☐ State or federal law or court order independently requires withholding:
[____________________________________________________________]

Employee authorization, if applicable:

I authorize only the deduction stated above, subject to governing law. I do not
authorize an amount, source, event, or deduction not completed in this section.

Employee signature: ______________________________ Date: [__/__/____]

8. Expenses and tools

Expense submission period and process:
[____________________________________________________________]

9. Plan changes

A plan change must be stated in a dated writing identifying:

• the provision changed;
• the effective date;
• the transactions or measurement periods affected;
• treatment of transactions already booked, earned, or in progress;
• treatment of draws, adjustments, and disputes; and
• the employer and employee acknowledgment process.

This agreement does not authorize a retroactive reduction of compensation
already earned. Counsel must approve any change before notice or application.

10. Separation and final accounting

Upon any discharge, employer termination, voluntary separation, or qualifying
suspension, unpaid wages or compensation become due at the regular paydays
established in advance for the periods worked under N.D.C.C. § 34-14-03.

If the employer discharges or terminates the employee, payment must be sent by
certified mail to an address designated by the employee or made as otherwise
agreed by both parties. Record the route:

For a wage dispute, the employer must give written notice of the amount conceded
due, after the permitted employee obligation identified by the statute, and pay
that amount unconditionally within the chapter's time. The employee's
acceptance does not release the disputed balance under § 34-14-04.

11. Restrictive terms and other agreements

This plan contains no noncompetition or nonsolicitation covenant. Any separate
restraint must be identified and reviewed under current N.D.C.C. § 9-08-06 and
other controlling law; incorporating a rider does not establish enforceability.

12. Disputes and records

Before adding a forum, arbitration, jury, limitations, fee, or remedy clause,
counsel must identify the controlling law and effect:
[____________________________________________________________]

The employer will retain the signed plan, amendments, statements, transaction
records, calculations, payroll records, deduction authorizations, and
separation accounting under the following approved retention rules:
[____________________________________________________________]

13. General terms

Complete agreement for commissions. This agreement and its identified
attachments state the parties' completed commission terms. Conflicting prior
commission terms are addressed as follows:
[____________________________________________________________]

Amendment. A change to this agreement must follow Section 9 and be signed or
acknowledged as specified there.

Severability. If a provision is held unenforceable, the remaining terms
operate only to the extent they can do so consistently with the parties'
agreement and governing law.

No waiver. A party's delay or omission is not intended as a waiver. Counsel
must determine the legal effect of any conduct.

14. Signatures

The parties acknowledge receipt of the completed agreement and attachments.

15. Final review

☐ Employee relationship and compensation classification approved

☐ Earning and payment triggers are objective and complete

☐ Every rate, tier, credit, exclusion, and allocation is defined

☐ Monthly and regular-payday compliance confirmed

☐ Draw and each deduction fit a documented withholding route

☐ Plan change does not retroactively reduce earned compensation

☐ Separation, pending-sale, certified-mail, and disputed-pay routes completed

☐ Separate restrictive terms reviewed and not silently incorporated

☐ Dispute and records clauses approved

☐ Unused alternatives and drafting notes removed

☐ North Dakota attorney and payroll approved final agreement

Sources and References

• North Dakota Century Code, Chapter 34-14 — Wage Collection
• North Dakota Century Code, Chapter 9-08 — Unlawful and Voidable Contracts