Commission / Sales Compensation Agreement - Nevada

COMMISSION / SALES COMPENSATION AGREEMENT

STATE OF NEVADA

Table of Contents

1. Parties and Recitals
2. Position and Duties
3. Term of Agreement
4. Commission Structure
5. Base Compensation and Commission
6. Payment Timing
7. Draw Against Commission
8. Clawback Provisions
9. Post-Termination Commission Rights
10. Quota and Performance Standards
11. Territory and Accounts
12. Expenses and Reimbursement
13. Dispute Resolution
14. Termination
15. General Provisions
16. Nevada-Specific Notices
17. Signatures

1. Parties and Recitals

Employer:
Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [____________________], NV [__________]
Phone: [________________________________]
Entity Type: [________________________________]

Employee (Sales Representative):
Name: [________________________________]
Address: [________________________________]
City/State/ZIP: [____________________], NV [__________]
Phone: [________________________________]
SSN (Last 4): [____]

Effective Date: [__/__/____]

This Commission / Sales Compensation Agreement ("Agreement") is entered into by and between the Employer and Employee identified above. The parties agree that the Employee's compensation shall be governed by the terms set forth herein, in compliance with Nevada Revised Statutes Chapter 608 and Nevada Administrative Code Chapter 608.

2. Position and Duties

Job Title: [________________________________]

Primary Responsibilities:

• [________________________________]
• [________________________________]
• [________________________________]

Reporting To: [________________________________]

Work Location: [________________________________]

Employment Status:
☐ Full-time employee
☐ Part-time employee

3. Term of Agreement

This Agreement shall commence on [__/__/____] and shall continue:

☐ Indefinitely (at-will employment) until terminated by either party
☐ For a fixed term ending on [__/__/____], subject to renewal

If the indefinite-term option is selected, the parties agree that the employment relationship is at will and may be terminated by either party at any time, with or without cause or notice, subject to applicable law. NRS 613.040 does not govern at-will employment; it prohibits employer rules that prevent employees from political activity or candidacy for public office.

4. Commission Structure

Commission Type:
☐ Percentage of gross sales
☐ Percentage of net sales (after returns and allowances)
☐ Percentage of gross profit
☐ Flat fee per sale or unit
☐ Tiered/graduated commission schedule
☐ Other: [________________________________]

Commission Rate(s):

Commission Trigger Event:
☐ Upon execution of the sale or contract
☐ Upon delivery of goods or services
☐ Upon receipt of customer payment
☐ Other: [________________________________]

5. Base Compensation and Commission

Base Salary: $[________] per [☐ hour / ☐ week / ☐ month / ☐ year]

Total Compensation Structure:
☐ Base salary plus commission
☐ Commission only (see Draw provision in Section 7)
☐ Draw against commission (see Section 7)

6. Payment Timing

Commission Payment Schedule:
☐ Each regular semimonthly pay period under NRS 608.060
☐ Weekly or biweekly under a written agreement that complies with NRS 608.070
☐ Other schedule reviewed for compliance with NRS 608.060-.070: [________________________________]

Regular Pay Period: [________________________________]

Under NAC 608.120, each commission is payable when the written agreement makes it payable. Commissions shall be calculated and paid no later than [____] days after the agreed earning event, while also complying with Nevada's wage-payment frequency rules.

7. Draw Against Commission

☐ This section applies / ☐ This section does not apply

Draw Amount: $[________] per [☐ week / ☐ pay period / ☐ month]

Draw Type:
☐ Recoverable draw (advances offset against future commissions)
☐ Non-recoverable draw (guaranteed minimum, not offset)

Negative Balance: If commissions earned are less than draws paid:
☐ The deficit carries forward to the next period(s)
☐ The deficit is forgiven at the end of each [☐ month / ☐ quarter / ☐ year]
☐ Other: [________________________________]

8. Clawback Provisions

☐ This section applies / ☐ This section does not apply

Commissions previously paid may be subject to clawback under the following circumstances:

☐ Customer cancels order within [____] days of sale
☐ Customer returns product within [____] days
☐ Customer defaults on payment within [____] days
☐ Other: [________________________________]

Maximum Clawback Period: [____] days from the date commission was paid.

9. Post-Termination Commission Rights

Upon termination of employment (whether voluntary or involuntary), the Employee shall be entitled to:

☐ All commissions earned and unpaid through the last day of employment
☐ Commissions on sales closed but not yet paid by customers as of termination
☐ Commissions on pending orders submitted before the termination date that close within [____] days after termination
☐ No post-termination commissions beyond the last day of employment

Payment of Final Commissions:

• Discharge: Under NRS 608.020, when an employer discharges an employee, all wages and commissions earned and unpaid are due immediately at the time of discharge.

• Resignation: Under NRS 608.030, when an employee resigns, wages and commissions are due on the earlier of: (a) the day on which the employee would have been paid per the regular schedule, or (b) seven (7) days after the employee resigns.

10. Quota and Performance Standards

Sales Quota:
☐ Monthly quota: $[________]
☐ Quarterly quota: $[________]
☐ Annual quota: $[________]

Consequences of Failing to Meet Quota:
☐ Performance improvement plan
☐ Reduced commission rate of [____]%
☐ Reassignment of territory or accounts
☐ Grounds for termination
☐ Other: [________________________________]

11. Territory and Accounts

Assigned Territory: [________________________________]

Account Assignment:
☐ Exclusive territory — Employee is sole representative in the defined area
☐ Non-exclusive territory — Employer may assign additional representatives
☐ Named accounts only (see attached Exhibit A)

Territory Modifications: Employer reserves the right to modify territories with [____] days' written notice.

12. Expenses and Reimbursement

Reimbursable Expenses:
☐ Mileage at IRS standard rate ($[____] per mile)
☐ Travel expenses (airfare, lodging, meals) with prior approval
☐ Client entertainment with prior approval up to $[________] per [☐ month / ☐ quarter]
☐ Office supplies and equipment
☐ Other: [________________________________]

Expense Reporting Deadline: Expenses must be submitted within [____] days of being incurred.

13. Dispute Resolution

In the event of a dispute arising out of or relating to this Agreement:

Step 1 — Internal Resolution: The parties shall attempt to resolve the dispute through good-faith negotiation within [____] business days.

Step 2 — Mediation/Arbitration:
☐ Binding arbitration in [________________________________], Nevada, under the rules of [________________________________]
☐ Mediation before [________________________________]
☐ Litigation in the courts of the State of Nevada, [________________________________] County

14. Termination

By Employer:
☐ At will, with or without cause
☐ For cause, including but not limited to: [________________________________]
☐ With [____] days' written notice

By Employee:
☐ At will, with or without cause
☐ With [____] days' written notice

Effect of Termination: Upon termination, all company property, client lists, and proprietary materials must be returned within [____] business days. Commission payments after termination shall be governed by Section 9.

15. General Provisions

Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements.

Amendments: This Agreement may be modified only by written instrument signed by both parties. Commission rate changes require [____] days' advance written notice to Employee.

Severability: If any provision is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

Protected Discussions and Proprietary Information: Nothing in this Agreement prohibits an employee from discussing wages, commissions, hours, or working conditions; engaging in protected concerted activity; reporting suspected unlawful conduct; or communicating with a government agency. Employee shall protect nonpublic customer lists, pricing strategy, and other lawfully protectable proprietary sales information, subject to those rights.

16. Nevada-Specific Notices

Immediate Payment Upon Discharge: Under NRS 608.020, upon discharge, all earned and unpaid wages, including commissions owed under NRS 608.012, are due immediately.

Resignation Payment: Under NRS 608.030, upon resignation, wages are due on the next regular payday or within 7 days, whichever is earlier.

Pay Frequency: Under NRS 608.060, wages must be paid in full at least semimonthly on regular paydays designated in advance. NRS 608.070 permits a different weekly or biweekly basis by written agreement only if payment remains in full and complies with Chapter 608.

Penalty Wages: Under NRS 608.040, failure to meet the applicable final-pay deadline may continue wages at the employee's same rate, subject to the statute's trigger rules and 30-day cap.

Attorney Fees: NRS 608.140 governs assessment of attorney's fees in an action to recover wages; do not describe a fee award as automatic.

Overtime Commission Exemption: Under NRS 608.018, employees of a retail or service business are exempt from overtime if: (1) their regular rate exceeds 1.5 times minimum wage, and (2) more than half their compensation in a representative period, to the extent allowed by federal law not less than one month, is from commissions on goods or services.

Minimum Wage: Nevada's minimum wage is $12.00/hour. All commissions paid during a pay period may be counted toward the minimum wage obligation.

17. Signatures

By signing below, the parties acknowledge that they have read, understand, and agree to the terms and conditions of this Agreement.

EMPLOYER:

Signature: ______________________________ Date: [__/__/____]
Printed Name: [________________________________]
Title: [________________________________]

EMPLOYEE:

Signature: ______________________________ Date: [__/__/____]
Printed Name: [________________________________]

ACKNOWLEDGMENT OF RECEIPT

☐ Employee acknowledges receipt of a signed copy of this Agreement on [__/__/____].

Sources and References:

• NRS Chapter 608 — Compensation, Wages and Hours: https://www.leg.state.nv.us/nrs/nrs-608.html
• NAC 608.120 — Payment of Commissions: https://www.leg.state.nv.us/nac/nac-608.html
• Nevada Office of the Labor Commissioner: https://labor.nv.gov