Commission Rights of Sales Representatives After Termination

Many out of state businesses or distributors have sales representatives in Northwest Arkansas to sell their products to one of the large corporations in the area.  Many of these sales representatives work on some type of commission basis.

Commission-based sales representatives have specific and important protections in Arkansas. Decades ago, corporations found it economically beneficial to terminate sales representatives without paying commissions earned under their representative agreements. However, legislators in most states have worked to specifically guard against this practice by implementing added protections for payment of commissions of sales representatives. The Sales Representative Act in Arkansas includes a contract requirement, penalties to the business for failure to pay commissions, a waiver of choice-of-law provision in representative contracts, place venue in Arkansas, and allow for the recovery of attorney’s costs and fees.

If your employer terminated you without paying all commissions you earned, you may have a case under the Arkansas statutes applying to sales representatives of out of state businesses. For more information or to see if you may have a claim, contact one of the employment attorneys at Miller, Butler, Schneider, Pawlik, & Rozzell PLLC.

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