Sales Representatives – Special Protections in Minnesota
Minnesota has a unique law that protects sales representatives. The law is called the Minnesota Termination of Sales Representatives Act, and applies to any sales representative who is an independent contractor working, in whole or in part, on commission. It does not cover employees (click here for more information and classification of employees and independent contractors).
Minnesota law prevents a company from terminating a sales representative agreement unless it has “good cause.” It also requires a company to provide written notice of the reasons for any termination at least 90 days in advance. And, sales representatives must be given 60 days to correct the reasons that were given to justify the termination. Minnesota law further requires sales representatives be paid all unpaid commissions promptly upon termination.
These protections apply to independent sales representatives who reside in Minnesota, have their primary place of business in Minnesota, or are responsible for a sales territory that includes all or part of Minnesota.
These protections cannot be waived under an amendment to the law in 2014. Generally, sales representatives in Minnesota are guaranteed these protections, even if their agreement claims that another state’s law applies. In most cases, any such provision is invalid and unenforceable.
If you are unlawfully terminated, you may be able to recover commissions, lost profits, attorney’s fees, costs, interest, and statutory penalties. The employment attorneys at Teske, Katz, Kitzer & Rochel handle these claims. Contact us today to discuss your situation.