Dec 10
Your salespersons: treat them as required by law
December 10, 2022
By Reynaldo A. Quintana Latorre, Esq.; Baerga & Quintana, LLC
These recommendations will help establish a healthy and legal relationship with your sales force.
Treating a salesperson correctly and legally involves applying labor laws and granting the rights they may have in terms of hours, wages, and/or benefits. According to your type of business and how sales are conducted, it is important that you properly identify and classify the positions held by your sales force to avoid mistakes that could lead to costly legal actions.
Classify your sales professionals based on these factors:
- The industry in which they work
- The type of product or services they sell
- The place where they do their job (within a given location or off-site)
- If they visit clients
- The type of clientele they serve
- Their form of compensation
- It is not clear if the commissions are based on gross sales or on net profit
- Periods for determining commissions have not been clearly established
- There is doubt as to whether a salesperson will get their commission only after the sale has been paid by the buyer