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Independent commissioned sales reps

Lori BLori B 172 Posts
in HR & Employment Law Vote Up0Vote Down
We currently use sales reps that are paid base + commission on our payroll. I'd like to explore hiring an independent outside sales rep that is paid 100% commission in MO. In Illinois, there is a law on point about pure commissioned sales reps not being deemed employees for purposes of other wage payment laws, etc. Does a similar law exist in MO?

In other words, do any of you hire any sort of independent rep groups/sales people that sell for you (and other companies) based purely on commission? If so, are you reporting as your employee, or treating them like independent contractors?

Thanks


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Comments

  • 2 Comments sorted by Votes Date Added
  • marcmarc 3,126 Posts
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    I have done this in Nevada and these folks were on a contract - not employees. I cannot imagine this treatment is not available in all States. Just make sure they meet the definition of an independent contractor.
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  • lorrielorrie 306 Posts
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    Our company is located in Kansas, but we have outside sales reps, fully-commissioned, from Kansas and Missouri. They are on our payroll as regular employees, we pay unemployment and work comp etc. just like every other employee, the only difference is that their pay is based on their sales. (They usually start on salary and are expected to work to full-commission within 6 months or so.)
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