Independent Rep Seeks Security

[pmarc]

Massachusetts

Am reading independent rep contract (for selling services, not product) that says the provider [herein The Company] can terminate me without cause. So I replied with a sales level I expect to hit, and want it binding that if I achieve it they can't get rid of me. My concern is, if they find investors and they consequently bring sales in-house, or merely decide they don't want to pay stated commission rate, I'm gone. The quota factor would help my case.

The Company says the laws in their State (Ca) create big potential liabilities for legal action stemming from a sales quota...something to do with Rep-Company relationship, witholding taxes, etc. This is why "without cause" was used.

My problem is it's a unique oppt'y, so I cant go out and find a substitute the next day. A lot of pioneering will be done and I may make $200/mo for a while.

 

[eerelations]

The company is saying that if it allows itself to impose sales quotas on you, you will no longer be an independent contractor as defined by law. You will be an employee and the company will be legally required to put you on its payroll and make all required deductions and withholdings, etc. The company is obviously not willing to go this route with you.

Please note that even if you did become an employee of this company, it could legally terminate your employment at any time, for any reason, and without cause.

And while it would be perfectly legal for a company to sign a contract stating it would never get rid of an employee/independent contractor, I can't imagine any company that would actually do this - it would be completely insane, and any company that asked me whether it should do this would get this as a response: "No way!"

Don't push too hard for this or you may find yourself without a contract (or work!) at all.

 

[Dougthegreat]

And while it would be perfectly legal for a company to sign a contract stating it would never get rid of an employee/independent contractor, I can't imagine any company that would actually do this - it would be completely insane, and any company that asked me whether it should do this would get this as a response: "No way!"

And that's the polite response.

If you want security, get a federal government job. It'll pay you less than you're worth, but at least you'll always have it!

 

[pmarc]

eerelations ..what do you do for a living?

Dougthegreat why are you on a legal site with an IT and loan officer background?

I've spent hundreds of thousands on startup situations, traveled the world where virtually no English exists, and lived most of my life on 100% commission - and the deal I'm looking at now, never mind they have have all my residual accounts if I leave, is ludicrous and I'm looking for good excuses to do it.

That starts with bonafide advice. I appreciate both your pro bono time, but only if it's right. Should it be any other way? BTW - no, if I were an employee the liberties to fire me would not be that easy; just for argument's sake. The difficulty depends on the contract and scenario.

 

[eerelations]

That starts with bonafide advice. I appreciate both your pro bono time, but only if it's right. Should it be any other way? BTW - no, if I were an employee the liberties to fire me would not be that easy; just for argument's sake. The difficulty depends on the contract and scenario.

The advice I gave you is correct and accurate. Moreover, it was polite and in no way merits your rude and arrogant response.

You are incorrect about employers' right to fire employees anytime and for any reason - this is called "at-will employment" and is perfectly legal in the US. If you google "at-will employment" you will find this out for yourself. Some employees in the US have contracts with their employers that negate their "at-will" status, however, this isn't common as most employers are unwilling to give up that much of their authority.

Nor are employers willing to saddle themselves with employees/independent contractors that they can never get rid of. If you can somehow find an employer who is willing to do this for you, I expect that employer is at best untrustworthy and at worst, insane.