The New Jersey Sales Representatives’ Rights Act

Although the New Jersey Representatives’ Rights Act is a statute that is unknown to many people, it serves as an important layer of protection for independently commissioned salesmen even after their contracts end. Essentially, it ensures that these sales representatives are paid their commissions and their entitled compensation within a period of 30 days after the termination of their contracts. This entitlement holds regardless of the reason for the termination of the contract.

Understanding The New Jersey Sales Representatives’ Rights Act

This statute was passed back in 1990 and has been providing legal protection to independent sales representatives against their principal in the case where they might not be paid their entitled commissions. The act mandates that failure of the principal to comply and pay their contracted sales representatives would result in them having to pay three times the original commission. This also includes the legal costs incurred.

The act also creates an incentive for the principal to make rapid payments while ensuring that the sales representatives do not have to fork out money to pay litigation fees. It allows them to claim these costs from the principal that is in breach of the rights act. Furthermore, it prevents employers from terminating the contracts of sales representatives so that they can avoid paying them their entitled bonuses. However, one important thing to note is that the statute only protects independent contractors and not employees.

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The New Jersey Sales Representatives’ Rights Act

Why Should You Hire Attorneys For New Jersey Sales Representatives’ Rights Act Cases?

Regardless of whether you are an employee or an independent contractor, one thing is for certain-the employer that you work for does not have the power to deny you the commissions that you have rightfully earned for yourself. If you happen to be a sales representative that wants to make a claim against your principal for withholding payments, hiring an attorney is the wisest thing you can do.

An attorney would have a plethora of experience and expertise in this area and would help you to make an extremely strong case against your principal. Furthermore, you have all to gain if you hire an attorney because this act states that the principal would be the one incurring the legal fees if it is found that you are indeed entitled to the commissions.

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Common FAQs About The New Jersey Sales Representatives’ Rights Act

What is a “sales representative”?

A sales representative in this context is someone who has been hired independently via contract who is compensated at least in part by commissions. This does not apply to employees of the company.

What if the company that I worked for is not headquartered in New Jersey?

This act actually applies to independent sales representatives from New Jersey, regardless of whether or not the principal that they are working for is from another state.

What happens if I win the case?

According to the act, a sales representative who wins a case against their principal is entitled to receiving the commissions promised to them and also the legal and court fees from the principal.

When should the principal pay the sales representative their commissions?

The law states that the principal is mandated to pay the sales representative the commissions even after the termination of the contract within 30 days.

What are the attorney fees if I lose the case?

The act actually provides a substantial award of legal costs. This means that we can represent our clients on a contingency basis. In other words, you do not have to pay any legal or attorney fees if the case is lost.

The New Jersey Sales Representatives’ Rights Act