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.
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.
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.
Carcich O’Shea, LLC is dedicated to bringing justice to your
situation. We listen to your situation and provide the best possible way to get a settlement from your
claims. You’re hiring top-notch attorneys by working with us! Mr. Carcich was recently selected for
Super Lawyers, whereas Ms. O’Shea has been named in (201) Magazine’s “Bergen’s Best Attorneys”. We will
manage your case from beginning to end.
If you have more questions about our legal expertise in employment litigation, feel free to contact
us today. Alternatively, you may call us at 201-988-1308 or send an email to
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