AN ACT Relating to sales representatives; and adding a new chapter to Title 19 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The definitions in this section apply throughout this chapter unless the context clearly requires to the contrary.

(1) "Commission" means compensation accruing to a sales representative for payment by a principal, earned through the last day on which services were performed by the sales representative, the rate of which is expressed as a percentage of the dollar of orders or sales.

(2) "Principal" means a person who does not have a permanent or fixed place of business in this state and who:

(a) Manufactures, produces, imports, or distributes a product for wholesale;

(b) Contracts with a sales representative to solicit orders for the product; and

(3) "Sales representative" means a person who contracts with a principal to solicit wholesale orders and who is compensated, in whole or in part, by commission. The term does not include a person who places orders or purchases for his or her own account for resale.

(4) "Day" means calendar days, including Saturdays, Sundays, and legal holidays.

(5) "Termination" means the end of services performed by the sales representative for the principal, and shall include any action that concludes the relationship of the parties.

(6) "Discharge" means the removal of a sales representative by the principal and includes any action taken by the principal against the sales representative that concludes the relationship of the parties.

(7) "Mediation" means an attempt by a third party to help in negotiations or in the settlement of a dispute between the principal and the sales representative through suggestion or other ways of stimulating agreement. The mediator shall be selected in accordance with provisions of the contract.

NEW SECTION. Sec. 2. (1) When a sales representative enters into an agreement with the principal for the solicitation of wholesale orders, a written contract shall be entered into setting forth:

(a) The form of payment and the method by which it is to be computed and made;

(b) A specified period for the performance of services;

(d) Reasonable grounds for termination of an agreement between the principal and the sales representative;

(e) A specified geographical territory or specified accounts;

(f) Reasonable grounds for change or reduction of a specified geographical territory or specified accounts;

(g) A reasonable quota;

(h) The manner and time in which disputes arising out of the agreement will be settled, including the right to arbitrate disputes that cannot be resolved by mediation;

(i) Fifty percent of an account's commission, payable to the sales representative, if it was initially an exclusive account made into a house account;

(j) That any changes or reductions in territory or accounts will be preceded by at least sixty days' written notice; and

(k) A written notice, of not less than sixty days, indicating termination of the contract of employment.

(2) The principal shall provide each sales representative a signed copy of the contract. The principal shall obtain a signed receipt for the contract from each sales representative.

(3) In the event the agreement of services is terminated for any reason, and if the contract does not comply with this section, all the commissions and wages earned and unpaid through the time of termination are due within a period not to exceed seventy-two hours after termination.

NEW SECTION. Sec. 3. A principal who violates or fails to comply with section 2 of this act or any agreement established thereunder is liable to the sales representative for the greater of treble damages or damages as set forth in this chapter.

NEW SECTION. Sec. 4. (1) If a contract, not specifying a period of service, is terminated, the wages and commissions earned and unpaid through the last day of employment shall become due and payable within twenty-four hours if the sales representative is discharged, and within seventy-two hours if the sales representative resigns.

(2) The penalty for failure to comply with subsection (1) of this section is the sales representative's average daily earnings provided in the written contract of employment for every day not to exceed fifteen days in all, whereupon civil action in court for treble damages may be taken.

NEW SECTION. Sec. 5. A sales representative shall receive commissions on goods ordered prior to the last day of employment, but delivered and accepted after the end of an agreement, which shall become due and payable within a reasonable amount of time, no later than ninety days following the last day of employment.

NEW SECTION. Sec. 6. If, after a period of time not exceeding two weeks, efforts and negotiation over a dispute, contract dispute, or disputes over the interpretation of the terms of a written agreement cannot be resolved, either party or the parties jointly shall petition to the commercial forum of the American arbitration association for an arbitrator.

NEW SECTION. Sec. 7. The sales representative who is assigned a certain geographical territory or specified accounts by the principal, as set forth in the contract of employment, shall not have the territory or accounts arbitrarily changed or reduced without grounds as set forth in the written contract of employment.

NEW SECTION. Sec. 8. The wages and commissions shall be paid at the usual place of payment unless the sales representative requests that the wages and commissions be sent through registered mail. If, in accordance with a request by the sales representative, the sales representative's wages and commissions are sent through the mail, the wages and commissions shall be deemed to have been paid as of the date of their registered postmark.

NEW SECTION. Sec. 9. Nothing in this chapter invalidates or restricts any other or additional right or remedy available to a sales representative, or precludes a sales representative from seeking to recover in one action on all claims against a principal.

NEW SECTION. Sec. 10. Sections 1 through 9 of this act shall constitute a new chapter in Title 19 RCW.