S-2963

AN ACT Relating to the relationship between a sales representative and the representative's principal; adding new sections to chapter 49.48 RCW; and prescribing penalties.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 2 through 6 of this act.

(1) "Commission" means compensation paid a sales representative by a principal in an amount based on a percentage of the dollar amount of certain orders for or sales of the principal's product.

(2) "Principal" means a person, whether or not the person has a permanent or fixed place of business in this state, who:

(a) Manufactures, produces, imports, or distributes a product for sale to customers who purchase the product for resale;

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

(3) "Sales representative" means a person who solicits, on behalf of a principal, orders for the purchase at wholesale of the principal's product.

NEW SECTION. Sec. 2. (1) A contract between a principal and a sales representative under which the sales representative is to solicit wholesale orders within this state must be in writing and must set forth the method by which the sales representative's commission is to be computed and paid. The principal shall provide the sales representative with a copy of the contract. A provision in the contract establishing venue for an action arising under the contract in a state other than this state is void.

(2) When no written contract has been entered into, any agreement between a sales representative and a principal is deemed to incorporate the provisions of sections 1 through 6 of this act.

(3) During the course of the contract, a sales representative shall be paid the earned commission and all other moneys earned or payable in accordance with the agreed terms of the contract, but no later than thirty days after receipt of payment by the principal for products or goods sold on behalf of the principal by the sales representative.

Upon termination of a contract, whether or not the agreement is in writing, all earned commissions due to the sales representative shall be paid within thirty days after they become due, including earned commissions not due when the contract is terminated.

NEW SECTION. Sec. 3. A principal shall pay wages and commissions 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 are deemed to have been paid as of the date of their registered postmark.

NEW SECTION. Sec. 4. A principal who fails to comply with a provision of a contract under section 2 of this act relating to payment of a commission or fails to pay a commission as required by section 3 of this act is liable to the sales representative in a civil action for three times the damages sustained by the sales representative plus reasonable attorneys' fees and costs.

NEW SECTION. Sec. 5. A principal who is not a resident of this state and who enters into a contract subject to sections 1 through 6 of this act is considered to be doing business in this state for purposes of the exercise of personal jurisdiction over the principal.

NEW SECTION. Sec. 6. (1) Sections 1 through 6 of this act supplement but do not supplant any other rights and remedies enjoyed by sales representatives.

(2) A provision of sections 1 through 6 of this act may not be waived, whether by express waiver or by attempt to make a contract or agreement subject to the laws of another state. A waiver of a provision of sections 1 through 6 of this act is void.

NEW SECTION. Sec. 7. Sections 1 through 6 of this act are each added to chapter 49.48 RCW.