H-3839.2  _______________________________________________

                          HOUSE BILL 2654

          _______________________________________________

State of Washington      56th Legislature     2000 Regular Session

By Representative Wood

Read first time 01/18/2000.  Referred to Committee on Commerce & Labor.

Paying commissioned sales representatives.

    AN ACT Relating to paying commissioned sales representatives; and amending RCW 49.48.150 and 49.48.160.

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

    Sec. 1.  RCW 49.48.150 and 1992 c 177 s 1 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 49.48.160 through 49.48.190.

    (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, offers, or distributes a product or service, including but not limited to memberships, for sale to customers ((who purchase the product for resale));

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

    (c) Compensates the sales representative in whole or in part by commission.

    (3) "Sales representative" means a person who solicits, on behalf of a principal, orders for the purchase ((at wholesale)) of the principal's product or service, but does not include a person who places orders for his or her own account for resale((,)) or purchases for his or her own account for resale((, or sells or takes orders for the direct sale of products to the ultimate consumer)).

    Sec. 2.  RCW 49.48.160 and 1992 c 177 s 2 are each amended to read as follows:

    (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, including the conditions for receipt of commissions after termination of the contract or employment.  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) If a sales representative is not provided a written contract and is denied a commission, the principal is liable to the sales representative for twice the amount of the commission upon a finding by a court of competent jurisdiction that the commission is owed to the sales representative by the principal.  When no written contract has been entered into, any agreement between a sales representative and a principal is deemed to incorporate the provisions of RCW 49.48.150 through 49.48.190.

    (3) During the course of the contract or employment, 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)) services sold on behalf of the principal by the sales representative.

    Upon termination of a contract or employment, whether or not the agreement is in writing, all earned commissions due to the sales representative shall be paid within thirty days after receipt of payment by the principal for products or ((goods)) services sold on behalf of the principal by the sales representative, including earned commissions not due when the contract or employment is terminated.

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