If you are paid on a commission basis in Illinois, or are a company in Illinois which pays its vendors or employees on a commission basis, you need to know about the Illinois Sales Representative Act.
The Illinois Sales Representative Act, 820 ILCS 120, is a little known law which states that a principal (see definition below) who fails to pay commission to a sales representative is liable for the commissions due, plus punitive damages up to 3 times the amount of the commissions owed to the sales representative, plus the sales representative’s reasonable attorney’s fees and court costs.
Definitions Under The Act
A “Sales Representative” is defined as a person who contracts with a principal to solicit orders and who is paid, in whole or in part, by commission, but does not include a person who places orders or purchases for his own account for resale or a person who qualifies as an employee of the principal under the Illinois Wage Payment and Collection Act.
A “Principal” is defined as a sole proprietorship, partnership, corporation or other business entity whether or not it has a permanent or fixed place of business in Illinois and which:
- Manufactures, produces, imports, or distributes a product for sale; and
- Contracts with a sales representative to solicit orders for the product; and
- Compensates the sales representative, in whole or in part, by commission.
If you meet the definition of a sales representative and are owed commissions, we are highly experienced and can help you collect any unpaid commissions and enforce the Act so as to recover any attorneys’ fees and punitive damages.
We also regularly represent principals who have been sued by sales representatives and have successfully asserted defenses available under the Act. If you are an employer or principal under the Act, call us to see how you can benefit from our many years of experience in this area.