Lustig
& Associates - Illinois Sales
Representative Act
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. |
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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:
(a) Manufactures, produces, imports, or distributes a
product for sale; and
(b) Contracts with a sales representative to solicit orders
for the product; and
(c) 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.
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