Rundown of the Illinois’ Sales Representative Act

Web Admin - Friday, November 22, 2013

Employers often pay their salespeople a commission, meaning that the salesperson collects a percentage of whatever they can sell. It is a way for employers to motivate their sellers, and it lets sellers see the benefits of their hard work. But, both employers and employees should note that Illinois passed a special employment law, the Sales Representative Act, to regulate how employers must pay these commissions.

The Sales Representative Act applies to all commissions, which it defines as a compensation scheme based in whole or in part on a percentage either of the employee’s gross sales, or the net profits from those sales. The Act covers three main areas: when commissions come due to the employee; how employers should handle commissions owed to a terminated employee; and the penalties that can apply to employers if they fail to comply with the Act.

As to when the employer must pay the commissions, the Act contains several scenarios. If the employee’s contract specifies a due date for the commission, then the Act allows that to control. However if the employee works without a contract, or if the contract does not specify a date, then the Act looks to the employer’s past practice of when they pay the employee, and then holds the employer to that schedule. If the employer only recently hired the salesperson, meaning there is no past practice, then the Act uses the standard practice of the salesperson’s industry to determine when the employer owes commissions.

The Act also lays out specific requirements for paying commissions to terminated employees. If the employer owes any commissions to the employee at the time they let the employee go, then the employer must pay those commissions within thirteen days of the employee’s termination. If more commissions come due after the employee’s termination, then the employer must pay those no later than thirteen days after they come due. Additionally, the Act specifies that an employee’s waiver of the right to collect on commissions after they are terminated will not be enforced.

The Act also contains severe penalties for employers who fail to comply with the Act’s guidelines for when to pay commissions. An employee may sue them for failure to pay, and receive up to three times the value of the commissions. Additionally, the employer may be forced to cover the salesperson’s court costs as well as their attorney’s fees.

Legal Help

If you are a salesperson being paid on commission who believes their employer violated this act, or if you are an employer concerned about whether your practices comply with the law, contact an experienced Illinois employment lawyer today. We serve many northwest suburban areas including Schaumburg, Palatine, Des Plaines, Rolling Meadows, and other nearby communities.

Recent Posts


personal injury accidents Chicago insurance law firm probate process fatal car accidents Transfer on Death Instrument Colin Gilbert Des Plaines collections attorney condo medical malpractice compensation healthcare life insurance claims Schaumburg BAC Palatine employment law lawyer Illinois employment law firm commercial real estate Inverness injury lawyer murder charges living trust benefits Des Plaines wage theft Palatine punch death Buffalo Grove medical malpractice lawyers digital evidence Illinois drunk driving statistics Crystal Lake employment attorney trauma after an accident no contest clauses Palatine injury attorney Illinois employment lawyer Policy Cancellation Schaumburg insurance lawyers CAM Illinois Transfer on Death Instrument estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, llinois Real Estate Lawyers Association Des Plaines drug lawyer insurance agent negligence Illinois traffic ticket lawyer Arlington Heights Traffic Lawyer Attorney Ken Apicella Kenilworth estate planning lawyer Buffalo Grove law firm DUI defense Affordable Care Act back injuries Inverness DUI lawyer Illinois job attorney Rolling Meadows traffic attorney Rolling Meadows employment law attorney Arlington Heights traffic attorney medication errors Schaumburg elder law lawyer trucking accidents employment contract Arlington Heights Attorney cell phone Barrington civil litigation attorney dealing with problem employees Colin H. Gilbert college kids drunk driving Arlington Heights injury attorney trench injuries pet law natural gas Des Plaines tax law firm Rolling Meadows personal injury lawyer Des Plaines personal injury attorney Crystal Lake pedestrian accident lawyer Illinois Wage Payment and Collection Act Crystal Lake employment law attorney small business Barrington estate planning lawyer motorcycle accident murder employee discrimination dog bites Rolling Meadows Traffic Lawyer trucking accident lawyers car collision estate tax blended families Illinois driving without license Arlington Heights car crash attorneys Illinois personal injury drug crimes lawyer Illinois employment law Illinois personal injury lawyer Long Grove estate planning attorneys estate planning sexual harassment Long Grove estate planning attorney real estate leasing underage DUI Illinois personal injury attorney traffic laws Illinois medical malpractice claim DMV Mount Prospect elder law attorney Illinois criminal defense attorney food poisoning Crystal Lake medical malpractice law firm liability medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers underinsured motorist insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys Crystal Lake medical malpractice attorneys startup company Chicago estate planning home inspection lawyer personal injury claims Arlington Heights tax lawyer employee misclassification breathalyzer test Chicago trucking accident attorney expungement Chicago lawyer pain and suffering personal injury attorney Fourth of July Rolling Meadows insurance dispute lawyers, insurance dispute deadly crashes ACA civil litigation financial advisors income distribution deducation loopholes living wills Buffalo Grove traffic lawyers Des Plaines medical malpractice attorney Arlington Heights real estate lawyer Inverness real estate lawyer Schaumburg real estate lawyer revenge porn Rolling Meadows criminal lawyer caretaker rights Rolling Meadows insurance lawyer Schaumburg personal injury lawyers Inverness accident lawyer involuntary manslaughter Schaumburg traffic lawyer Barrington Traffic Lawyer Crystal Lake estate planning lawyer job lawyers Illinois Workers’ Compensation Commission School Visitation Rights Act forming a corporation in Illinois comparative negligence rollover accidents marijuana spinal cord injuries Palatine trusts lawyer Long Grove wills and trusts attorneys Schaumburg car accident attorney Illinois business lawyer Deer Park traffic lawyer Barrington employment law attorney Schaumburg criminal attorney Illinois workplace discrimination attorney dram shop law unpaid assessment Legal Info murder defense Palatine traffic lawyer insurance claim estate planning attorney Long Grove real estate attorney Illinois jet ski accident lawyer Chicago corporate attorney Illinois small business unauthorized overtime personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys life insurance lawyer license suspension institutional trustee Palatine elder law attorney Buffalo Grove employment lawyer Illinois insurance lawyer Barrington injury attorney speeding Buffalo Grove probate lawyer underfunded trust overtime violations Barrington estate planning attorney estate planning lawyer insurance claim denial appealing an insurance claim pet bites Barrington litigation attorney ObamaCare POA Illinois DUI attorney business litigation homestead rights clemency defective products lawyer Palatine personal injury lawyer Illinois construction accident attorney Palatine corporate attorney Illinois wrongful termination lawyer overtime pay brain injury insurance dispute attorney vacation home fines digital assets Schaumburg personal injury lawyer personal injury Illinois Smoke Detector Act pedestrian injuries, pedestrian fatality Des Plaines insurance attorney Des Plaines motorcycle accident attorney criminal record Rolling Meadows employment law attorneys BUI Illinois home inspection estate planning trusts Buffalo Grove traffic attorney insurance claim dispute traumatic brain injuries Chicago biking tips Barrington personal injury attorney manufacturing Barrington drug crime attorney Illinois pet lawyer Rolling Meadows insurance attorney probate lawyer Rolling Meadows tax attorney Des Plaines DUI attorney foreclosed rental property Forcible Entry Crystal Lake criminal defense attorney trusts personal injury law firm contracts Rolling Meadows personal injury attorney elder law DGAA Illinois medical malpractice case Rolling Meadows marijuana attorney license revocation foreclosure insurance attorney construction contracts Crystal Lake traffic attorney denied insurance claims employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Palatine law firm estate planning for college students Exclusions boating under the influence drugs Rolling Meadows employment attorney Deer Park DUI lawyer Illinois bicycle safety employment attorney sole proprietorship Riverwoods estate planning lawyer Illinois employee rights attorney. Buffalo Grove insurance claim dispute lawyers Palatine insurance lawyer Retaliatory Discharge estate attorney wills and trusts Illinois pedestrian accident attorney real estate zoning Palatine probate lawyer mass shooting Crystal Lake tax lawyer internet real estate attorney wrongful termination civil rights violation Long Grove real estate lawyer Crystal Lake will lawyer Chicago traffic lawyer ken apicella texting while driving Des Plaines claims law firm DUI penalities Illinois collections attorney liens residential real estate Illinois workers compensation lawyer Arlington Heights wills and trusts lawyer car accidents wills investment property medical malpractice claims South Barrington real estate attorney Illinois speeding lawyer anesthesia errors employment law Crystal Lake law firm golf accidents Arlington Heights lawyer Palatine criminal defense lawyer gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys Deer Park workers compensation lawyer denied insurance claim Illinois probate lawyer Inverness elder law lawyer operating agreements Illinois Probate Act of 1975 Arlington Heights wills and trusts attorneys problem employees Illinois employment law attorney Mount Prospect real estate lawyer estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers controlled substance insurance denials Illinois lawyer Home Sale Contingencies Long Grove estate planning real estate Illinois employment laws subcontractor BAIID traffic accidents severance agreements Illinois defective products attorney first degree murder Buffalo Grove criminal defense lawyer Illinois wills and trusts fiduciary rule delay Schaumburg construction accident lawyer Barrington boating accident attorney Schaumburg criminal law attorney employment law, Illinois employment laws Des Plaines personal injury lawyers Thanksgiving pizza emoji Palatine construction attorney Des Plaines accident attorney Barrington medical malpractice lawyers caregiver Palatine workers compensation lawyer Rolling Meadows real estate attorney Rolling Meadows estate planning attorney Deer Park motorcycle accident lawyer Illinois trusts attorney Illinois motorcycle accident lawyer Rolling Meadows car accident lawyers Arlington Heights personal injury lawyer car crash injuries unpaid overtime pregnant women defective products Crystal lake insurance dispute attorney paid sick leave automated cars compensatory time insurance claim dispute attorney workers compensation Schaumburg civil litigation attorney probate claims process workers compensation benefits Family Medical Leave Act hiring employees life insurance policy digital media accounts, estate planning, Arlington Heights estate planning attorney, Des Plaines injury law firm Illinois insurance claim attorney Arlington Heights criminal lawyer minimum wage Federal Food Drug and Cosmetic Act Illinois workers compensation attorney Crystal Lake business law attorneys Arlington Heights car accident lawyer Illinois traffic accident lawyer traffic violations Illinois elder law attorney tax attorney pedestrian accident real estate closing traffic tickets Rolling Meadows medical malpractice lawyers nursing home negligence Arlington Heights accident attorney Des Plaines personal injury lawyer social media after death Illinois insurance disputes jet ski accidents real estate contract Illinois medical malpractice attorney Palatine traffic accidents medical research car crash Deer Park personal injury lawyer landlord tenant law Illinois insurance claims lawyers Rolling Meadows personal injury lawyers IRELA Arlington Heights personal injury attorney Palatine civil attorney Palatine Attorney Whistleblower Claims Illinois corporate lawyer Jay Andrew Rolling Meadows corporate lawyer Rolling Meadows Illinois tax attorney Illinois mortgages Crystal Lake injury attorney IRS Arlington Heights employment law attorneys privacy Class A misdemeanor Arlington Heights TBI attorney Illinois trucking safety insurance agents vacation home criminal Illinois traffic attorneys Buffalo Grove real estate attorney fault based insurance accidental death benefits Illinois will lawyer Fair Labor Standards Act Palatine business attorney surgical mistakes Chicago estate planning lawyer loss of consortium low-ball insurance settlement capital gains tax distracted driving accident victims criminal law Barrington personal injury lawyer Illinois rollover accident lawyers irrevocable trust slip and fall accidents eluding a police officer drug possession workers comp sexual images Des Plaines real estate attorney Inverness insurance attorney Super Mario Barrington criminal lawyer cell phone tower data Palatine drug lawyer Landlord Tenant Ordinance Arlington Heights insurance attorney rent to own real estate contracts TBI Illinois registered agent Illinois estate planning attorney Chicago insurance claim attorneys Inverness corporate attorney insurance claim delay Arlington Heights pedestrian accidents FSLA Illinois insurance dispute lawyers landlord consent to a search Buffalo Grove corporate attorney blood alcohol content filing a medical malpractice claim FMLA special needs trust Crystal Lake personal injury attorney crossover accidents car accident Inverness estate planning lawyer hit and run accident pedestrian accidents gift taxes traffic violations defense probate claims license Illinois Human Rights Act Rolling Meadows probate lawyer Palatine real estate lawyer Barrington criminal defense lawyer Arlington Heights trucking lawyer Illinois employment law attorneys denial of life insurance GM ignition switches DUI spinal cord injury Schaumburg drug defense lawyer products liability Joliet general practice lawyers motorcycle accident lawyer Inverness probate lawyer wrongful death Deer Park real estate law firm traffic offenses Barrington employment attorney power of attorney living trust product liability Arlington Heights wills and trusts attorney whistleblower protections distracted driving accidents fiduciary rule rumble strips in terrorem provision Buffalo Grove personal injury attorney Barrington real estate lawyer Inverness personal injury attorney Crystal Lake car accident attorney Illinois law Barrington workers compensation attorney senior citizens Barrington Illinois estate planning lawyer Schaumburg personal injury attorney Crystal Lake personal injury lawyer Schaumburg estate planning attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys Schaumburg probate attorney commercial leasing hands free device bicycle dooring accidents insurance disputes Des Plaines civil attorney real estate attorneys traumatic brain injury Rolling Meadows DUI lawyer Illinois personal injury lawyers Deer Park criminal attorney employment lawyer auto accidents Buffalo Grove personal injury lawyer owner responsibility changes to mortgage law dynasty trusts Crystal Lake insurance lawyer Schaumburg medical malpractice lawyer Rolling Meadows insurance dispute lawyers license reinstatement healthcare claims Des Plaines criminal attorney Des Plaines pet law attorney Buffalo Grove car accident lawyer pay when paid contract right to work Chicago will attorney, social media platforms, Illinois estate planning lawyer, Rolling Meadows boating crash lawyer Barrington attorney installment contracts Crystal Lake employment lawyer uninsured motorist breach of contract holiday statistics health insurance dispute Rolling Meadows traffic law firm agent real estate lawyer guardianship attorney Home Remodeling Repair Act Illinois employment attorneys estate plan DUI attorney Mount Prospect wills and trusts lawyers insurance negligence Schaumburg employment law attorneys marijuana crimes attorney Chicago employment attorney Schaumburg wrongful death attorney Chicago will attorney Illinois Sales Representative Act suspended license Crystal Lake traffic lawyer preventable medical errors Illinois red light cameras Rolling Meadows accident lawyer Crystal Lake pet attorney Rolling Meadows criminal attorney Crystal Lake car accident lawyer Des Plaines Traffic Lawyer employee rights Mt Prospect Attorney car accident lawyers Barrington employment law firm Employment Discrimination Law Inverness traffic law firm Crystal Lake accident attorney medical marijuana drug crime rest breaks Des Plaines real estate lawyer Schaumburg corporate attorney Palatine employment attorney Buffalo Grove injury lawyer insurance dispute liability claims South Barrington real estate lawyer child safety natural gas explosion bicycle accidents construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation disability benefits Illinois car accident attorney Rolling Meadows drug defense attorney Illinois civil litigation lawyer Illinois real estate lawyer Detainer Actions Food and Drug Administration's Food Safety Modernization Act federal regulations for LLCs Illinois traffic laws Deer Park traffic accident attorney Inverness civil lawyer attorney fees Liquor Control Act Arlington Heights employment attorney drug crimes cell phone accidents LLCs Crystal Lake bike accident lawyer Schaumburg Attorney Illinois attorney premises liability unfunded trust Deer Park medical malpractice attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, taxes Palatine employment lawyer condo association mortgage wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace elder abuse Illinois injury lawyer comp time independent contractor commercial leases Illinois insurance attorney Schaumburg estate attorney modern family estate planning Illinois real estate digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Illinois LLC creation boating accidents DNR IRA trust transfer bike accident Illinois estate planning reckless homicide Illinois insurance claim dispute lawyer Arlington Heights estate planning attorney Illinois living will boating DUI Self-Directed IRA Accounts Chicago attorney Illinois estate planning law firm power of attorney for healthcare car crashes work unions truck collisions head on collisions Schaumburg employment attorney Palatine corporate law attorneys field sobriety test Rolling Meadows litigation lawyer Rolling Meadows business lawyer insurance claim denials personal injury lawyer Kenilworth estate planning attorney IRA benefits bad faith insurance claims probate Illinois insurance claim dispute lawyers probate fees privacy laws living trust vs will life insurance pedestrian-automobile accident Schaumburg injury lawyer jet ski construction accidents federal crimes employees Deer Park accident attorney texting and driving new real estate form civil litigation attorney Illinois medical malpractice lawyers digital information PTSD Crystal Lake medical malpractice lawyer meal breaks Des Plaines drug crimes lawyer criminal defense traffic crimes Deer Park employment law attorney Illinois boating accident lawyer Kenilworth estate planning attorneys Illinois workplace lawyer rollover car crashes Arlington Heights medical malpractice lawyer preventing accidents advance healthcare directive Arlington Heights wills and trusts lawyers Barrington business law firm personal injury claim trustee creditors insurance adjusters insurance claims driving workplace sexual harassment traffic deaths corporate law icy parking lots Illinois wills and trusts attorneys car accident lawyer Crystal Lake civil litigation lawyer Chicago employment lawyer trust payments Illinois traffic attorney insurance denial appeals Palatine estate planning lawyer Palatine civil litigation lawyer Chicago car accident lawyer Inverness real estate attorney Do Not Resuscitate Schaumburg estate planning lawyer medical malpractice slip and fall Illinois business law atorneys swimming pools Rolling Meadows Attorney deed transfer