SPECIAL RULES FOR INDEPENDENT WHOLESALE SALES REPRESENTATIVES [LABOR CODE SECTION 1738.10 ET SEQ]
February 12, 2020
California law states that an independent contractor who works for a manufacturer, jobber, or distributor as a sales representative who is paid a commission may be entitled treble damages (three times the damages) and attorney’s fees and costs under the Independent Wholesale Sales Representatives Contractual Relations Act of 1990 if the manufacturer, jobber, or distributor does not provide the independent sales representative with a written contract including all of the following:
- The rate and method by which the commission is computed.
- The time when commissions will be paid.
- The territory assigned to the sales representative.
- All exceptions to the assigned territory and customers therein.
- What chargebacks will be made against the commissions, if any.
Manufacturer Defined: Any organization engaged in the business of producing, assembling, mining, weaving, importing or by any other method of fabrication, a product tangible or intangible, intended for resale to, or use by the consumers of this state
Jobber Defined: Any business organization engaged in the business of purchasing products intended for resale and invoicing to purchasers for resale to, or use by, the consumers of this state.DistributorDefined: Any business organization engaged in offering for sale products which are shipped from its inventory, or from goods in transit to its inventory, to purchasers and intended for resale to, or use by the consumers of this state.