The Pennsylvania Commissioned Sales Representative Act, 43 Pa. Stat. § 1471 et seq. (“PCSRA”) provides statutory remedies for certain sales representatives when they are not paid timely commissions. Under the PCSRA, a “principal shall pay a sales representative all commissions due at the time of termination within 14 days after termination” and “all commissions that become due after termination within 14 days of the date such commissions become due.” 43 Pa. Stat. §§ 1473–74. If a principal “willfully” violates these provisions, then the sales representative may bring a civil action to collect all unpaid commissions plus exemplary damages and attorneys’ fees. Id. § 1475. The Act thus governs the payment of commissions owed by a “principal” to a “sales representative,” and a defendant can only be liable if the plaintiff is a “sales representative” as that term is used in the Act.
A key factor in determining whether you have a claim under the PCSRA is to understand how the law defines the terms “sales representative” and “principal”.
The PCSRA defines the term “sales representative” as follows:
“Sales representative.” A person who contracts with a principal to solicit wholesale orders from retailers rather than consumers and who is compensated, in whole or in part, by commission. The term does not include one who places orders or purchases for his own account for resale or one who is an employee of a principal.
Id. § 1471.
Thus, a “sales representative” is someone who solicits wholesale orders from “retailers” rather than “consumers.”
A “principal” is defined by the PCSRA as any person who does all of the following:
(1) Engages in the business of manufacturing, producing, importing or distributing a product for sale to customers who purchase such products for resale.
(2) Utilizes sales representatives to solicit orders for such product.
(3) Compensates sales representatives, in whole or in part, by commission.
Finally, a sales representative should be cautioned against bringing a meritless claim against a principal under the PCSRA. If judgment is entered for the principal and the court determines that the action was brought frivolously, then the principal will be awarded attorneys’ fees and costs. Id. § 1475.
Philadelphia Employment Lawyers at Sidkoff, Pincus & Green Represent Sales Commissioned Representatives in Claims to Recover Unpaid Commissions
If you are owed unpaid commissions, you may have a valid claim under the Pennsylvania Commissioned Sales Representative Act, among other potential causes of action. Philadelphia employment lawyers at Sidkoff, Pincus & Green will seek maximum compensation for your damages. To learn more about how we may be able to help you, call us at 215-574-0600 or contact us online today.