§ 3–601
Statutes in effect as of October 1, 2026.
Md. Code Ann., Lab. & Empl. § 3-601 (2026)
Title 3. Employment Standards and Conditions
Subtitle 6. Wholesale Sales Representatives
§ 3–601LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Commission” means compensation that:
(1)
is due to a sales representative from a principal; and
(2)
accrues at:
(i)
a specified amount for each order or sale; or
(ii)
a rate expressed as a percentage of the dollar amount that a sales representative:
(1)
takes in orders for the principal;
(2)
makes in sales for the principal; or
(3)
earns in profits for the principal.
(c)
“Principal” means a sales corporation, partnership, proprietorship, or other business entity that:
(1)
distributes, imports, manufactures, or produces a product for wholesale;
(2)
enters into a contract with a sales representative to solicit a wholesale order for the product; and
(3)
pays the sales representative wholly or partly by commission.
(d)
(1)
“Sales representative” means a person who:
(i)
enters into a contract with a principal to solicit in the State a wholesale order; and
(ii)
is paid wholly or partly by commission.
(2)
“Sales representative” does not include a person who:
(i)
buys a product or places an order for a product for resale by that person; or
(ii)
sells or takes an order for the sale of a product to an ultimate buyer.