# Labor and Employment (GLE)

## Title 3. Employment Standards and Conditions

### Subtitle 6. Wholesale Sales Representatives

#### Section 3-601

(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.

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Md. Code Ann., Lab. & Empl. (as displayed at mgaleg.maryland.gov, October 16, 2026)