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Bill subjecting commission sales reps to state law passes House

By Ricky Campbell
Rep. Bob Loonan

The House passed a bill Thursday that would close a loophole that businesses based in other states have used to terminate commission-based sales employees in Minnesota.

HF1294, sponsored by Rep. Bob Loonan (R-Shakopee), would add additional regulations to the relationship between a sales representative and a company – building on a law that passed two years ago. The House passed the bill 129-0, sending it to the Senate, where Sen. Eric Pratt (R-Prior Lake) is the sponsor.

The bill would add “retail” to the definition of a commission sales employee and adds “material, component, or part orders” for resale into the state’s definition of wholesale orders. 

The bill “says that if the sales rep lives in Minnesota, [businesses based elsewhere] will follow Minnesota law,” Loonan said. 

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