Great news for sales representatives covered under the Minnesota Termination of Sales Representative Act, aka, Minn.Stat.325E.37 (the “Act”).
The Minnesota legislature recently passed an amendment providing greater protection to reps covered under the Act. It was signed into law by Governor Tim Walz on May 9th and becomes effective on August 1, 2022.
The amendment closes a loophole and prevents a principal/manufacturer from inserting language in a sales rep agreement requiring the rep in Minnesota to have its commission claim heard in a foreign state. From a practical and economic prospective, that loophole (which two recent courts previously upheld) required the rep to travel to another state, have the rep’s case heard in a foreign jurisdiction, and incur additional expenses. It significantly diminished the chances of a sales rep in Minnesota from getting paid commissions. It was important and necessary to amend the Act.
MANA successfully lobbied the Minnesota legislature to amend the Act. MANA wants to thank MANA member attorney Gene Hoff, who led the effort to amend the Act, those MANA members who contributed to the lobbying effort and others for their support. Well done!