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Motor Vehicle Dealer Employment Agreement

Motor Vehicle and Parts Dealers · NAICS 441 · Employment Agreement

In the fast-paced world of motor vehicle retail, a well-drafted employment agreement is essential to protect your dealership and ensure clarity with your team. Whether you're hiring a salesperson, F&I manager, service technician, or parts counterperson, your agreement needs to address the unique aspects of the auto industry: commission structures, fluctuating work schedules, customer data privacy, and compliance with state dealer licensing laws. This specialized template goes beyond generic contracts, covering key provisions such as commission chargebacks, flat-rate pay, and data security obligations. Customize it to fit your dealership's needs and create a solid foundation for a successful working relationship.

When you need this document

Hiring a new salesperson or F&I manager who will be compensated on commission
Bringing on a service technician or service advisor with flat-rate or bonus pay
Replacing an existing employee agreement with one that includes updated non-solicitation and confidentiality terms
Hiring a fixed-term employee for a specific project, such as launching a new dealership location
When a position involves access to customer financial data and requires compliance with data privacy rules

What the generated draft includes

Position details and job duties tailored to dealership roles
Compensation structure, including commission calculations and chargeback policies
Work schedule expectations, including weekends and evenings
Benefits summary and paid time off
Confidentiality and non-disclosure provisions
Non-solicitation and non-compete clauses (where applicable)
Compliance with licensing, certification, and data security requirements
At-will employment or fixed-term provisions

Frequently asked questions

What makes an employment agreement for a car dealership different from other industries?

Dealerships have unique compensation models like commissions on vehicle sales and flat-rate pay for technicians, plus strict regulatory requirements around customer data (e.g., FTC Safeguards Rule). The agreement must address these specifics to avoid disputes and ensure compliance.

Can I include a non-compete clause in my dealership employment agreement?

Non-compete clauses are subject to state law; some states restrict or prohibit them. While this template includes a non-solicitation clause, we recommend consulting with a local attorney to determine if a non-compete is enforceable in your state and to tailor it appropriately.

How should I handle commission chargebacks in the agreement?

Clearly state that commissions are earned only after the vehicle is delivered and the deal is funded, and that chargebacks may occur if the deal is rescinded or the customer defaults within a specified period. This template includes a provision for that, but you can adjust the terms as needed.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.