Real Estate Agents Remain Independent Contractors
Yes, real estate agents remain independent contractors in the 2019 legislation report from the Sacramento Association of Realtors. This is important to the many who want to remain as a business owner and not an employee of a brokerage. Below is a partial excerpt from SAR, Sacramento Association Of Realtors, report.
This new law follows the Dynamex ruling and puts the ABC test that came out of that case into state law by classifying several types of independent contractors as employees. AB 5 allows real estate agents to be treated as independent contractors under the Business & Professions Code section § 10032 as long as they meet three conditions, 1) hold a real estate license; 2) substantially all of their remunerations is directly related to sales or other output rather than to the number of hours worked, and 3) the parties have a written contract stating that the individual will not be treated as an employee with respect to those services.
What AB 5 means for REALTORS®: This new law contains an explicit and comprehensive reconfirmation of the right for real estate agents to be treated as independent contractors and are governed by Business & Professions Code § 10032.
— JaCi Wallace