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Is this a good idea – or a terrible idea?
A Realty Times article this morning explains why one REALTOR® believes that the change being considered by California is a good one.
Under Assembly Bill 5, the test to determine who is or is not an Independent Contractor would be clarified.
All of the following would have to be true in order for a worker to be considered independent:
“A) free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact.”
“B) performs work outside the usual course of the hiring entity's business.”
“C) customarily engaged in an independently established trade, occupation or business of the same nature as the work performed for the hiring entity.”
It looks to me like real estate agents would no longer be considered Independent Contractors.
A) You may be free from direction for the most part, but agents have always been expected to adhere to the company guidelines.
B) Unless you have a side job, which is not the question here, you are NOT performing work outside the usual course of the brokerage’s business. Your work is the core of its business.
C) As far as I know, agents must ... more
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