Employee Versus Independent Contractor

Education & Training with (retired) TN LIC# 290452

                                   employee vs independent contractor

What kind of an employment agreement do you have with your broker?

Should the employment agreement define your obligations and responsibilities?

There really are only two alternatives to working for a brokerage:

A salesperson has to be either an independent contractor or an employee.

What would impact the organization of a salespersons responsibilities when they're treated as an independent contractor?

As an employee?

How does it affect the broker's responsibility to withold taxes or pay the saleperson?

How do you view your position with your company and how does your broker treat you?

Thanks..... -David-

Posted by

David Saks

Time&Temp Memphis

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Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

David, it is a very fine line. My broker is there for me, but "not there". I think that is in substance the independent contractor status.

Apr 26, 2008 05:23 PM #1
Jean Powers
Kane & Associates call 510.908.9002 - Alameda, CA
CRS,e-PRO,HAFA,SFR Broker, Northern California
In CA, we are not salaried employees and for income purposes we are independent contractors. Brokers working under brokers, we  are held at a higher standard while a salesperson must work for a broker
Apr 26, 2008 05:31 PM #2
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

Treating a real estate sales person as an employee would certainly complcate the relationship.  Would you have to pay minimum wage?  A licensed agent in CA can be treated as an independent contractor and therefore the broker does not have to keep track or care how many hours are worked.  I do not think an employee status would work to well for a sales agent.

Apr 26, 2008 05:36 PM #3
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate
David:  Being a RE/MAX agent pretty much does away with most, if not all of the problems associated with trying to be an independent contractor, but having the demands often made of you... floor time, office meetings, and other miscellaneous office requirements make it look like you are an employee.  Independent Contractor = having the freedom to not being required to do things like go to "mandatory" broker-required office meetings.
Apr 26, 2008 05:38 PM #4
Pam Winterbauer
Pam Winterbauer Real Estate - San Ramon, CA
"Providing Blue Ribbon Service"
David.....I work for a very respectful broker and I am a licensed broker myself.  We are independant contractors and paid on commission.  None of us here are salaried.
Apr 26, 2008 06:04 PM #5
David Saks
(retired) - Memphis, TN
The line gets crossed on occasion, Vicki. Depends on the agents relationship with the brokerage.
Apr 28, 2008 06:08 AM #6
David Saks
(retired) - Memphis, TN
Sounds like a good arrangemnet, Jean.
Apr 28, 2008 06:09 AM #7
David Saks
(retired) - Memphis, TN
Perhaps a split against a draw could work, Robert, in an employee-benefitted atmosphere, but for some only.
Apr 28, 2008 06:12 AM #8
David Saks
(retired) - Memphis, TN
Good point, Karen.
Apr 28, 2008 06:13 AM #9
David Saks
(retired) - Memphis, TN
Sounds great, Pam.
Apr 28, 2008 06:16 AM #10
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