Realtors are often classified and paid as independent contractors, leaving them responsible for paying their own payroll taxes, social security contributions and unemployment taxes, and ineligible to receive overtime pay. It is the Employer’s / Agency’s responsibility to demonstrate to the Department of Labor, I.R.S., Social Security Administration, or state agencies, that a Realtor-Contractor is properly classified because they have independence in when and how they performed their work. Whether or not a realtor is an Independent Contractor also determines if the Agency has 15 or more employees, leaving it open to claims of discrimination, harassment or retaliation. Real estate agencies also face unique challenges involving the safety of realtors on the job, as workplace violence is a rare but worrisome risk for Real Estate Agents in the field. If you need advice about whether a Realtor is an Independent Contractor or an Employee, need assistance creating employment and risk management policies for Real Estate Agencies, or need assistance responding to potential claims and litigation, contact Attorney Janovsky for a consultation.
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