Real Estate Agent Exemptions From Stringent Limits on Independent Contractor Status
New Labor Code 2750.3(d), effective January 1, 2020 as part of Assembly Bill (AB) 5, exempts real estate licensees, regulated under the Business & Professions Code (B&P), from the strict Dynamex ABC test for independent contractor classification. See, Dodging the Bullet (October 2019).
Labor Code 2750.3(d) defers to B&P 10032(b), which permits real estate brokers and agents to structure their relationships either as employer-employee, respectively, or as hirer-independent contractor. However, that provision of 10032(b) notably does not apply where broker and agent have no written contract between them. For such “non-10032(b)” real estate broker-agent associations:
Moral: As the complexity and uncertainty of California’s employee/independent contractor law increase, so too the wisdom of utilizing competent legal counsel to help navigate the rocks and shoals of such classifications.
November 22, 2019Back to Blog
If you are an employer facing possible litigation or have an employee issue on which you need immediate guidance, call us to set up a consultation, or submit your message using our contact form.