Are real estate agents independent contractors?
For decades real estate agents have been led to believe that they're independent contractors. However, the IRS does not classify them as independent contractors, and a number of recent state and federal court cases have also resulted with the indication that real estate agents may well be employees.
Listen to Ken go through this issue step by step, describing the various applicable IRS definitions, as well as providing information and analyses of 5 major state and federal lawsuits.
The results of these lawsuits, especially those at the federal level, should be of serious concern to every real estate broker in the United States. These lawsuits and the indications from the courts are sending a clear message to the real estate brokerage industry that (in the words of Bob Dylan) the times they are a changin'.
And, those who are unable to read the writing on the wall, these changes may not only leave them in the dust, but in the poorhouse as well.
WARNING:
The conclusion to this episode may be shocking.
LINKS:
IRS DEFINITION - Independent Contractor
IRS DEFINITION - Statutory Employee
IRS DEFINITION - Statutory Non-Employee
INMAN NEWS ARTICLE - Bararsani vs. Coldwell Banker
ZIPREALTY SETTLEMENT ARTICLE
Be sure to listen to the next episode of The Ken Jones Real Estate Show when ken will explore what the real estate brokerage industry might reasonably look like if real estate agents were to be considered employees as opposed to their current status as Statutory Non-Employees.
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I'd love to hear your thoughts and comments on this subject that should be vitally important to brokers and agents alike.
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