Independent Contractor Status for Real Estate Salespersons

A new U.S. Department of Labor regulation modifies how the agency will analyze whether workers are classified as employees or independent contractors under the Fair Labor Standards Act. The agency now primarily considers six factors when evaluating worker classification, with no one factor being dispositive. Each of the factors is identified below in blue boxes, followed by practical guidance to reduce the risk of misclassification for brokerages and salespersons in independent contractor relationships.

View frequently asked questions regarding the U.S. Department of Labor's Independent Contractor rule that took effect on March 11, 2024.