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Limits of Brokerage requirements on independently contracted real estate agents?

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  • Limits of Brokerage requirements on independently contracted real estate agents?

    As a real estate agent working as an independent contractor affiliated with a franchised brokerage...

    1) What limits, if any, are there to requirements the brokerage can impose upon the agent for attending weekly meetings, or "pulling manditory floortime shifts"?

    2) Are there limits to the number of hours and/or times of day an independent contractor (real estate agent in this case) can be required to "work" without compensation?

    For the first 4 months I was affiliated with this brokerage, no such requirements existed.

    Thanks in advance for any insights you can provide.

  • #2
    All these terms are controlled by your contract. Wage and Hour laws apply only to employees, not ICs.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.


    • #3
      BUT, one thing to note. Under the new Independent Contractor Law from July, 2004, it's not clear whether most real estate agents can remain properly classified as Independent Contractors. There's a lot of proposed legislation to clarify these issues, but I think most of these arrangements fail the current I/C test. BUT there haven't been any cases yet, so that's merely my opinion (although many of my employment law colleagues agree).
      This post is by Philip Gordon, a Massachusetts employment attorney (

      This post is NOT legal advice. It is for general/educational information purposes only. You should not rely on this post if you are making decisions, and it does not create an attorney-client relationship. This post may be considered "advertising" under the MA professional rules for attorneys.


      • #4
        Thank you both, for the useful information.


        • #5
          Non payment of commissions

          I worked for a real estate office that specializes in rentals

          My problem is getting paid Ė the compensation is 50% of the fee which is equal to one monthís rent

          In this office what happens is that the agent takes the client on showings, and then if the client wants to proceed with an application the client is brought back to the office.

          The client is introduced to the office manager and that is the end of the agentís involvement.

          The office manager:
          Completes the application
          Conducts credit checks
          Collects application fee
          Negotiates with the landlord on behalf of tenant
          Collect landlord required deposit (usually one months rent)
          Collects brokers fee
          Files all necessary documents with the landlord to complete the transaction
          Bills landlord for broker fees (if not paid by client)

          If the client pays half the fee the office keeps that portion and the agent has to wait until the landlord pays there portion of the fee

          Now Iím being told that;
          One of the landlords isnít paying the agreed amount of Ĺ the fee (something I had no control)
          That some have not paid at all Ėthe landlords claim they were not billed or billed incorrectly, this is after months of asking for my money !!

          Iím still waiting for payment on some of the deals !!

          My contention is I should be paid regardless of the mismanagement by the real estate office because I had no control of the financial process.

          I feel that the office over stepped their position in this situation of treating agents as independent contractors

          Obviously I have left the agency but am still chasing commissions


          • #6
            Please don't tack your question onto a thread that has been dormant for years in teh future. It confuses the issues.

            If you are/were an IC, then you will have to pursue this through the courts as the DOL would not govern here. If you want an opinion as to whether or not you are correctly classified, you can speak with the DOL.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.