BrokerageIndustry News

8 reasons we need independent contractors

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Some members of Congress and the Obama administration are taking a hard look at abuse of the independent contractor employment classification.And while an executive for the National Association of Realtors has said that the real estate industry's use of the classification for sales associates appears to be safe (see "Crackdown on independent contractors") from scrutiny, it is important to highlight how vital independent contractor status has been for brokerages across the country. The first column in this series examined some of the macro-level changes that could result from a massive, hypothetical overhaul to independent contractor status. The list below describes eight issues that individual agents could face if this actually came to pass. 1. Reduced agent costs coupled with lower splits/salaries Productive agents who lack broker's licenses would most likely be forced into employee relationships. This would mean a huge shift in how an agent ...