AB 2169, as introduced, Cooley. Business and professions.
Existing law, the Real Estate Law, governs the licensure and regulation of real estate salespersons and real estate brokers. Existing law requires all obligations under the Real Estate Law, all regulations issued by the Real Estate Commissioner relating to real estate salespersons, and all other obligations of brokers and real estate salespersons to members of the public to apply regardless of whether the real estate salespersons and the broker to whom he or she is licensed have characterized their relationship as one of “independent contractor” or of “employer and employee.”
Existing law authorizes a real estate broker and a real estate salesperson licensed under that broker to contract between themselves as independent contractors or as an employer and employee, for the purposes of their legal relationship with, and obligations to, each other. Under existing law, the characterization of a relationship as either “employer and employee” or “independent contractor” for purposes, including, but not limited to, withholding taxes on wages and unemployment compensation is governed by certain specified provisions of law. Existing uncodified law prohibits the above provisions from being interpreted or applied to affect existing obligations of a real estate broker regarding liability or workers compensation insurance or from altering existing case law.
This bill instead would require the contractual characterization of a relationship of a real estate broker and a real estate salesperson licensed under that broker as either “employer and employee” or “independent contractor” to be conclusive, except as provided, for all purposes, including, but not limited to, withholding taxes on wages, unemployment compensation, and all other statutory, regulatory, common law, and contractual purposes, if certain statutory requirements are satisfied.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 10032 of the Business and Professions
2Code is amended to read:
(a) All obligations created under Section 10000, and
4following, all regulations issued by the commissioner relating to
5real estate salespersons, and all other obligations of brokers and
6real estate salespersons to members of the public shall apply
7regardless of whether the real estate salesperson and the broker to
8whom he or she is licensed have characterized their relationship
9as one of “independent contractor” or of “employer and employee.”
10(b) A real estate broker and a real estate salesperson licensed
11under that broker may contract between themselves as independent
12contractors or as employer and employeebegin delete, for purposes of their .
13legal relationship with and obligations to each otherend delete
14begin delete Characterizationend deletebegin insert
Except as provided in subdivision (a) and for
15purposes of workers compensation, the contractual
16characterizationend insert of a relationship as either “employer and
17employee” or “independent contractor”begin insert shall be conclusiveend insert for
18begin delete statutoryend deletebegin insert allend insert purposes, including, but not limited to, withholding
19taxes on wagesbegin delete and for purposes ofend deletebegin insert,end insert unemployment compensation,
20begin delete shall be governed byend deletebegin insert
and all other statutory, regulatory, common
21law, and contractual purposes, if the requirements ofend insert Section 650
22and Sections 13000 to 13054, inclusive, of the Unemployment
23Insurance Codebegin insert are metend insert. For purposes of workers compensation
P3 1the characterization of the relationship shall be governed by Section
23200, and following, of the Labor Code.
O
99