This does not surprise me with respect to working for a builder... those agents live under the structure of significant employment rules... from work hours, vacation times, etc.

These just got ironed out in California.  New law passed for "gig workers" that exempted realtors, insurance agents, stock brokers and deep sea fishermen from employee status.  Out here new homes sales agents are employees of the builders.

 I can't even relate to the set up of having a draw or getting an advance in commission!!!!  I had the listing....did the marketing and the coverage was on a schedule I created.... friday, sat and sun afternoons..... 1 to 4.... that's it!!! 

I had other business and other builders who were at different stages of construction, so my income was a steady flow.... everyone had attorneys for p& s agreements....the builders atty handled all of the legal end.... my job was to walk the buyers throught the process until all selections were made and finalized.... they didn't communicate with me during construction unless there was no on-site supervisor.....

there's no way I covered any project every day, all day..... lockboxes were used and I would accompany if the buyer agent wanted me to do that.... they usually did......

The people that work for builders tend to lean more on the employee side of the equation. 

Interesting.  In many ways.  

Coldwell Banker had a similar lawsuit about 5 years ago while I was still with them; the independent contractor model is rapidly changing with the new laws and old school employers are caught in the crossfire if they do not adapt.

Just read the article. 

Well, most of the agents are happy to work for developer's offices. They knew what they are getting. BUYERS! And prospective sellers and landlords. 

When they get real customers and commissions - great. 

When they project is canceled - lawsuit - hard to return advance commission.

Business in our country would be much better it the govt would stop hampering out ability to hire good talent by forcing employers to overpay those with little talent.

Lyn,

Definitely an interesting read.  Thank you.  A

No one made her stay or held her there because she is/was an independent contractor, just like on-site real estate salespeople in builder communities. They are required to attend sales meetings, stay in one place during business hours and are compensated when a contract is written...hmmmm, interesting indeed!

Interesting, thanks for the heads up.

Hard to imagine the Employee Model in Real Estate

In the example cited, it must be noted that a real estate sales license is not required to work in a builders sales center. Using the real estate agent identifier is misleading.

However, the independent contractor status has been severely abused most notably by 'white column' old school real estate franchises.

ALL of them benefit by avoiding the need to invest in their 'employees.' It may be too late for brokers and franchises to confess and repent. We, as agents, should be prepared to reposition how they execute real estate transactions. And is most likely to be in the role of a BROKER.

Now, when days, hours, location, job tasks, wages are dictated...that person is an EMPLOYEE! Clearly a sales agent locked into a showing center with office duties and inflexible compensation is an employee. 

By the way, this is also what Uber is imposing on drivers which is what inspired the CALIF lawsuit.

The line has long been fine between these two. One day one will win-out

Interesting article! I am not surprised with in house agents fora builder, they unlike the rest of us are very restricted! 

It is hard to argue that an agent working for a large builder is not an employee. They dictate the hours and the method of selling in many cases, including mandatory in-house training.

This would have applied to me BIG TIME but thank goodness I no longer need to know as I'm retired Lyn Sims 

The very reason I would prefer to stay a REALTOR, and not work for a builder.

Did not read the article because California is wrestling with the same issues. So far, real estate agents with a broker relationship are still independent contractors. Who knows what the future holds. Many brokers would go out of business if they had to provide "employee benefits", in my opinion.

THanks

 It does not sound like they were able to set their schedule or determine how they wanted to perform their duties to meet the end goal. Interesting the prior case was settled out of court. 

Thanks, Lyn Sims !