Is Workers' Compensation Coverage Required?
Workers' compensation coverage is not required for a licensed real estate agent if:
- Substantially all compensation for services provided is directly related to sales or other output rather than the number of hours worked;
- The services performed are pursuant to a contract between the real estate agent and the person for whom services are provided.
- The written contract contains these provisions;
- The real estate agent is an independent contractor;
- The agent will be paid a commission on personal gross sales, that shall be directly related to sales or other output, with no relation to hours worked, and shall not be treated as an employee for tax purposes;
- The agent may work any hours they choose;
- The agent may work out of a personal own office or home, or out of the office of the person for whom services are performed;
- The agent is free to engage in outside employment;
- The person for whom services are performed may provide office facilities, clerical support, and supplies for agent's use, but the agent must bear any other expenses including travel and entertainment expenses;
- Both parties must comply with the requirements of Article 12-A of the Real Property law, but compliance shall not affect the real estate agent's status and an independent contractor;
- The contract may be terminated by either party at any time with notice given to the other.
For a complete description of the written contract requirements, refer to WCL § 2(4).