2017 Hill Day Series: REALTORS® ask legislature to clarify independent contractor status
REALTORS® work as independent contractors for brokerages within the state of Washington. This practice has been clear for years, but recent lawsuits in other states concerning independent contractor status has called that practice into question. REALTORS® have asked the legislature to address this question by adopting a definition of “independent contractor relationships” in the state licensing law, RCW 18.85.
Tyler McKenzie (pictured right), Vice President of Membership for Washington REALTORS® and owner of John L. Scott West Seattle said, “As a business owner, this is an important clarification of a brokers status within a brokerage firm.”
Under the federal tax code and various state laws, real estate licensees are considered independent contractors. However, Washington’s real estate license law does not include a statutory definition of “independent contractor,” which creates uncertainty for both the industry and how it is regulated. This legislation provides a statutory definition that reflects the structure of the real estate industry, rather than leaving this question to the courts to define.