I’m in California
I’m in California, and I was wondering if I would need to have Workman’s Compensation for my agents? I understand that they are independent contractors with no set hours. Second question; May I start my brokerage from home? I was thinking about getting my wife trained to do my broker controlled escrows and just keep the overhead low until I have several agents and some money coming in. Your thoughts…
As an HR professional, I can answer the first question, and will leave the second question to one of our real estate experts to respond to.
If your agents are independent, not just in their work hours, but in their control of their own work, then no, you don’t have to provide workers compensation insurance for them. Here’s an article from California Industrial relations’ own website. https://www.dir.ca.gov/dlse/faq_independentcontractor.htm
However, if you’re not sure your agents will pass the test for an independent contractor, read this article to be sure.
Your Worker’s Comp insurance agent should be able to confirm this information for you as well.
Laura, SPHR, MAEd