DRE & Licensing
A California broker who employs salespersons is required to have a written independent contractor agreement with each salesperson that includes:
AA guaranteed minimum salary
BA provision that the salesperson's income is based on production rather than hours worked✓ Correct
CHealth insurance benefits
DA non-compete clause preventing the salesperson from switching brokers
Explanation
Under IRS and California requirements for independent contractor status, the written agreement must specify that the salesperson's remuneration is based on sales production rather than hours worked. This is a fundamental requirement for the independent contractor classification. The agreement must also state the salesperson will not be treated as an employee for federal tax purposes.
Related California DRE & Licensing Questions
- Under California law, a real estate licensee is required to disclose their license status in which of the following situations?
- A real estate licensee who engages in 'conversion' of trust funds has:
- Which of the following does NOT require a real estate license in California?
- Which of the following activities requires a California real estate license?
- To obtain a California real estate salesperson license, an applicant must complete how many hours of pre-license education?
- A California real estate broker's license must be displayed:
- What is the 'Real Estate Transfer Disclosure Statement' (TDS)?
- Under California law, the maximum amount a broker may keep of their own funds in a trust account (to cover bank service charges) is:
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →