What is the employment status of a real estate salesperson?

In California, real estate salespersons are classified as independent contractors rather than employees. This classification is fundamental as it impacts how salespersons operate within the real estate framework.

Independent contractors in real estate work under a broker's license, which allows them to conduct real estate activities while maintaining a degree of autonomy in managing their work schedules, methods, and strategies to generate business. They are typically compensated through commissions based on the sales they close, which further distinguishes them from employees who usually receive a fixed salary and may be entitled to benefits such as health insurance or paid time off.

The independent contractor status allows real estate salespersons to take on multiple clients and work with various brokers, thus providing flexibility and opportunities to maximize their earnings based on performance.