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Real Estate Professionals Classification as Independent Contractors

Of the 1.4 million members of the National Association of REALTORS® (NAR), approximately 87 percent are classified as independent contractors. This classification is essential to the real estate industry, homeowners across the country, and to boosting the economy. The ability to work as an independent contractor is recognized and protected under many state and some federal laws.
However, litigation and new federal and state legislation continue to threaten workers’ ability to be classified as independent contractors, including many real estate professionals.

NAR supports the protection of, and efforts to further secure, the right of real estate salespeople to work as independent contractors and for brokers to choose to classify real estate salespeople as independent contractors. NAR will resist efforts at the federal level to weaken those rights while also supporting actions at the state level to strengthen the rights of brokers to make these determinations. The following summary outlines the current landscape and the latest efforts to preserve the ability of real estate professionals to be classified as independent contractors.

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