By Tiffany Davis, NVAR Legal Counsel
While many industries struggle over the distinction between an independent contractor and employee, this has been a particularly hard distinction for those in the real estate industry. One of the key distinctions between an independent contractor and an employee if often determined by the amount of control a principal exerts over the agent. Nevada real estate law specifically requires brokers to supervise their agents. This requirement conflicts with one of the key elements of an independent contractor relationship. Therefore, it is difficult for a broker to comply with both statutory duties required by Chapter 645 of the Nevada Revised Statutes and labor laws.
This legislative session, NVAR worked with legislators on creating a definition in Nevada law that a court could use in determining whether a person is an independent contractor. In reading through these factors keep in mind that this test was created for an array of industries and while the first two factors must be met, meeting three of the five additional factors is possible for licensees.1
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