ASSEMBLY, No. 6206
STATE OF NEW JERSEY
219th LEGISLATURE
INTRODUCED DECEMBER 6, 2021
Sponsored by:
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Senator STEVEN V. OROHO
District 24 (Morris, Sussex and Warren)
Co-Sponsored by:
Senators Pou and O'Scanlon
SYNOPSIS
Codifies right of real estate broker-salespersons and salespersons to define relationship with broker as one between broker and independent contractor or employee and enforces current and previous written agreements addressing relationship.
CURRENT VERSION OF TEXT
As amended on January 10, 2022 by the General Assembly pursuant to the Governor's recommendations.
An Act concerning real estate broker-salespersons and salespersons, and amending 1the effective date of1 P.L.2018, c.71.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1[1. Section 3 of P.L.2018, c.71 (C.45:15-3.2) is amended to read as follows:
3. a. No broker-salesperson or salesperson shall commence business activity for a broker and no broker shall authorize a broker-salesperson or salesperson to act on the broker's behalf until a written agreement, as provided in this subsection, has been signed by the broker and broker-salesperson or salesperson. Prior to an individual's commencement of business activity as a broker-salesperson or salesperson under the authority of a broker, the broker and broker-salesperson or salesperson shall both sign a written agreement which recites the terms under which the services of the broker-salesperson or salesperson have been retained by the broker.
b. Notwithstanding any provision of R.S.45:15-1 et seq. or any other law, rule, or regulation to the contrary, a business affiliation between a broker and a broker-salesperson or salesperson may be that of an employment relationship or the provision of services by an independent contractor. The nature of the business affiliation shall be defined in the written agreement required pursuant to subsection a. of this section.
If a current or previously written agreement exists or existed between the broker and the broker-salesperson or salesperson that defines, sets forth, identifies, or provides that the broker-salesperson or salesperson is or at any time has been an independent contractor of the broker, the broker-salesperson or salesperson shall be deemed to be or have been an independent contractor during the period in which the agreement is or was effective and shall not be classified as an employee for any purpose under any law, rule, or regulation for that period of time, except that the broker-salesperson or salesperson shall satisfy the test set forth in R.S.43:21-19(i)(7)(K) in order to be deemed an independent contractor under R.S.43:21-1 et seq. The broker-salesperson or salesperson shall not be required to satisfy any other test for any other law, rule, or regulation, including, but not limited to, the tests set forth at or applied to P.L.1965, c.173 (C.34:11-4.1 et seq.) and P.L.1966, c.113 (C.34:11-56a et seq.) to be deemed an independent contractor as provided in this section for purposes of any other law, rule or regulation.
(cf: P.L.2018, c.71, s.3)]1
11. Section 29 of P.L.2018, c.71 is amended to read as follows:
29. Section 3 of this act shall take effect immediately and [the] shall apply retroactively to enforce but not change any written agreement between a broker-salesperson or salesperson and a broker where the written agreement defines, sets forth, identifies or provides that the broker-salesperson or salesperson is or was an independent contractor. The remainder of this act shall take effect on January 1, 2018, except the New Jersey Real Estate Commission may take any anticipatory administrative action in advance as shall be necessary for the implementation of this act.1
(cf: P.L.2018, c.71, s.29)
2. This act shall take effect immediately and shall 1[apply retroactively to enforce but not change any written agreement between a broker-salesperson or salesperson and a broker where the written agreement defines, sets forth, identifies or provides that the broker-salesperson or salesperson is or was an independent contractor.] be retroactive to August 10, 2018.1