{"id":26161,"date":"2026-08-10T12:39:29","date_gmt":"2026-08-10T12:39:29","guid":{"rendered":"https:\/\/www.anthonydidonato.net\/wordpress\/?p=26161"},"modified":"2026-08-10T12:39:30","modified_gmt":"2026-08-10T12:39:30","slug":"independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026","status":"publish","type":"post","link":"http:\/\/www.anthonydidonato.net\/wordpress\/independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026\/","title":{"rendered":"Independent Contractor or Employee? What Real Estate Agents Need to Know in 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">If you\u2019re a real estate agent, you probably enjoy the freedom that comes with being an independent contractor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You make your own schedule. You build your own business. You decide how you market yourself, where you spend your time, and how you work with your clients.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That independence is a big part of what makes a real estate career so appealing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But there\u2019s an important question behind all that freedom:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What actually makes a real estate agent an independent contractor?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In 2026, that question is getting plenty of attention.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Being a 1099 Isn&#8217;t the Whole Story<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the easiest assumptions to make is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>&#8220;I&#8217;m paid on a 1099, so I&#8217;m automatically an independent contractor.&#8221;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not quite.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Worker classification can depend on several factors, and different laws can use different tests.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRS has specific rules for licensed real estate agents. In general, agents can qualify as statutory nonemployees for federal tax purposes when substantially all of their compensation is based on sales or other output rather than hours worked, and their written contract says they will not be treated as employees for federal tax purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other words, how you&#8217;re paid and how your relationship is structured both matter.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And that&#8217;s where things get interesting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2026 Brings a New Twist<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. Department of Labor proposed a new rule in February 2026 that would change how worker classification is evaluated under the Fair Labor Standards Act.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed approach focuses heavily on two questions:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How much control does the company have over the worker?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Does the worker have a real opportunity to make a profit or suffer a loss?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other factors can also come into play, including the skills required, how permanent the relationship is and whether the work is part of the company&#8217;s overall operation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As of August 2026, the proposal has <strong>not become a final rule<\/strong>. But it is an important development for real estate professionals to watch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Why?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because independence isn&#8217;t just about what your contract says. It&#8217;s also about how the relationship actually works.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">So, What Does &#8220;Independent&#8221; Really Mean?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Think about your typical real estate agent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You aren&#8217;t waiting for someone to hand you a list of tasks every morning.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;re probably:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Finding your own clients<\/li>\n\n\n\n<li>Building your personal brand<\/li>\n\n\n\n<li>Generating leads<\/li>\n\n\n\n<li>Setting your own appointments<\/li>\n\n\n\n<li>Managing your schedule<\/li>\n\n\n\n<li>Paying for some of your own business expenses<\/li>\n\n\n\n<li>Choosing how to market your business<\/li>\n\n\n\n<li>Investing time and money into growing your business<\/li>\n\n\n\n<li>Earning more when you close more business<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s the entrepreneurial side of real estate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And it&#8217;s an important part of the independent-contractor model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Of course, brokers still have responsibilities. They have to supervise licensed activity, follow state regulations, protect consumers and make sure transactions are handled properly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Supervision is not the same thing as treating every agent like a traditional employee.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s an important distinction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Your Independent Contractor Agreement Matters<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s where the paperwork comes in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A good independent-contractor agreement isn&#8217;t just something you sign during onboarding and forget about.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It should accurately describe the relationship between the brokerage and the agent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That can include things like:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How the agent is compensated<\/li>\n\n\n\n<li>Who pays for business expenses<\/li>\n\n\n\n<li>Marketing responsibilities<\/li>\n\n\n\n<li>Use of office equipment and technology<\/li>\n\n\n\n<li>Insurance responsibilities<\/li>\n\n\n\n<li>Tax responsibilities<\/li>\n\n\n\n<li>The agent&#8217;s ability to operate independently<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">But here&#8217;s the catch:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The contract and reality need to match.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can&#8217;t simply write &#8220;independent contractor&#8221; at the top of an agreement and call it a day.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the day-to-day relationship looks completely different, that could create problems.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A Recent Court Case Offers an Important Reminder<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A case involving Weichert in New Jersey also brought attention to the issue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The case involved the classification of real estate sales associates and whether brokerage agreements could establish their status as independent contractors under New Jersey&#8217;s real estate licensing laws.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The New Jersey Supreme Court ultimately found that the state&#8217;s real estate licensing law allowed brokers to affiliate salespeople as either employees or independent contractors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The takeaway isn&#8217;t that one court case answers every independent-contractor question across the country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It doesn&#8217;t.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bigger lesson is that <strong>state law matters<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What works in one state may not automatically work in another.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s one reason brokers and agents should pay attention to both federal developments and the laws in their own states.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Should Brokers Do in 2026?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This doesn&#8217;t mean brokers need to panic and rewrite everything tomorrow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But it is a good excuse to take a fresh look at how your brokerage operates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ask yourself:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Does our contract reflect how we actually work with agents?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do our compensation practices support the independent-contractor model?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Do agents have meaningful control over their own businesses?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Are our policies necessary for legal and regulatory compliance, or are we creating unnecessary employee-style requirements?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And perhaps most importantly:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Would our paperwork and our everyday practices tell the same story?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer is yes, that&#8217;s a good place to be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer is &#8220;well&#8230;maybe,&#8221; it may be time for a conversation with your attorney.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">And What About Agents?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Agents should understand what being an independent contractor actually means, too.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The freedom is great\u2014but so is the responsibility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You are essentially running a small business.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means thinking about taxes, marketing, insurance, technology, business expenses and the cost of generating your own income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The upside?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You have the opportunity to build something that&#8217;s truly yours.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your income isn&#8217;t necessarily tied to a clock.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your business can grow as your skills, relationships and client base grow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s a pretty powerful trade-off.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Bottom Line for 2026<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Independent-contractor status isn&#8217;t going away\u2014but the rules surrounding it continue to evolve.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Between federal rulemaking, state laws and court decisions, brokers and agents have plenty to keep an eye on.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The good news is that the basic concept of an independent real estate professional remains familiar:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You run your business. You create opportunities. You take on the risks. And you share in the rewards.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key is making sure the legal agreement, compensation structure and day-to-day relationship all support that model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, if you&#8217;re a broker, this is a good year to review your agreements and policies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re an agent, it&#8217;s a good year to understand exactly what your independent-contractor agreement means.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And if you&#8217;re not sure?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don&#8217;t guess. Talk to a qualified attorney or tax professional who understands real estate and the laws in your state.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because in real estate, it&#8217;s always better to catch a problem <strong>before<\/strong> it becomes a transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This article is for general informational purposes only and is not legal, tax or employment advice. Independent-contractor rules vary by state and may change as federal and state laws and regulations develop. Consult qualified professionals about your specific situation.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source:<\/strong> REALTOR\u00ae Magazine<br \/>\u201c<a href=\"https:\/\/www.nar.realtor\/news\/real-estate-news\/law-and-ethics\"><\/a>A Win in the Fight for IC Status\u201d<br \/>National Association of REALTORS\u00ae<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re a real estate agent, you probably enjoy the freedom that comes with being an independent contractor. You make your own schedule. You build your own business. You decide how you market yourself, where you spend your time, and how you work with your clients. That independence is a big part of what makes &hellip; <\/p>\n<p><a class=\"more-link btn\" href=\"http:\/\/www.anthonydidonato.net\/wordpress\/independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,8],"tags":[5,32,4,9],"class_list":["post-26161","post","type-post","status-publish","format-standard","hentry","category-news","category-real-estate-tips","tag-anthony-didonato","tag-news","tag-real-estate","tag-tips","item-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Independent Contractor or Employee? What Real Estate Agents Need to Know in 2026 - Real Estate Agent and Sales in PA - Anthony DiDonato Broomall, Media, Delaware County and surrounding areas in Pennsylvania<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.anthonydidonato.net\/wordpress\/independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/independent-contractor-or-employee-what-real-estate-agents-need-to-know-in-2026\\\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/www.anthonydidonato.net\\\/wordpress\\\/#\\\/schema\\\/person\\\/964792b6994e8cc4cbddc36ad4824908\"},\"headline\":\"Independent Contractor or Employee? 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Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that \u201cperfect\u201d property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently. When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting \u2013 or exceeding \u2013 his clients\u2019 expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame. 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Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both. Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary. Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that \u201cperfect\u201d property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently. When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting \u2013 or exceeding \u2013 his clients\u2019 expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame. For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania\u2026 call Anthony DiDonato.","sameAs":["http:\/\/www.anthonydidonato.net"],"url":"http:\/\/www.anthonydidonato.net\/wordpress\/author\/admin\/"}]}},"_links":{"self":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts\/26161","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/comments?post=26161"}],"version-history":[{"count":1,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts\/26161\/revisions"}],"predecessor-version":[{"id":26162,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/posts\/26161\/revisions\/26162"}],"wp:attachment":[{"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/media?parent=26161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/categories?post=26161"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.anthonydidonato.net\/wordpress\/wp-json\/wp\/v2\/tags?post=26161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}