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Hi attorney Steve fondren business and real estate lawyer license to practice law in California and Arizona we're back on the attorney Steve white board today's topic real estate independent contractors independent contractors and a couple of the lawsuits that are out there now in California pending on this issue of independent contractors versus employees now you have to be very careful here when you're starting a brokerage and you're trying to get your business up and running or an existing brokerage you know employees have whenever you have an employee one of the downsides of having an employee's is it starts triggering all these state and federal employment laws right so in real estate you try to have your agents and other brokers that you work with your employ your your processors your your your transactional coordinators people that you work with you want them to be independent contractors right so as you know as a broker you have a duty to have an independent contractor agreement with all of your employees so our firm helps draft these independent contractor agreements and we try to take into account you have to understand the elements of independent contractor versus employee there's two cases that recently came out in los angeles superior court and in california beres irani versus Caldwell and ivan F cruz vs redfin these are two cases that we are going to be updating you on you want to make sure you bookmark us bookmark us by clicking on the red V on this video bookmark us so you can come back and watch these videos and get on our list so when I'm briefing these cases you'll get them live to your inbox broker knowledge knowledge is power okay so these two cases dealt with misclassifying an independent contractor as excuse me misclassifying an employee as an independent contractor and so there's a challenge being made not to say that the case is resolved but there's a challenge of being made saying wait a second you're treating that as an independent contractor in reality how you're really practicing here the day-to-day business of the brokerage is you're treating them as an employee now your state and federal laws kick in wages hours overtime all that now you've got a big mess literally a big mess on your hands and I believe this Caldwell was a class action case so bookmark us we're going to keep you posted on this I'm going to give you a couple general tips this is by no means legal advice why because this is a very tricky area of the law if you need legal advice on this issue to get your independent contractors agreements created give us a call we can walk you through some more detailed responses but these are general the things that the courts are going to look at is your independent contractor what is it you're a contractor agreement what does it say who's doing what.