Texas Labor Code 201.072 – Service as Real Estate Broker
Terms Used In Texas Labor Code 201.072
- Contract: A legal written agreement that becomes binding when signed.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
In this subtitle, “employment” does not include:
(1) service performed by an individual as a real estate broker or salesperson if:
(A) the individual engages in activity described by the definition of ” broker” in Section 1101.002, Occupations Code;
(B) the individual is licensed as a broker or salesperson by the Texas Real Estate Commission;
(C) substantially all remuneration for the service, whether in cash or other form of payment, is directly related to sales or other output, including the performance of the service, and not to the number of hours worked; and
(D) the service is performed under a written contract between the individual and the person for whom the service is performed, and the contract provides that the individual is not treated as an employee with respect to the service for federal tax purposes; or
(2) service performed by an individual as an instructor of a person licensed or seeking a license as a real estate broker or salesperson if:
(A) the individual instructs in an educational program or course approved by the Texas Real Estate Commission; and
(B) the service is performed under a written contract between the individual and the person for whom the service is performed and the contract provides that the individual is not treated as an employee with respect to the service for federal tax purposes.