CA AB2169

Amends Section 10032 of the Business and Professions Code to clarify that real estate brokers and salespersons may contract as independent contractors or employer-employee, with characterization governed by Unemployment Insurance Code Section 650 and Sections 13000-13054, and Labor Code Section 3200 for workers' compensation purposes.

Adds Section 10032.1 stating that Section 10032 shall not be interpreted to affect a broker's obligation to maintain workers' compensation insurance or the holding in Gipson v. Davis Realty Co. that brokers may be vicariously liable for salesperson tortious acts and that salespersons cannot be classified as independent contractors for third-party tort liability purposes.

Adds Section 10032.2 codifying Section 2 of Chapter 679 of the Statutes of 1991 to reiterate that the characterization of the broker-salesperson relationship as "independent contractor" or "employer-employee" is valid and enforceable when satisfying statutory requirements.

Includes legislative findings that the real estate marketplace is essential to California's economy, nearly 300,000 salespersons rely on the ability to contract as independent contractors, and the bill does not change existing rights and obligations under unemployment insurance or workers' compensation law.

Repeals Section 2 of Chapter 679 of the Statutes of 1991.