Which statement accurately describes the independent contractor arrangement for a licensee who works flexibly and is paid on production?

Which statement accurately describes the independent contractor arrangement for a licensee who works flexibly and is paid on production?

• A. Are salaried employees
• B. Are paid hourly
• C. Work any number of hours and are paid only on production
• D. Must work a fixed number of hours each week

Answer: (C)

Independent contractor licensees in a real estate brokerage set their own schedule and earn commissions only when they close transactions. Because pay comes from production, there is no guaranteed salary or hourly wage, and hours can vary without a fixed minimum. So the description that fits this arrangement is that they work any number of hours and are paid only on production. In contrast, a salary or hourly pay or a requirement to work a fixed number of hours would indicate employee status rather than independent contractor status.

Independent contractor licensees in a real estate brokerage set their own schedule and earn commissions only when they close transactions. Because pay comes from production, there is no guaranteed salary or hourly wage, and hours can vary without a fixed minimum. So the description that fits this arrangement is that they work any number of hours and are paid only on production. In contrast, a salary or hourly pay or a requirement to work a fixed number of hours would indicate employee status rather than independent contractor status.