Under state law, what is generally required regarding written employment or independent contractor agreements between a broker and affiliated salespeople?

BROKER-SALESPERSON AGREEMENTS: Many states require or strongly recommend a WRITTEN AGREEMENT between the broker and each affiliated salesperson. CONTENTS typically address: the RELATIONSHIP type — EMPLOYEE or INDEPENDENT CONTRACTOR (most agents are independent contractors); COMPENSATION (commission splits, fees); DUTIES and responsibilities; SUPERVISION; term and termination; handling of pending transactions/commissions upon departure; INDEPENDENT CONTRACTOR (IC) STATUS: For tax/IRS purposes, agents are often ICs (paid by commission/production, not hourly; substantial control over their work); proper IC classification requires meeting specific criteria (written IC agreement, compensation based on output not hours, a real estate license); misclassification creates tax/legal liability; SUPERVISION: Even as ICs, salespeople must be SUPERVISED by the broker for license law compliance (IC status for tax purposes doesn't eliminate the broker's supervisory duty); CLARITY: A written agreement clarifies rights, obligations, and expectations, preventing disputes; STATE-SPECIFIC: Requirements vary; the use and importance of written broker-salesperson agreements (defining the relationship, compensation, and IC vs employee status, while preserving the broker's supervisory duty) is broker-level office-management content tested on the state exam.