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Worker's Compensation and Real Estage Agents

The Wisconsin Statutes relating to the practice of real estate, defines a real estate salesperson as "any person other than a broker who is employed by a broker to perform any act authorized by Chapter 452 to be performed by a broker." (s. 452.01(7), Wis. Stats.)

The statutes further provide that "each broker is responsible for the acts of any brokers, salesperson or time-share salesperson employed by the broker." (s.452.12(3), Wis. Stats.)

All licensed real estate salespersons are required to work for a licensed broker. The broker/employer is required to:

  • Supervise its salespersons and brokers;
  • Provide operating procedures for all documents relating to transactions; and
  • Be responsible for the preparation, custody, safety and corrections of entries to control the documents.

These requirements demonstrate the right to control the details of the work, the key test of an employment relationship. Since the broker is responsible for the acts of the salesperson, the employer/employee relationship is clearly established.

Therefore, real estate salespersons licensed to work for licensed brokers are employees of the broker under the Wisconsin Worker's Compensation Act.

Determination Criteria

An employer becomes subject to the Wisconsin Worker's Compensation Act under s. 102.04(1) of the Wisconsin Statutes and must carry a worker's compensation insurance policy when they:

  1. Employ three or more full-time or part-time employees. This employer must get insurance on the day they employ the third person.
  2. Employ one or more full-time or part-time employees and has paid gross combined wages of $500 or more in any calendar quarter for work done in Wisconsin. This employer must have insurance by the tenth day of the first month of the next calendar quarter.

Related Publication

Real Estate Salespersons and Worker's Compensation in Wisconsin ( Printable PDF)