Defining Real Estate Agents Workers Compensation Requirements

By law each broker is responsible for the acts of any salesperson employed by them.

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.

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 give the right to control the details of the work. Since the broker is responsible for the acts of the salesperson, the employer/employee relationship is established.

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

When to Obtain Coverage?

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.