If a broker had to pay miminum wage (or any salary) for their agents, they would not. 

Most would get fired.

Sounds good to me...

Eve

If there is going to be dollars coming out of a broker's pocket to pay salaries then there will be dollars reduced from paychecks for all sorts of new fees that the broker will need to charge to makeup for the loss. A steady salary sounds great but at what cost? I think I'd be better off if they just left it the way it is. 

I don't pay much attention to California happenings... it's lala land as far as I'm concerned. I have no issues with being a commission based professional... helps weed out the wheat from the chaff.

2nd Q on this today. I say nonsense to it all.

Californian has poor air quality which affects their thinking. Many of the 100% concepts are likely safe. Those that require floor time are on shakier gound but it will be a long time before it is challenged in most places.

These are interesting and ever-changing times. 

I doubt it but if it did maybe Brokers would finally be more selective about who they hire.... and release most of those they have now.

I'll be retired before this is even considered in North Carolina - we may as well be in a different country altogether! CA operates totally different than we do here on the east coast!

I think we pass all 3 tests, so we will remain commission.  We basically run our own businesses.  I think members of a team, who require certain number of hours in the office, or at specific open houses may need to prove autonomy, but for regular, awesome agents, like me, commission is perfect. :) 

We are and will continue to meet the A B C test. No minimum wage will apply.

Note: in California, when we think ABC we think Alcoholic Beverage Control...another government agency...in charge of issuing liquor licenses and enforcing the law re: minimum drinking age (21 in Ca.) among other things.

Maybe NAR will stop this...ha..

If this became law, it would change the industry entirely. But this would have to go through the courts and I am sure it would be challenged.

   Very few brokers, if any, are going to pay a salary to their salespeople.  

not likely.... I'd be shocked....

This may be a good way to eliminate the surplus of several hundred thousand agents. Brokers will not be willing to pay them.

Interesting.  I enjoy my independence. 

Leave it to California once again. I think most agents would get fired. Which may not be a bad thing. I actualy had to go through this test with the state of NH, a story i will share one day. It includes no mandatory hours, no mandatory floor time or no work outside of them taking care of their own clients. Selling real estate is a choice, it is a career decision where your choice of where you work will affect your ability to suceed.

I think a lot of non-producing agents will be fired.

Govt always trying to destroy businesses, this one would backfire on them.

It will certainly prune the ranks of the profession, commissions will go up, Z will go broke, and consumers will suffer.

Not likely to happen.

I don't put much stock in what goes on in California. Most things are out of control there. 

HOMEiZ.COM HOMEiZGROUP an interesting decision.

I am with Lyn Sims .

California Dreamin'

It seems that a similar event took place with mortgage brokers. I believe the result was a tremendous cut in work force.

It they went to the minimum wage, then a broker would have to have agents that produced enough to cover that wage. Since the majority of agents don't produce, they would have to go.

It would work for the producing agents.

Sounds to me like the redfin business model.  Agents there are employees with company provided phones, equipment, set hours, salaries and bonuses for "client happiness". 

I concur with the others here that say if brokerages had to become regular businesses and actually employ agents, there would be a massive shift and many agents would be homeless overnight.

If that happens I can see brokers starting to charge more for everything and be selective on their agents. 

I heard an ad here recently advertising that agents were salaried employees, and that broker only charged $1000.00 listing fee.

I don't see how this would work in all honesty.   Yes if this happened you would have to be selective as to who you hire and train them well.  

I'd be surprised.

I am thinking the country as a whole is learning that Cali-world is not the model to be followed in business, government, or legal rulings.

Not likely. 

Why would this stupid ruling apply to other states?

Had not heard of that before. Interesting. 

Thank you.

HOMEiZ.COM HOMEiZGROUP - the difference between independent contractor and employee - the agents are supposed to be IC!

It may be the end of the part time agent that does just 2-3 deals a year.

It may limit new agents wanting to get into business. The best example was Zip realty or Redfin. The technology also will control how people will need realtors or not. 

If a law passes those eligible for medicare should not engage in a profession like real estate, there will be few if any realtors left.

Too much regulation like too many chefs....spoil the broth

Never Happen

We have brokerages and lenders paying wages versus commission here in Denver.

That would be fantastic ---- then we could have even more low paid employees in the industry offering substandard service under the guise of a 'discount'.  

Consumers would suffer, the deal or 2 a year these leeches will close will take business away from real professionals, but HEY!  Who cares, as long as we continue to give handouts to those who can't make it on their own, let's do it!

***having a very snarky kind of day here