How often should an independent contractor agreement ("ICA"), entered into by a real estate brokerage company and a real estate salesperson or associate real estate broker (collectively "Associated Licensees"), be renewed?
The ICA, entered into by a real estate brokerage company and Associated Licensees, should be renewed at least every twelve to fifteen months. Pursuant to §511 of the New York Unemployment Insurance Law, any services performed by Associated Licensees must be performed pursuant to a written contract executed between the Associated Licensees and their real estate brokerage company within the past 12 to 15 months. In order to ensure compliance, we recommended that all ICAs be renewed annually.
In 2016, the New York City Council passed the "Freelance Isn't Free Act" ("FIFA"), which supplements the New York Unemployment Insurance Law and other applicable laws related to ICAs. The purpose of FIFA is to ensure that freelance workers, including most Associated Licensees, receive their fees on time and in the correct amount.
Towards this goal, FIFA requires that an ICA for services worth $800 or more be in writing, with a copy of the ICA provided to each party. Furthermore, FIFA requires that the ICA contain an itemization and valuation of the services to be provided, as well as, the payment date or the mechanism by which the payment date will be determined.
For more information regarding FIFA (including suggested language to be included in the ICA), forms and instructions required for complaints, please click here.