According to the New Jersey Real Estate License Law, employment agreements between salesperson and brokers MUST include which of the following provisions?

In New Jersey, the Real Estate License Law requires that employment agreements between salespersons and brokers include a clause confirming the salesperson's status as an independent contractor. This clause is essential because it establishes the nature of the relationship between the salesperson and the broker, determining the legal implications for both parties regarding taxes, responsibilities, and the manner in which commissions are handled.

Salespersons who work as independent contractors are not subject to the same employment taxes and benefits that an employee would be, allowing them more freedom in terms of how they operate their real estate business. This status also affects how income is reported and taxed, emphasizing the importance of clearly defining this relationship in the employment agreement.

Including this clause helps to protect both the broker and the salesperson by ensuring that both parties have a mutual understanding of the nature of their working relationship, which is crucial for legal and operational clarity in the real estate industry.