Change in NJ Realty Agent Contractor Status Could Upend Industry

The structure of New Jersey’s roughly 60,000-person real estate industry hung in the balance Wednesday as the justices considered whether home selling and buying agents should be classified as employees instead of independent contractors under state law.

The case’s oral argument, which dove into a messy web of statutes and legal tests, could have a huge impact on the industry. The plaintiff is arguing for the opportunity to bring a class action with fellow brokers, even though he signed a contract that classified him as an independent contractor. He says that it was illegal for his boss to deduct marketing ...