A major win for the right of real estate licensees to be independent contractors was solidified today. The California Supreme Court refused to review Whitlach v. Premier Valley, the favorable California Court of Appeals published opinion allowing brokers and agents to choose to be independent contractors. Further, it dismissed the attempt of the plaintiff to file a class action.
Plaintiff James Whitlach filed a class action and Private Attorney General Act (“PAGA”) claim against Premier Valley, Inc. (dba Century 21 MM) and Century 21 Real Estate LLC, alleging several violations of the California Labor Code. Whitlach claimed he was an “employee” for purposes of the Labor Code’s wage and hour provisions. He alleged Century 21 had failed to pay minimum wages, failed to provide required meal breaks, owed him reimbursements for necessary business expenses, and the defendants were liable for other Labor Code violations. After the trial court ruled in favor of the Century 21 defendants, Whitlach appealed. The Court of Appeal affirmed the trial court’s decision, upholding a real estate professional’s choice to be an independent contractor. The California Supreme Court denied the attempt to get it reviewed.
This case will provide valuable direction and assistance to future judges and litigants, as well as potential arbitration or mediation participants. Moreover, it may provide explanation and guidance for thousands of real estate licensees throughout California.