State law compliance delayed and real estate sales agent’s non-employee status confirmed

Two recent events may have an impact on REALTORS® and their options and obligations under the Patient Protection and Affordable Care Act (ACA) and its implementation under California laws governing health insurance.

First, the Treasury Department has issued regulations clarifying that real estate sales agents are not treated as employees for purposes of the ACA.  Accordingly many, if not most, real estate brokerage offices may never reach the number of employees to trigger employer obligations under the ACA.

Second, Governor Brown has recently signed SB 1446 delaying certain provisions in California’s implementation of the ACA.  The bill allows small employers (50 or fewer employees) to continue to offer their current health plans to employees through December 31, 2015, essentially conforming state law to the federal extension of ACA until January 1, 2016, for small employers to comply.

Because real estate sales agents will not be counted as employees for ACA, the extension for employer compliance may be a nonissue for most REALTORS®.  Nonetheless, REALTORS®
are reminded that their membership allows them access to several health plan options as members of the CALIFORNIA ASSOCIATION OF REALTORS®.

Review your options for individual and group plans on C.A.R.’s Member Resources page http://www.realcarecar.com/medical/.