In Texas, who must pay Worker's Compensation for real estate agents?

In Texas, brokers are responsible for providing worker's compensation insurance for their real estate agents. This is because the relationship between the broker and agents is typically classified under a principal-agent relationship, where the broker acts as the principal. Under this structure, the broker assumes the liability and obligations related to worker's compensation coverage for agents who are classified as employees.

Independent contractors, such as many real estate agents in Texas, may often be excluded from standard worker's compensation insurance provisions, but brokers still bear the responsibility for compliance regarding their agents’ coverage if they fall under manager-employee dynamics. Thus, if real estate agents work as employees of a broker, the broker must ensure that they are covered by worker's compensation insurance as mandated by Texas law.