2024 IL App (3d) 220405

Broker plaintiffs filed suit against the defendant, their prior brokerage, alleging breach of contract and a violation of the Wage Act in relation to compensation due after they had left the brokerage. The appellate court reviewed the office policy and the independent contractor agreements in place between the parties, along with relevant case law, and found that plaintiffs earned their compensation during the term of the independent contractor agreement when a viable real estate contract was executed. The breach of contract claim was remanded back to the trial court to settle the amount of damages. The appellate court also took issue with the circuit court holding that the Wage Act did not apply to the parties. Accordingly, the matter was also remanded back to the trial court for proceedings related to the plaintiff’s Wage Act claim.

Takeaways:

Review and draft independent contractor/employee agreements and office policies to remove ambiguities as to when a licensee is entitled to receive compensation, especially in the event of a separation between the sponsoring broker and sponsored licensee.