3/14/2007 Press Release - Ruling Opens Door for Contractor Lawsuits in Real Estate Industry

FOR IMMEDIATE RELEASE
March 14, 2007

Ruling Opens Door for Contractor Lawsuits in Real Estate Industry

Human Resource and Real Estate Expert Offers Tips for Compliance

Encino, CA, March 14, 2007 – West coast real estate brokerages got a directive from the 9th Circuit Court recently. In Swift v. Realty Executives Nevada’s Choice, the 9th Circuit Court of Appeals affirmed that a real estate salesperson – considered an independent contractor - qualified as an employee of a real estate brokerage because it controlled critical aspects of her work. This opened the door for the plaintiff to then bring a sexual harassment lawsuit against the brokerage. Realty Executives Nevada’s Choice has asked the Court for an en banc hearing. If the ruling stands, experts assert the ruling has major implications for brokerages nationwide.

“Brokers must be cognizant of employment laws and regulations. This case dealt specifically with a Title VII Sexual Harassment claim, but the Court found for this purpose that the independent contractor was equivalent to an employee,” states Michael Trust of Michael Trust & Associates. The human resource consultant’s experience as a real estate broker affords him a unique perspective on real estate employment law.

Employment law typically encompasses disability discrimination, potential wage and hour claims, harassment claims, marital, familial, sexual orientation, protected or perceived statuses, potential benefits, Injury & Illness Prevention Plans, and tax withholding amongst other items.

Trust warns that brokers covered by the 9th Circuit ruling (nine western states and two western Trust Territories) may find themselves on the other end of a creative legal argument for back wages, benefits, and harassment. The trend may prove costly, especially to real estate brokers without Employment Practices Liability Insurance – analogous to a real estate E&O policy. Trust urges brokers to consult with experienced human resources professionals, employment counsel or both to help them come into compliance. “Even if this case is overturned, having good policies and procedures in place is never a bad thing. They can be applied to independent contractors without making them employees if done correctly.”

About Michael Trust
Michael Trust helms California-based human resource consulting firm, Michael Trust & Associates and the successful real estate brokerage Michael Trust Realty. With over 15 years of prior corporate human resources management experience in Fortune 500 type organizations, a national senior level human resources certification, and experience teaching at the collegiate level, he brings a broader perspective to his clients. His participation in respected local and national organizations affords him unsurpassed insight into an ever-changing marketplace. This release is not an offer of legal advice.

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Contact:
Dawn S. Smith
Michael Trust & Associates
(404) 460-7852
press@michaeltrustassociates.com
www.michaeltrustassociates.com

Independent Contractor New Ruling Equivalent to Being an Employee

Given the recent 9th Circuit ruling in Swift v. Realty Executives Nevada’s Choice, Brokers must now be more cognizant of employment laws and regulations. While this case dealt specifically with a Title VII Sexual Harassment claim, the Court found for this purpose that the independent contractor was in fact the equivalent to an employee. Employees are subject to all employment laws. In California, such laws would include disability discrimination, potential wage and hour claims, harassment claims, marital, familial, sexual orientation, and other "protected statuses or 'perceived statuses'", Injury and Illness Prevention Plans (because CA law already requires brokers to treat salespeople as employees for the purpose of workers' compensation, this may be done already), potential benefits, tax withholding, etc. Brokers covered by this ruling (the jurisdiction of the 9th Circuit - generally, 9 western states and two western Trust Territories) may find themselves on the other end of a creative legal argument for back wages, benefits, harassment, etc. by attorneys who use this case to argue other types of issues are analogous to this issue and thus that in those cases, these salespeople and/or broker-associates are really employees. It can become quite costly, especially because many real estate brokers probably do not have Employment Practices Liability Insurance - the equivalent to a real estate E&O policy. Thus, brokers should consult with experienced human resources professionals, if they have not already done so, to help them come into compliance. Even if this case is overturned (there is a re-hearing pending), having good policies and procedures in place is never a bad thing - polices and procedures can be applied to independent contractors without making them employees if done correctly.

Michael Trust is a California based real estate broker, Realtor®, and owner of Michael Trust Realty, www.MichaelTrustRealty.com in addition to being the President of Michael Trust & Associates, a Human Resources Consulting Firm, www.MichaelTrustAssociates.com . Mr. Trust can be reached at info@MichaelTrustRealty.com or MichaelTrust@MichaelTrustAssociates.com.

Take to the Skies in Van Nuys

When Isaac Van Nuys built the first wood frame house in the San Fernando Valley back in 1872, he could not have imagined that his name would be synonymous with a bustling population area. Where he saw wheat fields and pasture land, now there are some 150,000 people and all the features of a 21st century San Fernando Valley town. Plus, of course, one of the busiest airports in the world.

Industry has long been important to Van Nuys. Once the home of a major manufacturing facility for Chevrolet, Van Nuys now hosts an Anheuser-Busch Brewery, Home Depot, and other large employers. The town is also the location of the San Fernando Valley Administration Center which provides municipal, county, state, and federal government services for the Valley population.

For almost a 80 years, the Van Nuys Airport (VNY) has been a center of activity in the town. From a small field in the 1920's it has grown to be the world's busiest general aviation airport. No commercial flights come here, yet private and chartered aircraft flights account for nearly a half million takeoffs and landings a year.
In the early days, Van Nuys Airport served barnstormers and intrepid airmen – and women – who sought flying records. They included:

• A men’s solo endurance record of 37 hours, by Herbert Fahy, in 1929.
• A women’s endurance record of 42 hours, by Elinor Smith and Bobbi Trout, in 1929.
• A women’s speed record of 196 mph, by Florence “Pancho” Barnes, in 1930.

Just about 20 miles north of the Los Angeles Airport (LAX), the airport was a favorite of several Hollywood stars. Gene Autry, Cecil B. DeMille, and Howard Hughes were among the celebrities who flew here. The airport has become increasingly popular as it offers both convenience and a measure of anonymity for celebrities and politicians. And for those who need to fly out of LAX, the Flyaway Bus Service offers non-stop service between VNY and LAX.

Van Nuys Airport has a film-friendly policy that aims to keep film production at "home" in Lost Angeles. From Casablanca to the TV show 24, the airport has been part of many films and TV shows over the years. The 1980's action-espionage series Airwolf used the VNY hangars as the site of "Santini Air," the charter air service operated by Dominic Santini and played by Ernest Borgnine. Even during the war years of the 1940's when the airport was a defense-manufacturing center, the entertainment industry discovered a young woman there on an aircraft assembly line. Her name would be Marilyn Monroe.

The airport is not only about movies and takeoffs and landings; the 730 acres of VNY are home to 100 businesses plus a 27-hole golf course. Los Angeles police, fire, and water and power helicopters have hangars and maintenance facilities here. The Los Angeles schools have an aviation mechanics school where future airframe and power plant mechanics get their training.

A 1960's guided tour program opened the doors of the airport to the local community for a journey through aviation past and present. VNY continues to offer tours today, giving about 10,000 adults and children a close-up look at the airport each year. And for those who can't get enough of airplanes, a public observation area adjacent to the east side of the airfield features permanent displays, special children’s exhibits and a continuous live broadcast of air traffic controllers in the airport’s control tower.

We hope you've enjoyed this stop on our continuing San Fernando Valley tour. Happy landings!

From Mission to Movie History

Today's stop on our San Fernando Valley tour is Tarzana. If you guessed that the town has something to do with The King of the Jungle, you're right! But the history goes back a couple hundred years beyond.

In the late 1700's, what is now Tarzana was part of the San Fernando Mission. Over the next 100-plus years, the land changed hands as cattle ranches and farm land until 1911 when 550 acres were purchased by General Gary Otis, the founder of the Los Angeles Times.

Edgar Rice Burroughs brought his family and his writing here in 1919 when he bought the Otis ranch, built his home on a hill, and called it Tarzana. Before long, a town named Runnymede grew up around and including Tarzana, helped in part by Burroughs' subdividing his land and selling acreage for building lots. By 1927, the 300 or so residents of the town of Runnymede wanted their own post office. Only trouble was, there was already a Runnymede in California. A contest decided it: the town would be called Tarzana in honor of its most famous inhabitant and his heroic man of the jungle.

Today, Tarzana is home to almost 30,000 people, most of who live in the foothills of the Santa Monica Mountains south of Ventura Blvd. According to Wikipedia, Tarzana is a multi-cultural town with many lands and languages represented. It is well known for its Persian (Iranian) restaurants and bookstores, as well as a thriving and long-established Jewish community and the first and only branch of the Hebrew language bookseller Steimatzky constructed outside of Israel. A number of popular delicatessens can be found in Tarzana, including the Tarzana Armenian Grocery and Mort's Deli.

We promised you trivia:
• Edgar Rice Burroughs also wrote "The Girl from Hollywood" which received bad reviews. Burroughs complained: "The critics have panned 'Girl from Hollywood.' They said that no ranch such as I described in the story ever existed. The joke of it was that I merely described my own ranch!"
• According to the Tarzana Chamber of Commerce, Tarzana was the site of the Valley's first swimming pool.
• Wikipedia tells us that notable residents have included comedian Jeremy Hotz, actor Jamie Foxx, actor Chuck Norris, filmmaker John-Erik Jordan, Bon Jovi guitarist Richie Sambora, and frequent Star Trek guest star Hana Hatae (in both TNG and DS9 as Molly O'Brien – Miles' and Keiko's daughter.)
• And do we really need to mention a certain celebrity's recent self-shearing in a Tarzana salon? No, probably not.

Tarzana is just one of the fascinating destinations on our San Fernando Valley tour. Next stop…Woodland Hills.