225 ILCS 454/10-20

    (225 ILCS 454/10-20)
    (Text of Section before amendment by P.A. 103-1039)
    (Section scheduled to be repealed on January 1, 2030)
    Sec. 10-20. Sponsoring broker; employment agreement.

(a) A licensee may perform activities as a licensee only for his or her
sponsoring broker.  A
licensee must have only one sponsoring broker at any one time.

(b) Every broker who employs licensees or has an independent contractor
relationship with a
licensee shall have a written employment or independent contractor agreement with each such licensee.
The
broker having
this written employment or independent contractor agreement with the licensee must be that licensee's
sponsoring broker.

(c) Every sponsoring broker must have a written employment or independent contractor agreement with
each licensee the
broker sponsors.  The agreement shall address the employment or independent
contractor
relationship terms, including without limitation supervision,
duties, compensation, and
termination process.

(d) (Blank).

(e) Notwithstanding the fact that a sponsoring broker has an employment or independent contractor
agreement with a
licensee, a sponsoring broker may pay compensation directly to a business entity
solely owned by that
licensee that has been formed for the purpose of receiving compensation earned
by the licensee.
A business entity that receives compensation from a sponsoring broker as provided for in this subsection (e) shall
not be required to be
licensed under this Act and must either be owned solely by the licensee or by the licensee together with the licensee's spouse, but only if the spouse and licensee are both licensed and sponsored by the same sponsoring broker or the spouse is not also licensed.

(Source: P.A. 100-831, eff. 1-1-19; 101-357, eff. 8-9-19.)

    (Text of Section after amendment by P.A. 103-1039)
    (Section scheduled to be repealed on January 1, 2030)
    Sec. 10-20. Sponsoring broker; employment agreement.

(a) A licensee may perform activities as a licensee only for the licensee's sponsoring broker. A licensee must have only one sponsoring broker at any one time.

(b) Every broker who employs licensees or has an independent contractor relationship with a licensee shall have a written employment or independent contractor agreement with each such licensee. The broker having this written employment or independent contractor agreement with the licensee must be that licensee's sponsoring broker.

(c) Every sponsoring broker must have a written employment or independent contractor agreement with each licensee the broker sponsors. The agreement shall address the employment or independent contractor relationship terms, including without limitation supervision, duties, compensation, and termination process.

(d) (Blank).

(d-5) If a written agreement provides for an independent contractor relationship that clearly states and establishes that relationship, the specific provisions of this Act shall control for licensee's conduct of brokerage activities.

(e) Notwithstanding the fact that a sponsoring broker has an employment or independent contractor agreement with a licensee, a sponsoring broker may pay compensation directly to a business entity solely owned by that licensee that has been formed for the purpose of receiving compensation earned by the licensee. A business entity that receives compensation from a sponsoring broker as provided for in this subsection (e) shall not be required to be licensed under this Act and must either be owned solely by the licensee or by the licensee together with the licensee's spouse, but only if the spouse and licensee are both licensed and sponsored by the same sponsoring broker or the spouse is not also licensed.

(Source: P.A. 103-1039, eff. 1-1-25.)