A Georgia processor is a W-2 employee of one licensee, supervised daily, and also places 4 loans a year for a friend brokerage. Does work for the second brokerage defeat the one-employer processing exemption?
Correct Answer
C) The exemption is lost: an employee must work exclusively for the one
The employee exemption applies only to a natural person employed by just one licensee or exemptee who works exclusively for that person, may not solicit, process or place loans for anyone else while claiming it, is supervised daily, and is not paid as an independent contractor or on a 1099 basis. Other choices: the size of the outside work is not the test; the W-2 at the main job is one criterion of four; and the status of the other brokerage is irrelevant. Source: Ga. Comp. R. & Regs. 80-11-4-.03(2)
Why This Is the Correct Answer
The employee exemption applies only to a natural person employed by just one licensee or exemptee who works exclusively for that person, may not solicit, process or place loans for anyone else while claiming it, is supervised daily, and is not paid as an independent contractor or on a 1099 basis. Other choices: the size of the outside work is not the test; the W-2 at the main job is one criterion of four; and the status of the other brokerage is irrelevant. Source: Ga. Comp. R. & Regs. 80-11-4-.03(2)
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