Final answer:
Upon termination of a licensee, a real estate broker must return the licensee's license to the state's real estate licensing authority and follow state-specific procedures to document the termination.
Step-by-step explanation:
When a real estate broker like Joe terminates the employment of a licensee like Eduardo, the broker is typically required to notify the real estate licensing authority of the state in which they operate. This process usually entails the broker returning the licensee’s license to the issuing authority and informing them of the termination. Depending on the state, there might also be forms or an online process to officially document the termination of the affiliation between the broker and the licensee. The exact process can vary by state, so it is important for the broker to comply with the specific regulations and procedures of their state’s real estate commission or licensing board.