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I think it's BS. I would be willing to bet think they were run out rather than went out due to bad business, but I don't think this article is telling the whole story.
I think it's BS. I would be willing to bet think they were run out rather than went out due to bad business, but I don't think this article is telling the whole story.
Truthfully, I wish I knew more about this story and maybe should have before saying something. I'm just not ready to believe that those agents are owed anything based on what I'm reading in that article.
Truthfully, I wish I knew more about this story and maybe should have before saying something. I'm just not ready to believe that those agents are owed anything based on what I'm reading in that article.
Than you are unfamiliar with CA labor law. That is why in virtually everywhere in the west agents are independent contractors. And note that a brokerage can lose that battle if they try and maintain too tight a hold on agents. ie - at your desk at specified times.
I am more surprised they tried the outside salesman bit. That obviously was not the way they were organized. Soon as you team anything you are going to lose that discussion.
Than you are unfamiliar with CA labor law. That is why in virtually everywhere in the west agents are independent contractors. And note that a brokerage can lose that battle if they try and maintain too tight a hold on agents. ie - at your desk at specified times.
I am more surprised they tried the outside salesman bit. That obviously was not the way they were organized. Soon as you team anything you are going to lose that discussion.
I don't see how that is proof that discount agencies should all fail...its just proof that this particular agency was trying unsuccessfully to get around paying labor taxes...it has absolutely nothing to do with the business model of a discount broker.
Sure it does. It says that a model predicated on salaried employees doing the work efficiently failed to pan out well enough to avoid the CA labor laws. If the employees had all been making out reasonably well with the model it would not have been possible to go after the brokerage for wages. And the article further indicates that the brokerage is basically abandoning the model for one as a referral supplier. You certainly would not do that if the model worked and you could produce the product at a lesser cost do to efficient use of resources.
Sure it does. It says that a model predicated on salaried employees doing the work efficiently failed to pan out well enough to avoid the CA labor laws. If the employees had all been making out reasonably well with the model it would not have been possible to go after the brokerage for wages. And the article further indicates that the brokerage is basically abandoning the model for one as a referral supplier. You certainly would not do that if the model worked and you could produce the product at a lesser cost do to efficient use of resources.
"No Free Lunch"
People change business models all the time to minimize tax implications....some of the schemes work, some dont. This is not indicative of a failed business model, rather its indicative of a failed tax model.
In law school I read case after case after case of businesses who found themselves in hot water of tax issues....Just right now Olive Garden (which I would not consider unsuccesful) is changing its policy to include tip sharing for buss boys and cooks so that they don't have to pay them the minimum wage and so that their earning are exempt from certain taxes....
Its a change in business model that could have them end up in court if the tips don't equal minimum wage....and if they dont pay it back.
I understand your argument but I don't share your conclusion that the model did not work. It just meant that the way they applied their tax scheme did not work with the government.
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