ZipRealty converting California agents to contractors
Written on July 3, 2010
ZipRealty will turn all its California-based agents into independent contractors on Sept. 1.
The move by the nation’s fifth-largest real estate brokerage based on transaction volume is another sign of the dramatic steps companies are taking to shed the costly burden of employees and the taxes, health care and other expenses that come with them.
ZipRealty’s decision could also make the brokerage more competitive in an industry in which about 80 percent of agents nationwide are independent contractors.
“Over the past ten years, ZipRealty has succeeded by capitalizing on new technologies and evolving to take advantage of changing market conditions. Our move today to the independent contractor model in California is another bold step forward, and one that we believe will build on our strengths within ZipRealty’s largest market area.” said Patrick Lashinsky, president and CEO of Emeryville-based ZipRealty . (NASDAQ: ZIPR)
“ZipRealty’s independent contractor agents will be free to develop their own work styles and will have access to an expanding array of compensation alternatives,” he added. “From a financial standpoint, this shift is expected to provide greater opportunity for our agents, while also improving ZipRealty’s ability to drive growth and innovation long term.”
The conversion means ZipRealty, with about 900 agents in California, will no longer offer medical, dental or 401(k) benefits to the former employees.
ZipRealty operates in 35 major markets in 22 states and the District of Columbia.
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