Modest Job and Earnings Growth, a CA Law Protects Freelancers, and Hurricane Funds

Hey everybody, it's Gene Marks, and welcome to another episode of the Paychex THRIVE Week in Review podcast. This is where we take some news from the week and see how it impacts your small business and mine. So, let's get right to it, shall we? 

The first bit of news comes from Paychex itself. It's Paychex Small Business Employment Watch that the company – our company – publishes every month. And for September, some of the results are in about jobs and the jobs themselves – modest growth. Anything over 100 is pretty good so far and the average this year has been slightly over 100, although in September it was 99.84. It's right at that area where Paychex says it's modest employment growth. 

Now, hourly earnings for workers rose 3.01% in September, while the three-month annualized hourly earnings growth has remained below 3% for the past five months.

Paychex president and CEO had this to say, “Our monthly jobs and wage data offers a pulse on the small business labor market and often indicates broader labor market trends. We've seen employment growth fluctuate less than half a percentage point in the last three months amid uncertain external forces, such as the upcoming election and the potential for additional rate cuts.”

So, the takeaway in this employment growth story is that employment growth has been moderate and, also, wage gains of 3% have also been somewhat moderate, as well, particularly for hourly workers. So, that's the news from Paychex this month.

Let's move to California now, where California Gov. Newsom signed into law a freelance worker bill. Let me give you the details of what it is. It has for – it provides certain protections for freelancers. There are mandatory contracts. Any freelancers performing over $250 for a hiring entity over a four-month period is entitled to a contract outlining the scope of the work expected, the rate of pay, and the method of payment. 

Number two, the law requires 30-day payment terms. Clients must pay their freelancers within 30 days of completion for work unless otherwise specified in the contract. Number three, there are payment agreement protections, as well. Clients cannot require that freelancers accept less than the contract stipulates in exchange for faster payment. And finally, there is anti-retaliation provisions. Clients cannot retaliate against freelancers for pursuing payments.

So, just bear in mind there are some pretty specific provisions here to protect freelancers in California, mainly making sure that they have written contracts and they get paid within 30 days. I kind of like it. I kind of wish there were these same contracts for my small business because I would love a law stipulating that my clients can pay me or must pay me within 30 days. But if that helps freelancers, good for them. Seems like a pretty good law. 

If you're a freelancer in the state of California, you should be aware of that law so that you can talk to whoever's doing business with you. And if you're a company that's hiring freelancers – that's like 1099 workers, independent contractors – you need to make sure about this law in California, particularly if you're in California or even if you're using people in California. You want to talk to an attorney and see if you are, need to comply with that law? And if you do, you want to make sure that you comply.

Okay, the last item of news for this week has to do with Hurricane Helene. Hurricane Helene has really bared down last week on a lot of states, particularly in the South, and caused lots of damage. This report comes from Script. President Joe Biden announced that the government will cover 100% of hurricane and cleanup costs for the next several months to pay for the urgent work to clear the mud, remove downed trees, and provide temporary housing.

In addition, the Hurricane Helene has now opened up some federal aid for small businesses, as well. If you are in a state that was struck by Hurricane Helene and you are a part of that disaster area, you can now go to the Small Business Administration to get federal aid. 

There is also aid available for you from FEMA, as well. Federal emergency contact officials, though, have contended that there are not enough funds potentially to provide for all of this disaster assistance. Obviously, Congress is going to have to take some action. 

But if you're a small business and you have been impacted by this hurricane, you want to make sure that you talk to your insurance agent. You want to look for any state funds that are available for you, and for sure, you want to go to the Small Business Administration at sba.gov and to FEMA itself and apply for an emergency assisted funds that you can get, as well as very low interest loans that you can get to help you with your business.

My name is Gene Marks, and you have been watching and or listening to the Paychex THRIVE Week in Review podcast. If you'd like any advice or tips or help running your business, please sign up for our newsletter. Go to paychex.com/thrive. 

We'll be back to you next week with a few items in the news that impact your business. Until then, we'll see you.

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