Thanks to Small Business California for this information.
The underground economy is one in which employees are paid on a cash basis thereby eliminated the cost of taxes and workers compensation.
The Labor Enforcement Task Force put out a Fiscal Year 2013-2014 Report about the underground economy in California. Here’s a smattering of results they found.
- Agriculture where 72% of the businesses looked at were out of compliance
- Automotive where 94% were out of compliance
- Beauty Salons where 72% were out of compliance
- Construction where 81% were out of compliance
- Garment where 87% were found out of compliance
- Manufacturing where 71% were found out of compliance
- Restaurant where 75% were found out of compliance.
- Other where 74% were found out of compliance.
The Labor Enforcement Task Force (LETF) welcomes referrals and leads on underground economy activity from both employers and employees. The public can contact LETF by any of the following methods:
LETF Public Hotline: 855 297 5322
LETF Email Address letf@dir.ca.gov
The new LETF Online Referral Form