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Employment Development Department
Employment Development Department

Press Room

As our agencies work together to combat underground economic activity in California, we will provide Web page links when articles are published or news stories are released.

Articles and Reports on the Underground Economy

The underground economy presents a major problem for businesses and workers alike. Businesses properly complying with the various laws and regulations face higher operating costs than those who cut corners on taxes, labor, wage and safety laws, and licensing and insurance requirements. Workers who elect to become employed with these underground businesses suffer greatly. They do not receive benefits such as Unemployment Insurance or Disability Insurance. Their income is not reported and thus they and their families will not have the Social Security credits to which they are entitled.

Below are some published reports that provide detailed information on the underground economy and how it affects everyone.