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.
- The EDD actively prosecutes fraud and has created a web page which lists the most recent convictions for fraud
- CSLB Catches Felons, Other Known Criminals in Series of Statewide Undercover Sting Operations (California Department of Consumer Affiars, Press Release July 1, 2015)
- Federal court orders Forever 21 to surrender supply chain information subpoenaed by US Department of Labor (United States Department of Labor – Wage and Hour Division, News Release March 14, 2013)
- US Labor Department seeks enforcement of subpoena issued to Forever 21 (United States Department of Labor – Wage and Hour Division, News Release October 25, 2012)
- Wildomar Man Convicted in $3.1 Million Workers’ Compensation Fraud Case (Riverside County District Attorney, News Release September 21, 2012)
- Insurance Commissioner Dave Jones Announces Statewide Joint Enforcement Strike Force Operation (California Department of Insurance, Press Release July 9, 2012)
- Business owner charged with 57 underground economy violations (California Department of Insurance, Press Release January 27, 2012)
- San Jose Undercover Operation Turns up a Dozen Unlicensed, Uninsured Operators Contracting for Home Improvement Projects (California Department of Consumer Affairs, Press Release November, 22, 2011)
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.
- Economic Roundtable: “Hopeful Workers, Marginal Jobs: LA’s Off-The-Books Labor Force”
- Efforts to Address California’s Tax Gap
- Frequently Asked Questions About the Tax Gap
- Tax Gap Plan: A Strategic Approach To Reducing California’s Tax Gap
- California Tax Gap Strategies
- Board of Equalization Tax Gap Suggestions – June 2011
- IRS Releases New Tax Gap Estimates; Compliance Rates Remain Statistically Unchanged From Previous Study – January 2012
- Definition of the Underground Economy
- Traits of the Underground Worker
- Examples of Possible Underground Activities