California officials vow to crack down on underground economy

Marc Lifsher
Los Angeles Times
December 10, 2011

A burgeoning underground economy is costing California about $7 billion annually in lost tax revenue and undercutting companies that play by the rules.

That has state officials vowing to crack down on employers who pay their workers cash under the table to avoid payroll taxes, workers’ compensation insurance and other government mandates.

Agencies including the Employment Development Department and the Contractors State Licensing Board increasingly are coordinating efforts to target suspected scofflaws.

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This article was posted: Saturday, December 10, 2011 at 10:54 am

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