Who is Really Hurting Your Bottom Line?
It may be easy and even popular to blame Uncle Sam for taking too big a bite out of your paycheck, but who is really at fault for the large burden placed on small business and ultimately their employees?
In California there is a massive underground empire costing the state an estimated $28 billion a year. That’s billion with a B, and if you think, “Who cares what the government get’s.” The answer is, YOU SHOULD. When other businesses operate illegally without paying for licensing or other costs the burden falls on the legal, law abiding citizens, businesses and employees to foot the bill.
This is where the Labor Enforcement Task Force of California comes in. The name may sound a little overbearing and scary, but in reality they are working hard to make sure everyone does their part to create a better working and living environment in the Golden State. Also known as the LETF this coalition of state and federal agencies is spearheading the crackdown on what they refer to as the Underground Economy.
The agencies currently participating in the LETF include:
– Board of Equalizations
– Bureau of Automotive Repair
-Employment Development Department
-Contractors State Licensing Board
– California Department of Insurance
-Division of Occupational Safety & Health
-Division of Labor Standards Enforcement
– State Attorney General, and
-Alcoholic Beverage Control agency (ATF).
These agencies are charged with the important job of tracking down businesses that operate without licenses, which don’t pay proper taxes or wages and don’t carry proper insurance. This should matter to you both as a consumer and as an employee because the consiquences can be catastrophic.
You may think, “So what, so I get a better rate from this cash only guy.” Here’s the problem, that business not only doesn’t pay a fair wage but doesn’t cover their employees under workers comp. If you work for one of these companies and get injured you are on your own to pay all the bills, and if you hire one of these companies and they damage your property or their employee gets hurt on your property, you could get stuck with the entire bill. It’s easy to see where the problems begin and the problem gets bigger when you think about the companies failing to pay the taxes they should to help carry the load, but this also creates unfair pricing advantage because companies who don’t pay their employees properly can undercut legitimate business.
If you are working for a business you believe is operating in the Underground Economy and abusing the employees there are new laws to help collect the money owed to employees, but you have to act fast before your time runs out to collect what they owe you.
Call UELG TODAY your call is free and completely confidential.
Photo Credit: Shutterstock/ GaudiLab