Why You Can’t Get A Fair Shake
The Underground Business and The Labor Enforcement Task Force
The Labor Enforcement Task Force. While it sounds like something from a bad dystopian movie, in reality, the Labor Enforcement Task Force (LETF) is very much benign and exists to help both employee and employer. LETF is a coalition of California State government enforcement agencies collaborating with local agencies at the direction of the Department of Industrial Relations. Members include:
- Division of Occupational Safety & Health
- Division of Labor Standards Enforcement
- Employment Development Department
- Contractors State Licensing Board
- California Department of Insurance
- Board of Equalization
- Bureau of Automotive Repair
- State Attorney General
- Alcoholic Beverage Control.
LETF’s primary concern is fighting the practices of businesses that operate without necessary licenses, which do not pay taxes, don’t carry insurance for worker’s compensation coverage, force employees to work in un-safe conditions, and so on – in other words, the underground businesses that function outside of legal regulations and abuse their workers. Businesses that are involved with the underground economy avoid labor and tax responsibilities and gain an unfair economic advantage that ultimately damages the economy and other honest businesses that choose to operate within the legal, regulated world. The continued operation of these underground businesses hurts law-abiding employees and employers alike. They create unfair price gouging competition for honest businesses because they pay their employees so little they can cut their prices, well below what a properly, legally operating company could.
The underground economy is a nationwide issue, not just a problem here in California. However, in the golden state alone, there is an estimated $8.4 to $28 billion a year lost through the practices of these businesses, primarily through unpaid sales tax, income and payroll taxes, and insurance costs. Not only are the practices within the underground economy unethical and unfair, they place unfair burden on honest taxpayers and fail to foster healthy competition in the marketplace.
So while the Labor Enforcement Task Force may sound a bit sinister, they are the good guys, and they are on our side, fighting for labor rights and trying to preserve the rights of workers that were fought so hard for.
If you have questions about this blog or you believe you are working for a company like the one discussed above, please CONTACT UELG. We fight for employees and we know the law that protects you, no matter your citizenship.
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