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Friday, 17 August 2012 11:11

State committee, workers, businesses address underground economy

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SACRAMENTO - The Department of Industrial Relations (DIR) met in Oakland Wednesday with industry and labor leaders to talk about how to combat California’s underground economy.

The Labor Enforcement Task Force listened to workers and employers to learn more about the problem, which affects all parts of the state, including the Central Valley.

"The advisory committee meeting revealed that all involved had the same goals in addressing the problems of the underground economy, which is to provide protections for vulnerable workers and a fair competitive market for businesses to flourish in," said DIR Director Christine Baker.

Baker said the state loses between $6 billion and $12 billion a year in tax revenue every year.

The committee will use what it learned to develop an education and outreach plan to educate workers about their rights and employers about their responsibilities. Members of the advisory committee discussed ideas about how to increase compliance to state laws and reduce the reach of the underground economy. Plans were also made to foster community partnerships, such groups can help identify where abuses occur.

More information can be found on the DIR’s website.

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