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Your Legal Corner - Client Alert Blog

Two New California Departments Enforce Payroll

Written By: Melissa C. Marsh, Esq., California Attorney, March 2012 Add to Favorites
The California Department of Industrial Relations (DIR) has launched two new departments: (1) The Wage Theft Crime Unit and (2) The Labor Enforcement Task Force (LETF) both of which are designed to "combat the underground economy" and "crack down on businesses that do not follow the state's labor laws — hiring employees off the books and paying them under the table." According to the DIR, "These underground operations subsequently pay lower overhead costs which give them an unfair competitive advantage over legitimate, law-abiding businesses."

LETF’s primary goals are to: (1) ensure workers receive proper payment of wages and are provided a safe work environment; (2) ensure California receives all employment taxes, fees and penalties due from employers; and (3) eliminate unfair business competition by leveling the playing field. To accomplish this goal LEFT enables

LETF is basically a California agency made up of members from the: Labor & Workforce Development Agency (LWDA), Department of Industrial Relations (DIR), Employment Development Department (EDD), Contractor's State Licensing Board (CSLB), California Department of Insurance (CDI), Board of Equalization (BOE), and the Bureau of Automotive Repair (BAR). It will also be working with California's Attorney General's office and the local district attorneys all in an effort to focus on employers who underreport payroll or misclassify employees.

Questions, complaints, and enforcement tips can be submitted directly by email to:

ALL California businesses would be well advised to review their payroll practices, and if any workers are still classified as independent contractors to reevaluate whether or not those workers truly are independent.

Tags: California Labor Enforcement Task Force
Posted In: Business Law Bulletin  Corporate Client Bulletin  Employment Law News 

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Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.