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On October 30 Board Member Chu presided over the inter-agency meeting that was organized with interested parties, organized labor, and local and state government. The event was hosted by the Association for Los Angeles County Deputy Sheriffs.
Businesses operating in the underground economy present unfair challenges to legitimate business, and can jeopardize worker health and safety. These businesses hire "off the books" or don't pay withholding taxes, or have unsafe working conditions. There's a good chance that these businesses may be part of the "underground economy." The underground economy for this region represents a loss of revenue to cities, county and the state, and further crowding out of job opportunities. As of March 31, 2007 BOE staff have conducted 32,443 inspections, identified sales and use tax noncompliance at 1,402 locations - or 4.32 percent, and identified 6,784 improper registrations.
Board Member Chu has sponsored two inter-agency meetings since July of this year on the underground economy. The meetings are permitting state agencies to discuss the resources at their disposal for inspection and for responding to reports from whistle blowers and concerned Californians. Los Angeles accounts for a significant share of unregistered employment in the state.
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