California Labor Law vs. The Underground Economy

San Diego, CACalifornia state labor laws provide infinite guidance to employers as to how employees and laborers are to be treated—and workers can look to California labor laws for assurance they will be treated with respect and dignity, and will receive what is their due in the eyes of the law—including California labor law overtime.

However, not all employers play fair, as a recent sweep by State authorities plainly revealed. In San Diego County alone, no fewer than 11 businesses were cited for labor code violations.

Failure to provide workers' compensation insurance remains the single largest failing on behalf of companies written up in the State's bad books, but there are many other departures from good conduct including, but not limited to no pay for overtime, failure to pay the minimum wage or payment for work in cash without providing an itemized wage deduction statement. To that end the largest single fine was levied against a nursery in San Marcos after it was accused of paying their employees in cash without a proper accounting for deductions.

Workers have to know what they're being paid, but also what is being taken off. Such records are also important for State officials to determine whether or not required deductions and contributions are made.

In total 194 agricultural operations were reviewed during the last week in September. The monetary value of various citations levied against operations employing anywhere from 2, to 300 employees totaled $269,084 across the entire State, compared with $78,034 for the County itself.

The issue, according to California Labor Commissioner Angela Bradstreet, has nothing to do with bolstering the State's coffers with the proceeds from fines. "Our efforts are directed at illegally-operating businesses as part of the underground economy," she said in remarks to the media.

"These illegal operations have a negative impact on our state's economy," the Commissioner continued in a statement. "(They) do not provide the protection workers are legally (entitled to), and have an unfair advantage over competitors who do follow the law."

But of course. The operator with the lowest cost of doing business will be in the best position to undercut everyone else in the market and still make a buck. With the newly cost-conscious consumer calling the shots in a faltering American economy, the operator who can offer the best product, or service at the lowest price is generally going to win the business.

The point, say State labor advocates, is that these price points and advantages should not be borne on the backs of the workforce.

Agents from the State's Division of Labor Standards Enforcement conducted the inspection of nurseries in El Cajon, Fallbrook, San Marcos, Spring Valley and Vista.

Workers' compensation insurance is a requirement, and is mandated in an effort to protect the employee and employer if someone is injured on the job.

"If an employee is injured on the job," says Erika Monterroza, a spokeswoman for the State labor commissioner, "worker compensation insurance is there so they can get the medical attention they deserve."

While the State vows to continue the crackdown on illegal practices that harm, or are unfair to employees and ferret out the weasels fueling the underground economy, mistreated workers always have legal recourse as an option. Most California labor law, and California labor law overtime lawyers do not charge a fee for the initial consultation, and will usually take a percentage of any award the plaintiff receives as their fee.

In this way the plaintiff is not out-of-pocket, while still receiving the full benefit of the law.