The Economic and Employment Enforcement Coalition (EEEC) recently investigated businesses in the garment industry that were operating illegally in Los Angeles and Riverside Counties. EEEC is a multi-agency task force intended to root out California’s underground economy. The EEEC targeted businesses that avoid labor, tax and licensing laws, safety and health regulations and carry no workers’ compensation insurance for their employees.

So far the EEEC has carried out 32 inspections and issued 49 citations worth US$ 232,900. Citations were issued for not paying workers’ compensation, not taking required payroll deductions, underpayment of overtime and minimum wage, not having a proper work permits for a minor and not having the proper garment registrations. The EEEC was formed with a dual mission: To enforce California labor laws; and to educate business owners and workers on those laws and regulations.

The EEEC aims to root out businesses participating in the underground economy, which cost the state and legitimate businesses millions each year, in many cases passing the cost on to the consumer. In addition, EEEC helps educate business owners on California’s employment laws and their responsibilities, and educates employees on their rights as workers.