Fillable Printable Joint Enforcement Strike Force Brochure (De 665)
Fillable Printable Joint Enforcement Strike Force Brochure (De 665)
Joint Enforcement Strike Force Brochure (De 665)
California employers have a legal obligation
to provide and maintain a safe workplace for
employees.
Failing to provide a safe workplace can
result in the issuance of citations for alleged
violations of occupational safety and health
regulations.
■Serious violations can carry penalties
up to $25,000 each.
■Willful, serious violations can carry
penalties up to $70,000 each.
■In addition, Cal/OSHA has the authority
to shut down dangerous equipment and
job sites, and may refer cases to district
attorneys for criminal prosecution in
flagrant cases.
Free resources are available to assist
employers with compliance on workplace
safety and health regulation. The
Cal/OSHA Consultation Service provides
on-site visits and compliance assistance
including phone support, education
outreach, and publications.
Contact Cal/OSHA at 800-963-9424 or
access the Cal/OSHA website at
www.dir.ca.gov.
To locate Cal/OSHA Consultation Service
area offi ces, access the Cal/OSHA website at
www.dir.ca.gov/dosh/consultation_offi ces.html.
California Occupational
Safety and Health
Administration (Cal/OSHA)
California Occupational
Safety and Health
Administration (Cal/OSHA)
If you are an employer with employees,
you need to comply with the laws
relating to:
■Workers’ Compensation Insurance.
■Itemized wage statements.
■Minimum wage.
■Overtime.
■Child labor.
Failing to comply with labor laws can
result in penalties assessed against your
business and may include:
■Fines of $250 per worker, per pay
period, for failing to issue completed
itemized wage statements to the
workers.
■Fines of $1,500 per worker for
failing to maintain a current workers’
compensation insurance policy for
the workers.
■Your business could be issued a
Stop Order Assessment and be
barred from using employee labor
until a valid workers’ compensation
insurance policy is secured.
For local offi ce locations and phone
numbers, go to the DLSE website at
www.dir.ca.gov/dlse.
JESF Members
Employment Development Department (EDD)
Division of Labor Standards Enforcement (DLSE)
Contractors’ State License Board (CSLB)
Franchise Tax Board (FTB)
Board of Equalization (BOE)
California Department of Insurance (CDI)
California Occupational Safety and Health
Administration (Cal/OSHA)
California employers are required to fi le
payroll reports and pay the associated taxes.
Failure to report and pay tax obligations may
result in the following actions:
■Investigation of your business by the
Compliance Development Operations
unit of the EDD.
■Payroll tax audit conducted on
your business.
■Assessments levied that include taxes,
interest, and penalties up to 120
percent of the amount of contributions.
■Criminal charges instituted above
and beyond administrative penalties.
■Felony criminal conviction that
includes time in jail or prison, fines
of up to $20,000 per charge, or both
imprisonment and fine in addition
to administrative penalties.
■Criminal and felony charges can
include restitution of taxes plus
penalties, interest, and cost of the
investigation.
■Seizure of your assets, both present
and future.
For general information, call
888-745-3886 or access the EDD website
at
www.edd.ca.gov.
To report fraud, call 800-528-1783.
The EDD, an equal opportunity employer/program,
is a partner in this publication. Auxiliary aids and
services are available upon request to individuals
with disabilities. Requests for services, aids, and/or
alternate formats need to be made by calling
888-745-3886 (voice), or TTY 800-547-9565.
Employment Development
Department (EDD)
DE 665 Rev. 1 (10-13) (INTERNET) Page 1 of 2 GA 902D
Joint Enforcement
Strike Force (JESF)
Division of Labor Standards
Enforcement (DLSE)
Division of Labor Standards
Enforcement (DLSE)
Employment Development
Department (EDD)
“Underground Economy” refers to those
individuals and businesses that deal in cash
and/or use other schemes to conceal their
activities and their true tax liability from
government license, regulatory, and tax
agencies.
The JESF was established by Executive Order to:
■Develop and share information necessary
to combat the Underground Economy.
■Improve the coordination of
enforcement activities.
■Develop methods to pool, focus, and
target the enforcement resources of all
JESF members.
Combating California’s
Underground Economy
Joint Enforcement
Strike Force (JESF)
Combating California’s
Underground Economy
Contractors’ State License
Board (CSLB)
Franchise Tax Board (FTB)
Board of Equalization
(BOE)
Board of Equalization
(BOE)
Franchise Tax Board (FTB)
Under California law, anyone selling
tangible, personal property in California
must obtain a seller’s permit. Sellers of
cigarette or tobacco products in California
also must obtain a license prior to selling
these products.
Sales Tax
It is illegal to engage in business without
a seller’s permit or after a permit has been
suspended or revoked. Violators may be
subject to:
■Misdemeanor fines up to $5,000
and/or up to one (1) year in county
jail.
Cigarette and Tobacco License
It is illegal to sell cigarettes or tobacco
products in this state without a license
or after a license has been suspended or
revoked under the California Cigarette and
Tobacco Products Licensing Act of 2003.
Violators may be subject to:
■Seizure of your cigarettes and/or
tobacco products.
■Misdemeanor fines up to five (5) times
the retail value of the seized cigarettes
or tobacco products or $5,000,
whichever is greater, and/or up to one
(1) year in county jail.
Individuals found evading business taxes
in excess of $25,000 in a 12-month period
may be subject to felony prosecution.
Contact the BOE Tax Evasion Hotline at
888-334-3300.
For questions, call the BOE Taxpayer’s
Information Section at 800-400-7115 or
access the BOE website at www.boe.ca.gov.
The CSLB licenses California’s 300,000
contractors and regulates the construction
industry.
Under California law, all home
improvement or construction work valued
at $500 or more must be performed by a
CSLB-licensed contractor.
Contracting without a license is illegal.
■The first offense for misdemeanor
unlicensed activity carries a maximum
of six (6) months in county
jail or an
administrative fine up to $5,000.
■A second violation carries a mandatory
90 day county
jail sentence in addition
to fines.
■Third and subsequent convictions
carry a mandatory fine of $5,000 to
$10,000 (or 20 percent of the contract
price), and 90 days to one (1) year in
county
jail.
For questions, or to report unlicensed activity,
call the CSLB Statewide Investigative Fraud
Team:
Northern California: 916-255-2924
Central California: 559-490-0581
Southern California: 562-345-7600
Contact CSLB at 800-321-CSLB (2752) or
visit www.cslb.ca.gov.
California employers are required by law to
maintain workers’ compensation coverage
for their employees. Misrepresentations by
employers to insurance carriers in order to
receive a reduced premium for workers’
compensation coverage and willful failure
to secure workers’ compensation coverage
are violations of the law and could result in
criminal sanctions including jail, prison, and
fi nes. Examples of violations investigated by
the CDI include:
■Premium Fraud — Making a false or
fraudulent statement for the purpose
of reducing premium, rate, or cost of
workers’ compensation insurance is a
violation of Section 11760 or 11880 of
the Insurance Code. Violation of either
of these sections is punishable by up
to fi ve (5) years in state prison and a
$50,000 fi ne.
■Willful failure to secure workers’
compensation for one’s employees is a
violation of Section 3700.5 of the Labor
Code, a misdemeanor punishable by
up to one (1) year in county jail and a
$10,000 fi ne for the fi rst offense.
Contact the CDI Fraud Division at
916-854-5760 or access the CDI website at
www.insurance.ca.gov.
Enforcement Branch
Headquarters Office
9342 Tech Center Drive, Suite 100
Sacramento, CA 95826
Call the CDI Consumer Hotline at
800-927-HELP (4357), 8 a.m. to 6 p.m.,
Monday through Friday.
The FTB is responsible for administering
California’s income tax programs.
■Filing a false state income tax return
or failing to file a state income tax
return is punishable by imprisonment
in the county jail up to one (1)
year or in the state prison for up to
three (3) years, fines up to $50,000
for individuals ($200,000 for
corporations), or both, plus penalties.
■Failure to comply with corporation’s
income tax obligations can result
in the suspension of all corporate
powers, rights and privileges.
■The FTB may take action to seize
both current and future assets if you
or your business owes delinquent
state income taxes.
For income tax questions, call
800-852-5711 or access the FTB website
at www.
ftb.ca.gov.
California Department
of Insurance (CDI)
California Department
of Insurance (CDI)
Contractors’ State License
Board (CSLB)
DE 665 Rev. 1 (10-13) (INTERNET) Page 2 of 2 GA 902D
