Legal Question in Employment Law in California

My employer paid employees under the table. Yes, I knowingly and willingly partook in this practice, cause I needed immediate income. I have since been let go due to low sales. I am asking for a severance pay since I cannot file unemployment from this business; if he will not comply, who/how and where can I report this practice to. Also, what repercussions could come to me for accepting cash payment for employment? (Very minimal compensation at that)


Asked on 3/14/14, 6:02 am

2 Answers from Attorneys
Kristine Karila Law Office of Kristine S. Karila

You can report the employer to the EDD, IRS, Franchise Tax Board. Probably no repercussions to you unless you don't report the income and/or don't pay taxes on it. You can file an unemployment compensation claim with the EDD and explain that no taxes were taken out by your employer.

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Answered on 3/14/14, 10:38 am
Terry A. Nelson Nelson & Lawless

Yes as to Ms Karila's answer, except that you are subject to retroactive payments plus penalties for failing to report and pay all the taxes and other deductions that would have been taken from paychecks.

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Answered on 3/15/14, 4:30 pm


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