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Kerry, Tierney Expose 'Underground Economy'
April 28, 2008Today Senator John Kerry held a hearing to examine the impact of employers who fail to abide by lawful hiring practices and hear what steps Massachusetts has taken to address the underground economy. When employees are paid off the books or misclassified as a "contract employee," companies are able to avoid paying certain employment taxes and benefits. As small businesses and labor leaders testified, this puts firms that play by the rules at a competitive disadvantage and results in tens of millions of dollars in unpaid income taxes and worker benefits in Massachusetts. Full release