Article: Independent contractors seen as heroes--or scapegoats.(Up Front)

An effort to wring better tax compliance out of the growing informal jobs sector has been met with backlash in the form of a bill that would call a halt to some audits conducted by the state's Employment Development Department.

Assemblyman Mark Ridley-Thomas, D-Los Angeles, has ushered a measure through the state Assembly that would require the EDD to conduct a six-month study of the number of small businesses that classify themselves as independent contractors.

Ridley-Thomas was responding to complaints from small businesses about the audits. The EDD performed them on companies it suspected of misclassifying employees as independent contractors to avoid ...

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