A research report by the Economic Roundtable, unwritten by the United Brotherhood of Carpenters, found that one in six workers in California's $152 billion construction industry in 2011 were either misclassified or worked off the books. The report shows this "underground economy" has surged 400% since 1972. And, while this causes less tax revenue to go to states, it also hurts those in these gray areas. "For every dollar earned by a formal employee, an unreported one gets 52 cents and an incorrectly categorized one gets 62 cents," writes Tiffany Hsu.

Related Summaries