Thomas Bernhardt, the owner of a northern California concrete company and his wife Rachel Bernhardt, who processed the company’s payroll, were charged last week with 15 felony counts of payroll tax evasion and workers' compensation insurance fraud. T.B. Concrete of Granite Bay, a town about 30 miles east of Sacramento, performed concrete work for retail construction since its inception in 1999. A joint investigation begun in 2008 by the office of California Attorney General Edmund “Jerry” Brown and the state’s Employment Development Department and the Department of Insurance revealed that the Bernhardts misclassified 111 workers in order to avoid reporting the wages they paid to approximately 85% of the company’s workforce. Not only did they claim that employees were independent contractors to avoid paying state income tax and incurring a tax liability of over $230,000, but some of the employees who performed concrete work were classified as clerical workers to the Department of Insurance in order to avoid paying the higher workers’ compensation premiums.