0:00 Yeah, I didn't dig further into the judge because I was just up. >> Good luck, bro. >> Hey, bro. My hands are tied. I'm just a judge. >> Okay, serious topic a little bit. Unfortunately, California has stolen money from JK again. Tell us, Joe. >> So, I'm going to update you guys on the ED thing. Um, for those of you who don't know the ED >> ED, >> employment department. Yeah. department. >> Yeah. So, they found out we're employees and then what happened? >> They basically have been going all over California and saying that >> uh all of your guys' 1099s, which are independent contractors, are all employees. And then we went, we had a back and forth. We're like, "Okay, chill out. Let's go line by line and see if it
0:51 fits with the criteria." And the weirdest thing is the IRS doesn't agree with the EDDD. when we do our taxes, the IRS agrees with us and they're like, "You guys are compliant within the law >> and they're not employees, right? Whatever." But the ED, they go, "Yeah, they're ████ employees." All of them. And then we got to the point where >> every person who's been on this show is an employee is what they're saying. >> That's what they're trying to say. So, we appealed it and then we said, and then they go, they came back and they go, "Okay, okay, okay. Anybody that you're paying that has a LLC or as or like a company, maybe they're not, but anybody that has a first and last name that you're paying, they're employees. And I'm like, okay, check this out. >> So, like the maids, which is what they did. >> We have we have cleaners. >> You know, they're they're just a mom and pop group. They go around, they clean
1:42 offices. They don't have a like registered LLC. They don't they don't need to cuz technically your social security like is your business license and you pay out of that and you know you do your taxes and all that you're it's called a sole prop right you sole yeah sole proprietor you don't need to do all that. So then we said, "Hey, hey, hey, let's be reasonable, okay? Like these guys are not employees. They come like once a month to clean up the office." And they're like, "No, no, no, no, no. They're employees." And then this is this is our ruling, okay? And during the whole process, there's a deadline to the ruling. If they have a ruling, they're like, "This is how much you owe. You have to pay by this time." We sent an appeal and we said, "We want this in front of a judge because it's pretty unreasonable, right?
2:32 They actually sent a response and by by the way by this time we're like California we don't owe you ████ We're completely moved out. We're in we're in Nevada now. So what's weird to me is there's an agent there's a ED agent on our case and we're talking to this agent, right? They don't even tell this agent. They send a letter to a PO box or like to our address that we don't even use in California. And there's two other places they could have sent it. They could have sent it to our Nevada office. They could have sent it to our actual registered agent, which is like um like a person or a group that we hire. Like it goes to their office and they take care of all of our mail. But I don't even open up this ████ mailbox in California and it goes there. >> So we uh so we don't meet the deadline,
3:22 right? So we send an appeal to and say, "Hey, hey, like I want to explain this to a judge on the series of events of what happened. So maybe they'll be reasonable." Okay. And then so we actually got like this is this is now what's happening now. We actually got a call back, >> got in front of a judge, and we're like, "All right, so uh this is the reason why, you know, uh we didn't respond on time. It was sent to this place. We didn't get the memo. We responded as soon as we could." the person that was representing us, he had an unfortunate circumstance where his parents both passed away and then he had a medical condition >> and so he was out for like a month, right? >> And that's a reasonable kind of cause with the doctor's note and everything to be like, >> "Yeah, that's we couldn't respond because of X, Y, and Z." >> Extraordinary circumstances. >> That's what it's called. Yeah. Yeah. And
4:13 then they're supposed to give you grace on that, >> right? So the judge himself was telling the ED like this seems very unreasonable. Like that is like you guys got to give this guy a break. Like >> why you being so rigid? >> Yeah. And then the ED was like nope. That's our ruling. This is case closed. >> Dude, no wonder businesses are just fleeing here. They're just like, "See you." >> Is this the first time you got involved with ED? >> No, it's been 2 years now or a year and a half. Not I mean uh you mean previous to this case we never had to deal with them. >> But here's the thing. >> It's been dragged out for a long time. >> They are attacking a lot of small businesses in California. >> Um >> my friend I I know a lot of people that got hit some people for not that much. You know, you know, they're hitting midsize business. They're not hitting like Google. They're not hitting all the
5:04 big >> They're hitting the people who can't fight back. They have to pay settlements. >> Yeah. And um yeah, my friend is is getting hit right now and his father is a IRS agent and even he's like, "This is ridiculous, dude. We would have never done this." And then here's the difficult thing is like >> IRS has actual accountants. People who went to college for accounting. They they usually were accountants themselves or did some ████ and then they're now working for the government. The EDDD has zero trained ████ in business in all these things. They don't know what they're doing. So imagine if you just have a high school diploma and you don't understand how like business works or anything and now it's up to you to make this judgment. >> Yeah, that's crazy. >> How these employees should be categorized. >> They don't ████ care. They just go, I
5:54 actually think their game plan is >> here's a list of businesses that probably can't afford a lawyer to fight this case >> 100%. hit them for a for money where it's easier for them to just settle than to drag this out. >> We anticipate this amount to be added to the budget. >> Exactly. So they scare you with the x amount of dollars and then they go, "All right, well, you owe this much." Yeah. And then for us, I think what ended up happening is like because of the no response, um, they froze our bank account. I woke up one day and our our bank account was just frozen. I was like, "What the ████ dude?" And then we had to come through a settlement. They took the money out and we're just like, "Wait, give that give us back this money. We'll pay you monthly >> and then we're almost done with it, but in the middle of it, we were trying to appeal to have it looked at a judge and even the judge were on our side." And he
6:44 was like, "This is ████ up." >> So, why can't the judge do anything? I I don't know anything about that like part >> I don't >> the judge can't just adjudicate that this is like >> why is the judge there, >> right? >> I don't really know. >> Okay. >> But >> I wasn't there >> cuz usually the judge is in the control of the room, right? Yeah. What? >> Did you know that a court order can force your VPN to hand over your traffic log? >> Oh no. Everyone's going to find out that I've been downloading MP3s. That's because most VPNs are not truly private at all. They can still see your browsing history, but not VP.NET. Their hardware physically separates your identity from your browsing history, which makes it impossible for them to log what you're doing. >> Mhm. So, for the truly private internet
7:36 experience, sign up to vp.net/jk newsws. That's vp.net/jknws. That's right. And the link is in the description box below. You could just click it right there, baby. >> I don't know. Okay. Huh? >> All I know is that he didn't think that it was reasonable to not have the pass on that and they should have but then the I guess whoever was on the ruling side of the EED had final say. >> Interesting. Okay. >> Over the judge >> and I'm only getting a relay. >> Was it a judge or was it like a city person? >> Maybe council person. >> Maybe I'm just calling him a judge and then I ████ ████ up >> cuz a judge would be the overruling authority. >> Yeah, it could be. Yeah, >> I could be just relaying it wrong cuz like there was so much information, bro. Like >> I got you, bro. I I got you. >> And a lot of it is just terminology and
8:26 ████ that I don't understand, which is why I have to hire people to do it. >> I'm not claiming I understand. I'm just saying usually the judge is the one who >> Yeah, I didn't dig further into it cuz I was just ████ up. >> Good luck, bro. >> Hey, bro. My head is tied. I'm just a judge. >> Yeah, >> I can't do ████ >> So, so you were able to do monthly? >> We've been on monthly. >> Okay. the ED claim that they have against us. Yeah. So, >> but what ended up happening was it went back to their claim, which is >> anybody that we paid out with a first and last name is an employee. >> And so that means maybe someone that came and edited some pictures for us. Someone that just came and took a few photos for us and then like we never saw them again. >> Somebody that came and just sat in Joe's lap. >> Mhm. Yep. >> You know, imagine. >> Yep. >> Madness. >> All the hookers that we paid. Oh, whatever. those wrestlers.
9:17 >> Yeah. >> So, that really pissed me off cuz I'm like, we were actually not even >> doing anything illegal. >> Like, it's all compliant. >> Mhm. >> And it's an industry standard. Like, if you're working in entertainment, all that. Like, >> people do gig jobs, right? And you just hire them for the month or the week or whatever. So, yeah, man. That was tough. And and then my other buddy's getting like hit for hundreds of thousands of dollars because what he does is he basically does merch for like creators. >> Mhm. >> And they're saying all those creators are his employees. >> Whoa. Jeez. This just so this is so in a in cryptoland there's a a a lawsuit around tornado cash right now which is like just think of it like this. Like
10:07 you used to be able to just take the amount of crypto, you throw it in tornado cash, and it would spin it around and make it private. So, you just didn't know where the hell it went, right? And and that's the same idea as just using cash in our economy. And people have a right to do that. Well, there's a a tax litigator in the IRS who got exposed today this morning. He doesn't even know what the hell the difference is between Ethereum and ERC20, which is like the programming language of Ethereum. So, it's like all Ethereum tokens are ERC20 tokens, but then there's also Ethereum. But he is the tax litigator on the tornado cash case. >> Oh ████ >> He is the guy in charge for the IRS. >> He's supposed to be the expert. >> Yeah. He doesn't know. >> But he's the dumbest guy in the room. >> Like that's what happens a lot. Like what Joe's talking about. >> That's a DEI. >> They don't Well, who who even knows, right? But just illiterate ████
10:57 >> probably appointed by their friends, right? just have no credentials whatsoever. >> But if they want to if they want to achieve a goal, probably putting the dumbest guy in it is the best move, >> honestly. Yeah, cuz he's giving testimony to like this morning. >> You can't efficiently fight him, >> right? And people are just the the people who are are questioning him are just bewildered. They're like, you don't know the difference between ERC20 and Ethereum. And he's just like, >> that's probably done by design. >> I have to look at my notes. >> He probably did that ████ on purpose. Or he's playing dumb. >> No way. >> Cuz then he'll just follow directions. >> Yeah, because you can't fight anymore. You can't say nothing if the guy don't know what you're saying. >> That's what I'm saying. So, like what Joe's saying is like the guy that they hire doesn't even know about the law. >> Yeah. So, that's why I always bring up the IRS because they're supposed to be the >> expert >> experts >> for the government that can define like tax and all that stuff, right? >> So, they're having a hard time because
11:47 like so my buddy's father is a IRS agent. He's like trying to talk to the ED forum and he goes, "These guys don't know s███." Mhm. >> And then so like our representation and and everybody I guess there's been a whole conference about this for a lot of small California businesses that's been attacked by um the government. >> Yeah. >> And so now this is like a whole thing within the CPA world where they're like, you know, how to get businesses out of California and how to do it efficiently because they're going to claw back at them. They're going to try to be entitled to their taxes after they leave or there's just all these crazy things, right? And one of them is like what if what happens if your business gets attacked by the EDDD? And then a lot of them are just like I just want to work with them. >> But like >> it's it's hard cuz it's like I'm these guys are just seasoned accountants that
12:37 are trying to work with junior high kids that barely know math. >> So that's why they're like what the ████ >> he's talking about. By the way, the people who are talking to ED, they're the seasoned accountants. >> Yes. Yes. Yes. So the seasoned >> account side is the the junior >> high. Yeah. Yeah. The ED guys are like, "How did they get hired to deal with this case when they don't even understand tax law and s███?" Yeah, >> cuz I guess if you're California and you're trying to claw back as much money as possible. >> Exactly. >> It's easier to get people that don't know and they just have a mission of like at all costs get this money back. >> Yep. >> And you can use your stupidity to get it back. >> Mhm. Cuz I think what happened is the ED gave way too much relief money during co and now they're like, "Oh shoot, what are we going to do?" >> Bro, Tom Brady got ████ money, >> bro. I didn't get any of >> Tom Brady. >> I didn't get any ed money.
13:27 >> That's what I'm saying. Tom Brady got money. >> I got a lot. >> Like, they messed up. >> That's where it went. >> Damn it, Aris. >> It's all your fault. You ████ >> But I don't know. I'm glad that we're going to leave California and like, you know, a lot of my friends who are still, you know, staying and doing business here, like they're like getting attacked in different ways, too. And they're just like, I don't really know about it, man. Um, recently Inn-Out decided to leave, too. >> Are you sure? >> Tennessee. >> That's what everyone's been saying. >> No, no, she said it herself. the owner said that I'm leaving um our headquarters is leaving California. >> Okay. Cuz I I read something saying that like it wasn't true and that she meant something else by that. But maybe the first one that went out was in and outs are leaving. >> Maybe you're right. >> Yeah, it's just headquarters. >> I read I just read something that said like, "Oh, this is actually inaccurate."
14:18 I don't know which >> she's moving apparently. I think she's moving her family. >> Her family and I think she's moving the headquarters, though. >> That's what everyone's saying. Yeah. >> Okay, I'll check. I might want to check cuz I heard that some something was like reported wrong the first time. >> Okay. >> Well, there is a clip of her saying that it's not a great place to like raise kids anymore and then she like >> I know she's leaving like herself as >> Okay. Yeah. So, In-N-Out is consoling its Western corporate operations and relocating headquarters from Irvine to Baldwin Park, California. >> 10 miles that way. is but to have Joe's to have Joe's back. >> Ryan is gay. >> It says In and Out is establishing an Eastern office in Tennessee to support its expansion into that region. So they're doing >> Oh, so they're just doing what they normally do. >> It's a bothie.
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