For over 30 years, unreputable companies have been attempting to commit labor law compliance scams. With scare tactics, aggressive phone calls, and threatening mailers, a labor law compliance scam can lead well-meaning business owners to spend money on labor law posters that they don’t even need. As a business owner, it is important to be informed and aware of what is really required — and never to be misled by a labor law compliance notice scam or scare tactic. Read on to discover four telltale signs of a labor law compliance scam, and what you should do to be sure you’re compliant.
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In This Article
- What Are The Signs of a Labor Law Compliance Scam?
- Tips for Avoiding Labor Poster Compliance Scams
- Frequently Asked Questions
- Is It Illegal For Companies to Do All of This?
- If Posters Can Be Got For Free, Why Pay for Them?
- What Are the Consequences of Not Complying With Labor Law Posting Laws?
- Can You Use Digital Versions of Posters?
- What Do Labor Law Compliance Scams Look Like?
- What Can You Do If You Suspect Labor Poster Compliance Scams?
- How to Choose a Reliable Labor Law Poster Provider
- Work With a Reliable Labor Law Poster Company
What Are The Signs of a Labor Law Compliance Scam?
Sign #1: You Are Being Sent Threatening Mailers
You may have received a letter or notice with the words “FINAL NOTICE” or “SUSPENSION OF COVERAGE” stamped across the top along with a payment submission form at the bottom. These official-looking mailers may say that you will face fines of up to $17,000 or more if you do not purchase and post the mandatory labor law posters that are required by State and Federal governments.
However, you can ignore these mailers. These mailers are simply marketing materials used as bait in hopes of scamming small businesses into a web of never-ending sales pitches and phone calls. Unsuspecting victims who fall for this tactic sometimes find themselves ordering what seems to be a pretty good deal on a set of labor law posters. Shortly after, they are bombarded with threatening phone calls and pressure to buy more posters—some of which may not even be mandatory. What initially seems like a small investment for your business could quickly leave you $400 down the drain and with more posters than you know what to do with.
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Sign #2: The Mailer Knows a Lot About You
Ever wonder how your personal information was obtained in the first place? Here are the most commonly used methods you should know about:
- They purchased a list of newly opened businesses from your state registry.
- They purchased your information from another service provider you use, such as your internet service or website.
- They partnered with a professional list vendor whose sole purpose is to buy and sell lists of contact information for marketing.
Some compliance scammers will sell your personal information so that they can make money off of your contact information, even if you decide not to purchase their posters. When buying and selling lists of personal information for marketing purposes, deceitful poster solicitors may target addresses and phone numbers of people who are not business owners or employers. Here’s a real example of a notice that was mailed to the home address of our employee’s retired father—keep in mind he has never owned a business!
Sign #3: The Sent Documents Contain Suspicious Red Flags
Remember, if it looks fraudulent or questionable, it probably is. Frauds and scammers tend to omit certain information to avoid being traced. Look for these red flags before submitting any personal information or payments:
- No physical return address—just a P.O. BOX
- No telephone number to contact a representative
- A non-corporate email address (i.e. Gmail, Yahoo!, Hotmail)
- A service fee or an up-charge for credit/debit card payments
Sign #4: They Won’t Stop Calling
Threatening mailers are often accompanied by threatening phone calls. If they already have your mailing address, chances are they have your phone number, too. Distasteful companies will often claim to be personnel from a government agency, such as the Department of Labor, calling to notify you that your small-to-medium business has posters that are out of compliance and that you must purchase new ones immediately or you will face hefty fines. Don’t believe them! Government agencies do not sell posters. The issuing agencies provide posters on their websites that are free to download and print.
Tips for Avoiding Labor Poster Compliance Scams
You can reduce the likelihood of becoming the victim of a labor compliance assistance scam by following these steps:
Do Your Research
Check out the company that sent you the notice before responding or sending money. See if the business has a website and browse it to determine if it looks legitimate. Read online reviews to see if there are any customer complaints or recurring issues.
Verify the Change
Make sure the company is contacting you regarding a mandatory change in poster requirements. If the change is legitimate, you should be able to find more details about it on any labor poster company’s website, including the Poster Compliance Center site.
Be Leery of Door-to-Door Poster Salespeople
Most reputable poster companies do not solicit business door-to-door. If you do receive an unscheduled visit from a salesperson, take their information and research the company after they leave. If something doesn’t appear right or you have an uneasy feeling about the individual, you can send them on their way and avoid future contact.
Enroll in a Poster Service
Registering with a poster service provider can help you avoid future scams. The best services send automatic updates whenever mandatory changes occur, usually for free. These services are convenient and cost-effective, and you will have peace of mind from having the latest mandatory changes to keep your company compliant.
Choose a Company That Offers Warranties
Partnering with a poster company that provides warranty coverage gives you additional protection. A warranty ensures your posters are legally accurate and contain all mandatory federal and state labor law notices and updates. Under the warranty provisions, the company agrees to reimburse the customer for any fines it must pay due to a covered breach up to a predetermined amount.
Frequently Asked Questions
Is It Illegal For Companies to Do All of This?
You may be wondering, “Isn’t this illegal?” Well, unfortunately, not always. If you look closely, you may be able to locate a disclaimer in the fine print. Although it is illegal to impersonate a government entity, shoddy poster companies will mention that they are not affiliated with the government to avoid lawsuits. A disclaimer such as this would classify the mailer as a shady marketing tactic, rather than an illegal labor law poster scam.
If Posters Can Be Got For Free, Why Pay for Them?
A question we hear quite often is, “If I can download free state and federal labor law posters from the internet, why would I purchase posters from a provider?” Since many government agencies provide free labor law posters on their websites for download, this may seem like the most economical way to handle compliance at first glance. However, hidden costs like research time, materials, liability, and ongoing monitoring of labor laws can take considerable resources. A reliable labor law service provider alleviates those costs. A subscription program like our State & Federal Compliance Plan is especially popular with businesses, large and small, wanting to offload the work of maintaining up-to-date labor law posters.
What Are the Consequences of Not Complying With Labor Law Posting Laws?
Failing to display required labor law posters can lead to various consequences, including:
- Fines: The Department of Labor (DOL) can impose fines ranging from hundreds to thousands of dollars per violation.
- Lawsuits: Employees who are unaware of their rights due to missing posters may file lawsuits against your business.
- Back Wages: You may be required to pay back wages to employees who weren’t properly informed about their rights (e.g., minimum wage, overtime pay).
Can You Use Digital Versions of Posters?
Yes, although it’s important to understand that physical posters are still needed in the workplace. If you have remote or hybrid employees you also need to inform them of their rights. See how eComply360 can help you satisfy this requirement.
What Do Labor Law Compliance Scams Look Like?
Labor law poster scams can look different depending on who they are coming from. Below you can see some real examples of labor law poster scams.
Please note, some information has been redacted for privacy.
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What Can You Do If You Suspect Labor Poster Compliance Scams?
If you think a company is attempting to perpetrate a labor poster compliance scam, you can call the Wage and Hour Division of the U.S. Department of Labor at 1-866-487-9243 to report the incident. An online reporting option is also available.
You can also contact the local Better Business Bureau office for help regarding a labor compliance assistance scam. The BBB may already have received complaints about companies suspected of committing scams in your area.
Be prepared to provide details regarding the company involved, the nature of the scam and any supporting evidence or documentation.
How to Choose a Reliable Labor Law Poster Provider
If you have had an interaction with a labor law poster scammer, you may be unsure of how to tell a reputable vendor from a scammer. Here is what to look for when choosing a reliable labor law poster provider:
- No threatening mailers
- No bombarding phone calls
- Positive feedback on trusted websites such as Better Business Bureau and TrustPilot.
- No sharing or selling of your contact information to 3rd parties—always check the company’s privacy policy!
- Amazing customer service with live compliance advisors and experts to assist you with your questions
- No recordings or buttons to push
- A corporate solutions team with a dedicated account manager who can assist you if you are responsible for managing compliance for multiple locations
Posters that include all mandatory notices for the state, federal, city, and county labor laws, plus helpful information on how to obtain any additional posting requirements, such as notices from your insurance company
Work With a Reliable Labor Law Poster Company
Poster Compliance Center has been in business for over 30 years with thousands of trusted customers. Additionally, our customers have never run into a labor law violation while using our subscription services. Our subscription service includes the following:
- Free automatic updates when there are mandatory changes
- Free shipping for all mandatory updates
- A warranty that covers fines of up to $41,000 in case the posters are ever found to be out of compliance
- A coverage period for the length of your plan, with a friendly reminder when your plan is set to expire
Request a free quote today to see how we can support your business.
