Industry Insights
4 Tell-Tale Signs of a Labor Law Compliance Scam
Oct
After 30+ years as a reputable labor law poster provider, we’ve seen our fair share of unscrupulous business practices. With scare tactics, aggressive phone calls, and threatening mailers, a labor law compliance scam can lead well-meaning business owners to spend money on a labor law poster (or posters) that they don’t even need. Our ultimate goal is for your business to be labor law poster compliant, so whether you choose one of our poster subscription services or posters from another reliable labor law poster provider, we want you to be informed and aware of what’s really required — and never to be misled by a labor law compliance notice scam or scare tactic. Read on to discover 4 tell-tale signs of a labor law compliance scam, and what you should do to really be sure you’re compliant.
Signs Of A Labor Law Compliance Scam
Sign #1: They’re sending you threatening mailers
You may have received one of these before. A letter or notice that may have 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 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.
Ignore them. 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.
*Some information has been redacted to protect the privacy of the recipient.
Purchase a State & Federal Compliance Plan
Sign #2: They seem to know 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!
*Some information has been redacted to protect the privacy of the recipient.
Sign #3: Their documents contain suspicious red flags
Remember that 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
🚩 A non-corporate email address (i.e. Gmail, Yahoo!, Hotmail)
🚩 A service fee or an up-charge for credit/debit card payments
*Some information has been redacted to protect the privacy of the recipient.
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.
Sign #4: They don’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 IT! Government agencies do not sell posters. The issuing agencies provide posters on their websites that are free to download and print.
If Posters Are 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?” This is a fair question, which we cover in depth in this article. 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. But 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.
How to Choose a Reliable Labor Law Poster Provider
We get it. You’ve been harassed and scared by dishonest poster companies in the past, but you could use some assistance in managing compliance. 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
- Posters that can be laminated at no additional cost, and Eco-friendly poster options
Choose a provider that offers an update service for labor law posters that includes:
- 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
Purchase a State & Federal Compliance Plan Today!
Poster Compliance Center’s State & Federal Compliance Plan offers all of the above for one low cost. It’s the most reliable and economical way to manage your company’s compliance. Consider all the time, money, and worry you will save yourself! And you can relax knowing that you will be in compliance for the duration of your plan. Understand that we are not just a poster company—we are your Compliance Partner. We promise to provide you with accurate information and to only contact you when there are mandatory changes that directly affect your compliance. No gimmicks. No threats. No unnecessary products. When you suspect a labor law poster scam, you will be able to disregard any threatening phone calls or letters. You’re covered on the State & Federal Compliance Plan from Poster Compliance Center, your Compliance Partner!
*Some information has been redacted to protect the privacy of the recipient.
So, who can you trust?
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