Risks and Costs of Labor Law Posting Non-Compliance

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Most business owners know something about employer labor law posters. They know that they need to post them in areas widely visible to employees and job applicants. They are also aware that these posters list employee’s workplace benefits and rights. These employers also know the risk of not posting these notices or incorrectly posting them.

In this time of increased government labor law enforcement and rise in employment lawsuits, it is always important to be on the right side of compliance. Posting mandatory state and federal labor law posters is one of the simplest methods for compliance, yet most often overlooked.

The Basics

To ensure that your business is compliant and avoid risks of penalties, you have to know the particular requirements for such.

Federal laws mandate most business owners to display these six (6)important federal labor law posters:

  • Family Medical Leave Act (FMLA)
  • Employee Polygraph Protection Act (EPPA)
  • Occupational Safety and Health Administration (OSHA)
  • U.S. Equal Employment Opportunity Commission (EEOC)
  • Uniformed Services Employment and Reemployment Rights Act (USERRA)

State laws oblige employers to post multiple notices as well. Requirements vary with the state on where your company operates. This means your business might need to display up to 14 more postings per state – a total of 20 state and federal labor law posters at each posting area. These areas must be in places commonly frequented by employees and job applicant. For some industries such as in food service and healthcare, additional posting guidelines are imposed.

What’s complicated about this form is compliance is that different agencies mandate these laws and they frequently change without notice to the businesses involved. And as of 2005, Department of Labor has mandated a total of 180 federal and state law changes and updates every year. Approximately 50% of those changes need new notices or replacement of the obsolete ones.

Staying up-to-date with these changes can be time-consuming for most, but compliance would mean a great deal in terms of avoiding profound penalties and complication that most businesses may not be able to afford.

Company Audits: How to ensure your Business is Compliant

Department of Labor normally audits a certain business especially when there is a complaint filed by current or previous employees. Certain industries may also undergo audits from DOL in a more thorough investigation. This includes those businesses that misclassify certain employees to dodge employment benefits and extending overtimes.

Same goes for OSHA non-compliance - the DOL might pinpoint on your business if there are reports of certain safety violations. Additionally, your business may be subjected to an audit if is involved in industry-specific security concerns.

What are the risks of non-compliance?

It is important to ensure compliance by posting the required employer labor law posters – this is your initial defense against potential employee lawsuits and hefty government fines. Failing to adhere to the federal notices on the Employee Polygraph Protection Act of 1988 (EPPA) constitutes a civil punishment of $10,000, while other violations cost up to $17,000 in penalties.

Fines are just the beginning. Outdated or missing labor law postings can essentially increase your company’s liability in any employment lawsuit. By evidently posting all mandated labor law posters, you are not only confirming your compliance but also making sure that your employees are aware of their rights and benefits, as detailed under state and federal laws.

Another legal area of risk involved for non-compliance is the FMLA liability. A simple failure of non-posting the FMLA equates to a business meddling with the employee’s rights and benefits under this act – which is strictly covered under the federal law. And this could result in very expensive penalties that might end up in you losing your business.

Compliance also equates to “good faith”. Judges, juries and government agencies recognize a company’s compliance for displaying required employer labor law posters as a proof of “good faith”. It goes to show that a business is honest and demonstrate fair treatment towards their employees.

Labor Law Compliance Center Posters

Agency proceedings and lawsuits against employers have increased over the years. As a business owner, you don’t want your company any additional liability by not posting these notices.

Labor Law Compliance Center provides updated state, industry-specific and federal labor law posters your business requires at affordable costs. We also have the Labor Poster Replacement Program wherein we will automatically ship new posters every time a change or an update is made. You will never have to worry about keeping track of these laws.

A simple notice can save you tons of investment, time, and most especially your business itself. Contact us now and start your subscription today!