Employers Beware: Labor Law Poster Vendor Scams

By Kelsey Basten
Published on Feb. 21, 2019

Have you or your employees received an “urgent” letter stating your labor law posters are out of date? Or have you ever been subject to a surprise “audit” by a mysterious agency? You’re not alone. Here are some of the most common labor law poster vendor scare tactics you and your location managers need to know about.

Poster Update Notice

This scam looks like an urgent poster update notification (email, mail, etc.) with legal jargon about fines for noncompliance. But, upon further investigation, it turns out to be an order form for a new labor law poster set.

The vendor’s intention is to trick you into ordering new (perhaps unnecessary) posters with the attached form. However, you and/or your locations should not purchase the new poster set, as the sender does not actually know any of your company details or compliance needs. Too often, receivers will submit payment in fear of non-compliance and receive a poster that doesn’t meet their needs.

(For more visibility and control over your program, check out GovDocs’ postings products.)

 ‘Open Immediately’ Letter to Individual Locations

Companies with many locations across U.S. are challenged with managing labor law poster updates across multiple jurisdictions, which can be further complicated by the “Open Immediately” scam.

This type of scare tactic starts with an individual company location receiving an urgent “open immediately” message with a noncompliance fine warning inside.

It’s common for locations to fall for this scam, as these messages often attempt to mimic communication from their company’s corporate office. Locations believe the warning is valid and feel the need to purchase whatever poster is offered in the communication.

To prevent this from happening, make sure your location managers understand how your poster compliance program works, and that they should not respond to these types of notices.

The Fake Audit

Recently, a few companies have told us about a new type of vendor scare tactic – the fake audit.

Basically, this happens when an “auditor” visits an individual location, explaining he/she was sent from a “state agency” to audit their labor law posters. The individual then issues a poster-requirements form with a fake agency name and a list of posters the location needs to buy, along with an order form.

Many location managers fall for this seemingly legitimate scam. To prevent it, educate your locations on your vendor and what is included in the labor law poster compliance programs. Also, ask your location managers to inform your company’s corporate compliance team when a surprise audit occurs. That way, you can determine whether it is a fake or real audit.

GovDocs Poster Updates

Outside of GovDocs labor law poster shipments, such as new posters, updates and replacements, any unidentifiable or questionable messages your locations receive can be ignored. As part of our company policy, GovDocs will never call, send an invoice, or distribute materials to individual locations regarding the purchase of additional posters.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

Who is GovDocs?

GovDocs simplifies the complexity of employment law management (ELM) for large, multilocation employers across all industries. We offer a suite of innovative compliance products, including labor law postings, data software applications and other program management tools, to ease the day-to-day responsibilities of human resources, compensation, legal and finance teams.

Have less than 30 locations? 

The GovDocs Poster Store simplifies the complexity of posting compliance for employers with less than 30 locations across all industries. We offer a variety of posting products to meet your labor law compliance needs, including federal and state posters; county and city poster packages; and other HR posters. Plus, when you purchase posters with GovDocs Update Service, you ensure your locations automatically receive updated posters whenever changes occur.