We get it, labor law compliance can be complicated and confusing, especially for a large company with many locations in different states, counties and cities. However, don’t just assume the risk. If you do, you’ll experience the following consequences, and you’ll be wishing you had just put up those posters in the first place!
Each poster you fail to display has its own penalty. For example, failure to post the OSHA-required posting has a fine of only about $100 per offense. However, if you violate the law because you and/or your employees are unaware of the law and haven’t displayed it, your company could be punished with a maximum fine of $10,000, imprisonment of a maximum of six months, or both.
Alone, these fines may seem manageable. But imagine if you were to receive these fines at each of your locations for multiple posters, each ovarying in total fines. This doesn’t include the fines you may owe to the employees themselves if faced with litigation. Ouch.
Aside from fines, businesses that fail to post required labor law postings are subject to litigation from employees.
Labor law posters inform employees of their rights, such as paid leave, minimum wage and much more. If employees are not aware of these rights, they can press charges.
This type of litigation can not only cost your business money, but also its reputation. No one wants to be known as a company who neglects employee rights, do they?
Here are a few examples:
- In 2014, Apple employees sued the company, claiming Apple’s rules prohibited employees from talking about the company’s labor conditions with one another.
- In 2016, McDonald’s agreed to pay $3.75 million to settle a lawsuit claiming it was liable for labor law violations by a California franchisee.
- In March 2017, it was announcedthe Olsen Twins are currently settling a class-action wage theft lawsuit with their former interns. The interns stated they worked overtime without pay, didn’t receive proper breaks, which led to dehydration, and much more.
Service to Employees
You value your employees, so show it! Displaying labor law posters is another way to show your employees you respect and want them to feel comfortable in the workplace. As stated earlier, labor law posters inform employees of their rights and company policies.
With this transparency, employees will feel you are being honest and not trying to hide anything from them.
Is your current program compliant with federal, state, city and county labor law postings? Check out the following resources to help you understand how you can improve your company’s employment law management: