In the labor law compliance industry, there are people left and right that will offer advice on how to combat the challenges it brings. However, how much of it is true? How do you know you are receiving the correct advice?
Well, we have one piece of advice that is the worst we have ever heard: Don’t worry about enterprise-wide compliance, you will never be fined or experience litigation.
Failing to display the most up-to-date labor law posters can result in BOTH fines and litigation that can end up costing your company thousands – if not millions – of dollars each year.
Each posting you fail to display has its own penalty. For example, failure to post the Family and Medical Leave Act (FMLA) posting has roughly $100 fine. If your company receives a few fines, this may seem manageable. But, imagine if each of your locations was fined. The totals add up, and this doesn’t include the fines you may owe to the employees themselves if faced with litigation. You can view individual posting fines here.
In addition, businesses that fail to post required labor law postings are subject to employee litigation. Labor law postings inform employees of their rights, such as paid leave, minimum wage and much more. If employees are not aware of these rights, they can file a lawsuit. Litigation may cost your business money and 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 announced the 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.
So, do yourself and your company a favor and be sure to remain compliant with up-to-date labor law posters. You won’t regret it!