It’s the Law
Labor law posters are the physical manifestation of an employer’s legal obligation to inform employees of their rights and responsibilities in the workplace. Statutes by the US Department of Labor, all U.S. States, and more than 100 county and city jurisdictions mandate that employers provide certain notices to employees by prominently displaying them in the workplace. Some of the most common federally required posters include the Equal Employment Opportunity Commission (EEOC) poster, Occupational Safety and Health Administration (OSHA) regulations, Family and Medical Leave Act (FMLA), Fair Labor Standards Act (FLSA), and the Employee Polygraph Protection Act (EPPA). The additional state and local posting requirements further complicate compliance for businesses.
Failure to comply with these regulations can lead to significant fines—potentially exceeding $40,000 per violation—and leave employers exposed to lawsuits where courts may rule that employees were not adequately informed of their rights.
The Consequences of Non-Compliance
Yes, non-compliance with labor law poster requirements may result in fines (exceeding $40,000) but that isn’t the greatest risk. Failing to display the appropriate posters can result in employee complaints, reputational damage, and increased liability in the event of a dispute. Case history demonstrates that courts are likely to interpret non-compliance as negligence which can lead to compounded damages in legal proceedings and even increase the statutes of limitations for a given complaint. Conversely, ensuring compliance with up-to-date labor law posters demonstrates that the employer took necessary steps to inform employees of their rights under the law, showing good faith. This proactive approach can mitigate liability in litigation by proving the employer’s genuine effort to comply with legal requirements. This is especially important in an environment where agency enforcement and employment disputes are on the rise.
Why a Poster Isn’t Enough
Purchasing and displaying labor law posters once is not enough to meet labor law requirements or protect the business. Labor laws are constantly evolving at the federal, state, and local levels, with hundreds of changes occurring every year. These changes typically involve new posting requirements, updated information, or entirely new regulations that employers must comply with. A business that does not actively track and update its labor law posters will quickly fall out of compliance. Additionally, there may be additional posting requirements depending on the size or industry of the employer. This means that only purchasing an “all in one” labor law poster most likely will not meet all of the employers posting obligations.
Furthermore, compliance isn’t limited to on-site employees. State, federal, and local posting requirements also apply to remote workers, which means companies that rely solely on physical posters at office locations are at risk of non-compliance. Making matters worse, states such as New York and Illinois require that certain labor law posters be provided digitally to ALL employees, regardless of where they work. Employers must not only ensure that these employees have access to required notices, they must be for the actual work location (imagine an employee working remotely in an adjacent city with different wage or leave laws).
This is why a perpetual poster compliance service is essential. A service that provides all of the mandatory notices, monitors labor law changes and provides timely updates and notifications, and provides online access to the digital versions, helps to ensure businesses remain compliant while avoiding the headache of manually tracking every change. This proactive approach helps employers stay ahead of potential legal risks and ensures they are always compliant with the most recent regulations.
Without a service to manage these updates, businesses face a constant risk of unintentional non-compliance, which can result in fines, penalties, and increased liability. A service that provides regular updates, notifications, and automatic poster replacements is the most efficient way for employers to manage this critical aspect of compliance.
An Important Signal to Employees
Keeping up to date with labor law posting requirements does more than just meet legal requirements—it also sends a strong message to employees about the company’s commitment to compliance and respect for employee rights. Failure to do so signals to employees that the business is unconcerned with adhering to labor laws or, worse, inconsiderate of their rights. This perception can damage the trust between employers and employees and contribute to reputational risks.
In contrast, keeping labor law posters up to date demonstrates that the employer is taking the necessary steps to protect and inform their employees. This fosters a sense of trust and transparency, strengthening the employer-employee relationship.
Mitigating Risk Through Compliance
Maintaining up-to-date labor law posters is an easy and effective way for businesses to mitigate risk. By ensuring that employees are informed of their rights, employers can protect themselves from unnecessary lawsuits and penalties. Poster compliance can also serve as a critical defense in litigation, demonstrating that the company made a genuine effort to comply with applicable laws.
Labor law posters have been instrumental in helping businesses prevail in court. For instance, in a 2016 case decided by the Seventh Circuit Court of Appeals, a restaurant was accused of violating the Fair Labor Standards Act (FLSA) because it allegedly failed to provide servers with required wage information. The restaurant argued that it had posted the necessary FLSA minimum wage poster, and the court ruled in its favor, citing that the poster fulfilled the employer’s obligation to inform employees of their rights. This demonstration of good faith helped the employer avoid additional liability.
PosterElite: A Comprehensive Compliance Solution
Maintaining labor law compliance doesn’t have to be overwhelming for your clients. By partnering with PosterElite, HR, HCM, Payroll and other compliance focused technology and service businesses are able to provide a reliable and efficient way for your clients stay compliant. PosterElite offers white labeled, real-time updates that ensure your clients are always equipped with current, accurate labor law posters. The service even extends to remote workers with a digital ePoster platform (ePosterCenter), helping businesses navigate the complexity of today’s hybrid work environment.
PosterElite’s fine reimbursement guarantee, which offers up to $25,000 for non-compliance penalties, further demonstrates the company’s confidence in its comprehensive solution. This guarantee gives your clients peace of mind, knowing they are fully protected against the risks associated with poster compliance.
Conclusion
Labor law posters may seem like a minor administrative task, but their importance cannot be overstated. They are a critical part of workplace compliance, protecting businesses from legal risks, financial penalties, and reputational harm. By keeping up with poster requirements, businesses can mitigate these risks and ensure they remain compliant in an increasingly complex regulatory landscape.
For technology and service providers in the HCM, HR, Payroll, Benefits, and Compliance industries, PosterElite’s solutions help you simplify labor law poster compliance for your clients. Doing so is proven to help our partners achieve better business outcomes such as increased client retention, new sources of recurring revenue, strengthened competitive positioning, and improved operating efficiency.