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Feb

27

2023

New, Higher Labor Law Posting Fines Carry a Hefty Price Tag for Non-Compliant Businesses

Please note: Since the time this blog post was published, the EEOC raised the penalty for failing to post the ‘Know Your Rights: Workplace Discrimination is Illegal’ poster. Effective March 23, 2023, the fine is now $659 (from $612). The information below was updated to reflect the increase.

Are your workplace postings complete and current? If the answer is anything but “yes,” the risk of labor law posting fines is greater than ever.

TThe U.S. Department of Labor (DOL) has increased the penalties for posting violations in 2023. The higher fines are:

  • EPPA - $24,793 (from $23,011), effective 1/15/23
  • FMLA - $204 (from $189), effective 1/15/23
  • OSHA - $15,625 (from $14,502), effective 1/15/23
  • EEOC - $659 (from $612), effective 3/23/23

With the latest adjustments, combined federal posting fines can now reach as much as $41,281.

How Posting Penalties Come into Play

If you’ve ever questioned the risk of displaying outdated posters, here’s the reality. Although there’s no such thing as “poster police” — and it’s unlikely government agents will knock on your door just to check postings — the possibility of citations and fines emerges another way. At the federal level, most posting fines are assessed when agencies conduct an I-9 audit, an OSHA inspection, an EEOC investigation or even a DOL follow-up to an employee complaint. On the state and local level, employers may be subject to random government audits when an agency or state attorney conducts a sweep of businesses.

While on the premises for these reasons, agents will check your postings and issue fines if they are incomplete or out of date. The complaint or investigation could be completely unrelated to labor law posters, but your postings will be scrutinized as part of the onsite visit.

In any given year, federal and state posting changes require either new postings or replacement of outdated ones to avoid rising penalties.

Additional Legal Risks with Outdated Postings

Fines aren’t the only concern. Missing or outdated postings can also extend the “statute of limitations” with employment laws. This is a tremendous benefit for employers because it allows you to dismiss a claim that was filed too late from a former or existing employee. (For example, 300 days for a federal discrimination claim – or two years for an FLSA overtime case.)

This changes, however, if there’s a posting violation. If you have an outdated poster — or no poster at all — the courts may decide that the statute of limitations doesn’t apply because you didn’t properly notify employees about their legal rights and responsibilities. You can’t use it as a defense, and the case may move forward against you.

Further still, you may be accused of “bad faith” for a compliance lapse, which is the intentional, dishonest act of not fulfilling your legal obligations. A finding of bad faith can directly affect your damages in an employee lawsuit — either by increasing the total damage awards or preventing a good-faith defense to reduce or eliminate your damages.

Protect Your Business from Higher Fines with Complete Posting Coverage

Don’t cut corners with posting compliance. Poster Guard® Poster Compliance Service gets your business up to date with all required postings — and keeps it that way for an entire year. We guarantee our posters are 100% compliant with all federal, state and local regulations. Otherwise, we pay the fine, no matter how big.

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