Business Owners Should Be Aware of Mandatory Compliance Signs

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    Jun 18, 2014
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Business Owners Should Be Aware of Mandatory Compliance Signs Photo by Labor Lawcenter

In each of the 50 US states, both small and large business owners should be aware of the myriad mandatory compliance signs and posters that must be displayed under federal, state and local employment laws.

Mandatory comp postings fall into several categories depending upon location and type of business. First, there are the mandatory compliance posters familiar to most business owners and employers. These include a wide range of federal and state posters. Under federal law, employers must display such items as a federal minimum wage poster, which details the minimum hourly rate that each and every employee is entitled to under the FLSA, or Fair Labor Standards Act. That law, enacted in 1938, has been amended regularly to increase the federal minimum wage.

The federal minimum wage poster details the requirement that most employees be paid overtime at a rate of 1.5 times the employee's average hourly rate when the employee works more than 40 hours in a single work week. It details exceptions under the overtime requirements for certain salaried employees. The poster also outlines a number of other key provisions to this law, including limitations to its applicability for very small employers who do not engage in interstate commerce, have very few employees and whose business generates less than $500K in annual revenue.

Additional labor law posters are also required under federal law. These include a poster on Worker Safety, rights for veterans of the US military and other required notifications.

Many states and municipalities also have mandatory compliance postings. These can range from notices that smoking is not allowed in public places (required in many states including Illinois) to compliance signs required in bathrooms, informing employees that they must wash their hands before returning to work. Although these notices are not required in every city and state, many do mandate that restaurants prominently display them, as a way to increase safety in food handling and prevent food poisoning.

Anecdotally, employers are warning that some cities and states have stepped up compliance inspections. Employers who do not comply with all the labor law posting requirements in their city, state and under federal law are subject to fines. In extreme cases, in some jurisdictions, an employer's business license may even be revoked. Whenever an inspector is on the premises for any reason (he or she is likely to check for mandatory posters related to the jurisdiction. Certain incidents may trigger an inspection, such as an accident resulting in a serious workplace injury or even death. Complaints of wage theft or improper wage payment will often trigger an inspection. At other times, posters may be inspected as part of a routine building or compliance check. A wise employer or small business owner will be sure to display the required posters at all times.

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LaborLawCenter offers employers the resources they need to satisfy their compliance requirements. We specialize in State and Federal Labor Law posters. Visit our website or Call us at 1-800-745-9970 to buy mandatory compliance required labor law posters.

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