As far as employer requirements go, new founders often have trouble with displaying labor law posters in the workplace. In addition to the numerous guidelines they must follow at the federal, state, and local levels, labor laws change constantly, meaning that employers must pay attention to these changes or risk severe penalties.
In this blog post, we'll dig into everything you need to know about US labor law posting requirements, including:
- Does my startup need labor law posters?
- What labor law posters must be displayed in the workplace?
- State and local labor law posters
- Employer rules and requirements for labor law poster compliance
- Where to get labor law posters for your startup
- How often do you have to update your labor law posters?
- Penalties for failing to comply with posting requirements
- HR compliance is easier than ever with Warp
Does my startup need labor law posters?
Labor law posters provide crucial information on employee rights and responsibilities in the workplace and the obligations that employers must meet.
Companies with at least one full-time, part-time, seasonal, or temporary employee on payroll must meet the labor law posting requirements that apply to their organizations. On the other hand, sole operators and founders who work only with contractors or volunteers aren't required to display labor law posters in the workplace.
What labor law posters must be displayed in the workplace?
The posters employers must display in the workplace depend on several factors, such as the size of their workforce, the nature of their business, and the jurisdictions they operate in.
Below is a list of the federal labor posters required for most employers. Certain businesses, including federal contractors and agricultural companies that hire seasonal workers, have additional posting requirements.
For additional guidance, use a tool like the Department of Labor (DOL) FirstStep Poster Advisor to help you determine which posters to display in your workplace.
Job Safety and Health: It's the Law!
This poster explains employees' workplace protections under the Occupational Safety and Health Act (OSHA).
Unlike the others on this list, the OSHA poster has specific size requirements for employers to meet. So, if you print this out yourself, you must make sure the poster measures at least 8½ by 14 inches and is typed in a 10-point font or bigger.
Note that some states have their own OSHA-approved workplace safety and health plan, so check your state's requirements before printing or ordering a copy of the poster.
Know Your Rights: Workplace Discrimination is Illegal
This labor poster is issued by the Equal Employment Opportunity Commission (EEOC). It outlines the workplace discrimination laws that employers, employees, and job candidates should know. The poster also includes information on how employees and job applicants can report workplace discrimination to the EEOC if they've experienced it.
Employee Rights Under the Fair Labor Standards Act
Employers subject to the minimum wage provisions in the Fair Labor Standards Act (FLSA) must hang this poster in the workplace, as it provides information on the federal minimum wage and other guidelines outlined in the law.
Employees can read this poster to learn about the current federal minimum wage, regulations for overtime pay and tips, child labor mandates, and information on the enforcement of the minimum wage.
Employee Rights Under the Family and Medical Leave Act
Employers with 50 or more employees during at least 20 work weeks in the current or previous calendar year are subject to the guidelines of the Family and Medical Leave Act (FMLA) and must display this poster in their workplace.
The poster outlines who is eligible for coverage under the FMLA, what leave benefits they're entitled to, and what covered employers must do to comply with this law. Employers must display this poster in an area of the workplace where employees and job applicants can see it, even if there aren't any eligible employees at that business location.
Employee Rights Under the National Labor Relations Act
If you have employees who belong to a union, you must also display this poster in the workplace. It goes over the rights and protections employees have as union members under the National Labor Relations Act (NLRA) and what employers and unions must do to follow the law.
Employee Rights: Employee Polygraph Protection Act
Most private employers must have this poster in the workplace in an area where employees and job candidates can see it. It outlines the rights of employees and job applicants to refuse lie detector tests and reminds employers that they're prohibited from retaliating or discriminating against those who refuse to take them.
State and local labor law posters
Make sure to check state and local labor law poster requirements too, as these laws can differ slightly from or build on the benefits granted by federal guidelines. For instance, some state labor laws expand employees' rights under a particular federal law. Others may extend federal labor law requirements to companies with fewer employees.
State labor posters employers commonly need to display include:
- Unemployment insurance
- Workers' compensation insurance
- State minimum wage
- Child labor laws
Several states also require certain employers to display labor law posters in languages other than English. For example, California, Colorado, Massachusetts, New Jersey, and Washington DC require companies to display labor law posters in both English and Spanish if a certain percentage of their workforce speaks Spanish as their first language. Other states require companies to display these posters even if they don't have any Spanish speakers in their organization.
Because it's your responsibility as an employer to inform workers of their rights in the workplace, it's essential that your workers fully understand their rights as well. This may mean you need to display additional posters in their primary language.
Visit the DOL website for links to each state's labor agency, which will help you easily find your state's labor law posting requirements.
Depending on the city and county your startup is located in, you may also be subject to local labor law posting requirements, so keep an eye out for those. Generally, these posters revolve around minimum wage and paid sick leave laws in those jurisdictions.
Employer rules and requirements for labor law poster compliance
Generally, employers must adhere to the following three requirements to comply with labor law posting regulations:
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Inform employees of their rights: Employers must communicate the rights and responsibilities that employees have under federal, state, and local labor laws. Some laws allow employers to fulfill this requirement by continuously displaying the appropriate poster in the workplace or providing each employee with a notice individually.
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Display posters so employees can read them: Covered employers must print labor posters large enough for workers to read. They must also display them in an area that's accessible and visible to employees all year round, such as the employee break room or lounge. Posters that must be visible to job applicants can be placed in areas like the main lobby of your office or the interview room.
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Display posters in every business location: Employers must hang required posters in every location, not just their headquarters or corporate office. So, if your startup has offices in three different cities, labor posters should be displayed in each one.
Additional posting requirements for startups with remote employees
Although the labor laws themselves don't offer any guidance for remote workers, companies with remote employees aren't exempt from labor posting requirements. As a result of the remote work boom during the COVID-19 pandemic, the Department of Labor now allows businesses with remote and distributed workforces to notify employees of their rights electronically — provided they follow a few guidelines.
According to the DOL, employers may deliver federal law posters and notices electronically to remote workers if their workforce meets these conditions:
- All employees work exclusively remotely
- All employees typically receive information from their employer electronically
- All employees always have access to the electronic posting at all times
If remote employees regularly receive company emails, one-time notices can be sent to them directly via email.
Companies with hybrid workforces don't need to follow these guidelines if all employees work remotely part of the time and work onsite otherwise. However, startups with fully onsite and fully remote workers must display the required labor law posters in the workplace and give remote employees electronic access to these posters.
Keep in mind that state and local labor laws may have differing requirements and guidelines when it comes to remote and distributed workforces. It's important to do your due diligence and ensure you comply with the mandates that apply to your startup.
Where to get labor law posters for your startup
Department of Labor website
Federal labor law posters are available to download and print free of charge from the US Department of Labor website. Posters are available in English and Spanish, and employers can also order versions in other languages online.
Similarly, founders can obtain free state and local labor law posters on the appropriate agency's website.
Workplace poster companies
Private workplace poster vendors like QuickBooks, Office Depot, and JJ Keller have labor law posters available for purchase, as they often sell better quality versions of the ones you can get for free from the government.
For instance, many companies consolidate all the federal and state posters your business needs into one large poster to make it easier to display in the workplace. Some sell laminated versions for increased durability or electronic posters for companies with remote employees.
To help you stay compliant and up-to-date with the latest labor law changes (more on this later), many providers also offer a subscription service where you receive updated posters every time a change in legislation applies to your startup. Some sellers also cover noncompliance penalties up to a certain amount if your company falls out of compliance as a subscriber.
Your vendors
Some vendors, such as professional employer organizations (PEOs) and payroll providers, provide you with the posters you need to display free of charge if you work with them. They may also send you updated posters to hang up when any relevant labor laws change.
How often do you have to update your labor law posters?
Federal, state, and local labor laws change often, and it's your responsibility as an employer to stay up-to-date on these changes and replace any outdated posters in a timely manner. This requirement can be challenging for first-time founders to keep up with. Because employers must promptly replace old posters when legislation changes go into effect, you can't simply set a reminder to check for updates every year or every quarter.
However, you should still aim to check for any labor law changes at least once a year to ensure nothing falls through the cracks. Scan labor agency websites for notices applicable to companies of your size and industry. The downside is that sometimes agencies pass updates to legislation without publishing a notice — and you're still on the hook for making the changes even then.
An alternative to this method is subscribing to labor law posting updates from a company selling labor law posters. They'll monitor these changes for you and send you updated posters so you won't be on the hook for noncompliance penalties (learn more about this in the next section).
There's typically a window when a poster's old and new versions are acceptable to display for compliance purposes. Just make sure you replace your old posters with the new ones before that window closes.
Penalties for failing to comply with posting requirements
Complying with labor law posting requirements that apply to your startup is crucial because the financial consequences can be disastrous. The fines and penalties for noncompliance differ by agency, poster, and jurisdiction — but the more severe ones can cause significant harm to the health of your business.
For instance, refusing to post the FMLA poster can result in a fine of up to $100 per offense. On the other end of the spectrum, OSHA penalties cost $16,131 per violation, while failure to correct an issue results in an additional $16,131 penalty until the employer resolves it. Companies with willful or repeated violations are fined $161,323 per violation.
And if failure to comply with labor law regulations results in a violation of an employee's workplace rights, you may also face legal action.
Since most early-stage startups operate on lean budgets where every dollar is carefully allocated for the most impact, shelling out money for these penalties can have an enormous impact on the viability of your company. So, it's best to avoid these consequences at all costs.
HR compliance is easier than ever with Warp
Once a business hires employees, it must now meet additional obligations as an employer. These requirements can catch first-time founders off guard, while any financial penalties the company incurs can rob a startup of its chance to succeed.
Help your business avoid this by using a platform like Warp, which is designed to help early-stage startup founders cover more ground with less effort. In particular, our payroll tax compliance features support new founders by automatically keeping them compliant with state tax requirements all year round. We'll automate your tax registrations and filings, and even consolidate your accounts into one easy-to-use dashboard for better visibility
You can rest knowing that our software has you covered — even if you forget.
Learn how Warp can help you streamline your HR operations by requesting a demo of our software today.
