Many organizations will see the posting of labor law notices as another task on the list of HR chores. But in our modern era of trust and transparency using loyalty to attract and keep customers and employees, failing to post applicable labor law posters can significantly increase the risk of an adverse action against your organization. In an effort to keep businesses focused on corporate branding and marketing, noncompliance with simple workplace rules can have serious consequences to reputation, employee satisfaction, and recruitment of additional top employees.
Understanding Labor Law Poster Requirements
If you have at least one employee working in the US, you legally have to post certain posters related to labor laws. They must be posted in an area where employees can see them, or posted online if employees work remotely.
The posters explain employees’ rights and protections under law to things like: pay, safety and anti-discrimination. Posting them is your way of showing your employees that you comply with laws and treat employees fairly.
Federal Posters Required by Law
According to the U.S. Department of Labor (DOL), here are the federal posters most employers need to put up:
- Fair Labor Standards Act (FLSA) – covers minimum wage, overtime pay, and child labor standards.
- Family and Medical Leave Act (FMLA) – explains employee rights around unpaid, job-protected leave.
- OSHA Job Safety and Health: It’s the Law – outlines worker rights and what employers must do for workplace safety.
- Employee Polygraph Protection Act (EPPA) – sets boundaries on lie detector tests.
- Uniformed Services Employment and Reemployment Rights Act (USERRA) – protects those serving in the military.
- EEOC “Know Your Rights” Poster – spells out workplace discrimination prohibitions based on protected characteristics.
Beyond these federal requirements, employers also have to navigate state-specific posting obligations. States impose their own notices about minimum wage, workers’ compensation, unemployment insurance, paid family leave, and more. It’s worth noting that requirements vary significantly by location and tend to shift annually.
For companies operating across multiple states or locations, the complexity multiplies. Each state has its own rules, and sometimes cities or counties layer on additional requirements. Staying on top of updates becomes a real challenge without the right system in place.
The Financial Cost of Non-Compliance
The DOL and related agencies enforce penalties when employers fail to display or keep current labor law posters. As of 2025, federal penalties for poster violations look like this:
- OSHA violations: Up to $15,625 per violation.
- Employee Polygraph Protection Act: Up to $24,793 per violation.
- Family and Medical Leave Act: Up to $204 per separate offense.
- EEOC “Know Your Rights” poster: Up to $659 per offense.
These fines apply per location and per missing or outdated poster. For organizations with multiple sites, the numbers add up fast. It doesn’t stop with direct penalties either. Non-compliance can open the door to deeper audits, legal expenses, and higher insurance premiums, costs that often exceed the fines themselves.
The Reputational Damage: More Than Just Fines
Yes, fines sting. But the real damage is often reputational, and that’s where things get costly. We’re living in an era where transparency is expected. Employees, customers, and business partners increasingly demand ethical and compliant business practices, or they go elsewhere.
Loss of Employee Trust
Posting labor law posters may seem simple, but it sends a signal: you respect your workers’ rights. When these posters are nowhere to be found or hopelessly outdated, employees tend to read it differently. Maybe the company is careless about its obligations. Maybe it’s even hiding something.
Research from 2023 on workplace compliance suggests something interesting: organizations with visible labor law compliance showed 40% higher employee retention rates alongside stronger engagement. The flip side? Workplaces that skip compliance tend to see lower morale and people walking out the door more frequently. Once you lose employee trust, getting it back takes years, and the price tag usually exceeds whatever compliance costs.
Negative Public Perception
Citizens are concerned today about how organizations treat their employees. In fact, a survey found that 47 percent of consumers said they trust a brand more when they believe the company treats its employees fairly and properly. Even a seemingly minor issue, such as failing to put up required labor law posters, is a significant social media event.
Consider the damage to the reputations of their brands, and how quickly that damage occurred, for large companies like Starbucks and other brands, who had reported labor issues in the public’s eye. For small organizations, one public violation can damage their reputation in the local community.
Impact on Recruitment and Talent Acquisition
Job candidates now do their homework. They dig into Glassdoor, Indeed, and other platforms where people openly discuss compliance issues and workplace culture. A track record of violations, even minor ones, signals caution to top talent. They’ll likely look elsewhere.
Conversely, employers with solid compliance records and transparent practices tend to attract stronger applicants and spend less on recruitment. There’s a direct line between compliance and your ability to build a strong employer brand.
Compliance and Business Partnerships
Companies that work with government agencies or large corporations often face compliance as a contractual requirement. Missing or outdated posters can lead to:
- Disqualification from government contracts
- Loss of preferred vendor status
- Damaged B2B partnerships due to reputational concerns
Many corporate clients now scrutinize labor law compliance during vendor assessments. A single violation can undermine years of relationship-building.
The Domino Effect of Non-Compliance
Poster violations rarely stay isolated. If an OSHA inspector spots missing posters, they’re likely to investigate further safety training records, wage documentation, other areas. This can uncover additional violations and compound both penalties and reputational damage.
In legal disputes, missing posters sometimes work against companies in unexpected ways. Courts may interpret the absence as negligence or concealment, potentially extending the statute of limitations on employee claims.
The Digital Age Amplification
Reputation management in the digital era feels almost impossible. Once information about compliance violations gets posted online, it lives there indefinitely through:
- Social media posts from employees or advocacy groups
- Reviews on Glassdoor or Indeed
- News articles and local press coverage
- Industry forums and professional networks
Even after you eventually achieve compliance, these digital footprints remain. They shape how customers and job candidates perceive you for years afterward.
Building Trust Through Compliance
Smart employers don’t see compliance as just a regulatory box to check. They view it as a trust-building opportunity. To protect yourself legally and reputationally, consider adopting these practices:
Best Practices for Compliance
- Regular audits: Run quarterly checks to confirm all posters are current and properly displayed.
- Centralized compliance tracking: Use digital systems to stay on top of requirements across different states.
- Remote worker access: Make required posters accessible online for remote or hybrid employees.
- Employee communication: Go beyond just posting, actually educate employees about their rights and resources.
- Partner with experts: Work with a professional labor law poster provider to monitor regulatory changes.
The Strategic Value of Compliance Partnerships
With roughly 250 regulatory agencies and 150+ posting changes annually, managing compliance on your own can feel overwhelming. A trusted compliance partner ensures you always have the latest required posters for every jurisdiction.
A compliance partner provides:
- Automatic updates when laws shift
- Combined state and federal poster sets
- Digital posting for remote teams
- Documentation that proves your compliance efforts
These steps essentially convert compliance from a tedious administrative task into a brand protection strategy.
Conclusion:
Labor law poster compliance is more than just the law; it illustrates what your company values. In the modern-day, the way you treat your employees is equally as important as how you treat your customers. Your labor law poster compliance shows you hold your business in high regard with respect and honesty.
Your business will incur fines and will damage your reputation and trust by not remaining compliant. Compliance experts can help to take the compliance piece off your plate by protecting your business, building your business brand, and establishing a work environment where trust and transparency always exist.
