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Home · Articles · News · Rogue of the Week · Compliance Documents LLC
August 8th, 2007 WW Editorial Staff | Rogue of the Week
 

Compliance Documents LLC

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Small-business owners have enough headaches without other entrepreneurs preying on their fear of government regulation. And that's just what this week's Rogue is guilty of doing.

Compliance Documents LLC of Norwalk, Conn., actually tried to bilk the Rogue desk itself. But it picked the wrong kid to bully.

It's an old scam and a simple one—reminding business owners they must update their federal and state labor-law notification posters. Up-to-date posters must be posted in most workplaces, and in some cases, employers can be fined for failing to do so.

But those posters are available for free online from the Oregon Bureau of Labor and Industries and the U.S. Department of Labor. The scam comes when companies offer the posters for sale, using scare tactics about nonexistent government crackdowns.

The Rogue Desk received an email Aug. 2 from Compliance Documents reminding us that Congress had recently changed the federal minimum wage. This much is true. President Bush signed a law May 25 raising wages from $5.15 an hour to $5.85 an hour effective July 24.

The email said our labor posters are out of date and warned of a $17,000 fine for each violation. "Order now and have the piece [sic] of mind of knowing you have the latest, most accurate compliance posters required by law," the message wheedled.

But there is no $17,000 fine. According to the U.S. Department of Labor website, there's no penalty for failing to post the federal minimum wage. BOLI spokesman Marc Zolton says the state can give fines for failing to post state labor laws, but he knows of no cases where it has.

Zolton says there are several companies around the country that operate similar scams. BOLI has complained to the Oregon Department of Justice, but Zolton says the DOJ declined to pursue the case. A DOJ spokeswoman says the agency investigated but has no jurisdiction.

As for Compliance Documents, the phone number listed in its email didn't work. And requests for comment sent to its email address went unanswered.

 
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08.08.2007 at 06:47 Reply
Ed
My company has been approached several times by these guys. They will come in and flash a "badge" and say they are here to "inspect" the labor posters.

Since I manage the corporate compliance program I usually get called to speak with the "inspectors" and then I tell them to shove off.

 

08.11.2007 at 11:13 Reply
I used to be a store manager with Schucks Auto Supply. About 4 times per year we would get the "letter" from these creeps threatening us that if we didn't buy their posters (to the tune of over $100) that we could be fined. Each time I received the letter I sent an e-mail to the stores in my district reminding them NOT to buy them.

These jerks primarily prey on the small business owner who doesn't know any better. To bad the DOJ won't do anything about it...

 

08.15.2007 at 11:21 Reply
Thank you for this article! I just got their letter warning of an urgent need to update these workplace posters. I couldn't get any info from their number. So I went online to research them. I've got a small mail order business in my home and I'm the only employee, so I don't feel these posters are needed at all. So, it seemed a bit fishy to me. Thank you for the info, I've just trashed the letter.

There's enough hands in our pockets already---give me a break!

Thanks,

Tamara S. from Payson,AZ

ladybugdesigns.com

 

08.28.2007 at 04:32 Reply
I just got a letter from them yesterday and contacted the IRS about them. They're a joke. I'm the only employee with my copywriting business, so it seemed suspect when it said "employee complaints regarding violations....".

I'm trashing it, but I have to admit, when I saw that brown envelope I stopped breathing for a second.

 

09.06.2007 at 05:51 Reply
jon
I got the letter as well.

One interesting feature is the way they style it to look like an official IRS doccument.

Last month we got a call from another similar company who tried to sell us official tax forms along with these posters. I couldn't believe it! But it was the tax form bit that sealed it for me that these people were a joke. Before they brought up that nonsense I was actually considering their proposition.

Jon Whidden

masterceramics.com

 

 
 

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