Fraud Investigation KY Labor Cabinet Warns Businesses of Poster Scam

Companies across the country are targeting businesses and trying to sell them labor posters that are actually free.

Kentucky law requires labor guidelines to be posted in plain sight in businesses. Some companies have been trying to sell these posters, that are actually free, to businesses. It’s not illegal, and it’s not necessarily a scam, but some might call it unethical business.

http://liarcatchers.com/fraud_investigation.html

“We have been flooded with phone calls from employers asking about this,” said Daniel Lowry with the Kentucky Labor Cabinet. “You never have to buy the posters. Ever.”

Administrators take about two to three calls a week from business owners who’ve forked out anywhere from $60-$300 for the posters.

“It’s awful. I mean, if you can get something for free, why not?,” said Harriet Coomer, cabinet administrator.

The pitch to sell the posters is often posed as a threat. The caller lets business owners know that fines of up to $17,000 could be issued if up-to-date labor posters aren’t up. In reality, there could be a fine, but they’d be much smaller; anywhere from $100 – $1,000 per violation. And the posters haven’t been updated since 2009.

“Definitely, it is scary to see 17 grand. I could have to pay that? So, they’ll pay the $300 or whatever to get the posters,” Lowry said.

If you or your company has purchased posters, you can report the matter to the attorney general’s office. And to get the free posters and avoid any potential fines, contact the Kentucky Labor Cabinet.

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