Well, the scammers are back again with two new business scams. The victims of these efforts are those who form small businesses, such as limited liability companies or LLCs.
An official-looking form is provided advising the new business owner that they are required to post a poster in the workplace, which the firm offers to provide for a significant fee. A recent form received by one of our clients offered to provide the poster for $84.
Another company sends out “Suspension of Coverage” forms, implying that the new business is liable for $10,000 or more in fines for not having such a poster, unless coverage is obtained.
Why are these scams?
First, no such poster is required until the new business actually has an employee. Many small businesses start out without hiring employees and once an employee is hired, the posters that are offered for sale are available at no charge from the U.S. Department of Labor. So if you are just starting a new business or receive a “Labor Law Compliance Request Form,” or any other form offering to provide you with a poster for a fee, you may wish to consult with an attorney before you write a check for a poster that you may not need.