Small business owner warns of letters threatening fines for noncompliance over workplace posters


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HIGHLAND — A small business owner in Highland has a warning about a letter making the rounds in Utah. He says it aims to bully small businesses into paying money they don't need to.

Aaron Jarrett runs a company called Learned Local.

"We are essentially a marketplace for hobbyists to create experiences in the community," he said.

It is a new company and that means all sorts of official things have started showing up in the mail, including a letter that at first blush didn't seem all that strange.

"It looks very government-letter-like," Jarrett said.

It sure does. Up at the top, in all caps, it reads "LABOR LAW COMPLIANCE NOTICE."

The mailing goes on to cite federal law requiring companies to post workers' rights information such as the minimum wage, workers' compensation, and guidelines from the Occupational Safety and Health Administration. Failure to poster these posters, the letter warns in bold, can mean "fines in excess of $7,000 per instance."

But conveniently, the letter also says these posters can be provided for $114.

"They have a respond-by date indicating that they might be coming by to do inspections," Jarrett said.

Only down in the fine print will you see this is not an official, government letter. It's just some company offering to sell compliance posters.

Jarrett says he thinks it is deceitful and asked me to investigate.

As we began digging, we quickly found Jarrett was not alone.

Aaron Jarrett, owner of a company called Learned Local, talks to KSL's Matt Gephart in Highland. Jarrett received a letter that he says aims to bully small businesses into paying money they don’t need to.
Aaron Jarrett, owner of a company called Learned Local, talks to KSL's Matt Gephart in Highland. Jarrett received a letter that he says aims to bully small businesses into paying money they don’t need to. (Photo: Mark Less, KSL-TV)

The Better Business Bureau has slapped the company, LLCS, with an F rating for not responding to numerous complaints alleging the company was "trying to mislead."

The LLCS letter Jarrett received lists a company address that leads to a mailbox inside a UPS store in Sugar House. The letter also includes an email address, which I emailed but did not hear back.

I took Jarrett's letter to Eric Olsen with the Utah Labor Commission.

"We see these quite often," he said.


They want it to seem official, so that it gets people worried. We're getting a lot of phone calls about it.

–Eric Olsen, Utah Labor Commission


Olsen says, indeed, labor posters are required to be posted in businesses that have employees, but the posters are all available for free online. He says government officers want to help businesses succeed — not intimidate them.

"They want it to seem official so that it gets people worried," Olsen said of companies that send letters similar to the one Jarrett received. "We're getting a lot of phone calls about it."

As for Jarrett, he says he might have just paid if not for the fact that he doesn't have employees. He says he hopes other small business owners aren't fooled.

"If it gets that close to getting me, I know it's getting many other entrepreneurs," he said.

Again, these federally required workplace posters for businesses are free. More information on where to find them can be found on the U.S. Department of Labor's website.

Workplace posters required for businesses by the State of Utah can be found on the Utah Occupational Safety and Health Division's website.

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Matt Gephardt
Matt Gephardt has worked in television news for more than 20 years, and as a reporter since 2010. He is now a consumer investigative reporter for KSL TV. You can find Matt on Twitter at @KSLmatt or email him at matt@ksl.com.

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