Labor Compliance Office is one of many companies that use fear of the law and subterfuge to extract money from naive owners of small businesses. What is interesting about LCO, however, is that it focuses on compliance with labor laws rather than corporate laws.
One of my clients brought Labor Compliance Office to my attention. (As agent for service of process for several other clients, I had already received copies of LCO’s pink-accented NOTICE.) Fortunately, even though the notice looks like it came from a governmental entity (the disclaimer is not readily apparent), my client was not taken in by the threat of fines up to $17,000.
Labor Compliance Office proposes to help the reader’s business avoid such fines by providing for $275 a poster that includes all notices required by California and federal labor laws. In addition, the business receives:
- A “Certificate of Compliance”.
- A unique poster registration number.
- A no-details-provided “$17,000 ‘We Pay the Fine’ Reimbursement Guarantee the transfers the burden of posting compliance and potential fines to [LCO]”.
- Five years of updates to be pasted onto portions of the poster as requirements change over time.
For comparison, one could buy such a poster from the California Chamber of Commerce (CalChamber) – a reputable organization – at the current price of $19.99 per year and, at the end of five years, pay less than half of what Labor Compliance Office charges. Furthermore, CalChamber offers Required Posting FAQs at no additional charge.
Furthermore, LCO’s agreement (printed on the back of the notice) includes the following outrageous provisions:
- The business is obligated to indemnify Labor Compliance Office against any liability it incurs based on the business’s use of information provided by LCO.
- LCO may change the terms of the agreement at any time upon notice to the business.
In light of the foregoing, Labor Compliance Office is the newest inductee into this blog’s Hall of Shame.
Dana H. Shultz, Attorney at Law? +1 510 547-0545? dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.