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March 2002


Business Tips
Labor Department warns about OSHA impostors
I
n Sanford, the owner of a small child-care center was approached by a woman flashing a badge and selling a kit for the prevention of blood-borne pathogens in the workplace—a kit the owner bought for $226. In Rutherfordton, small shop owners complained they were being charged $35 to have their air compressors checked by a man claiming to be an inspector for the N.C. Department of Labor.

In both cases, the phony inspectors twisted the letter of the law to scare people into paying hard-earned money for scams. “What makes me the maddest is that these people are picking on the small businesses that can least afford to lose money to crooks,” Labor Commissioner Cherie K. Berry said.  “That the phony inspectors accepted money on the spot should have been the first sign that they were bogus.”

N.C. Department of Labor inspectors are forbidden from accepting cash or checks for services rendered. Besides the bogus inspectors, the Labor Department has been engaged in a long struggle against some companies that bait businesses into buying labor law posters for which they charge as much as $99. Although required by law to be posted in the workplace, the posters are provided free of charge by the Labor Department. Some private poster companies push their sales by warning that failure to provide the posters at the workplace can result in fines up to $7,000.

“Our inspectors carry these free posters in the back of their cars to give away to every business they visit,” Berry said.  “If they’ve run out, all you have to do is contact us and we’ll send it to you absolutely free.”

The spate of complaints about salesmen taking advantage of unsuspecting businesses has state labor officials considering aggressive steps to stop dishonest practices in the name of labor law. Berry said the department is considering the production of public service announcements that will be distributed in areas particularly hard hit by labor law scams.

Berry said DOL in the last few weeks has prepared a comprehensive database of business associations that in turn can alert their members to scam trends that DOL discerns.  “Businesses have complained that some companies use clever language to pose as official watchdogs whose sole aim is to protect business from heavy fines for noncompliance,” Barbara Jackson, a Labor Department attorney, said.  “And while these ads do not break the law, they are certainly misleading.”
 
DOL offers a wide range of services to businesses and employees and can be reached toll-free at 1-800-522-6762 (800-LABOR-NC).

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