Increases Generally Apply to Civil Money Penalties Assessed After August 1, 2016
The U.S. Department of Labor (DOL) has published an interim final rule adjusting for inflation the civil monetary penalties assessed for violations of a number of federal laws. As a result, penalties will increase for employers that do not comply with certain requirements under the federal Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), the Employee Retirement Income Security Act (ERISA), and the Occupational Safety and Health Act (OSH Act), among other laws. The increases generally apply to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015.
Key Penalty Increases
Penalty increases that may be of particular interest to employers include:
- Repeated or willful violations of the FLSA’s minimum wage or overtime pay requirements will be subject to a penalty of up to $1,894 per violation (formerly $1,100);
- Willful violations of the FMLA’s posting requirement will be subject to a penalty not to exceed $163 for each separate offense (formerly $110) (note: covered employers must post this general notice even if no employees are eligible for FMLA leave);
- Failure to provide a Summary of Benefits and Coverage (SBC) will be subject to a penalty of up to $1,087 per failure (formerly $1,000);
- Failure or refusal to file an annual report (Form 5500) with the DOL will be subject to a penalty of up to $2,063 per day (formerly $1,100);
- Violations of the Occupational Safety and Health Administration’s (OSHA) posting requirement will be subject to a maximum penalty of $12,471 for each violation (formerly $7,000).
Click here to view a chart listing all of the penalty adjustments made as part of the interim final rule.