[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Rules and Regulations]
[Pages 26933-26934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12769]


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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1601


Increased Fine for Notice Posting Violations

AGENCY: Equal Employment Opportunity Commission.


[[Page 26934]]


ACTION: Final rule.

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SUMMARY: In accordance with Federal Civil Monetary Penalty Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996, this final rule adjusts for inflation the civil money 
penalty for violation of notice posting requirements.

EFFECTIVE DATE: This rule is effective on June 16, 1997.

FOR FURTHER INFORMATION CONTACT: Willie King, Director, Financial 
Management Division (202) 663-4224.

SUPPLEMENTARY INFORMATION:

I. The Debt Collection Improvement Act of 1996

    In an effort to maintain the remedial impact of civil money 
penalties (CMPs) and promote compliance with the law, the Federal Civil 
Monetary Penalty Inflation Adjustment Act of 1990 (Pub. L. 101-410) was 
amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-
134) to require Federal agencies to regularly adjust certain CMPs for 
inflation. As amended, the law requires each agency to make an initial 
inflationary adjustment for all applicable CMPs, and to make further 
adjustments at least once every four years thereafter for these penalty 
amounts.
    The Debt Collection Improvement Act of 1996 further stipulates that 
any resulting increases in a CMP due to the calculated inflation 
adjustments (i) Should apply only to the violations that occur after 
October 23, 1996 (the Act's effective date) and (ii) should not exceed 
10 percent of the penalty indicated.

Method of Calculation

    Under the Act, the inflation adjustment is determined by increasing 
the maximum CMP amount per violation by the cost-of-living adjustment. 
The ``cost-of-living'' adjustment is defined as the percentage for each 
CMP by which the Consumer Price Index (CPI) for June of the calendar 
year preceding the adjustment exceeds the CPI for the month of June of 
the calendar year in which the amount of such CMP was last set or 
adjusted pursuant to the law. Any calculated increase under this 
adjustment is subject to a specific rounding formula set forth in the 
Act and a ten percent limitation.

II. EEOC Civil Money Penalties Effected by This Adjustment

    Under 42 U.S.C. Sec. 2000e-10(a) and 29 CFR Sec. 1601.30(a), every 
employer, employment agency, labor organization, and joint labor-
management committee controlling an apprenticeship or other training 
program that has an obligation under Title VII or the ADA must post 
notices describing the applicable provisions of Title VII and the ADA. 
Such notices must be posted in prominent and accessible places where 
notices to employees, applicants and members are customarily 
maintained.
    Currently, 42 U.S.C. 2000e-10(b) and 29 CFR 1601.30(b) make failure 
to comply with the notice posting requirements punishable by a fine of 
not more than $100 for each separate offense. Based on the inflation 
calculation described in Section I of this notice, we are adjusting the 
maximum penalty per violation to $110.

III. Waiver of Proposed Rulemaking

    In developing this final rule, we are waiving the usual notice of 
proposed rulemaking and public comment procedures set forth in the 
Administrative Procedure Act (APA) (5 U.S.C. 553). The APA provides an 
exception to the notice and comment procedures when an agency finds 
there is good cause for dispensing with such procedures on the basis 
that they are impracticable, unnecessary or contrary to the public 
interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good 
cause exists for dispensing with the notice of proposed rulemaking and 
public comment procedures for this rule. Specifically, this rulemaking 
is required by the Debt Collection Improvement Act of 1996, and the 
Commission has no discretion in determining the amount of the published 
adjustment. Accordingly, we are issuing these revised regulations as a 
final rule.

IV. Regulatory Impact Statement

Executive Order 12866

    This final rule is exempt from Office of Management and Budget 
(OMB) review under Executive Order 12866 because it is limited to the 
adoption of statutory language, without interpretation. As indicated 
above, the provisions contained in this final rulemaking set forth an 
inflation adjustment required by the Debt Collection Improvement Act of 
1996. Moreover, it has been determined that this final rule is not 
significant. The great majority of employers and entities covered by 
these regulations comply with the posting requirement, and a result, we 
believe that any aggregate economic impact of these revised regulations 
will be minimal, affecting only those limited few who fail to post 
required notices in violation of the regulation and statute.

Regulatory Flexibility Act

    A regulatory flexibility analysis is only required by the 
Regulatory Flexibility Act (5 U.S.C. 601-612), when notice and comment 
is required by the Administrative Procedure Act or some other statute. 
As stated above, notice and comment is not required for this rule. For 
that reason, the requirements of the Regulatory Flexibility Act do not 
apply.

Paperwork Reduction Act

    This final rule imposes no new reporting or recordkeeping 
requirements necessitating clearance by OMB.

List of Subjects in 29 CFR Part 1601

    Administrative practice and procedure.

    For the Commission.
Gilbert F. Casellas,
Chairman.

    For the reasons set forth in the preamble, 29 CFR part 1601 is 
revised as follows:

PART 1601--PROCEDURAL REGULATIONS

    1. The authority citation for part 1601 continues to read as 
follows:

    Authority: 42 U.S.C. 2000e to 2000e-17; 42 U.S.C. 1111 to 12117.

    2. Section 1601.30 is amended by revising paragraph (b) to read as 
follows:


Sec. 1601.30  Notices to be posted.

* * * * *
    (b) Section 711(b) of Title VII makes failure to comply with this 
section punishable by a fine of not more than $110 for each separate 
offense.

[FR Doc. 97-12769 Filed 5-15-97; 8:45 am]
BILLING CODE 6570-06-M