[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] ======================================================================= ----------------------------------------------------------------------- EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 29 CFR Part 1601 Increased Fine for Notice Posting Violations AGENCY: Equal Employment Opportunity Commission. [[Page 26934]] ACTION: Final rule. ----------------------------------------------------------------------- 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