[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43430-43461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15378]
[[Page 43429]]
Vol. 81
Friday,
No. 127
July 1, 2016
Part IV
Department of Labor
-----------------------------------------------------------------------
29 CFR Part 5
41 CFR Part 50-201
-----------------------------------------------------------------------
Employment and Training Administration
-----------------------------------------------------------------------
20 CFR Part 655
Office of Workers' Compensation Programs
-----------------------------------------------------------------------
20 CFR Parts 702, 725, 726
Wage and Hour Division
-----------------------------------------------------------------------
29 CFR Parts 500, 501, 530, et al.
Occupational Safety and Health Administration
-----------------------------------------------------------------------
29 CFR Parts 1902, 1903
Employee Benefits Security Administration
-----------------------------------------------------------------------
29 CFR Parts 2560, 2575, 2590
Mine Safety and Health Administration
-----------------------------------------------------------------------
30 CFR Part 100
Department of Labor Federal Civil Penalties Inflation Adjustment Act
Catch-Up Adjustments; Final Rule
Federal Register / Vol. 81 , No. 127 / Friday, July 1, 2016 / Rules
and Regulations
[[Page 43430]]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 655
Office of Workers' Compensation Programs
20 CFR Parts 702, 725, 726
Office of the Secretary
29 CFR Part 5
41 CFR Part 50-201
Wage and Hour Division
29 CFR Parts 500, 501, 530, 570, 578, 579, 801, 825
Occupational Safety and Health Administration
29 CFR Parts 1902, 1903
Employee Benefits Security Administration
29 CFR Part 2560, 2575, 2590
Mine Safety and Health Administration
30 CFR Part 100
RIN 1290-AA31
Department of Labor Federal Civil Penalties Inflation Adjustment
Act Catch-Up Adjustments
AGENCY: Employment and Training Administration, Office of Workers'
Compensation Programs, Office of the Secretary, Wage and Hour Division,
Occupational Safety and Health Administration, Employee Benefits
Security Administration, and Mine Safety and Health Administration,
Department of Labor.
ACTION: Interim final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of Labor is issuing this interim final
rule to adjust the amounts of civil penalties assessed or enforced in
its regulations. The Federal Civil Penalties Inflation Adjustment Act
of 1990 as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Inflation Adjustment Act) requires
agencies to adjust the levels of civil monetary penalties with an
initial catch-up adjustment, followed by annual adjustments for
inflation. The Department is required to calculate the catch-up and
subsequent annual adjustments based on the Consumer Price Index for all
Urban Consumers. The Department must publish the interim final rule by
July 1, 2016, and the new penalty levels are effective no later than
August 1, 2016.
DATES: This interim final rule is effective August 1, 2016. See
SUPPLEMENTARY INFORMATION for applicability dates. Interested persons
are invited to submit written comments on this interim final rule on or
before August 15, 2016.
ADDRESSES: You may submit comments, identified by Regulatory
Information Number (RIN) 1290-AA31, by either of the following methods:
Electronic Comments: Comments may be sent via http://www.regulations.gov, a Federal E-Government Web site that allows the
public to find, review, and submit comments on documents that agencies
have published in the Federal Register and that are open for comment.
Simply type in ``Department of Labor Federal Civil Penalties Inflation
Adjustment Act Catch-Up Adjustments'' (in quotes) in the Comment or
Submission search box, click Go, and follow the instructions for
submitting comments.
Mail: Address written submissions to Tiffany Jones, U.S. Department
of Labor, Room S-2312, 200 Constitution Avenue NW., Washington, DC
20210.
Instructions: Please submit only one copy of your comments by only
one method. All submissions must include the agency name and RIN,
identified above, for this rulemaking. Please be advised that comments
received will become a matter of public record and will be posted
without change to http://www.regulations.gov, including any personal
information provided. Comments that are mailed must be received by the
date indicated for consideration.
Docket: For access to the docket to read background documents or
comments, go to the Federal e-Rulemaking Portal at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Pamela Peters, Program Analyst, U.S.
Department of Labor, Room S-2312, 200 Constitution Avenue NW.,
Washington, DC 20210; telephone: (202) 693-5959 (this is not a toll-
free number). Copies of this proposed rule may be obtained in
alternative formats (large print, Braille, audio tape or disc), upon
request, by calling (202) 693-5959 (this is not a toll-free number).
TTY/TDD callers may dial toll-free 1-877-889-5627 to obtain information
or request materials in alternative formats.
SUPPLEMENTARY INFORMATION:
Preamble Table of Contents
I. Regulatory Information
II. Background
III. Section-by-Section Analysis
A. Employment and Training Administration
B. Office of Workers' Compensation Programs
C. Office of the Secretary
D. Wage and Hour Division
E. Occupational Safety and Health Administration
F. Employee Benefits Security Administration
G. Mine Safety and Health Administration
IV. Paperwork Reduction Act
V. Executive Order 12866: Regulatory Planning and Review, and
Executive Order 13563: Improving Regulation and Regulatory Review
VI. Regulatory Flexibility Act and Small Business Regulatory
Enforcement Fairness Act
VII. Other Regulatory Considerations
a. The Unfunded Mandates Reform Act of 1995
b. Executive Order 13132: Federalism
c. Executive Order 13175: Indian Tribal Governments
d. The Treasury and General Government Appropriations Act of
1999: Assessment of Federal Regulations and Policies on Families
e. Executive Order 13045: Protection of Children From
Environmental Health Risks and Safety Risks
f. Environmental Impact Assessment
g. Executive Order 13211: Energy Supply
h. Executive Order 12630: Constitutionally Protected Property
Rights
i. Executive Order 12988: Civil Justice Reform Analysis
I. Regulatory Information
The U.S. Department of Labor (Department) is publishing this
interim final rule (IFR) to adjust its civil monetary penalties for
inflation pursuant to the Federal Civil Penalties Inflation Adjustment
Act of 1990 as amended by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act).
This law requires the Department to publish an initial ``catch-up
adjustment'' through an interim final rule.
Pursuant to the Inflation Adjustment Act and 5 U.S.C. 553(b)(3)(B),
the Department finds that good cause exists for issuing this IFR
without prior notice and comment. By operation of the Inflation
Adjustment Act, the Department must publish the catch-up adjustment by
July 1, 2016, and the rule must be effective no later than August 1,
2016. The Inflation Adjustment Act further provides that the increased
penalty levels apply to any penalties assessed after the effective date
of the increase. Additionally, the Inflation Adjustment Act provides a
clear
[[Page 43431]]
formula for adjustment of the civil penalties, leaving little room for
discretion. For these reasons, the Department finds that notice and
comment would be impracticable and unnecessary in this situation and
contrary to the language of the Inflation Adjustment Act.
II. Background
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Pub.
L. 114-74, 701 (Inflation Adjustment Act), which further amended the
Federal Civil Penalties Inflation Adjustment Act of 1990 as previously
amended by the 1996 Debt Collection Improvement Act (collectively, the
``Prior Inflation Adjustment Act''), to improve the effectiveness of
civil monetary penalties and to maintain their deterrent effect. The
Inflation Adjustment Act requires agencies to: (1) Adjust the level of
civil monetary penalties with an initial ``catch-up'' adjustment
through an interim final rulemaking (IFR); and (2) make subsequent
annual adjustments for inflation.
The Inflation Adjustment Act amends the Prior Inflation Adjustment
Act in two key respects. First, the Inflation Adjustment Act rescinds
an exemption that previously disallowed inflationary adjustments for
violations of the Occupational Safety and Health Act (OSH Act). As a
result, the Department is updating the penalties under the OSH Act for
the first time since 1990.
Second, the Inflation Adjustment Act substantially revises the
method of calculating inflation adjustments. The Prior Inflation
Adjustment Act required adjustments to civil penalties to be rounded
significantly. For example, a penalty increase that was greater than
$1,000, but less than or equal to $10,000, would be rounded to the
nearest multiple of $1,000. As a result, penalties were increased
infrequently, and when they were finally increased, the amounts of the
increases were sometimes substantial. Over time, this formula caused
most of the Department's penalties to lose value relative to total
inflation for long periods of time, thereby undermining the Prior
Inflation Adjustment Act's purposes of maintaining the deterrent effect
of civil money penalties and promoting compliance with the law.
The Inflation Adjustment Act has removed these rounding rules; now,
penalties are simply rounded to the nearest dollar. This rounding
ensures that penalties will be increased each year to more effectively
keep up with inflation, and ensures that penalties are more evenly
established.
Furthermore, the Inflation Adjustment Act provides for an initial
``catch-up'' adjustment that generally excludes prior inflationary
adjustments under the Prior Inflation Adjustment Act. For this catch-up
adjustment, the Inflation Adjustment Act requires agencies to identify,
for each penalty, the year and corresponding amount(s) for which the
penalty amount, the maximum penalty level, or range of minimum and
maximum penalties was established (i.e., originally enacted by Congress
or by regulation) or last adjusted other than pursuant to the Prior
Inflation Adjustment Act. That amount becomes the basis of any such
catch-up adjustment, subject to a cap on any penalty increase of 150
percent of the current penalty amount as of November 2015--allowing for
a total new penalty of no more than 250 percent of the November 2015
penalty amount. The Inflation Adjustment Act also mandates that the
catch-up adjustment apply to any civil monetary penalty assessed after
August 1, 2016, ``including those whose associated violation predated
such increase.'' Pub. L. 114-74 at Sec. 701. The adjusted civil
penalty amounts are applicable only to civil penalties assessed after
August 1, 2016, whose associated violations occurred after November 2,
2015, the date of enactment of the Inflation Adjustment Act. Therefore,
violations occurring on or before November 2, 2015, as well as
assessments made prior to August 1, 2016 whose associated violations
occurred after November 2, 2015, will continue to be subject to the
civil monetary penalty amounts currently set forth in the the
Department's prior regulations at 20 CFR parts 655, 702, 725, and 726;
29 CFR parts 5, 500, 501, 530, 570, 578, 579, 801, 825, 1902, 1903,
2560, 2575, and 2590; 30 CFR part 100; and 41 CFR part 50-201 (or as
set forth by statute if the amount has not yet been adjusted by
regulation)..
The Department has undertaken a thorough review of civil penalties
administered by its various components pursuant to the Inflation
Adjustment Act and in accordance with guidance issued by the Office of
Management and Budget.\1\ The Department first identified for each
penalty the year and corresponding amount or amounts for which the
maximum penalty level or range of minimum and maximum penalties was
established or last adjusted, other than pursuant to the Prior
Inflation Adjustment Act. Then the Department determined the applicable
inflation adjustments based upon the percent change between the October
Consumer Price Index for all Urban Consumers (CPI-U) for the preceding
year versus the year of enactment or last adjustment.\2\ The Department
compared the amount of the penalty adjustment against the 150 percent
cap and added the lower of the two to the existing penalty to compute
the new penalty. This IFR establishes the initial catch-up adjustment
for civil penalties as described.\3\
---------------------------------------------------------------------------
\1\ OMB Mem. M-16-06 (Feb. 24, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
\2\ OMB has provided the relevant year-over-year multipliers,
rounded to 5 decimal points. Id. at 6.
\3\ Appendix 1 consists of a table that provides ready access to
key information about each penalty.
---------------------------------------------------------------------------
III. Section-by-Section Analysis
The following section-by-section discussion of this IFR presents
the contents of each section in more detail. The Department invites
comments on any issues addressed in this IFR.
A. Employment and Training Administration (20 CFR Part 655)
1. General
This section A of the preamble addresses civil monetary penalties
authorized by the Immigration and Nationality Act's (INA) D-1 and H-1B
visa programs and that are reflected in the Employment and Training
Administration's regulations, but are enforced by the Department's Wage
and Hour Division (WHD). Paragraph 2(a) involves violations of the D-1
visa program, and paragraph 2(b) involves violations of the H-1B visa
program.
2. Specific Penalty Increases
a. Section 655.620--Civil Money Penalties and Other Remedies
Section 258(c)(4)(E)(i) of the INA, 8 U.S.C. 1288(c)(4)(E)(i), and
existing 20 CFR 655.620(a), provide for the imposition of civil money
penalties where the Secretary of Labor (Secretary) finds, after notice
and an opportunity for hearing, that there has been a violation of, or
misrepresentation in, the attestations by employers using alien
crewmembers for longshore activities in U.S. ports, pursuant to the D-1
visa program, or of the Secretary's regulations regarding the D-1
program. These authorities provide that such civil money penalties are
not to exceed $5,000 for each alien crewmember with respect to whom
there has been a violation. The maximum penalty amount last established
by statute or regulation, other than the Prior Inflation Adjustment
Act, was set in 1990 and is the same as the existing maximum
[[Page 43432]]
penalty amount. See Immigration Act of 1990, Pub. L. 101-649, 203(a)(1)
(Nov. 29, 1990).
To adjust the existing civil money penalty for this section, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1990 of 1.78156, which resulted in a maximum
penalty of $8,908. The amount of the increase from $5,000 to $8,908 is
$3,908, which is less than the statutory cap of 150 percent of the
existing $5,000 penalty, which is $7,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
655.620(a) is revised to increase the maximum penalty for violations
specified therein from $5,000 to $8,908 for each alien crewmember with
respect to whom there has been a violation.
b. Section 655.810--What remedies may be ordered if violations are
found?
Section 212(n)(2)(C) of the INA, 8 U.S.C. 1182(n)(2)(C), and
existing 20 CFR 655.810(b) provide for the imposition of civil money
penalties for certain violations of the H-1B visa program. There are
three levels of civil money penalties provided for by these
authorities.
First, existing Sec. 655.810(b)(1) provides for a civil money
penalty, not to exceed $1,000 per violation, for certain specific
violations of the H-1B program. See Sec. 655.810(b)(1)(i)-(vi). The
maximum penalty amount last established by statute or regulation, other
than the Prior Inflation Adjustment Act, was set in 1990 and is the
same as the existing maximum penalty amount. See Immigration Act of
1990, Pub. L. 101-649, 205(3) (Nov. 29, 1990). In 1998, Congress
amended the INA by, in part, providing for additional civil money
penalties in the H-1B program, as discussed below. See American
Competitiveness and Workforce Improvement Act of 1998 (ACWIA), Div. C,
Title IV, of Pub. L. 105-277, 413(a) (Oct. 21, 1998). The 1998
amendments did not adjust the $1,000 civil money penalty reflected in
existing Sec. 655.810(b)(1). Accordingly, we consider 1990 as the year
in which this maximum penalty amount was last established by statute or
regulation other than the Prior Inflation Adjustment Act.
To adjust the existing civil money penalty for this section, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1990 of 1.78156, which resulted in a maximum
penalty of $1,782. The amount of the increase from $1,000 to $1,782 is
$782, which is less than the statutory cap of 150 percent of the
existing $1,000 penalty, which is $1,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
655.810(b)(1) is revised to increase the maximum penalty for violations
specified therein from $1,000 to $1,782 per violation.
Second, existing Sec. 655.810(b)(2) provides for a civil money
penalty, not to exceed $5,000 per violation for certain willful
violations specified therein and for discrimination against an
employee, as described in 20 CFR 655.801(a). The civil money penalty
for discrimination against an employee is also referenced in Sec.
655.801(b). The maximum penalty amount last established by statute or
regulation other than the Prior Inflation Adjustment Act was set in
1998 and is the same as the existing maximum penalty amount. See ACWIA
Sec. 413(a).
To adjust the existing civil money penalty for this section, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1998 of 1.45023, which resulted in a maximum
penalty of $7,251. The amount of the increase from $5,000 to $7,251 is
$2,251, which is less than the statutory cap of 150 percent of the
existing $5,000 penalty, which is $7,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
655.810(b)(2) is revised to increase the maximum penalty for violations
specified therein from $5,000 per violation to $7,251 per violation.
Conforming changes to reflect the adjusted civil money penalty amount
were also made to 20 CFR 655.801(b).
Third, existing Sec. 655.810(b)(3) provides for a civil money
penalty, not to exceed $35,000 per violation, where an employer
displaced a U.S. worker employed by the employer in the period
beginning 90 days before and ending 90 days after the filing of an H-1B
petition in conjunction with certain willful violations specified
therein. The maximum penalty amount last established by statute or
regulation other than the Prior Inflation Adjustment Act was set in
1998 and is the same as the existing maximum penalty amount. See ACWIA
Sec. 413(a).
To adjust the existing civil money penalty for this section, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1998 of 1.45023, which resulted in a maximum
penalty of $50,758. The amount of the increase from $35,000 to $50,758
is $15,758, which is less than the statutory cap of 150 percent of the
existing $35,000 penalty, which is $52,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
655.810(b)(3) is revised to increase the maximum penalty for violations
specified therein from $35,000 to $50,578 per violation.
B. Office of Workers' Compensation Programs (20 CFR Parts 702, 725,
726)
1. General
This section B of the preamble addresses the civil monetary
penalties administered by Office of Workers' Compensation Programs
(OWCP) to enforce provisions of the Longshore and Harbor Workers'
Compensation Act (Longshore Act), and the Longshore Act extensions, the
Defense Base Act, the District of Columbia Workmen's Compensation Act,
the Outer Continental Shelf Lands Act, and the Black Lung Benefits Act
(BLBA). Paragraphs 2(a) through (f) explain revisions to each of the
civil penalties administered and enforced by OWCP.
2. Specific Penalty Increases
a. Section 702.204--Employer's Report; Penalty for Failure To Furnish
and or Falsifying
Existing Sec. 702.201 requires employers to furnish a report of an
employee's injury (resulting in the loss of one or more shifts) or
death within 10 days of the injury or death, or an employer's knowledge
of the same, and to provide additional supplemental information upon
request. Existing Sec. 702.204 provides that an employer who, on or
after November 17, 1997, knowingly and willfully fails or refuses to
file any report required by Sec. 702.201 or who knowingly or willfully
makes a false statement or misrepresentation on any report shall be
subject to a civil penalty not to exceed $11,000 for each failure,
refusal, false statement, or misrepresentation. It provides that an
employer who does so before November 17, 1997 shall be subject to a
civil penalty not to exceed $10,000 for each instance. The maximum
penalty amount last established by statute or regulation other than
pursuant to the Inflation Adjustment Act was $10,000 in 1984. See
Public Law 98-426.
To adjust the existing civil penalty for this section, the
Department multiplied the penalty amount last established by statute or
regulation other than pursuant to the Inflation Adjustment Act,
$10,000, by the inflation adjustment factor for 1984 of 2.25867, which
resulted in a penalty of $22,587 (rounded to the nearest dollar). The
amount of the increase from existing Sec. 702.204's $11,000 penalty to
$22,587 is $11,587. $11,587 is less than the statutory cap of 150
percent of the
[[Page 43433]]
existing $11,000 penalty, which is $16,500. Accordingly, the amount of
the increase is not limited by the statutory cap. For penalties
assessed after August 1, 2016, whose associated violations occurred
after November 2, 2015, final Sec. 702.204 therefore increases the
maximum penalty for each failure to furnish or falsifying an employer's
report from $11,000 to $22,587.
b. Section 702.236--Penalty for Failure To Report Termination of
Payments
Existing Sec. 702.235 requires employers to notify the district
director within 16 days after making a final payment of compensation.
Existing Sec. 702.236 provides that an employer who, on or after
November 17, 1997, fails to notify the district director that a final
payment of compensation has been made as required by Sec. 702.235,
shall be assessed a civil penalty in the amount of $110. It provides
that an employer who does so before November 17, 1997 shall be assessed
a civil penalty in the amount of $100. The penalty amount last
established by statute or regulation other than pursuant to the
Inflation Adjustment Act was $100 in 1927. See 33 U.S.C. 914(g).
To adjust the existing civil penalty for this section, the
Department multiplied the penalty amount last established by statute or
regulation other than pursuant to the Inflation Adjustment Act, $100,
by the inflation adjustment factor for 1927 of 13.66885, which resulted
in a penalty of $1,367 (rounded to the nearest dollar). The amount of
the increase from existing Sec. 702.236's $110 penalty to $1,367 is
$1,257, which would be more than the statutory cap of 150 percent of
the existing $110 penalty, which is $165. Accordingly, the amount of
the increase is limited by the statutory cap to a total of $165. For
penalties assessed after August 1, 2016, whose associated violations
occurred after November 2, 2015, final Sec. 702.236 therefore
increases the penalty for failure to report termination of payments
from $110 to $275 (the current $110 penalty amount plus the $165
statutory cap).
c. Section 702.271--Discrimination; Against Employees Who Bring
Proceedings, Prohibition and Penalty
Existing Sec. 702.271(a)(1) provides that no employer or its agent
may discharge or in any manner discriminate against an employee as to
his or her employment because that employee has claimed or attempted to
claim compensation under the Longshore and Harbor Workers' Compensation
Act, or has testified or is about to testify in a proceeding under that
Act. Existing Sec. 702.271(a)(2) provides that any employer who, on or
after November 17, 1997, violates Sec. 702.271 shall be liable for a
penalty of not less than $1,100 or more than $5,500. It provides that
an employer who does so before November 17, 1997 shall be liable for a
penalty of not less than $1,000 or more than $5,000. The penalty
amounts last established by statute or regulation other than pursuant
to the Inflation Adjustment Act were a minimum amount of $1,000 and a
maximum amount of $5,000 in 1984. See Public Law 98-426.
To adjust the civil penalties for this section, the Department
multiplied the minimum and maximum penalty amounts last established by
statute or regulation other than pursuant to the Inflation Adjustment
Act, $1,000 and $5,000, respectively, by the inflation adjustment
factor for 1984 of 2.25867, which resulted in a minimum penalty of
$2,259 (rounded to the nearest dollar) and a maximum penalty of $11,293
(rounded to the nearest dollar). The amount of the increase from
existing Sec. 702.271(a)(2)'s $1,100 minimum penalty to $2,259 is
$1,159, which is less than the statutory cap of 150 percent of the
existing $1,100 minimum penalty, which is $1,650. The amount of the
increase from existing Sec. 702.271(a)(2)'s $5,500 maximum penalty to
$11,293 is $5,793. $5,793 is less than the statutory cap of 150 percent
of the existing $5,500 maximum penalty, which is $8,250. Accordingly,
neither the amount of the increased minimum nor the increased maximum
penalty is limited by the statutory cap. For penalties assessed after
August 1, 2016, whose associated violations occurred after November 2,
2015, final Sec. 702.271 therefore increases the minimum penalty for
discrimination against employees who claim compensation or bring
proceedings under the Act from $1,100 to $2,259, and increases the
maximum penalty from $5,500 to $11,293.
The Department also changes the ``that'' in the first sentence of
Sec. 702.271(a)(2) to ``than'' to correct a typo in the regulation and
twice corrects the phrase ``liable to a penalty'' to ``liable for a
penalty.'' No substantive change results from or is intended by these
technical edits.
d. Section 725.621--Reports
Existing Sec. 725.621(a) requires employers to notify the district
director upon making a first payment of benefits and upon suspension,
reduction, or increase of payments. Existing Sec. 725.621(b) requires
employers to notify the district director, within 16 days after making
a final payment of benefits. Existing Sec. 724.621(c) allows the
Director to prescribe additional reporting by operators, other
employers, or carriers. Existing Sec. 725.621(d) provides that an
employer who does not file a report required by the section, after
January 19, 2001, shall be subject to a civil penalty not to exceed
$550 for each failure or refusal to file. It provides that an employer
who does so on or before January 19, 2001, shall be subject to a civil
penalty not to exceed $500 for each failure or refusal to file. The
maximum penalty amount last established by statute or regulation other
than pursuant to the Inflation Adjustment Act was $500 in 1978. See
Public Law 95-239.
To adjust the existing civil penalty for this section, the
Department multiplied the penalty amount last established by statute or
regulation other than pursuant to the Inflation Adjustment Act, $500,
by the inflation adjustment factor for 1978 of 3.54453, which resulted
in a penalty of $1,772 (rounded to the nearest dollar). The amount of
the increase from existing Sec. 725.621(d)'s $550 penalty to $1,772 is
$1,222, which is more than the statutory cap of 150 percent of the
existing $550 penalty, which is $825. Accordingly, the amount of the
increase is limited by the statutory cap to a total of $825. For
penalties assessed after August 1, 2016, whose associated violations
occurred after November 2, 2015, final Sec. 725.261 therefore
increases the maximum penalty for each failure or refusal to furnish an
employer's required report from $550 to $1,375 (the current $550
penalty amount plus the $825 statutory cap).
e. Section 726.300--Purpose and Scope
Section 423 of the Black Lung Benefits Act and existing Sec. 726.4
require each coal mine operator to secure its liability for benefits
either by qualifying as a self-insurer in accordance with regulations
prescribed by the Secretary, or by insuring and keeping insured the
payment of such benefits with a licensed workers' compensation insurer.
30 U.S.C. 933(a); 20 CFR 726.4. Section 423 also provides that each
coal mine operator failing to meet its insurance obligation shall be
subject to a civil money penalty of up to $1,000 per day. 30 U.S.C.
933(d)(1). Existing Sec. 726.300 identifies the purpose and scope of
Subpart D of Part 726, which is to set forth definitions, criteria, and
procedures for assessing this civil money penalty. In so doing, it
references the Black Lung Benefits Act's maximum daily penalty of
$1,000. This statutory maximum, however, is adjusted by the
[[Page 43434]]
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended.
Thus, the existing regulation is amended to refer to the adjusted
penalty amount authorized by the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended.
f. Section 726.302--Determination of Penalty
Existing Sec. 726.302 provides the method for determining the
amount of any penalty assessed against a coal mine operator for failure
to secure the payment of benefits in violation of Section 423 of the
Black Lung Benefits Act and existing Sec. 726.4. Existing Sec.
726.302(b) provides that the penalty will be calculated by multiplying
the daily base penalty amount or amounts by the number of days during
which the operator was required to and failed to secure its
obligations. Existing Sec. 726.302(c)(i) explains that the daily base
penalty amount is $100 per day for operators employing fewer than 25
employees, $200 per day for operators employing 25 to 50 employees,
$300 per day for operators employing 51 to 100 employees, and $400 per
day for operators employing more than 100 employees. Existing Sec.
726.302(c)(4) provides that the daily base penalty amounts in Sec.
726.302(c)(2)(i) will increase by $100 on the 11th day after the
operator receives the Director's notice of violation. Existing Sec.
726.302(c)(5) provides that if an operator or certain of its related
entities has violated Sec. 726.4 and been assessed a penalty, the
daily base penalty amount shall increase by $300. It also provides that
an operator who violates Sec. 726.4 after January 19, 2001, shall be
subject to a maximum daily base penalty of $1,100, and that an operator
that violates it on or before January 19, 2001, shall be subject to a
maximum daily base penalty amount of $1,000. The daily base penalty
amounts and increases in paragraphs (c)(2)(i), (c)(4), and (c)(5) were
established by regulation in 2001 and have not subsequently been
increased by the Inflation Adjustment Act or otherwise. See 65 FR
79920. The maximum daily base penalty amount last established by
statute or regulation other than pursuant to the Inflation Adjustment
Act was $1,000 in 1978. See Public Law 95-239.
To adjust the existing daily base penalty for operators employing
fewer than 25 employees, the Department multiplied the existing $100
penalty by the inflation adjustment factor for 2001 of 1.33842, which
resulted in a penalty of $134 (rounded to the nearest dollar). To
adjust the existing daily base penalty for operators employing 25 to 50
employees, the Department multiplied the existing $200 penalty by the
inflation adjustment factor for 2001 of 1.33842, which resulted in a
penalty of $268 (rounded to the nearest dollar). To adjust the existing
daily base penalty for operators employing 51 to 100 employees, the
Department multiplied the existing $300 penalty by the inflation
adjustment factor for 2001 of 1.33842, which resulted in a penalty of
$402 (rounded to the nearest dollar). To adjust the existing daily base
penalty for operators employing more than 100 employees, the Department
multiplied the existing $400 penalty by the inflation adjustment factor
for 2001 of 1.33842, which resulted in a penalty of $535 (rounded to
the nearest dollar). To adjust the existing daily base penalty increase
for operators who fail to respond to the Director's notice of violation
more than 10 days after receipt in paragraph (c)(4), the Department
multiplied the existing $100 penalty increase by the inflation
adjustment factor for 2001 of 1.33842, which resulted in a penalty
increase of $134 (rounded to the nearest dollar). To adjust the
existing daily base penalty increase for operators who have been
subject to a previous penalty assessment in paragraph (c)(5), the
Department multiplied the existing $300 penalty increase by the
inflation adjustment factor for 2001 of 1.33842, which resulted in a
penalty increase of $402 (rounded to the nearest dollar). The
Department has not previously updated these penalty amounts pursuant to
the Inflation Adjustment Act and the multiplier for each (1.33842) is
less than 2.5, the penalty amount (100 percent) plus the statutory cap
(150 percent). Thus, the amount of the increase for each is necessarily
less than the statutory cap of 150 percent of the existing penalty
amount. For penalties assessed after August 1, 2016, whose associated
violations occurred after November 2, 2015, final Sec. 726.302
therefore increases the daily base penalty for operators employing
fewer than 25 employees from $100 to $134; increases the daily base
penalty for operators employing 25 to 50 employees from $200 to $268;
increases the daily base penalty for operators employing 51 to 100
employees from $300 to $402; increases the daily base penalty for
operators employing more than 100 employees from $400 to $535;
increases the daily base penalty increase for operators who continue to
be in violation more than 10 days after receiving the Director's notice
of violation from $100 to $134; and increases the daily base penalty
increase for operators who have been subject to a previous penalty
assessment from $300 to $402.
To adjust the existing maximum daily base penalty in paragraph
(c)(5), the Department multiplied the penalty amount last established
by statute or regulation other than pursuant to the Inflation
Adjustment Act, $1,000, by the inflation adjustment factor for 1978 of
3.54453, which resulted in a penalty of $3,545 (rounded to the nearest
dollar). The amount of the increase from existing Sec. 726.302(c)(5)'s
$1,100 maximum penalty to $3,545 is $2,445, which is more than the
statutory cap of 150 percent of the existing $1,100 penalty, which is
$1,650. Accordingly, the amount of the increase is limited by the
statutory cap to a total of $1,650. For penalties assessed after August
1, 2016, whose associated violations occurred after November 2, 2015,
final Sec. 726.302 therefore increases the maximum daily base penalty
for any violation of Sec. 726.4 from $1,100 to $2,750 (the current
$1,100 penalty amount plus the $1,650 statutory cap).
The Department also moves discussion of the maximum daily base
penalty from subparagraph (c)(5) to new subparagraph (c)(6) for greater
clarity. No substantive change results from or is intended by this
technical edit.
C. Office of the Secretary (29 CFR Part 5 and 41 CFR Part 50-201)
1. General
This section C of the preamble addresses the civil monetary
penalties provisions of the Contract Work Hours and Safety Standards
Act (CWHSSA) and the Walsh-Healey Public Contracts Act (PCA), as
amended. These provisions are included in regulations established by
the Office of the Secretary, which have been delegated to WHD for
enforcement. Paragraphs 2(a) and (b) explain revisions to each of these
civil money penalties.
2. Specific Penalty Increases
a. Section 5.8(a)--Liquidated Damages Under the Contract Work Hours and
Safety Standards Act
Section 3702(c) of title 40 of the United States Code and existing
29 CFR 5.8(a) impose ``liquidated damages'' if a laborer or mechanic is
not paid wages at a rate not less than one and one-half times the basic
rate of pay for all hours worked in excess of forty hours in any
workweek on contracts covered by CWHSSA, to be computed with respect to
each laborer or mechanic employed
[[Page 43435]]
in violation of CWHSSA.\4\ The penalty amount of $10 for each calendar
day in the workweek on which such individual was required or permitted
to work in excess of forty hours without payment of required overtime
wages was last established by statute or regulation other than the
Prior Inflation Adjustment Act in 1962 and is the same as the existing
penalty amount. See Contract Work Hours Standards Act, Title I of
Public Law 87-581, Sec. 102(b)(2) (Aug. 13, 1962).
---------------------------------------------------------------------------
\4\ Although the statute and regulation refer to the amount
assessed as ``liquidated damages'' it is appropriate to treat the
amount as a civil money penalty for purposes of the Inflation
Adjustment Act because the amount due is paid to the government, not
the laborer or mechanic. Indeed, the Department of Labor has long
recognized that the CWHSSA damages provision ``operate[s] as [a]
civil monetary penalt[y].'' Letter to Honorable Carl Levin,
Chairman, Subcommittee on Oversight of Government Management, from
Ann McLaughlin, Secretary of Labor, (Feb. 22, 1988).
---------------------------------------------------------------------------
To adjust the existing penalty for this section, the Department
multiplied that penalty amount of $10 by the inflation adjustment
factor for 1962 of 7.82362, which would have resulted in a penalty of
$78. The amount of the increase from $10 to $78 is $68, which exceeds
the statutory cap of 150 percent of the existing $10, which is $15;
accordingly, the amount of the increase is limited by the statutory cap
to a total of $15. Consequently, Sec. 5.8(a) is revised to increase
the penalty if a laborer or mechanic is not paid wages at least one and
one-half times the basic rate of pay for all hours worked in excess of
forty hours in any workweek from $10 to $25 for each calendar day in
the workweek on which such individual was required or permitted to work
in excess of forty hours without payment of required overtime wages.
Conforming changes to reflect the adjusted penalty amount were also
made to Sec. 5.5(b)(2).
b. Section 50-201.3--Public Contracts, Department of Labor; Insertion
of Stipulations.
Section 6503(b)(1) of title 41 of the United States Code and
existing 41 CFR 50-201.3(e) impose ``liquidated damages'' \5\ of $10
per day for each individual under 16 years of age and each incarcerated
individual knowingly employed in the performance of a contract covered
by the PCA, as amended. The penalty amount of $10 for each day and for
each individual under 16 years of age and each incarcerated individual
knowingly employed was last established by statute or regulation other
than the Prior Inflation Adjustment Act in 1936 and is the same as the
existing penalty amount. See Walsh-Healey Act of 1936, 49 Stat. 2036,
Sec. 2 (June 30, 1936).
---------------------------------------------------------------------------
\5\ Although the statute and regulation refer to the amount
assessed as ``liquidated damages'' it is appropriate to treat the
amount as a civil money penalty for purposes of the Inflation
Adjustment Act because the amount due is paid to the government, not
the worker. Indeed, the Department of Labor has long recognized that
the Walsh-Healey Public Contracts Act damages provision ``operate[s]
as [a] civil monetary penalt[y].'' Letter to Honorable Carl Levin,
Chairman, Subcommittee on Oversight of Government Management, from
Ann McLaughlin, Secretary of Labor, (Feb. 22, 1988).
---------------------------------------------------------------------------
To adjust the existing civil money penalty for this section, the
Department multiplied that penalty amount of $10 by the inflation
adjustment factor for 1936 of 16.98843, which would have resulted in a
penalty of $170. The amount of the increase from $10 to $170 is $160,
which exceeds the statutory cap of 150 percent of the existing $10
penalty, which is $15. Accordingly, the amount of the increase is
limited by the statutory cap to a total of $15. Consequently, Sec. 50-
201.3(e) is revised to increase the penalty for the knowing employment
on a covered contract of individuals under 16 or who are incarcerated
from $10 to $25 per day.
D. Wage and Hour Division (29 CFR Parts 500, 501, 530, 570, 578, 579,
801, 825)
1. General
This section D of the preamble addresses the civil monetary
penalties administered by WHD to enforce provisions of the Migrant and
Seasonal Agricultural Worker Protection Act, the Immigration and
Nationality Act,\6\ the Fair Labor Standards Act, the Employee
Polygraph Protection Act, and the Family and Medical Leave Act.
Paragraphs 2(a) through (g) explain revisions to each of these civil
penalties administered and enforced by WHD.
---------------------------------------------------------------------------
\6\ The Department and the Department of Homeland Security are
jointly publishing a separate IFR to implement the Inflation
Adjustment Act's requirements with respect to the civil money
penalty provisions found at 29 CFR 503.23.
---------------------------------------------------------------------------
a. Section 500.1--Purpose and Scope
Section 503(a)(1) of the Migrant and Seasonal Agricultural Worker
Protection Act (MSPA), 29 U.S.C. 1853(a)(1), and existing 29 CFR
500.1(e), authorize the Secretary to impose a civil money penalty of
not more than $1,000 per violation on persons who violate MSPA or any
regulation under MSPA. The maximum penalty amount last established by
statute or regulation other than the Prior Inflation Adjustment Act was
set in 1983 and is the same as the existing maximum penalty amount. See
MSPA, Public Law 97-470 (Jan. 14, 1983).
To adjust the existing civil money penalty for this paragraph, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1983 of 2.35483, which resulted in a maximum
penalty of $2,355. The amount of the increase from $1,000 to $2,355 is
$1,355, which is less than the statutory cap of 150 percent of the
existing $1,000 penalty, which is $1,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
500.1(e) is revised to increase the maximum penalty for violations of
MSPA or the MSPA regulations from $1,000 to $2,355 per violation.
b. Section 501.19--Civil Money Penalty Assessment
Section 218(g)(2) of the INA, 8 U.S.C. 1188(g)(2), authorizes the
Secretary of Labor to impose appropriate penalties in order to assure
employer compliance with the terms and conditions of employment under
the H-2A visa program. Pursuant to this and other authorities, the
Secretary has promulgated regulations through notice and comment
rulemaking regarding the assessment of civil money penalties. See,
e.g., Final Rule, Temporary Agricultural Employment of H-2A Aliens in
the United States, 75 FR 6884 (Feb. 12, 2010) (codified at 29 CFR part
501 and 20 CFR part 655) (2010 H-2A Final Rule). 29 CFR 501.19(a) of
these regulations provides for the imposition of civil money penalties
for each violation of the work contract, or the obligations imposed by
8 U.S.C. 1188, 20 CFR part 655, subpart B, or the regulations in 29 CFR
part 501. Section 501.19(c) through (f) provides the maximum civil
money penalty amounts for various violations as specified below.
First, existing Sec. 501.19(c) provides that a civil money penalty
for each violation of the work contract or of the H-2A visa program's
statutory or regulatory requirements will not exceed $1,500 per
violation, with exceptions as specified below. The maximum penalty
amount last established by statute or regulation other than the Prior
Inflation Adjustment Act was set in 2010 and is the same as the
existing maximum penalty amount. See 2010 H-2A Final Rule.
To adjust the existing civil money penalty for Sec. 501.19(c), the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2010 of 1.08745, which resulted in a maximum
penalty of $1,631. The amount of the increase from $1,500 to $1,631 is
$131, which is less than the statutory cap of 150 percent of
[[Page 43436]]
the existing $1,500 penalty, which is $2,250; accordingly, the amount
of the increase is not limited by the statutory cap. Consequently,
Sec. 501.19(c) is revised to increase the maximum penalty for
violations specified therein from $1,500 to $1,631 per violation.
Second, existing Sec. 501.19(c)(1) provides that a civil money
penalty for each willful violation of the work contract, of the H-2A
visa program's statutory or regulatory requirements, or for each act of
discrimination prohibited by Sec. 501.4 shall not exceed $5,000. The
maximum penalty amount last established by statute or regulation other
than the Prior Inflation Adjustment Act was set in 2008 and is the same
as the existing maximum penalty amount. See Final Rule, Temporary
Agricultural Employment of H-2A Aliens in the United States;
Modernizing the Labor Certification Process and Enforcement, 73 FR
77,110 (Dec. 18, 2008) (2008 H-2A Final Rule). This penalty amount was
not adjusted by the H-2A 2010 Final Rule. Accordingly, we consider 2008
as the year in which this maximum penalty amount was last established
by statute or regulation other than the Prior Inflation Adjustment Act.
To adjust the existing civil money penalty for Sec. 501.19(c)(1),
the Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2008 of 1.09819, which resulted in a maximum
penalty of $5,491. The amount of the increase from $5,000 to $5,491 is
$491, which is less than the statutory cap of 150 percent of the
existing $5,000 penalty, which is $7,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
501.19(c)(1) is revised to increase the maximum penalty for violations
specified therein from $5,000 to $5,491.
Third, existing Sec. 501.19(c)(2) provides that a civil money
penalty for a violation of a housing or transportation safety and
health provision of the work contract or of the H-2A visa program's
statutory or regulatory requirements that proximately causes the death
or serious injury of any worker shall not exceed $50,000 per worker.
The maximum penalty amount last established by statute or regulation
other than the Prior Inflation Adjustment Act was set in 2010 and is
the same as the existing maximum penalty amount. See 2010 H-2A Final
Rule.
To adjust the existing civil money penalty for Sec. 501.19(c)(2),
the Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2010 of 1.08745, which resulted in a maximum
penalty of $54,373. The amount of the increase from $50,000 to $54,373
is $4,373, which is less than the statutory cap of 150 percent of the
existing $50,000 penalty, which is $75,000; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
501.19(c)(2) is revised to increase the maximum penalty for violations
specified therein from $50,000 to $54,373 per worker.
Fourth, existing Sec. 501.19(c)(4) provides that a civil money
penalty for a repeat or willful violation of a housing or
transportation safety and health provision of the work contract or of
the H-2A visa program's statutory or regulatory requirements that
proximately causes the death or serious injury of any worker shall not
exceed $100,000 per worker. The maximum penalty amount last established
by statute or regulation other than the Prior Inflation Adjustment Act
was set in 2010 and is the same as the existing maximum penalty amount.
See 2010 H-2A Final Rule.
To adjust the existing civil money penalty for Sec. 501.19(c)(4),
the Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2010 of 1.08745, which resulted in a maximum
penalty of $108,745. The amount of the increase from $100,000 to
$108,745 is $8,745, which is less than the statutory cap of 150 percent
of the existing $100,000 penalty, which is $150,000; accordingly, the
amount of the increase is not limited by the statutory cap.
Consequently, Sec. 501.19(c)(4) is revised to increase the maximum
penalty for violations specified therein from $100,000 to $108,745 per
worker.
Fifth, existing Sec. 501.19(d) provides that a civil money penalty
for failure to cooperate with a WHD investigation shall not exceed
$5,000 per investigation. The maximum penalty amount last established
by statute or regulation other than the Prior Inflation Adjustment Act
was set in 2008 and is the same as the existing maximum penalty amount.
See 2008 H-2A Final Rule. This penalty amount was not adjusted by the
H-2A 2010 Final Rule. Accordingly, we consider 2008 as the year in
which this maximum penalty amount was last established by statute or
regulation other than the Prior Inflation Adjustment Act.
To adjust the existing civil money penalty for Sec. 501.19(d), the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2008 of 1.09819, which resulted in a maximum
penalty of $5,491. The amount of the increase from $5,000 to $5,491 is
$491, which is less than the statutory cap of 150 percent of the
existing $5,000 penalty, which is $7,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
501.19(d) is revised to increase the maximum penalty for failure to
cooperate with a WHD investigation from $5,000 to $5,491 per
investigation.
Sixth, existing Sec. 501.19(e) provides that a civil money penalty
for laying off or displacing any U.S. worker employed, under the
circumstances specified therein, shall not exceed $15,000 per violation
per worker. The maximum penalty amount last established by statute or
regulation other than the Prior Inflation Adjustment Act was set in
2010 and is the same as the existing maximum penalty amount. See 2010
H-2A Final Rule.
To adjust the existing civil money penalty for Sec. 501.19(e), the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2010 of 1.08745, which resulted in a maximum
penalty of $16,312. The amount of the increase from $15,000 to $16,312
is $1,312, which is less than the statutory cap of 150 percent of the
existing $15,000 penalty, which is $22,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
501.19(e) is revised to increase the maximum penalty for violations
specified therein from $15,000 to $16,312 per violation per worker.
Finally, existing Sec. 501.19(f) provides that a civil money
penalty for improperly rejecting a U.S. worker who is an applicant for
employment, in violation of the H-2A visa program's statutory or
regulatory requirements, shall not exceed $15,000 per violation per
worker. The maximum penalty amount last established by statute or
regulation other than the Prior Inflation Adjustment Act was set in
2010 and is the same as the existing maximum penalty amount. See 2010
H-2A Final Rule.
To adjust the existing civil money penalty for Sec. 501.19(f), the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2010 of 1.08745, which resulted in a maximum
penalty of $16,312. The amount of the increase from $15,000 to $16,312
is $1,312, which is less than the statutory cap of 150 percent of the
existing $15,000 penalty, which is $22,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
501.19(f) is revised to increase the maximum penalty for violations
[[Page 43437]]
specified therein from $15,000 to $16,312 per violation per worker.
c. Section 530.302--Amounts of Civil Money Penalties
Section 11(d) of the Fair Labor Standards Act (FLSA), 29 U.S.C.
211(d), authorizes the Administrator of the WHD to issue such
regulations and orders as necessary to assure compliance with the
FLSA's requirements with respect to industrial homework. Pursuant to
this and other authorities, the Administrator has promulgated
regulations through notice and comment rulemaking. See Final Rule,
Employment of Homeworkers in Certain Industries; Records To Be Kept by
Employers, 53 FR 45706 (Nov. 10, 1988) (codified at 29 CFR parts 516
and 530). Section 530.302 of these regulations provides for the
imposition of civil money penalties. Existing Sec. 530.302(a) imposes
a civil money penalty of not more than $500 per affected homeworker for
any violation of the FLSA related to homework \7\, or of part 530, or
of the assurances given in connection with the issuance of a homeworker
certificate. Existing Sec. 530.302(b) states that the amount of civil
money penalties shall be determined per affected homeworker within the
limits set forth in a following table, except that no penalty shall be
assessed in the case of violations which are deemed to be de minimis in
nature. The table appears in the existing regulation as follows in
Table A:
---------------------------------------------------------------------------
\7\ Except for child labor violations, which are covered under
29 CFR part 579.
Table A--Existing Homework Penalties
----------------------------------------------------------------------------------------------------------------
Penalty per affected homeworker
-----------------------------------------------
Nature of violation Repeated,
Minor Substantial intentional or
knowing
----------------------------------------------------------------------------------------------------------------
Recordkeeping................................................... $10-100 $100-200 $200-500
Monetary violations............................................. $10-100 $100-200 ..............
Employment of homeworkers without a certificate................. .............. $100-200 $200-500
Other violations of statutes, regulations or employer assurances $10-100 $100-200 $200-500
----------------------------------------------------------------------------------------------------------------
The maximum penalty amount last established by statute or regulation
other than the Prior Inflation Adjustment Act was $500 in 1988 and is
the same as the existing maximum penalty amount. See 53 FR 45706,
45724.
To adjust the existing civil money penalty for this section, the
Department multiplied the maximum penalty amount of $500 by the
inflation adjustment factor for 1988 of 1.97869, which resulted in a
maximum penalty of $989. The amount of the increase from $500 to $989
is $489, which is less than the statutory cap of 150 percent of the
existing $500 penalty, which is $750; accordingly, the amount of the
increase is not limited by the statutory cap. Consequently, Sec.
530.302(a) and (b) are revised to increase the maximum penalty from
$500 to $989 and the percentage of that maximum penalty amount for
minor (2 percent to 20 percent); substantial (20 percent to 40
percent); or repeated, intentional, or knowing (40 percent to 100
percent) violations by the same percentages of the adjusted maximum
penalty amount as under the existing section. As a result, the revised
penalty amounts are $20-198 for a minor violation; $198-396 for a
substantial violation; and $396-989 for a repeated, intentional, or
knowing violation.
d. Section 578.3--What types of violations may result in a penalty
being assessed?
Section 16(e)(2) of the FLSA, 29 U.S.C. 216(e)(2), and existing 29
CFR 578.3(a), provide for the assessment of civil money penalties for
any person who repeatedly or willfully violates section 6 (minimum
wage) or section 7 (overtime) of the FLSA. Existing Sec. 578.3(a)
provides for a civil money penalty of up to $1,100 per violation, and
that level is the result of an inflation adjustment in 2001. See Final
Rule, Adjustment of Civil Money Penalties for Inflation, 66 FR 63501
(Dec. 7, 2001). The maximum penalty amount last established by statute
or regulation other than the Prior Inflation Adjustment Act was $1,000
in 1989. See Fair Labor Standards Amendments of 1989, Pub. L. 101-157,
Sec. 9 (Nov. 17, 1989).
To adjust the existing civil money penalty for this paragraph, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1989 of 1.89361, which resulted in a maximum
penalty of $1,894. The amount of the increase from $1,100 to $1,894 is
$794, which is less than the statutory cap of 150 percent of the
existing $1,100 penalty, which is $1,650; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
578.3(a) is revised to increase the maximum penalty for a repeated or
willful violation of section 6 (minimum wage) or section 7 (overtime)
of the FLSA from $1,100 to $1,894 per violation.
Conforming changes to reflect the adjusted maximum civil money
penalty amount were also made to Sec. 579.1(a)(2). In addition,
historical information concerning penalties for repeated or willful
violations of Sections 6 or 7 of the FLSA contained in 29 CFR 578.1 is
revised to reflect the passage of the Federal Civil Penalties Inflation
Adjustment Act Improvement Act of 2015 (Pub. L. 114-74) and its
requirement to make civil money penalty adjustments annually.
e. Section 579.1--Purpose and Scope
Section 16(e)(1)(A) of the FLSA and existing 29 CFR 579.1(a)(1)(i)
provide for the imposition of civil money penalties for any violations
of the provisions of sections 12 or 13(c) of the FLSA, relating to
child labor, or any regulation issued pursuant to such sections. There
are three levels of civil money penalties provided for by these
authorities.
First, existing Sec. 579.1(a)(1)(i)(A) provides for a civil money
penalty, not to exceed $11,000, for each employee who was the subject
of a child labor violation. This penalty corresponds to the statutory
provision at 29 U.S.C. 216(e)(1)(A)(i). The penalty amount last
established by statute or regulation for this provision other than the
Prior
[[Page 43438]]
Inflation Adjustment Act was $11,000 in 2008. See Genetic Information
Nondiscrimination Act of 2008 (GINA), Pub. L. 110-233, Sec. 302(a)
(May 21, 2008).
To adjust the existing civil money penalty for this paragraph, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2008 of 1.09819, which resulted in a maximum
penalty of $12,080. The amount of the increase from $11,000 to $12,080
is $1,080, which is less than the statutory cap of 150 percent of the
existing $11,000 penalty, which is $16,500; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
579.1(a)(1)(i)(A) is revised to increase the maximum penalty for
violations of the provisions of sections 12 or 13(c) of the FLSA,
relating to child labor, or any regulation issued pursuant to such
sections, from $11,000 to $12,080 for each employee who was the subject
of such a violation.
Conforming changes to reflect the adjusted maximum civil money
penalty amount were also made to 29 CFR 570.140(b)(1).
Second, existing Sec. 579.1(a)(1)(i)(B) provides for a civil money
penalty, not to exceed $50,000, for each violation of section 12 or
13(c) of the FLSA, relating to child labor, or any regulation issued
pursuant to those sections that causes the death or serious injury of
any employee under the age of 18 years. This penalty corresponds to the
statutory provision at 29 U.S.C. 216(e)(1)(A)(ii). That maximum amount
was last established by statute or regulation other than the Prior
Inflation Adjustment Act in 2008 and is the same as the existing
maximum penalty amount. See GINA Sec. 302(a).
To adjust the existing civil money penalty for this paragraph, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 2008 of 1.09819, which resulted in a maximum
penalty of $54,910. The amount of the increase from $50,000 to $54,910
is $4,910, which is less than the statutory cap of 150 percent of the
existing $50,000 penalty, which is $75,000; accordingly, the amount of
the increase is not limited by the statutory cap. Consequently, Sec.
579.1(a)(1)(i)(B) is revised to increase the maximum penalty for
violations of that provision, from $50,000 to $54,910 for each such
violation.
Section 579.5(a) has also been revised to remove superfluous
language regarding the effective date of this civil money penalty.
Conforming changes to reflect the adjusted maximum civil money penalty
amount were also made to 29 CFR 570.140(b)(2).
Third, existing Sec. 579.1(a)(1)(i)(B) also provides that the
maximum penalty for a violation of section 12 or 13(c) of the FLSA,
relating to child labor, or any regulation issued pursuant to those
sections that causes the death or serious injury of any employee under
the age of 18 years may be doubled if the violation is repeated or
willful. Therefore, under revised Sec. 579.1(a)(1)(i)(B), the maximum
penalty amount for such a willful or repeated violation is calculated
by doubling the adjusted penalty of $54,910 for a child labor violation
resulting in serious injury or death (i.e., $109,820). No change to
regulatory text is needed to make this adjustment.
In addition, existing Sec. 579.1(a) and (b) are revised to reflect
the passage of the Federal Civil Penalties Inflation Adjustment Act
Improvement Act of 2015 (Pub. L. 114-74) and its requirement to make
civil money penalty adjustments annually, and to remove superseded
information regarding the effective date of increased civil money
penalties.
f. Section 801.42--Civil Money Penalties--Assessment
Section 6(a)(1) of the Employee Polygraph Protection Act of 1988
(EPPA), 29 U.S.C. 2005(a)(1) and existing 29 CFR 801.42(a) impose a
civil money penalty of not more than $10,000 for any violation of the
EPPA or of part 801. The maximum penalty amount last established by
statute or regulation other than the Prior Inflation Adjustment Act was
$10,000 in 1988 and is the same as the existing maximum penalty amount.
See EPPA, Pub. L. 100-347 (June 27, 1988).
To adjust the existing civil money penalty for this section, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1988 of 1.97869, which resulted in a penalty of
$19,787. The amount of the increase from $10,000 to $19,787 is $9,787,
which is less than the statutory cap of 150 percent of the existing
$10,000 penalty, which is $15,000; accordingly, the amount of the
increase is not limited by the statutory cap. Consequently, Sec.
801.42(a) is revised to increase the maximum penalty for a violation of
the EPPA from $10,000 to $19,787.
g. Section 825.300--Employer Notice Requirements
Section 109(b) of the Family and Medical Leave Act (FMLA), as
amended, 29 U.S.C. 2619(b), and existing 29 CFR 825.300(a)(1) provide
for the assessment of a civil money penalty for each willful violation
of the posting requirement of the FMLA. Existing Sec. 825.300(a)(1)
provides for a civil money penalty of up to $110 for each separate
offense, and that level is the result of an inflation adjustment in
2008. See Final Rule, The Family and Medical Leave Act of 1993, 73 FR
67934 (Nov. 17, 2008). The penalty amount last established by statute
or regulation other than the Prior Inflation Adjustment Act was $100 in
1993. See FMLA of 1993, Pub. L. 103-3, Sec. 109(b) (Feb. 5, 1993).
To adjust the existing civil money penalty for this paragraph, the
Department multiplied that maximum penalty amount by the inflation
adjustment factor for 1993 of 1.63238, which resulted in a maximum
penalty of $163. The amount of the increase from $110 to $163 is $53,
which is less than the statutory cap of 150 percent of the existing
$110 penalty, which is $165; accordingly, the amount of the increase is
not limited by the statutory cap. Consequently, Sec. 578.300(a)(1) is
revised to increase the penalty for violations of the posting
requirement of the FMLA from $110 to $163 for each separate offense.
E. Occupational Safety and Health Administration (29 CFR Parts 1902,
1903)
1. General
This section E of the preamble addresses the civil monetary
penalties administered by the Occupational Safety and Health
Administration (OSHA) to enforce provisions of the Occupational Safety
& Health Act of 1970 (OSH Act), as amended. Paragraph 2(a) explains
conforming edits to the agency's State Plan regulations. Paragraph 2(b)
explains revisions to each of the civil penalties administered and
enforced by OSHA.
2. Specific Penalty Increases
a. Section 1902.4(c)(2)(xi)--Indices of Effectiveness
Section 18(c)(2) of the OSH Act provides that a State may assume
responsibility for development and enforcement of its own occupational
safety and health standards by submitting a State Plan. State Plan
regulations at 29 CFR 1902.3(c)(1) and (d)(1) provide that State Plans
must develop or adopt occupational safety and health standards and an
enforcement program for those standards that are at least as effective
as federal OSHA's standards and enforcement program. Existing Sec.
1902.4(c)(2)(xi) provides that in order to satisfy this requirement of
[[Page 43439]]
effectiveness, State Plans must have effective sanctions, such as those
prescribed in the OSH Act. This IFR amends Sec. 1902.4(c)(2)(xi) to
clarify that State Plans must provide sanctions as effective as those
set forth in the OSH Act and in Sec. 1903.15(d), against private-
sector employers who violate State standards and orders.
b. Section 1903.15--OSH Act Penalties
The penalty amounts set forth in section 17(a) to (d) and (i) of
the OSH Act (29 U.S.C. 666(a) to (d) and (i)) were last updated by the
Omnibus Budget Reconciliation Act of 1990 on November 5, 1990. Pub. L.
101-508. To adjust the civil penalties for Section 17(a) to (d) and
(i), the Department multiplied the penalty amounts by the inflation
adjustment factor for 1990 of 1.78156. None of the resulting penalty
amounts exceeded the 150 percent statutory cap. Other references to
penalty amounts in Part 1903 are also amended by the new penalty
amounts set out in Sec. 1903.15(d).
i. Willful or Repeated Violation of the OSH Act, 29 U.S.C 666(a)
Section 17(a) of the OSH Act, 29 U.S.C 666(a), provides that
employers who willfully or repeatedly violate the requirements of
section 5 of the OSH Act, any standards, rules or orders promulgated
under section 6 of the OSH Act, or applicable regulations may be
assessed a civil penalty of not more than $70,000 for each violation,
but not less than $5,000 for each willful violation. No minimum penalty
is set forth in the OSH Act for repeated violations. To adjust the
existing civil money penalty for this paragraph, the Department
multiplied the penalty amounts by the inflation adjustment factor for
1990 of 1.78156, which resulted in a maximum penalty of $124,709 for
willful and repeated violations, and a minimum penalty of $8,908 for
willful violations. The updated civil monetary penalties for willful
and repeated violations are set out in Sec. 1903.15(d)(1) and (2).
ii. Serious Violation of the OSH Act of 1970, 29 U.S.C 666(b)
Section 17(b) of the OSH Act, 29 U.S.C 666(b), provides that
employers who have received a citation for a serious violation of the
requirements of section 5 of the OSH Act, of any standard, rule, or
order promulgated under section 6 of the OSH Act, or applicable
regulations may be assessed a civil penalty up to $7,000 for each
violation. After applying the inflation adjustment factor, the penalty
amounts were rounded to the nearest dollar, which resulted in a maximum
penalty of $12,471. The updated maximum civil monetary penalty for
serious violations is set out in Sec. 1903.15(d)(3).
iii. Other-Than-Serious Violation of the OSH Act of 1970, 29 U.S.C
666(c)
Section 17(c) of the OSH Act, 29 U.S.C 666(c), provides that
employers who have received a citation for a violation of the
requirements of section 5 of the OSH Act, any standard, rule or order
promulgated under section 6 of the OSH Act, or applicable regulations,
and such violation is determined not to be of a serious nature, may be
assessed a civil penalty of up to $7,000 for each violation. After
applying the inflation adjustment factor, the penalty amounts were
rounded to the nearest dollar, which resulted in a maximum penalty of
$12,471 for each day during which such failure or violation continues.
The updated maximum civil monetary penalty for other-than-serious
violations is set out in Sec. 1903.15(d)(4).
iv. Failure To Correct a Violation of the OSH Act of 1970, 29 U.S.C
666(d)
Section 17(d), 29 U.S.C 666(d), provides that any employer who
fails to correct a violation for which a citation has been issued under
section 9(a) of the OSH Act within the period permitted for the
correction may be assessed a civil penalty of not more than $7,000 for
each day during which such failure or violation continues. After
applying the inflation adjustment factor, the penalty amounts are
rounded to the nearest dollar, which resulted in a maximum penalty of
$12,471. The updated maximum civil monetary penalty for failing to
correct a violation is set out in Sec. 1903.15(d)(5).
v. Violation of a Posting Requirement of the OSH Act of 1970, 29 U.S.C
666(i)
Section 17(i) of the OSH Act, 29 U.S.C. 666(i), provides that
employers who violate any of the posting requirements, as prescribed
under provisions of the OSH Act, shall be assessed a civil penalty of
up to $7,000 for each violation. After applying the inflation
adjustment factor, the penalty amounts are rounded to the nearest
dollar, which resulted in a maximum penalty of $12,471. The updated
maximum civil monetary penalty for violations of the posting
requirements is set out in Sec. 1903.15(d)(6).
F. Employee Benefits Security Administration (29 CFR Part 2560, 2575,
2590)
1. General
This section F of the preamble addresses the civil monetary
penalties administered by EBSA to enforce title I of the Employee
Retirement Income Security Act of 1974, as amended, (ERISA). Paragraph
2(a) explains how the Department determined the date each civil
monetary penalty was last adjusted by law or regulation (other than the
Prior Inflation Adjustment Act, as amended), and Paragraph 2(b)
describes the calculation of the catch-up adjustment for each ERISA
civil monetary penalty through the use of a table. Paragraph 2(c)
addresses the restructuring of 29 CFR part 2575 and other technical
changes to the Department's regulations needed to reflect the
amendments made to the Prior Inflation Adjustment Act by the Inflation
Adjustment Act.
2. Specific Penalty Increases
a. Determination of Date Civil Monetary Penalty was Last Adjusted by
Law or Regulation (Other Than the Prior Inflation Adjustment Act)
Section 5(b)(2)(B) of the Inflation Adjustment Act states that the
initial cost-of-living adjustment (i.e., catch-up adjustment) shall be
applied to the ``amount of the civil monetary penalty as it was most
recently established or adjusted under a provision of law other than
the [Prior Inflation Adjustment Act].'' OMB guidance clarifies that the
definition of the term ``law'' includes regulations where the statute
grants the agency authority to establish a penalty or the dollar amount
of the penalty by regulation. The Department has determined that no
ERISA penalty amount has been adjusted by regulation or statute (other
than the Prior Inflation Adjustment Act) subsequent to the enactment of
the statute that established the initial amount of the penalty.
Certain ERISA civil monetary penalties apply to violations of more
than one ERISA provision. For example, new violations of ERISA were
subsequently added to the civil penalty provisions of sections
502(c)(4), and 502(c)(7).\8\ The addition of a violation to an existing
penalty statute neither establishes nor adjusts the ``amount of the
civil monetary penalty'' within the meaning of section 5(b)(2)(B) of
the Inflation Adjustment Act. Because no ERISA civil monetary penalty
amount has been adjusted by law (other than the Prior Inflation
Adjustment Act) subsequent to its establishment, the enactment date of
an ERISA penalty statute rather than the date a violation first becomes
subject to the penalty
[[Page 43440]]
determines both the amount of and the date from which the penalty is
adjusted. For example, a failure to furnish certain multiemployer plan
financial and actuarial information upon request under section 101(k)
of ERISA will be subject to a penalty under ERISA section 502(c)(4)
adjusted for inflation from 1993 (the year of enactment of section
502(c)(4), even though section 101(k) violations did not become subject
to section 502(c)(4) until 2008.\9\ This interpretation tracks the
language of the statute and ensures that ERISA violations subject to
the same penalty are adjusted for inflation in a consistent manner. The
Department is of the view that this consistency will in turn reduce
both confusion and, ultimately, the burden upon the regulated
community.
---------------------------------------------------------------------------
\8\ Section 502(c)(4) was enacted in 1993 by Pub. L. 103-66, 107
Stat.312. A new violation was added to section 502(c)(4) in 2006 by
Pub. L. 109-280, 120 Stat. 780. Section 502(c)(7) was enacted in
2002 by Pub. L. 107-204, 116 Stat. 745. Section 502(c)(7) also was
amended in 2006 by Pub. L. 109-208, 120 Stat. 780, to add a new
violation.
\9\ Pub. L. 109-280, August 17, 2006, effective for failures
occurring in plan years beginning after 2007.
---------------------------------------------------------------------------
The enactment dates of the ERISA statutes establishing the amount
of the civil monetary penalties follow in Table B:
Table B--Enactment Dates
----------------------------------------------------------------------------------------------------------------
Law (other than prior Inflation Adjustment Act)
Penalty statute: U.S.C. and ERISA most recently establishing amount of ERISA civil Enactment date
citations monetary penalties
----------------------------------------------------------------------------------------------------------------
29 U.S.C. Sec. 1059(b)/ERISA Sec. Section 209(b) of the Employee Retirement Income September 2, 1974.
209(b). Security Act of 1974, Pub. L. 93-406, 88 Stat.
829.
29 U.S.C. Sec. 1132(c)(2)/ERISA Section 9342(c)(2) of the Omnibus Reconciliation December 22, 1987.
Sec. 502(c)(2). Act of 1987, Pub. L. 100-203, 101 Stat. 1330.
29 U.S.C. Sec. 1132(c)(4)/ERISA Section 4301(c)(2) of the Omnibus Budget August 10, 1993.\10\
Sec. 502(c)(4). Reconciliation Act of 1993, Pub. L. 103-66, 107
Stat. 312.
29 U.S.C. Sec. 1132(c)(5)/ERISA Section 101(e)(2) of the Health Insurance and August 21, 1996.
Sec. 502(c)(5). Portability and Accountability Act of 1996,
Pub. L. 104-91, 110 Stat. 1936.
29 U.S.C. Sec. 1132(c)(6)/ERISA Section 1503(c)(2)(B) of the Taxpayer Relief Act August 5, 1997.
Sec. 502(c)(6). of 1997, Pub. L. 105-34, 111 Stat. 788.
29 U.S.C. Sec. 1132(c)(7)/ERISA Section 306(b)(3) of the Sarbanes-Oxley Act of July 30, 2002.
Sec. 502(c)(7). 2002, Pub. L. 107-204, 116 Stat. 745.
29 U.S.C. Sec. 1132(c)(8)/ERISA Section 202(b)(3) of the Pension Protection Act August 17, 2006.
Sec. 502(c)(8). of 2006 (PPA), Pub. L. 109-280, 120 Stat. 780.
29 U.S.C. Sec. 1132(c)(9)(A)/ERISA Section 311(b)(1)(E) of the Children's Health February 4, 2009.
Sec. 502(c)(9)(A). Insurance Program Reauthorization Act of 2009,
Pub .L. 111-3, 123 Stat. 8.
29 U.S.C. Sec. 1132(c)(9)(B)/ERISA Section 311(b)(1)(E) of the Children's Health February 4, 2009.
Sec. 502(c)(9)(B). Insurance Program Reauthorization Act of 2009,
Pub. L. 111-3, 123 Stat. 8.
29 U.S.C. Sec. 1132(c)(10)/ERISA Section 101(e) of the Genetic Information May 21, 2008.
Sec. Sec. 502(c)(10)(B)(i), Nondiscrimination Act of 2008, Pub. L. 110-233,
(C)(i), (C) (ii), and (D)(iii)(II). 122 Stat. 881.
29 U.S.C. Sec. 1132(c)(12)/ERISA Section 102(b)(6)(B) of the Cooperative and April 7, 2014.
Sec. 502(c)(12). Small Employer Charity Pension Flexibility Act,
Pub. L. 113-97, 128 Stat. 1101.
29 U.S.C. Sec. 1132(m)/ERISA Sec. Section 761(a)(9)(B)(ii) of the Uruguay Round December 8, 1994.
502(m). Agreements Act, Pub. L. 103-465, 108 Stat. 4809.
29 U.S.C. Sec. 1185d and 42 U.S.C. Sections 1001(5) and 1562(e) of the Patient March 23, 2010.
Sec. 300gg-15/ERISA Sec. 715. Protection and Affordable Care Act, Pub. L. 111-
148, 124 Stat. 119.
----------------------------------------------------------------------------------------------------------------
b. Calculation of Catch-Up Inflation Adjustment
Table C shows the calculation of the catch-up adjustment. Column
(1) contains the United States Code and ERISA citations for the penalty
statute. Column (2) contains the dollar amount most recently
established by law (other than the Prior Inflation Adjustment Act) for
each ERISA civil monetary penalty along with a description of the
violations subject to the penalty. Column (3) sets out the year the
amount of the civil monetary penalty was most recently established by
law (other than the Prior Inflation Adjustment Act) based on the date
of enactment found in Table B. Column (4) sets out the factor
determined by OMB to adjust for inflation from October of the
corresponding year in column (3) to October 2015. Column (5) sets out
the adjusted civil monetary penalty resulting from the product of the
dollar amount of the civil monetary penalty set out in Column (2)
multiplied by the inflation factor in column (4). Column (6) sets out
the actual civil monetary penalty in effect on November 2, 2015. Column
(7) sets out the maximum catch-up penalty, which is the sum of the
penalty amount in Column (6) plus the maximum penalty increase of 150
percent for a total of 250 percent of the 2015 penalty.\11\ Column (8)
reflects the actual catch-up penalty, effective August 1, 2016, which
is the lesser of the adjusted civil monetary penalty in Column (5) or
the maximum civil monetary penalty in Column (7).
---------------------------------------------------------------------------
\10\ Initially, section 502(c)(4) applied to a failure of a
group health plan administrator to furnish information to the
Medicare Medicaid Coverage Data Bank under former section 101(f) of
ERISA. This requirement was repealed effective October 2, 1996, by
the Child Support Incentive Act of 1998, Pub. L. 105-200. The
reference to section 101(f) in section 502(c)(4) was deleted and
replaced with a reference to violation of the notice requirements of
section 302(b)(7)(F)(vi) of ERISA by section 104(a)(2) of the
Pension Funding Equity Act of 2004, Pub. L. 108-218. Sections
103(b)(2), 502(a)(2), 502(b)(2) and 902(f)(2) of the PPA deleted the
reference to section 302(b)(7)(F)(vi) and replaced it with
references to violations of sections 101(j), 101(k), 101(l) and
section 514(e)(3) of ERISA.
\11\ Section 5(2)(b)(C) of the Inflation Adjustment Act states
that increase in the penalty resulting from the initial or catch-up
adjustment may not be greater than 150 percent of the penalty amount
on November 2, 2015. Mathematically, a maximum increase of 150
percent equals 250 percent of the penalty. See Bipartisan Budget Act
of 2015 Section by Section Summary at p. 6 available at http://docs.house.gov/meetings/RU/RU00/CPRT-114-RU00-D001.pdf.
[[Page 43441]]
Table C--Calculation of Catch-Up Adjustment
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4) (5) (6) (7) (8)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Year CMP
Civil monetary amount last
penalty (CMP) amount set by law Inflation
last established by other than factor for Adjusted CMP-- $ amount in Catch-Up CMP--lesser of
ERISA penalty statute law and description prior year in column (2) x factor in CMP Amount 11/02/2015 CMP Cap--2.5 x column (6) column (5) or (7)
of ERISA violations Inflation column (3) column (4)
subject to the CMP Adjustment
Act
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
29 U.S.C. 1059(b)/ERISA Sec. $10 per employee for 1974 4.65436 $47....................... $11...................... $28...................... $28.
209(b). failure to furnish
reports (e.g.,
pension benefit
statements) to
certain former
participants and
beneficiaries or
maintain records.
29 U.S.C. 1132(c)(2)/ERISA Sec. Up to $1,000 per day 1987 2.06278 2,063..................... 1,100.................... 2,750.................... 2,063.
502(c)(2). for each:
Failure or
refusal to file
annual report (Form
5500) required by
ERISA Sec. 104;
and.
Failure of a
multiemployer plan
to certify
endangered or
critical status
under Sec.
305(b)(3)(C) treated
as failure to file
annual report.
29 U.S.C. 1132(c)(4)/ERISA Sec. Up to a $1000 per day 1993 1.63238 1,632..................... 1,000.................... 2,500.................... 1,632.
502(c)(4). for each:
Failure to
notify participants
under ERISA Sec.
101(j) of certain
benefit restrictions
and/or limitations
arising under
Internal Revenue
Code section 436;.
Failure to
furnish certain
multiemployer plan
financial and
actuarial reports
upon request under
ERISASec. 101(k).
Failure to
furnish estimate of
withdrawal liability
upon request under
ERISA Sec. 101(l);
and
Failure to
furnish automatic
contribution
arrangement notice
under ERISA Sec.
514(e)(3).
29 U.S.C. 1132(c)(5)/ERISA Sec. Up to $1,000 per day 1996 1.50245 1,502..................... 1,100.................... 2,750.................... 1,502.
502(c)(5). for each failure of
a multiple employer
welfare arrangement
to file report
required by
regulations issued
under ERISA Sec.
101(g).
29 U.S.C. 1132(c)(6)/ERISA Sec. Up to $100 per day 1997 1.47177 147 not to exceed 1,472... 110 not to exceed 1,100.. 275 not to exceed 2,750.. 147 not to exceed 1,472.
502(c)(6). for failure to
furnish information
requested by
Secretary of Labor
under ERISA Sec.
104(a)(6) but not
greater than $1,000
per request.
29 U.S.C. 1132(c)(7)/ERISA Sec. Up to $100 per day 2002 1.31185 131....................... 100...................... 250...................... 131.
502(c)(7). for each failure to
furnish a required
blackout notice
under section 101(i)
of ERISA and of
right to divest
employer securities
under section
101(m)-- each
statutory recipient
a separate
violation.
[[Page 43442]]
29 U.S.C. 1132(c)(8)/ERISA Sec. Up to $1,100 per day 2006 1.17858 1,296..................... 1,100.................... 2,750.................... 1,296.
502(c)(8). for failure by a
plan sponsor of a
multiemployer plan
in endangered status
to adopt a funding
improvement plan or
a multiemployer plan
in critical status
to adopt a
rehabilitation plan.
Penalty also applies
to a plan sponsor of
an endangered status
plan (other than a
seriously endangered
plan) that fails to
meet its benchmark
by the end of the
funding improvement
period.
29 U.S.C. 1132(c)(9)(A)/ERISA Sec. Up to $100 per day 2009 1.10020 110....................... 100...................... 250...................... 110.
502(c)(9)(A). for each failure by
an employer to
inform employees of
CHIP coverage
opportunities under
ERISA Sec.
701(f)(3)(B)(i)(l)--
each employee a
separate violation.
29 U.S.C. 1132(c) (9)(B)/ERISA Up to $100 per day 2009 1.10020 110....................... 100...................... 250...................... 110.
Sec. 502(c)(9) (B). for each failure by
a plan administrator
to timely provide to
any State
information required
to be disclosed
under ERISA Sec.
701(f)(3)(B)(ii),
regarding coverage
coordination--each
participant/
beneficiary a
separate violation.
29 U.S.C. 1132(c)(10)/ERISA Sec. $100 per participant 2008 1.09819 110....................... 100...................... 250...................... 110.
502(c)(10). or beneficiary per
day during
noncompliance period
for failure by any
plan sponsor of
group health plan,
or any health
insurance issuer
offering health
insurance coverage
in connection with
the plan, to meet
the requirements of
ERISA Sec. Sec.
702(a)(1)(F),
(b)(3), (c) or (d);
or Sec. 701; or
Sec. 702(b)(1)
with respect to
genetic information.
See ERISA Sec.
502(c)(10)(B)(i).
Minimum penalty of 2008 1.09819 2,745..................... 2,500.................... 6,250.................... 2,745.
$2,500 per
participant or
beneficiary for de
minimis failures not
corrected prior to
notice from
Secretary of Labor.
See ERISA Sec.
502(c)(10)(C)(i).
Minimum penalty of 2008 1.09819 16,473.................... 15,000................... 37,500................... 16,473.
$15,000 per
participant or
beneficiary for
failures which are
not corrected prior
to notice from
Secretary of Labor
and are not de
minimis. See ERISA
Sec.
502(c)(10)(C)(ii).
$500,000 cap on 2008 1.09819 549,095................... 500,000.................. 1.25 million............. 549,095.
unintentional
failures. See ERISA
Sec.
502(c)(10)(D)(iii)(I
I).
[[Page 43443]]
29 U.S.C. 1132(c)(12)/ERISA Sec. Up to $100 per day 2014 1.00171 100....................... 100...................... 250...................... 100.
502(c)(12). for failure of CSEC
plan sponsor to
establish or update
a funding
restoration plan.
29 U.S.C. 1132(m)/ERISA Sec. Up to $10,000 per 1994 1.59089 15,909.................... 10,000................... 25,000................... 15,909.
502(m). distribution
prohibited by ERISA
Sec. 206(e).
29 U.S.C. 1185d and 42 U.S.C. Up to $1000 per 2010 1.08745 1,087..................... 1,000.................... 2,500.................... 1,087.
300gg-15/ERISA Sec. 715. failure to provide
Summary of Benefits
Coverage under
Public Health
Services Act section
2715(f), as
incorporated in
ERISA section Sec.
715 and 29 CFR
2590.715-2715(e).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
c. Structure
Currently, subpart A of part 2575 (Adjustment of Civil Penalties
under ERISA Title I) of title 29 of the Code of Federal Regulations
contains 7 sections (one general section and a separate section for the
six previously adjusted penalties). Due to the large number of title I
penalties adjusted for inflation by this IFR, the Department has
decided to simplify the structure of subpart A of part 2575. This IFR
replaces Sec. Sec. 2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5,
and 2575.502c-6 with new Sec. Sec. 2575.1, 2575.2, and 2575.3. Section
2575.1 In general contains the implementing language. Section 2575.2
Catch-up adjustments to civil monetary penalties sets out the inflation
adjustments for each ERISA penalty from establishment of the penalty
amount through August 1, 2016. Section 2575.3 Subsequent adjustments to
civil monetary penalties addresses post-2016 non-regulatory inflation
adjustments.
Also, as a result of the amendments made to the Prior Inflation
Adjustment Act by the Inflation Adjustment Act, the IFR also makes
minor technical changes to Sec. Sec. 2560.502c-2, 2560.502c-4,
2560.502c-5, 2560.502c-6, 2560.502c-7, and 2560.502c-8 of 29 CFR part
2560 and Sec. 2590.715-2715(e) of 29 CFR part 2950.
G. Mine Safety and Health Administration (30 CFR Part 100)
1. General
This section G of the preamble addresses the civil monetary
penalties administered by Mine Safety and Health Administration (MSHA)
to enforce provisions of the Federal Mine Safety & Health Act of 1977
(Mine Act) (Pub. L. 91-173), as amended. Paragraphs 2(a) through (c)
explain revisions to each of the civil penalties administered and
enforced by MSHA.
2. Specific Penalty Adjustments
In accordance with the Inflation Adjustment Act, MSHA is adjusting
its penalty amounts in Sec. Sec. 100.3, 100.4, and 100.5 by
calculating the catch-up adjustments for these penalties from the date
of the last statute or regulation (other than the Prior Inflation
Adjustment Act) that set these penalties. All MSHA penalties were last
set in 2007. See 72 FR 13592 (Mar. 22, 2007). Subsequently (after
2007), some but not all of MSHA's penalties also were adjusted for
inflation. This rule uses the 2007 final rule as the base year in
calculating all of MSHA's penalty inflation adjustments, rounded to the
nearest dollar. While this has resulted in different relative impacts
on particular penalty amounts depending on whether any inflation
adjustments occurred for that penalty since 2007, the net effect of
these adjustments is to increase MSHA's penalties.
a. Section 100.3--Determination of Penalty Amount; Regular Assessment
Regularly assessed penalties are established by a penalty
conversion table in part 100 that sets penalties based on the number of
points a citation has been assigned. MSHA assigns points using a number
of factors described in part 100, including the negligence of the
operator and the gravity of the violation, among other criteria.
Currently, a range of points--from 60 or fewer to 144 or more--is
available; more points result in higher penalties. Penalties can range
anywhere at or between the minimum penalty and the maximum penalty,
based on the number of points assigned. Thus, the effect of MSHA's
penalty conversion table as a whole is a function of both the amount of
the minimum and maximum penalties and the rate of the progression
between those two outer points. In order to fully assess how to adjust
for inflation as prescribed by the statute, it is necessary to look at
the interaction of all three of these factors--minimum penalty, maximum
penalty, and the rate of progression between the two. As described
below, we have adjusted all three elements. The result is an upward
adjustment for inflation equal to 13.6% for penalties assessed overall
pursuant to the penalty table (calculated using MSHA's 2015 penalty
data).
Existing Sec. 100.3(a)(1) provides that an operator of any mine in
which a violation of a mandatory health or safety standard occurs or
who violates any other provisions of the Mine Act shall be regularly
assessed a civil penalty of not more than $70,000. To calculate the
adjustment of this penalty under the Inflation Adjustment Act, MSHA
multiplied $60,000, the maximum civil penalty last established by
regulation (other than the Prior Inflation Adjustment Act) in 2007 (72
FR 13592), by the inflation adjustment factor for 2007 of 1.13833,
which results in a penalty amount of $68,300. The inflation-adjusted
amount of $8,300 is less than the statutory catch-up adjustment cap of
a 150 percent increase of the $70,000 penalty in effect as of November
2, 2015, which is $105,000. Therefore, the maximum regular
[[Page 43444]]
assessment for an operator of any mine in which a violation of a
mandatory health or safety standard occurs or who violates any other
provisions of the Mine Act is $68,300, a decrease of $1,700 from the
existing penalty amount of $70,000. The new maximum penalty of $68,300
is also the maximum amount available under MSHA's penalty conversion
table in Sec. 100.3(g).
Section 100.3(g) provides the penalty conversion table used to
convert total penalty points to a dollar amount. As discussed above,
the points are assigned to a violation based on the criteria listed in
30 CFR part 100. The existing penalty conversion table assigns dollar
amounts to penalty points that range from 60 or fewer to 144 or more.
For this final rule, MSHA is using the penalty point conversion table
last established by regulation (other than the Prior Inflation
Adjustment Act) in 2007 (72 FR 13592)--both for purposes of determining
minimum and maximum penalties and the point range between those two
points. The penalty point range in the 2007 regulation used a penalty
point range from 60 points or fewer to 140 points or more. For this
reason, MSHA is changing the existing penalty point maximum of 144
points or more back to the maximum of 140 points or more. As described
below, the result is an upward adjustment for inflation equal to 13.6
percent for penalties assessed overall (using 2015 penalty data)
pursuant to the penalty conversion table.
To adjust the existing minimum penalty for inflation, MSHA
multiplied $112, the minimum civil penalty last established by
regulation (other than under the Prior Inflation Adjustment Act) in
2007 (72 FR 13592), by the inflation adjustment factor for 2007 of
1.13833, which resulted in a penalty of $127. The $15 penalty increase
is less than the statutory catch-up adjustment cap of a 150 percent
increase of the $112 penalty in effect as of November 2, 2015, which is
$168. Therefore, the minimum penalty in the penalty conversion table is
$127.
The inflation adjusted penalty conversion table in Sec. 100.3(g)
maintains the minimum penalty for 60 points or fewer at the new
inflation-adjusted amount of $127. For each additional point above 60
up to 140, the existing penalty conversion table increased the dollar
penalty by the same 2007 inflation adjustment factor of 1.13833 for
each point. After calculating all values, MSHA rounded all values to
the nearest dollar. Although the maximum penalty decreased from $70,000
to $68,3000, applying the new table to MSHA's 2015 assessment data
results in a 13.6 percent increase (just slightly less than the 13.8
percent inflation adjustment for 2007).
b. Section 100.4--Unwarrantable Failure and Immediate Notification
Section 100.4(a) provides the minimum penalty for citations or
orders issued under Sec. 104(d)(1) of the Mine Act at $2,000. To
adjust the existing minimum penalty for inflation, MSHA multiplied
$2,000, the minimum penalty last established by regulation (other than
under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the
inflation adjustment factor for 2007 of 1.13833, which resulted in a
penalty of $2,277. The penalty increase of $277 is less than the
statutory catch-up adjustment cap of a 150 percent increase of the
$2,000 penalty in effect as of November 2, 2015, which is $3,000.
Therefore, the minimum penalty for any citation or order issued under
section 104(d)(1) of the Mine Act is $2,277.
Section 100.4(b) states that the minimum penalty for any order
issued under section 104(d)(2) of the Mine Act is $4,000. To adjust the
existing minimum penalty for inflation, MSHA multiplied $4,000, the
minimum penalty last established by regulation (other than under the
Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the inflation
adjustment factor for 2007 of 1.13833, which resulted in a penalty of
$4,553. The penalty increase of $553 is less than the statutory catch-
up adjustment cap of a 150 percent increase of the $4,000 penalty in
effect as of November 2, 2015, which is $6,000. Therefore, the minimum
penalty for any citation or order issued under section 104(d)(2) of the
Mine Act is $4,553.
Section 100.4(c) states that the penalty for failure to provide
timely notification of a death or entrapment of a miner or miners at a
mine to the Secretary of Labor under section 103(j) of the Mine Act, as
amended, will not be less than a penalty of $5,000 and not more than a
penalty of $65,000. To adjust the existing minimum penalty, MSHA
multiplied $5,000, the minimum civil penalty last established by
regulation (other than under the Prior Inflation Adjustment Act) in
2007 (72 FR 13592), by the inflation adjustment factor for 2007 of
1.13833, which resulted in a penalty of $5,692. The penalty increase of
$692 is less than the statutory catch-up adjustment cap of a 150
percent increase of the $5,000 penalty in effect as of November 2,
2015, which is $7,500. Therefore, the minimum penalty for failure to
provide timely notification to the Secretary under section 103(j) of
the Mine Act is $5,692. To adjust the existing maximum penalty, MSHA
multiplied $60,000, the maximum penalty last established by regulation
(other than under the Prior Inflation Adjustment Act) in 2007 (72 FR
13592), by the inflation adjustment factor for 2007 of 1.13833, which
resulted in a penalty of $68,300. The penalty increase of $8,300 is
less than the statutory catch-up adjustment cap of a 150 percent
increase of the $65,000 penalty in effect as of November 2, 2015, which
is $97,500. Therefore, the maximum penalty for failure to provide
timely notification to the Secretary under section 103(j) of the Mine
Act is $68,300.
c. Section 100.5--Determination of Penalty Amount; Special Assessment
Section 100.5(c) addresses penalties that may be assessed daily to
an operator who fails to correct a violation for which a citation or
order has been issued under Section 104(a) of the Mine Act. The
existing maximum daily penalty assessment is $7,500.
To adjust the penalty for inflation, MSHA multiplied $6,500, the
penalty amount last established by regulation (other than under the
Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the inflation
adjustment factor for 2007 of 1.13833, which resulted in a penalty of
$7,399. The inflation-adjusted amount of $899 is less than the
statutory catch-up adjustment cap of a 150 percent increase of the
$7,500 penalty in effect as of November 2, 2015, which is $11,250.
Therefore, the daily penalty assessed an operator who fails to correct
a violation for which a citation or order has been issued under Section
sec. 104(a) of the Mine Act is $7,399, a decrease of $101 from the
existing penalty amount of $7,500.
Section 100.5(d) addresses penalties for miners who violate
mandatory safety standards relating to smoking and smoking materials
underground. The existing maximum smoking penalty is $375. To adjust
the penalty for inflation, MSHA multiplied the penalty $275, the
maximum smoking penalty amount last established by regulation (other
than under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592),
by the inflation adjustment factor for 2007 of 1.13833, which resulted
in a penalty of $313. The inflation-adjusted amount of $38 is less than
the statutory catch-up adjustment cap of a 150 percent increase of the
$375 penalty in effect as of November 2, 2015, which is $563.
Therefore, the penalty assessed for a miner who violates mandatory
safety standards relating to smoking and smoking materials underground
is $313,
[[Page 43445]]
a decrease of $62 from the existing penalty amount of $375.
Section 100.5(e) provides a maximum penalty for violations that are
deemed to be flagrant under 110(b)(2) of the Mine Act. The existing
maximum penalty is $242,000. To adjust the penalty for inflation, MSHA
multiplied $220,000, the penalty last established by regulation (other
than under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592),
by the inflation adjustment factor for 2007 of 1.13833, which resulted
in a penalty of $250,433. The penalty increase of $8,433 is less than
the statutory catch-up adjustment increase cap of a 150 percent
increase of the $242,000 penalty in effect as of November 2, 2015,
which is $363,000. Therefore, the maximum penalty for violations that
are deemed flagrant under sec. 110(b) of the Mine Act is $250,433.
IV. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires
that the Department consider the impact of paperwork and other
information collection burdens imposed on the public. The Department
has determined that this final rule does not require any collection of
information.
V. Executive Order 12866: Regulatory Planning and Review, and Executive
Order 13563: Improving Regulation and Regulatory Review
Executive Order 12866 requires that regulatory agencies assess both
the costs and benefits of significant regulatory actions. Under the
Executive Order, a ``significant regulatory action'' is one meeting any
of a number of specified conditions, including the following: Having an
annual effect on the economy of $100 million or more; creating a
serious inconsistency or interfering with an action of another agency;
materially altering the budgetary impact of entitlements or the rights
of entitlement recipients, or raising novel legal or policy issues. The
IFR's increases in the maximum civil money penalties that agencies are
authorized to assess for violations of laws they administer are
required by the statutorily-mandated provisions of the Inflation
Adjustment Act, which was enacted by Congress as part of the Bipartisan
Budget Act of 2015. This IFR is a ``significant'' regulatory action
because the Department's analysis shows that it could potentially have
an annual effect on the economy of more than $100 million.
The Department considered two potential effects of the increased
penalties mandated by the Inflation Adjustment Act: (1) Increased
transfers from employers and others who violate the law (and therefore
pay penalties) to the government; and (2) the benefits to workers,
retirees, and responsible employers and others of increased penalties
that will encourage greater compliance with the laws that the
Department enforces. Each of these effects is discussed in turn.
Transfers to Government
The Department estimated the increased transfers from employers and
others who violate the law to the government by conducting a provision-
by-provision analysis of each of the penalties affected by the
Inflation Adjustment Act. The Department considered the total dollar
amount of penalties collected under each affected penalty over the
immediately preceding three complete fiscal years (2013, 2014, and
2015) to calculate the average total penalties collected under each
statute.\12\ Then the Department projected how the amount collected
under each statute would increase if it did so in proportion to the
percentage increase of the maximum penalty for that statute.\13\ The
result--approximately $140 million in additional transfers from the
regulated community to the government each year--is enumerated by
agency in Table D.
---------------------------------------------------------------------------
\12\ The total penalties collected in fiscal years 2013 and 2014
were adjusted for inflation using the CPI-U to put them into fiscal
year 2015 dollars previous to the calculation of three-year
collection averages.
\13\ Exceptions were made to this method with respect to three
provisions of the Mine Act. To calculate projected total penalty
collections under sections 104(d)(1) and 104(d)(2), the three-year
averages of penalties collected under each provision between fiscal
years 2013 and 2015 were multiplied by the percentage increases in
the minimum required penalties for each statute. To calculate
projected total penalties collected using MSHA's penalty conversion
table, MSHA used the detailed assessment data from fiscal years
2013, 2014, and 2015 to estimate total assessed dollar values for
each year using both the existing and new conversion tables. The
total dollar values produced using the new inflation-adjusted
conversion table were then compared to the dollar values produced
using the existing conversion table. The resulting annual percent
changes for fiscal years 2013, 2014, and 2015 were 13.5 percent,
13.5 percent, and 13.6 percent respectively. These annual
percentages were then multiplied by the annual dollar collection
totals for each fiscal year to obtain projected collections by
fiscal year, and a three-year average was then taken to produce a
single projected collection total.
Table D--Projected Penalties
[Inflation Adjustment Act: Total penalties by agency, 3-year average (2013-2015)]
----------------------------------------------------------------------------------------------------------------
Dollar Amount Collected ($FY2015)
-----------------------------------------------
Agency Total
Total (current (projected Numeric change
penalties) penalties)
----------------------------------------------------------------------------------------------------------------
EBSA............................................................ $17,667,363 $33,134,336 $15,466,973
MSHA............................................................ 73,112,904 82,812,155 9,699,251
OSHA (federal).................................................. 141,969,042 252,927,499 110,958,457
OWCP............................................................ 19,674 45,470 25,797
WHD/ETA/OSEC.................................................... 6,894,835 10,541,217 3,646,383
-----------------------------------------------
Total....................................................... 239,663,817 379,460,677 139,796,860
----------------------------------------------------------------------------------------------------------------
The Department notes that this amount could be an overestimate of
transfers given that its collections are likely to be lower than
projected under the new penalties established by the Inflation
Adjustment Act. First, it does not account for a key factor
underpinning long-established deterrence principles: That rational
actors are less likely to commit violations when faced with higher
penalties.\14\ It is therefore conceivable
[[Page 43446]]
that the increase in penalties collected would not be proportional to
the increase in penalties that might be assessed by an agency, but
would instead be less.\15\ In addition, this estimate also assumes that
the Department's collections will continue at approximately the same
rate each year despite increased penalties. Together, these factors
suggest that the amount of the transfers from the regulated community
to the government is likely to be lower than the $140 million projected
above.
---------------------------------------------------------------------------
\14\ See generally Gary S. Becker, Essays in the Economics of
Crime and Punishment, Ch. 1 (1974), available at http://www.nber.org/chapters/c3625.pdf. These concepts are also reflected
in the Inflation Adjustment Act. 28 U.S.C. 2461 Note, Sec. 2(a)(1)
(``[T]he power of Federal agencies to impose civil monetary
penalties for violations of Federal law and regulations plays an
important role in deterring violations and furthering the policy
goals embodied in such laws and regulations[.]''); 2(b)(2) (``The
purpose of this Act is to establish a mechanism that shall . . .
maintain the deterrent effect of civil monetary penalties and
promote compliance with the law.''); S. 535: Hearing before Subcomm.
Legis & Nat'l Sec. of the H. Comm. Gov't Ops., 101st Cong. 3 (1990)
(hereinafter 1990 Hearing) (statement of Rep. Conyers) (``At the
heart . . . of regulatory statutes . . . are the monetary fines
intended to both penalize and deter practices prohibited by these
laws.''); Id. at 70 (statement of HHS Inspector Gen. Kusserow) (``We
have found that civil monetary penalties are a very effective
enforcement tool [and] have also seen them become a very good
deterrent against fraud.''). Research suggests that the same
concepts apply in labor law violations as well. See, e.g., Orley
Ashenfelter & Robert S. Smith, Compliance with the Minimum Wage Law,
87 Journal of Political Economy 333 (1979), available at http://www.jstor.org/stable/1832090?seq=1#page_scan_tab_contents.
\15\ In addition, it is important to note that the IFR does not
revoke existing provisions of the laws above that provide the
Department with discretion in determining the appropriate civil
penalty amounts below any particular maximum penalty. Nor does the
IFR amend any requirements in these laws that the Department
consider mitigating factors in making such determinations, such as
the severity of the violation, the number of workers affected by the
violation, the entity's compliance history, or the size of the
entity.
---------------------------------------------------------------------------
OSHA's penalty increases under the Inflation Adjustment Act will
necessitate an increase to the maximum and minimum penalty amounts
required by states that administer their own occupational safety and
health programs as well. Section 18 of the OSH Act (29 U.S.C. 667)
requires states with OSHA-approved State Plans covering private-sector
and state and local government employees to have standards and an
enforcement program that are at least as effective as Federal OSHA's
standards and enforcement program. Twenty-two (22) States and U.S.
territories have State Plans that cover private sector employees and
state and local government employees: Alaska, Arizona, California,
Hawaii, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Nevada,
New Mexico, North Carolina, Oregon, Puerto Rico, South Carolina,
Tennessee, Utah, Vermont, Virginia, Washington, and Wyoming. The
existing regulation at 29 CFR 1902.4(c)(2)(xi) provides that in order
to satisfy this requirement of effectiveness, State Plans must have
effective sanctions, such as those prescribed in the OSH Act.
Similarly, 29 CFR 1902.37(b)(12) requires State Plans with final
approval to propose penalties in a manner at least as effective as
under the federal program. This IFR amends 29 CFR 1902.4(c)(2)(xi) to
clarify that State Plans must provide sanctions as effective as those
set forth in the OSH Act and in 29 CFR 1903.15(d).
OSHA will require State Plans to increase their penalties to
reflect the federal penalties increases at the state levels in order to
maintain this ``at least as effective'' status. If every State Plan
state increases its own penalties in line with the federal increases,
using the same methodology outlined above, the additional transfer from
employers to OSHA State Plans would be $57.1 million, as enumerated in
Table E.
Table E--Projected Penalties
[Inflation Adjustment Act: OSHA state plans, 3-Year average (2013-2015)]
----------------------------------------------------------------------------------------------------------------
Dollar amount collected ($FY2015)
--------------------------------------------------
Total
Total (current (projected Numeric change
penalties) penalties)
----------------------------------------------------------------------------------------------------------------
OSHA State Plans............................................. $73,121,821 $130,271,603 $57,149,782
----------------------------------------------------------------------------------------------------------------
Benefits to Workers, Retirees, and Responsible Employers
Meanwhile, the Inflation Adjustment Act's penalty increase will
have significant benefits for workers, retirees, and responsible
employers and others in the regulated community. While most employers
play by the rules, there are too many cases where workers are cheated
out of their hard-earned wages or retirement benefits or forced to
endure an unsafe workplace. By deterring violations and promoting
compliance, more workers and retirees will benefit from the core
employment law protections that the Department administers and
enforces. Furthermore, responsible employers and others who remain in
compliance with the Department's laws will face less competition from
the minority of employers who make a calculated decision to save money
by eschewing compliance with these laws.\16\ Those who follow the law
will essentially benefit from a more level playing field when competing
with those who do not. The Department has been unable to quantify these
significant benefits.
---------------------------------------------------------------------------
\16\ Entities that violate the basic labor protections described
above such that they are subject to civil penalties have often
benefitted from their non-compliance with such requirements over a
length of time before being investigated, assessed and required to
pay penalties for their illegal activities. As noted above, the rule
only adjusts the authorized levels of civil money penalties to
account for inflation over time. Of course, to the extent that civil
penalties increase, there will be increased revenues to the
government from entities that have been found to have violated the
law. See 1990 Hearing at 15 (discussing the importance of the
government fully understanding how many civil monetary penalties are
assessed and collected and discussing the benefit to taxpayers of
increased revenue for government).
---------------------------------------------------------------------------
VI. Regulatory Flexibility Act and Small Business Regulatory
Enforcement Fairness Act
The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes
certain requirements on Federal agency rules that are subject to the
notice and comment requirements of the Administrative Procedure Act
(APA), 5 U.S.C. 553(b), and that are likely to have a significant
economic impact on a substantial number of small entities. This IFR is
exempt from the requirements of the APA because the Inflation
Adjustment Act directed the Department to issue an interim final rule.
Therefore, the requirements of the RFA applicable to notices of
proposed rulemaking, 5 U.S.C. 603, do not apply to this IFR.
Accordingly, the Department is not required to either certify that the
IFR would not have a significant economic impact on a substantial
number of small entities or conduct a regulatory flexibility analysis.
[[Page 43447]]
VII. Other Regulatory Considerations
A. The Unfunded Mandates Reform Act of 1995
The Department estimates that the IFR may result in transfers of up
to $140 million per year, and acknowledges that this IFR may yield
effects that make it subject to UMRA requirements. Therefore, the
Department carried out the requisite cost-benefit analysis in the
section discussing Executive Orders 12866 and 13563 above.
B. Executive Order 13132: Federalism
As described above, Section 18 of the OSH Act (29 U.S.C. 667)
requires OSHA-approved State Plans to have standards and an enforcement
program that are at least as effective as federal OSHA's standards and
enforcement program. The existing regulation at 29 CFR 1902.4(c)(2)(xi)
provides that in order to satisfy this requirement of effectiveness,
State Plans must have effective sanctions, such as those prescribed in
the OSH Act. Similarly, 29 CFR 1902.37(b)(12) requires State Plans with
final approval to propose penalties in a manner at least as effective
as under the federal program. This IFR amends 29 CFR 1902.4(c)(2)(xi)
to clarify that State Plans must provide sanctions as effective as
those set forth in the OSH Act and in 29 CFR 1903.15(d).
In accordance with Part 1953, State Plans are required to adopt
penalty changes that are at least as effective as federal OSHA, within
six months after publication of the Department's IFR amending OSHA's
penalties. Thereafter, OSHA penalties will be increased by the cost-of-
living adjustment for every subsequent year by January 15th. State
Plans will also be required to increase their penalties regularly in
the future to maintain at least as effective penalty levels.
State Plans are not required to impose monetary penalties on state
and local government employers. See Sec. 1956.11(c)(2)(x). Five (5)
states and one territory have State Plans that cover only state and
local government employees: Connecticut, Illinois, New Jersey, New
York, Maine, and the Virgin Islands. Therefore, the requirements to
increase the penalty levels do not apply to these State Plans. Twenty-
one (21) states and one U.S. territory have State Plans that cover both
private sector employees and state and local government employees:
Alaska, Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland,
Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto
Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington,
and Wyoming. These states must increase their penalties for private-
sector employers.
Other than as listed above, this IFR does not have federalism
implications because it does not have substantial direct effects on the
states, on the relationship between the national government and the
states, or on the distribution of power and responsibilities among the
various levels of government. Accordingly, Executive Order 13132,
Federalism, requires no further agency action or analysis.
C. Executive Order 13175: Indian Tribal Governments
This IFR does not have ``tribal implications'' because it does not
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
government and Indian tribes. Accordingly, Executive Order 13175,
Consultation and Coordination with Indian Tribal Governments, requires
no further agency action or analysis.
D. The Treasury and General Government Appropriations Act of 1999:
Assessment of Federal Regulations and Policies on Families
This IFR will have no effect on family well-being or stability,
marital commitment, parental rights or authority, or income or poverty
of families and children. Accordingly, section 654 of the Treasury and
General Government Appropriations Act of 1999 (5 U.S.C. 601 note)
requires no further agency action, analysis, or assessment.
E. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
This IFR will have no adverse impact on children. Accordingly,
Executive Order 13045, Protection of Children from Environmental Health
Risks and Safety Risks, as amended by Executive Orders 13229 and 13296,
requires no further agency action or analysis.
F. Environmental Impact Assessment
A review of this Final Rule in accordance with the requirements of
the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et
seq.; the regulations of the Council on Environmental Quality, 40 CFR
1500 et seq.; and the Departmental NEPA procedures, 29 CFR part 11,
indicates that the Final Rule will not have a significant impact on the
quality of the human environment. As a result, there is no
corresponding environmental assessment or an environmental impact
statement.
G. Executive Order 13211: Energy Supply
This IFR has been reviewed for its impact on the supply,
distribution, and use of energy because it applies, in part, to the
coal mining and uranium industries. MSHA has concluded that the
adjustment of civil monetary penalties to keep pace with inflation and
thus maintain the incentive for operators to maintain safe and
healthful workplaces is not a significant energy action because it is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy.
This IFR has not been identified to have other impacts on energy
supply. Accordingly, Executive Order 13211 requires no further Agency
action or analysis.
H. Executive Order 12630: Constitutionally Protected Property Rights
This IFR will not implement a policy with takings implications.
Accordingly, Executive Order 12630, Governmental Actions and
Interference with Constitutionally Protected Property Rights, requires
no further agency action or analysis.
I. Executive Order 12988: Civil Justice Reform Analysis
This IFR was drafted and reviewed in accordance with Executive
Order 12988, Civil Justice Reform. This IFR was written to provide a
clear legal standard for affected conduct and was carefully reviewed to
eliminate drafting errors and ambiguities, so as to minimize litigation
and undue burden on the Federal court system. The Department has
determined that this IFR meets the applicable standards provided in
section 3 of Executive Order 12988.
List of Subjects
20 CFR Part 655
Immigration, Penalties, Labor.
20 CFR Part 702
Administrative practice and procedure, Longshore and harbor
workers, Penalties, Reporting and recordkeeping requirements, Workers'
compensation.
20 CFR Part 725
Administrative practice and procedure, Black lung benefits, Coal
miners, Penalties, Reporting and recordkeeping requirements.
[[Page 43448]]
20 CFR Part 726
Administrative practice and procedure, Black lung benefits, Coal
miners, Mines, Penalties.
29 CFR Part 5
Administrative practice and procedure, Construction industry,
Employee benefit plans, Government contracts, Law enforcement, Minimum
wages, Penalties, Reporting and recordkeeping requirements.
29 CFR Part 500
Administrative practice and procedure, Aliens, Housing, Insurance,
Intergovernmental relations, Investigations, Migrant labor, Motor
vehicle safety, Occupational safety and health, Penalties, Reporting
and recordkeeping requirements, Wages, Whistleblowing.
29 CFR Part 501
Administrative practice and procedure, Agriculture, Aliens,
Employment, Housing, Housing standards, Immigration, Labor, Migrant
labor, Penalties, Transportation, Wages.
29 CFR Part 530
Administrative practice and procedure, Clothing, Homeworkers,
Indians--arts and crafts, Penalties, Reporting and recordkeeping
requirements, Surety bonds, Watches and jewelry.
29 CFR Part 570
Administrative practice and procedure, Agriculture, Child labor,
Intergovernmental relations, Occupational safety and health, Reporting
and recordkeeping requirements.
29 CFR Part 578
Penalties, Wages.
29 CFR Part 579
Child labor, Penalties.
29 CFR Part 801
Administrative practice and procedure, Employment, Lie detector
tests, Penalties, Reporting and recordkeeping requirements.
29 CFR Part 825
Administrative practice and procedure, Airmen, Employee benefit
plans, Health, Health insurance, Labor management relations, Maternal
and child health, Penalties, Reporting and recordkeeping requirements,
Teachers.
29 CFR Parts 1902 and 1903
Intergovernmental relations, Law enforcement, Occupational Safety
and Health, Penalties.
29 CFR Part 2560
Employee benefit plans, Employee Retirement Income Security Act,
Law enforcement, Penalties, Pensions, Reporting and recordkeeping
29 CFR Part 2575
Administrative practice and procedure, Employee benefit plans,
Employee Retirement Income Security Act, Health care, Penalties,
Pensions
29 CFR Part 2590
Employee benefit plans, Employee Retirement Income Security Act,
Health care, Health insurance, Penalties, Pensions, Reporting and
recordkeeping
30 CFR Part 100
Mine safety and health, Penalties.
41 CFR Part 50-201
Child labor, Government procurement, Minimum wages, Occupational
safety and health, Reporting and recordkeeping requirements.
Department of Labor
Employment and Training Administration
For the reasons stated in the preamble, 20 CFR part 655 is amended
as follows:
Title 20--Employees' Benefits
PART 655--TEMPORARY EMPLOYMENT OF FOREIGN WORKERS IN THE UNITED
STATES
0
1. Revise the general authority citation for part 655 to read as
follows:
Authority: Section 655.0 issued under 8 U.S.C.
1101(a)(15)(H)(i) and (ii), 1182(m), (n), and (t), 1184, 1188, and
1288(c) and (d); 29 U.S.C. 49 et seq.; sec. 3(c)(1), Pub. L. 101-
238, 103 Stat. 2099, 2102 (8 U.S.C. 1182 note); sec. 221(a), Pub. L.
101-649, 104 Stat. 4978, 5027 (8 U.S.C. 1184 note); sec. 323, Pub.
L. 103-206, 107 Stat. 2149; Title IV, Pub. L. 105-277, 112 Stat.
2681; Pub. L. 106-95, 113 Stat. 1312 (8 U.S.C. 1182 note); and 8 CFR
213.2(h)(4)(i). Section 655.00 issued under 8 U.S.C.
1101(a)(15)(H)(ii), 1184, and 1188; 29 U.S.C. 49 et seq.; and 8 CFR
214.2(h)(4)(i). Subparts A and C issued under 8 U.S.C.
1101(a)(15)(H)(ii)(b) and 1184; 29 U.S.C. 49 et seq.; and 8 CFR
214.2(h)(4)(i) ; and 28 U.S.C. 2461 note (Federal Civil Penalties
Inflation Adjustment Act of 1990), Pub. L. 114-74 at Sec. 701.
Subpart B issued under 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184, and
1188; and 29 U.S.C. 49 et seq; and 28 U.S.C. 2461 note, Pub. L. 114-
74 at Sec. 701. Subparts D and E issued under 8 U.S.C.
1101(a)(15)(H)(i)(a), 1182(m), and 1184; 29 U.S.C. 49 et seq.; and
sec. 3(c)(1), Pub. L. 101-238, 103 Stat. 2099, 2103 (8 U.S.C. 1182
note). Subparts F and G issued under 8 U.S.C. 1184 and 1288(c); and
29 U.S.C. 49 et seq; and 28 U.S.C. 2461 note, Pub. L. 114-74 at
Sec. 701. Subparts H and I issued under 8 U.S.C.
1101(a)(15)(H)(i)(b) and (b1), 1182(n), 1182(t), and 1184; 29 U.S.C.
49 et seq.; sec 303(a)(8), Pub. L. 102-232, 105 Stat. 1733, 1748 (8
U.S.C. 1182 note); and Title IV, Pub. L. 105-277, 112 Stat. 2681;
and 28 U.S.C. 2461 note, Pub. L. 114-74 at Sec. 701. Subparts J and
K issued under 29 U.S.C. 49 et seq.; and sec. 221(a), Pub. L. 101-
649, 104 Stat. 4978, 5027 (8 U.S.C. 1184 note). Subparts L and M
issued under 8 U.S.C. 1101(a)(15)(H)(i)(c), 1182(m), and 1184; and
29 U.S.C. 49 et seq.
0
2. Amend Sec. 655.620 by revising paragraph (a) to read as follows:
Sec. 655.620 Civil money penalties and other remedies.
(a) The Administrator may assess a civil money penalty not to
exceed $8,908 for each alien crewmember with respect to whom there has
been a violation of the attestation or subpart F or G of this part. The
Administrator may also impose appropriate remedy(ies).
* * * * *
0
3. Amend Sec. 655.801 by revising paragraph (b) to read as follows:
Sec. 655.801 What protection do employees have from retaliation?
* * * * *
(b) It shall be a violation of this section for any employer to
engage in the conduct described in paragraph (a) of this section. Such
conduct shall be subject to the penalties prescribed by sections
212(n)(2)(C)(ii) or (t)(3)(C)(ii) of the INA and Sec. 655.810(b)(2),
i.e., a fine of up to $7,251, disqualification from filing petitions
under section 204 or section 214(c) of the INA for at least two years,
and such further administrative remedies as the Administrator considers
appropriate.
* * * * *
0
4. Amend Sec. 655.810 by revising paragraphs (b)(1), (2) and (3)
introductory text, to read as follows:
Sec. 655.810 What remedies may be ordered if violations are found?
* * * * *
(b) * * *
(1) An amount not to exceed $1,782 per violation for:
* * * * *
(2) An amount not to exceed $7,251 per violation for:
* * * * *
(3) An amount not to exceed $50,758 per violation where an employer
(whether or not the employer is an H-1B-dependent employer or willful
violator) displaced a U.S. worker employed by the employer in the
period beginning 90 days before and ending 90 days after the filing of
an H-1B petition
[[Page 43449]]
in conjunction with any of the following violations:
* * * * *
Department of Labor
Office of Workers' Compensation Programs
For the reasons stated in the preamble, 20 CFR parts 702, 725, and
726 are amended as follows:
Title 20--Employees' Benefits
PART 702--ADMINISTRATION AND PROCEDURE
0
5. The authority citation for part 702 is revised to read as follows:
Authority: 5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et
seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; 28 U.S.C. 2461 note
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L.
114-74 at sec.701; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64
Stat. 1263; Secretary's Order 10-2009, 74 FR 58834.
0
6. Revise Sec. 702.204 to read as follows:
Sec. 702.204 Employer's report; penalty for failure to furnish and or
falsifying.
Any employer, insurance carrier, or self-insured employer who
knowingly and willfully fails or refuses to send any report required by
Sec. 702.201, or who knowingly or willfully makes a false statement or
misrepresentation in any report, shall be subject to a civil penalty
not to exceed $22,587 for each such failure, refusal, false statement,
or misrepresentation for which penalties are assessed after August 1,
2016. The district director has the authority and responsibility for
assessing a civil penalty under this section.
0
7. Revise Sec. 702.236 to read as follows:
Sec. 702.236 Penalty for failure to report termination of payments.
Any employer failing to notify the district director that the final
payment of compensation has been made as required by Sec. 702.235
shall be assessed a civil penalty in the amount of $275 for any
violation for which penalties are assessed after August 1, 2016. The
district director has the authority and responsibility for assessing a
civil penalty under this section.
0
8. In Sec. 702.271, revise paragraph (a)(2) to read as follows:
Sec. 702.271 Discrimination; against employees who bring proceedings,
prohibition and penalty.
(a)(1) * * *
(2) Any employer who violates this section, and has penalties
assessed for such violation after August 1, 2016, shall be liable for a
penalty of not less than $2,259 or more than $11,293 to be paid (by the
employer alone, and not by a carrier) to the district director for
deposit in the special fund described in section 44 of the Act, 33
U.S.C. 944; and shall restore the employee to his or her employment
along with all wages lost due to the discrimination unless the employee
has ceased to be qualified to perform the duties of employment.
* * * * *
PART 725--CLAIMS FOR BENEFITS UNDER PART C OF TITLE IV OF THE
FEDERAL MINE SAFETY AND HEALTH ACT, AS AMENDED
0
9. The authority citation for part 725 is revised to read as follows:
Authority: 5 U.S.C. 301; 28 U.S.C. 2461 note (Federal Civil
Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at sec.
701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 30 U.S.C. 901 et
seq., 902(f), 921, 932, 936; 33 U.S.C. 901 et seq.; 42 U.S.C. 405;
Secretary's Order 10-2009, 74 FR 58834.
0
10. In Sec. 725.621, revise paragraph (d) to read as follows:
Sec. 725.621 Reports.
* * * * *
(d) Any employer who fails or refuses to file any report required
of such employer under this section, and has penalties assessed for
such failure or refusal after August 1, 2016, shall be subject to a
civil penalty not to exceed $1,375 for each failure or refusal, which
penalty shall be determined in accordance with the procedures set forth
in subpart D of part 726 of this subchapter, as appropriate.
* * * * *
PART 726--BLACK LUNG BENEFITS; REQUIREMENTS FOR COAL MINE
OPERATOR'S INSURANCE
0
11. The authority citation for part 726 is revised to read as follows:
Authority: 5 U.S.C. 301; 33 U.S.C. 901 et seq., 902(f), 925,
932, 933, 934, 936; 33 U.S.C. 901 et seq.; 28 U.S.C. 2461 note
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L.
114-74 at sec. 701; Reorganization Plan No. 6 of 1950, 15 FR 3174;
Secretary's Order 10-2009, 74 FR 58834.
0
12. Revise Sec. 726.300 to read as follows.
Sec. 726.300 Purpose and scope.
Any operator which is required to secure the payment of benefits
under section 423 of the Act and Sec. 726.4 and which fails to secure
such benefits, shall be subject to a civil penalty of not more than
$1,000, as adjusted by the Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended, for each day during which such failure occurs.
If the operator is a corporation, the president, secretary, and
treasurer of the operator shall also be severally liable for the
penalty based on the operator's failure to secure the payment of
benefits. This subpart defines those terms necessary for administration
of the civil money penalty provisions, describes the criteria for
determining the amount of penalty to be assessed, and sets forth
applicable procedures for the assessment and contest of penalties.
0
13. In Sec. 726.302, revise paragraphs (c)(2)(i), (4), and (5) and add
(c)(6) to read as follows:
Sec. 726.302 Determination of penalty.
* * * * *
(c)(1) * * *
(2)(i) The daily base penalty amount shall be determined based on
the number of persons employed in coal mine employment by the operator,
or engaged in coal mine employment on behalf of the operator, on each
day of the period defined by this section.
For penalties assessed after August 1, 2016, the daily base penalty
amount shall be computed as follows:
------------------------------------------------------------------------
Penalty (per
Employees day)
------------------------------------------------------------------------
Less than 25............................................ $134
25-50................................................... 268
51-100.................................................. 402
More than 100........................................... 535
------------------------------------------------------------------------
* * * * *
(4) Commencing with the 11th day after the operator's receipt of
the notification sent by the Director pursuant to Sec. 726.303, for
penalties assessed after August 1, 2016, the daily base penalty amounts
set forth in paragraph (c)(2)(i) shall be increased by $134.
(5) In any case in which the operator, or any of its principals, or
an entity in which the operator's president, secretary, or treasurer
were employed, has been the subject of a previous penalty assessment
under this part, for penalties assessed after August 1, 2016, the daily
base penalty amounts shall be increased by $402.
(6) The maximum daily base penalty amount applicable to any
violation of Sec. 726.4 for which penalties are assessed after August
1, 2016, shall be $2,750.
* * * * *
Department of Labor
Office of the Secretary of Labor
For the reasons stated in the preamble, 29 CFR part 5 is amended as
follows:
[[Page 43450]]
Title 29--Labor
PART 5--LABOR STANDARDS PROVISIONS APPLICABLE TO CONTRACTS COVERING
FEDERALLY FINANCED AND ASSISTED CONSTRUCTION (ALSO LABOR STANDARDS
PROVISIONS APPLICABLE TO NONCONSTRUCTION CONTRACTS SUBJECT TO THE
CONTRACT WORK HOURS AND SAFETY STANDARDS ACT)
0
14. The authority citation for part 5 is revised to read as follows:
Authority: 5 U.S.C. 301; R.S. 161, 64 Stat. 1267; Reorganization
Plan No. 14 of 1950, 5 U.S.C. appendix; 40 U.S.C. 3141 et seq.; 40
U.S.C. 3145; 40 U.S.C. 3148; 40 U.S.C. 3701 et seq.; and the laws
listed in 5.1(a) of this part; Secretary's Order No. 01-2014 (Dec.
19, 2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 note (Federal
Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at
Sec. 701, 129 Stat 584.
0
15. Amend Sec. 5.5 by revising the last sentence of paragraph (b)(2)
to read as follows:
Sec. 5.5 Contract provisions and related matters.
* * * * *
(b) * * *
(2) * * * Such liquidated damages shall be computed with respect to
each individual laborer or mechanic, including watchmen and guards,
employed in violation of the clause set forth in paragraph (b)(1) of
this section, in the sum of $25 for each calendar day on which such
individual was required or permitted to work in excess of the standard
workweek of forty hours without payment of the overtime wages required
by the clause set forth in paragraph (b)(1) of this section.
* * * * *
0
16. Amend Sec. 5.8 by revising the second sentence in paragraph (a) to
read as follows:
Sec. 5.8 Liquidated damages under the Contract Work Hours and Safety
Standards Act.
(a) * * * In the event of violation of this provision, the
contractor and any subcontractor shall be liable for the unpaid wages
and in addition for liquidated damages, computed with respect to each
laborer or mechanic employed in violation of the Act in the amount of
$25 for each calendar day in the workweek on which such individual was
required or permitted to work in excess of forty hours without payment
of required overtime wages.
* * * * *
Department of Labor
Wage and Hour Division
For the reasons stated in the preamble, 29 CFR parts 500, 501, 530,
570, 578, 579, 801, and 825 are amended as follows:
Title 29--Labor
PART 500--MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION
0
17. The authority citation for part 500 is revised to read as follows:
Authority: Pub. L. 97-470, 96 Stat. 2583 (29 U.S.C. 1801-1872);
Secretary's Order No. 01-2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 24,
2014); 28 U.S.C. 2461 Note (Federal Civil Penalties Inflation
Adjustment Act of 1990); and Pub. L. 114-74, 129 Stat 584.
0
18. Amend Sec. 500.1 by revising the second sentence in paragraph (e)
to read as follows:
Sec. 500.1 Purpose and scope.
* * * * *
(e) * * * As provided in the Act, the Secretary is empowered, among
other things, to impose an assessment and to collect a civil money
penalty of not more than $2,355 for each violation, to seek a temporary
or permanent restraining order in a U.S. District Court, and to seek
the imposition of criminal penalties on persons who willfully and
knowingly violate the Act or any regulation under the Act.* * *
* * * * *
PART 501--ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY
ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE
IMMIGRATION AND NATIONALITY ACT
0
19. Revise the authority citation for part 501 to read as follows:
Authority: 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184(c), and 1188;
28 U.S.C. 2461 Note (Federal Civil Penalties Inflation Adjustment
Act of 1990); and Pub. L. 114-74 at Sec. 701.
0
20. Amend Sec. 501.19 by revising paragraphs (c) introductory text,
(c)(1), (2), (4), (d), (e), and (f) to read as follows:
Sec. 501.19 Civil money penalty assessment.
* * * * *
(c) A civil money penalty for each violation of the work contract
or a requirement of 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the
regulations in this part will not exceed $1,631 per violation, with the
following exceptions:
(1) A civil money penalty for each willful violation of the work
contract, or of 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the
regulations in this part, or for each act of discrimination prohibited
by Sec. 501.4 shall not exceed $5,491;
(2) A civil money penalty for a violation of a housing or
transportation safety and health provision of the work contract, or any
obligation under 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the
regulations in this part, that proximately causes the death or serious
injury of any worker shall not exceed $54,373 per worker;
* * * * *
(4) A civil money penalty for a repeat or willful violation of a
housing or transportation safety and health provision of the work
contract, or any obligation under 8 U.S.C. 1188, 20 CFR part 655,
subpart B, or the regulations in this part, that proximately causes the
death or serious injury of any worker, shall not exceed $108,745 per
worker.
(d) A civil money penalty for failure to cooperate with a WHD
investigation shall not exceed $5,491 per investigation.
(e) A civil money penalty for laying off or displacing any U.S.
worker employed in work or activities that are encompassed by the
approved Application for Temporary Employment Certification for H-2A
workers in the area of intended employment either within 60 days
preceding the date of need or during the validity period of the job
order, including any approved extension thereof, other than for a
lawful, job-related reason, shall not exceed $16,312 per violation per
worker.
(f) A civil money penalty for improperly rejecting a U.S. worker
who is an applicant for employment, in violation of 8 U.S.C. 1188, 20
CFR part 655, subpart B, or the regulations in this part, shall not
exceed $16,312 per violation per worker.
PART 530--EMPLOYMENT OF HOMEWORKERS IN CERTAIN INDUSTRIES
0
21. The authority citation for part 503 is revised to read as follows:
Authority: Sec. 11, 52 Stat. 1066 (29 U.S.C. 211) as amended by
sec. 9, 63 Stat. 910 (29 U.S.C. 211(d)); Secretary's Order No. 01-
2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461
note (Federal Civil Penalties Inflation Adjustment Act of 1990);
Pub. L. 114-74 at Sec. 701, 129 Stat 584.
0
22. Revise Sec. 530.302 to read as follows:
[[Page 43451]]
Sec. 530.302 Amounts of civil money penalties.
(a) A civil money penalty, not to exceed $989 per affected
homeworker for any one violation, may be assessed for any violation of
the Act or of this part or of the assurances given in connection with
the issuance of a certificate.
(b) The amount of civil money penalties shall be determined per
affected homeworker within the limits set forth in the following
schedule, except that no penalty shall be assessed in the case of
violations which are deemed to be de minimis in nature:
----------------------------------------------------------------------------------------------------------------
Penalty per affected homeworker
-----------------------------------------------
Nature of violation Repeated,
Minor Substantial intentional or
knowing
----------------------------------------------------------------------------------------------------------------
Recordkeeping................................................... $20-198 $198-396 $396-989
Monetary violations............................................. 20-198 198-396
Employment of homeworkers without a certificate................. .............. 198-396 396-989
Other violations of statutes, regulations or employer assurances 20-198 198-396 396-989
----------------------------------------------------------------------------------------------------------------
PART 570--CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF
INTERPRETATION
0
23. The authority citation for Subpart G of part 570 is revised to read
as follows:
Authority: 52 Stat. 1060-1069, as amended; 29 U.S.C. 201-219; 28
U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act
of 1990); Pub. L. 114-74 at Sec. 701.
0
24. Amend Sec. 570.140 by revising paragraphs (b)(1) and (2) to read
as follows:
Sec. 570.140 General.
* * * * *
(b) * * *
(1) $12,080 for each employee who was the subject of such a
violation; or
(2) $54,910 with regard to each such violation that causes the
death or serious injury of any employee under the age of 18 years,
which penalty may be doubled where the violation is repeated or
willful.
* * * * *
PART 578--MINIMUM WAGE AND OVERTIME VIOLATIONS--CIVIL MONEY
PENALTIES
0
25. The authority citation for part 578 is revised to read as follows:
Authority: Sec. 9, Pub. L. 101-157, 103 Stat. 938, sec. 3103,
Pub. L. 101-508, 104 Stat. 1388-29 (29 U.S.C. 216(e)), Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by Pub. L. 104-
134, section 31001(s), 110 Stat. 1321-358, 1321-373, and Pub. L.
114-74, 129 Stat 584.
0
26. Amend Sec. 578.1 by revising the first two sentences to read as
follows:
Sec. 578.1 What does this part cover?
Section 9 of the Fair Labor Standards Amendments of 1989 amended
section 16(e) of the Act to provide that any person who repeatedly or
willfully violates the minimum wage (section 6) or overtime provisions
(section 7) of the Act shall be subject to a civil money penalty not to
exceed $1,000 for each such violation. The Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub. L. 101-410), as amended by the
Debt Collection Improvement Act of 1996 (Pub. L. 104-134, section
31001(s)) and the Federal Civil Penalties Inflation Adjustment Act
Improvement Act of 2015 (Pub. L. 114-74, section 701), requires that
inflationary adjustments be annually made in these civil money
penalties according to a specified cost-of-living formula. * * *
0
27. Amend Sec. 578.3 by revising paragraph (a) to read as follows:
Sec. 578.3 What types of violations may result in a penalty being
assessed?
(a) A penalty of up to $1,894 per violation may be assessed against
any person who repeatedly or willfully violates section 6 (minimum
wage) or section 7 (overtime) of the Act. The amount of the penalty
will be determined by applying the criteria in Sec. 578.4.
* * * * *
PART 579--CHILD LABOR VIOLATIONS--CIVIL MONEY PENALTIES
0
28. The authority citation for part 579 is revised to read as follows:
Authority: 29 U.S.C. 203(l), 211, 212, 213(c), 216; Reorg. Plan
No. 6 of 1950, 64 Stat. 1263, 5 U.S.C. App; secs. 25, 29, 88 Stat.
72, 76; Secretary of Labor's Order No. 01-2014 (Dec. 19, 2014), 79
FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 Note (Federal Civil
Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-7, 129
Stat 584.
0
29. Amend Sec. 579.1 by revising paragraphs (a)(1)(i)(A), (B), (2) and
(b) to read as follows:
Sec. 579.1 Purpose and scope.
(a) * * *
(1)(i) * * *
(A) $12,080 for each employee who was the subject of such a
violation; or
(B) $54,910 with regard to each such violation that causes the
death or serious injury of any employee under the age of 18 years,
which penalty may be doubled where the violation is a repeated or
willful violation.
* * * * *
(2) Any person who repeatedly or willfully violates section 206 or
207 of the FLSA, relating to wages, shall be subject to a civil penalty
not to exceed $1,894 for each such violation.
* * * * *
(b) The Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub. L. 101-410), as amended by the Debt Collection Improvement Act of
1996 (Pub. L. 104-134, section 31001(s)) and the Federal Civil
Penalties Inflation Adjustment Act Improvement Act of 2015 (Pub. L.
114-74, section 701), requires that Federal agencies annually adjust
their civil money penalties for inflation according to a specified
cost-of-living formula.
* * * * *
0
30. Amend Sec. 579.5 by revising paragraph (a) to read as follows:
Sec. 579.5 Determining the amount of the penalty and assessing the
penalty.
(a) The administrative determination of the amount of the civil
penalty for each employee who was the subject of a violation of section
12 or section 13(c) of the Act relating to child labor or of any
regulation under those sections will be based on the available evidence
of the violation or violations and will take into consideration the
size of the business of the person charged and the gravity of the
violations as provided in paragraphs (b) through (d) of this section.
* * * * *
[[Page 43452]]
PART 801--APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF
1988
0
31. The authority citation for part 801 is revised to read as follows:
Authority: Pub. L. 100-347, 102 Stat. 646, 29 U.S.C. 2001-2009;
28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment
Act of 1990); Pub. L. 114-74 at Sec. 701, 129 Stat 584.
0
32. Amend Sec. 801.42 by revising paragraph (a) introductory text to
read as follows:
Sec. 801.42 Civil money penalties--assessment.
(a) A civil money penalty in an amount not to exceed $19,787 for
any violation may be assessed against any employer for:
* * * * *
PART 825--THE FAMILY AND MEDICAL LEAVE ACT OF 1993
0
33. The authority citation for part 825 is revised to read as follows:
Authority: 29 U.S.C. 2654; 28 U.S.C. 2461 Note (Federal Civil
Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-74 at
Sec. 701.
0
34. Amend Sec. 825.300 by revising the last sentence in paragraph
(a)(1) to read as follows:
Sec. 825.300 Employer notice requirements.
(a) * * *
(1) * * * An employer that willfully violates the posting
requirement may be assessed a civil money penalty by the Wage and Hour
Division not to exceed $163 for each separate offense.
* * * * *
Department of Labor
Public Contracts
For the reasons stated in the preamble 41 CFR part 50-201 is
amended as follows:
Title 41--Public Contracts and Property Management
PART 50-201--GENERAL REGULATIONS
0
35. The authority citation for part 50-201 is revised to read as
follows:
Authority: Sec. 4, 49 Stat. 2038; 41 U.S.C. 38. Interpret or
apply sec. 6, 49 Stat. 2038, as amended; 41 U.S.C. 40; 108 Stat.
7201; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation
Adjustment Act of 1990); Pub. L. 114-74 at Sec. 701, 129 Stat 584.
0
36. Amend Sec. 50-201.3 by revising the first sentence of paragraph
(e) to read as follows:
Sec. 50-201.3 Insertion of stipulations.
* * * * *
(e) Any breach or violation of any of the foregoing representations
and stipulations shall render the party responsible therefor liable to
the United States of America for liquidated damages, in addition to
damages for any other breach of the contract, in the sum of $25 per day
for each person under 16 years of age, or each convict laborer
knowingly employed in the performance of the contract, and a sum equal
to the amount of any deductions, rebates, refunds, or underpayment of
wages due to any employee engaged in the performance of the contract;
and, in addition, the agency of the United States entering into the
contract shall have the right to cancel same and to make open-market
purchases or enter into other contracts for the completion of the
original contract, charging any additional cost to the original
contractor. * * *
* * * * *
Department of Labor
Occupational Safety and Health Administration
For the reasons set out in the preamble, 29 CFR parts 1902 and 1903
are amended as follows:
Title 29--Labor
PART 1902--STATE PLANS FOR THE DEVELOPMENT AND ENFORCEMENT OF STATE
STANDARDS
0
37. The authority citation for part 1902 is revised to read as follows:
Authority: Secs. 8 and 18 of the Occupational Safety and Health
Act of 1970 (29 U.S.C. 657, 667); 28 U.S.C. 2461 note (Federal Civil
Penalties Inflation Adjustment Act of 1990), as amended by Section
701, Pub. L. 114-74; Secretary of Labor's Order No. 1-2012 (77 FR
3912, Jan. 25, 2012).
Subpart B--Criteria for State Plans
0
38. Amend Sec. 1902.4 by revising paragraph (c)(2)(xi) to read as
follows:
Sec. 1902.4 Indices of effectiveness.
* * * * *
(c) * * *
(2) * * *
(xi) Provides effective sanctions against employers who violate
State standards and orders, such as those set forth in the Act, and in
29 CFR 1903.15(d).
* * * * *
PART 1903--INSPECTIONS, CITATIONS, AND PROPOSED PENALTIES
0
39. The authority citation for part 1903 is revised to read as follows:
Authority: Secs. 8 and 9 of the Occupational Safety and Health
Act of 1970 (29 U.S.C. 657, 658); 5 U.S.C. 553; 28 U.S.C. 2461 note
(Federal Civil Penalties Inflation Adjustment Act of 1990), as
amended by Section 701, Pub. L. 114-74; Secretary of Labor's Order
No. 1-2012 (77 FR 3912, Jan. 25, 2012).
0
40. Amend Sec. 1903.2 by revising paragraph (d) to read as follows:
Sec. 1903.2 Posting of notice; availability of the Act, regulations
and applicable standards.
* * * * *
(d) Any employer failing to comply with the provisions of this
section shall be subject to citation and penalty in accordance with the
provisions of Sec. 1903.15(d).
0
41. Amend Sec. 1903.6 by revising paragraph (b) to read as follows:
Sec. 1903.6 Advance notice of inspections.
* * * * *
(b) In the situations described in paragraph (a) of this section,
advance notice of inspections may be given only if authorized by the
Area Director, except that in cases of apparent imminent danger,
advance notice may be given by the Compliance Safety and Health Officer
without such authorization if the Area Director is not immediately
available. When advance notice is given, it shall be the employer's
responsibility promptly to notify the authorized representative of
employees of the inspection, if the identity of such representative is
known to the employer. (See Sec. 1903.8(b) as to situations where
there is no authorized representative of employees.) Upon the request
of the employer, the Compliance Safety and Health Officer will inform
the authorized representative of employees of the inspection, provided
that the employer furnishes the Compliance Safety and Health Officer
with the identity of such representative and with such other
information as is necessary to enable him promptly to inform such
representative of the inspection. An employer who fails to comply with
his obligation under this paragraph promptly to inform the authorized
representative of employees of the inspection or to furnish such
information as is necessary to enable the Compliance Safety and Health
Officer promptly to inform such representative of the inspection, may
be subject to citation and penalty in accordance with
[[Page 43453]]
Sec. 1903.15(d)(4). Advance notice in any of the situations described
in paragraph (a) of this section shall not be given more than 24 hours
before the inspection is scheduled to be conducted, except in apparent
imminent danger situations and in other unusual circumstances.
* * * * *
0
42. Amend Sec. 1903.15 by revising paragraphs (a) and (b) and adding
paragraph (d) to read as follows:
Sec. 1903.15 Proposed penalties.
(a) After, or concurrent with, the issuance of a citation, and
within a reasonable time after the termination of the inspection, the
Area Director shall notify the employer by certified mail or by
personal service by the Compliance Safety and Health Officer of the
proposed penalty in accordance with paragraph (d) of this section, or
that no penalty is being proposed. Any notice of proposed penalty shall
state that the proposed penalty shall be deemed to be the final order
of the Review Commission and not subject to review by any court or
agency unless, within 15 working days from the date of receipt of such
notice, the employer notifies the Area Director in writing that he
intends to contest the citation or the notification of proposed penalty
before the Review Commission.
(b) The Area Director shall determine the amount of any proposed
penalty, giving due consideration to the appropriateness of the penalty
with respect to the size of the business of the employer being charged,
the gravity of the violation, the good faith of the employer, and the
history of previous violations, in accordance with the provisions of
section 17 of the Act and paragraph (d) of this section.
* * * * *
(d) Adjusted civil monetary penalties. The adjusted civil penalties
for penalties proposed on or after August 1, 2016 are as follows:
(1) Willful violation. The penalty per willful violation under
section 17(a) of the Act, 29 U.S.C. 666(a), shall not be less than
$8,908 and shall not exceed $124,709.
(2) Repeated violation. The penalty per repeated violation under
section 17(a) of the Act, 29 U.S.C. 666(a), shall not exceed $124,709.
(3) Serious violation. The penalty for a serious violation under
section 17(b) of the Act, 29 U.S.C. 666(b), shall not exceed $12,471.
(4) Other-than-serious violation. The penalty for an other-than-
serious violation under section 17(c) of the Act, 29 U.S.C. 666(c),
shall not exceed $12,471.
(5) Failure to correct violation. The penalty for a failure to
correct a violation under section 17(d) of the Act, 29 U.S.C. 666(d),
shall not exceed $12,471 per day.
(6) Posting requirement violation. The penalty for a posting
requirement violation under section 17(i) of the Act, 29 U.S.C. 666(i),
shall not exceed $12,471.
0
43. Amend Sec. 1903.16 by revising paragraph (d) to read as follows:
Sec. 1903.16 Posting of citations.
* * * * *
(d) Any employer failing to comply with the provisions of
paragraphs (a) and (b) of this section shall be subject to citation and
penalty in accordance with Sec. 1903.15(d).
0
44. Amend Sec. 1903.18 by revising paragraph (a) to read as follows:
Sec. 1903.18 Failure to correct a violation for which a citation has
been issued.
(a) If an inspection discloses that an employer has failed to
correct an alleged violation for which a citation has been issued
within the period permitted for its correction, the Area Director
shall, if appropriate, consult with the Regional Solicitor, and he
shall notify the employer by certified mail or by personal service by
the Compliance Safety and Health Officer of such failure and of the
additional penalty proposed under Sec. 1903.15(d)(5) by reason of such
failure. The period for the correction of a violation for which a
citation has been issued shall not begin to run until the entry of a
final order of the Review Commission in the case of any review
proceedings initiated by the employer in good faith and not solely for
delay or avoidance of penalties.
* * * * *
Department of Labor
Employee Benefits Security Administration
For the reasons stated in the preamble, 29 CFR parts 2560, 2575,
2590 are amended as follows:
Title 29--Labor
PART 2560--RULES AND REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT
0
45. The authority citation for part 2560 is revised to read as follows:
Authority: 29 U.S.C. 1002, 1132, 1133, 1134, 1135, and Secretary
of Labor's Order 1-2011, 77 FR 1088 (January 9, 2012). Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by section
31001(s) of Pub. L. 104-134, 110 Stat. 1321-373, and section 701 of
Pub. L. 114-74, 129 Stat. 584.
Sec. 2560.502c-2 [Amended]
0
46. Amend Sec. 2560.502c-2(b)(1) by removing the parenthetical phrase
``(or such other maximum amount as may be established by regulation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended)'' and adding in its place ``(adjusted for inflation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended).''
Sec. 2560-502c-4 [Amended]
0
47. Amend Sec. 2560.502c-4(b)(1) by removing the parenthetical phrase
``(or such other maximum amount as may be established by regulation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended)'' and adding in its place ``(adjusted for inflation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended).''
0
48. Amend Sec. 2560.502c-5 by revising the second sentence of
paragraph (b)(1) to read as follows:
Sec. 2560.502c-5 Civil penalties under section 502c-5.
* * * * *
(b) * * *
(1) * * * However, the amount assessed under section 502(c)(5) or
the Act shall not exceed $1,000 a day (adjusted for inflation pursuant
to the Federal Civil Penalties Inflation Adjustment Act of 1990, as
amended), computed from the date of the administrator's failure or
refusal to file the report and, except as provided in paragraph (b)(2)
of this section, continuing up to the date on which a report meeting
the requirements of section 101(g) of the Act and 29 CFR 2520.101-2, as
determined by the Secretary, is filed.
* * * * *
Sec. 2560.502c-6 [Amended]
0
49. Amend Sec. 2560.502c-6(b)(1) by removing the parenthetical phrase
``(or such other maximum amounts as may be established by regulation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended)'' and adding in its place ``(such amounts to be
adjusted for inflation pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended).''
Sec. 2560.502c-7 [Amended]
0
50. Amend Sec. 2560.502c-7(b)(1) by removing the parenthetical phrase
``(or such other maximum amount as may be established by regulation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended)'' and adding in its place ``(adjusted for
[[Page 43454]]
inflation pursuant to the Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended).''
Sec. 2560.502c-8 [Amended]
0
51. Amend Sec. 2560.502c-8(b)(1) by removing the parenthetical phrase
``(or such other maximum amount as may be established by regulation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended)'' and adding in its place ``(adjusted for inflation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended).''
PART 2575--ADJUSTMENT OF CIVIL PENALTIES UNDER ERISA TITLE I
0
52. The authority citation for subpart A of 29 CFR part 2575 is revised
to read as follows:
Authority: Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note),
as amended by section 31001(s) of Pub. L. 104-134, 110 Stat. 1321-
373, and section 701 of Pub. L. 114-74, 129 Stat. 584; 29 U.S.C
1059(b), 1132(c), 1135 and 1185d; and Secretary of Labor's Order 1-
2011, 77 FR 1088 (January 9, 2012).
0
53. Add Sec. Sec. 2575.1, 2575.2 and 2575.3 to read as follows:
Sec. 2575.1 In general.
In accordance with the requirements of the Federal Civil Penalties
Inflation Adjustment Act of 1990, Pub. L. 104-410, 104 Stat. 890, as
amended by the section 31001(s) of the Debt Collection Improvement Act
of 1996, Pub. L. 104-34, 110 Stat. 1321-373, and section 701 of the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015, Pub. L. 114-74, 129 Stat. 584, (collectively the Inflation
Adjustment Act), the applicable civil monetary penalties of title I of
the Employee Retirement Income Security Act of 1974, as amended
(ERISA), under the jurisdiction of the U.S. Department of Labor
(Department) and listed in 29 CFR 2575.2 are adjusted as set forth in
this subpart, effective as of the relevant dates specified in Sec.
2575.2.
Sec. 2575.2 Catch-up adjustments to civil monetary penalties.
The civil monetary penalties set forth in paragraphs (a) through
(m) of this section are adjusted for inflation as required by section
4(b)(1) of the Inflation Adjustment Act and 29 CFR 2575.1 as follows:
(a) The civil monetary penalty of $10 for each employee established
by section 209(b) of ERISA, is adjusted to $11 for violations occurring
after July 29, 1997, for which a penalty is assessed before August 1,
2016 and to $28 for penalties assessed after August 1, 2016, and before
the effective date of the next adjustment for inflation made by the
Secretary in accordance with the Inflation Adjustment Act and Sec.
2575.3.
(b) The civil monetary penalty of up to $1,000 established by
Section 502(c)(2) of ERISA is adjusted to $1,100 for violations
occurring after July 29, 1997, for which a penalty is assessed before
August 1, 2016, and to $2,063 for penalties assessed after August 1,
2016, and before the effective date of the next adjustment for
inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(c) The civil monetary penalty of up to $1,000 established by
section 502(c)(4) of ERISA is adjusted to $1,632 for penalties assessed
after August 1, 2016, and before the effective date of the next
adjustment for inflation made by the Secretary in accordance with the
Inflation Adjustment Act and Sec. 2575.3.
(d) The civil monetary penalty of up to $1,000 established by
Section 502(c)(5) of ERISA is adjusted to $1,100 for violations
occurring after March 24, 2003, for which a penalty is assessed before
August 1, 2016, and to $1,502 for penalties assessed after August 1,
2016, and before the effective date of the next adjustment for
inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(e) The civil monetary penalty of up to $100 not to exceed $1,000
per request, established by section 502(c)(6) of ERISA, is adjusted to
$110 not to exceed $1,100 per request for violations occurring after
March 24, 2003, for which a penalty is assessed before August 1, 2016,
and to $147 not to exceed $1,472 per request for penalties assessed
after August 1, 2016, and before the effective date of the next
adjustment for inflation made by the Secretary in accordance with the
Inflation Adjustment Act and Sec. 2575.3.
(f) The civil monetary penalty of up to $100 established by section
502(c)(7) of ERISA is adjusted to $131 for penalties assessed after
August 1, 2016, and before the effective date of the next adjustment
for inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(g) The civil monetary penalty of up to $1,100 established by
section 502(c)(8) of ERISA is adjusted to $1,296 for penalties assessed
after August 1, 2016, and before the effective date of the next
adjustment for inflation made by the Secretary in accordance with the
Inflation Adjustment Act and Sec. 2575.3.
(h) The civil monetary penalty of up to $100 established by section
502(c)(9)(A) of ERISA is adjusted to $110 for penalties assessed after
August 1, 2016, and before the effective date of the next adjustment
for inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(i) The civil monetary penalty of up to $100 established by section
502(c)(9)(B) of ERISA is adjusted to $110 for penalties assessed after
August 1, 2016, and before the effective date of the next adjustment
for inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(j) The civil monetary penalties established by section 502(c)(10)
of ERISA are adjusted in accordance with paragraphs (j)(1) through (4)
of this section:
(1) The $100 civil monetary penalty of section 502(c)(10)(B)(i) of
ERISA is adjusted to $110 to for penalties assessed after August 1,
2016, and before the effective date of the next adjustment for
inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3;
(2) The $2,500 minimum civil monetary penalty of section
502(c)(10)(C)(i) of ERISA for de minimis uncorrected violations is
adjusted to $2,745 for penalties assessed after August 1, 2016, and
before the effective date of the next adjustment for inflation made by
the Secretary in accordance with the Inflation Adjustment Act and Sec.
2575.3;
(3) The $15,000 minimum civil monetary penalty of section
502(c)(10)(C)(ii) of ERISA for uncorrected violations that are not de
minimis is adjusted to $16,473 for penalties assessed after August 1,
2016, and before the effective date of the next adjustment for
inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3; and
(4) The $500,000 maximum civil monetary penalty for unintentional
failures set in Section 502 (c)(10)(D)(iii)(II) of ERISA is adjusted to
$549,095, for penalties assessed after August 1, 2016, and before the
effective date of the next adjustment for inflation made by the
Secretary in accordance with the Inflation Adjustment Act and Sec.
2575.3.
(k) The civil monetary penalty of up to $100 established by section
502(c)(12) of ERISA remains at $100 for penalties assessed after August
1, 2016, and before the effective date of the next adjustment for
inflation made by the Secretary in accordance with the Inflation
Adjustment Act and Sec. 2575.3.
(l) The maximum civil monetary penalty of $10,000 established by
section 502(m) of ERISA is adjusted to $15,909 for penalties assessed
after August 1, 2016, and before the effective date of the next
adjustment for inflation
[[Page 43455]]
made by the Secretary in accordance with the Inflation Adjustment Act
and Sec. 2575.3.
(m) The civil monetary penalty of not more than $1,000, established
by Public Health Services Act section 2715(f) and incorporated into
ERISA by section 715 of ERISA, is adjusted to $1,087 for penalties
assessed after August 1, 2016, and before the effective date of the
next adjustment for inflation made by the Secretary in accordance with
the Inflation Adjustment Act and Sec. 2575.3.
Sec. 2575.3 Subsequent adjustments to civil monetary penalties.
No later than January 15, starting in 2017, and each subsequent
year, the Secretary shall adjust for inflation the civil monetary
penalties described in Sec. 2575.2 and any future civil monetary
penalties enforceable by the Secretary under title I of ERISA and
publish such annual adjustments in the Federal Register notwithstanding
section 553 of the Administrative Procedures Act. Future penalties or
adjustments to the amount of the penalty that are enacted by statute or
regulation will not be adjusted for inflation in the first year those
penalty levels take effect. Annual inflation adjustments shall apply to
penalties assessed after the later of January 15 or the date notice of
the annual inflation adjustment is published in the Federal Register.
* * * * *
Sec. Sec. 2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5, and
2575.502c-6 [Removed]
0
54. Remove Sec. Sec. 2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5,
and 2575.502c-6.
PART 2590--RULES AND REGULATIONS FOR GROUP HEALTH PLANS
0
55. The authority citation for part 2590 is revised to read as follows:
Authority: Secs. 29 U.S.C. 1027, 1059, 1135, 1161-1168, 1169,
1181-1183, 1181 note, 1185, 1185a, 1185b, 1191, 1191a, 1191b, and
1191c; sec. 101(g), Pub. L. 104-191, 110 Stat. 1936; sec. 401(b),
Pub. L. 105-200, 112 Stat. 645 (42 U.S.C. 651 note); sec. 512(d),
Pub. L. 110-343, 122 Stat. 3881; sec. 1001, 1201, and 1562(e), Pub.
L. 111-148, 124 Stat. 119, as amended by Pub. L. 111-152, 124 Stat.
1029; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note), as
amended by section 31001(s) of Pub. L. 104-134, 110 Stat. 1321-373,
and section 701 of Pub. L. 114-74, 129 Stat. 584; Secretary of
Labor's Order 1-2011, 77 FR 1088 (January 9, 2012).
0
56. Amend Sec. 2590.715-2715 by revising the first sentence of
paragraph (e) to read as follows:
Sec. 2590.715-2715 Summary of benefits and coverage and uniform
glossary.
* * * * *
(e) Failure to provide. A group health plan that willfully fails to
provide information under this section to a participant or beneficiary
is subject to a fine of not more than $1,000 (adjusted for inflation
pursuant to the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended) for each such failure. * * *
Department of Labor
Mine Safety and Health Administration
For the reasons stated in the preamble, 30 CFR part 100 is amended
as follows:
Title 30--Mineral Resources
PART 100--CIVIL PENALTIES FOR VIOLATIONS OF THE FEDERAL MINE SAFETY
AND HEALTH ACT OF 1977
0
57. The authority citation for part 100 is revised to read as follows:
Authority: 5 U.S.C. 301; 30 U.S.C. 815, 820, 957; 28 U.S.C. 2461
note (Federal Civil Penalties Inflation Adjustment Act of 1990);
Pub. L. 114-74 at Sec. 701;
0
58. Amend Sec. 100.3 by:
0
a. Revising the first sentence of paragraph (a)(1); and
0
b. Revising Table XIV in paragraph (g).
The revisions read as follows:
Sec. 100.3 Determination of penalty amount; regular assessment.
(a) * * *
(1) Except as provided in Sec. 100.5(e), the operator of any mine
in which a violation occurs of a mandatory health or safety standard or
who violates any other provision of the Mine Act, as amended, shall be
assessed a civil penalty of not more than $68,300. * * *
* * * * *
(g) * * *
Table XIV--Penalty Conversion Table
------------------------------------------------------------------------
Points Penalty ($)
------------------------------------------------------------------------
60 or fewer............................................. 127
61...................................................... 138
62...................................................... 149
63...................................................... 162
64...................................................... 175
65...................................................... 190
66...................................................... 206
67...................................................... 223
68...................................................... 241
69...................................................... 262
70...................................................... 283
71...................................................... 307
72...................................................... 334
73...................................................... 361
74...................................................... 390
75...................................................... 423
76...................................................... 459
77...................................................... 496
78...................................................... 538
79...................................................... 583
80...................................................... 632
81...................................................... 684
82...................................................... 741
83...................................................... 803
84...................................................... 870
85...................................................... 943
86...................................................... 1,021
87...................................................... 1,105
88...................................................... 1,198
89...................................................... 1,298
90...................................................... 1,406
91...................................................... 1,522
92...................................................... 1,649
93...................................................... 1,786
94...................................................... 1,935
95...................................................... 2,097
96...................................................... 2,271
97...................................................... 2,460
98...................................................... 2,665
99...................................................... 2,887
100..................................................... 3,128
101..................................................... 3,388
102..................................................... 3,670
103..................................................... 3,976
104..................................................... 4,307
105..................................................... 4,666
106..................................................... 5,054
107..................................................... 5,475
108..................................................... 5,932
109..................................................... 6,426
110..................................................... 6,961
111..................................................... 7,540
112..................................................... 8,169
113..................................................... 8,849
114..................................................... 9,586
115..................................................... 10,384
116..................................................... 11,249
117..................................................... 12,186
118..................................................... 13,201
119..................................................... 14,301
120..................................................... 15,492
121..................................................... 16,782
122..................................................... 18,180
123..................................................... 19,694
124..................................................... 21,335
125..................................................... 23,110
126..................................................... 25,035
127..................................................... 27,121
128..................................................... 29,380
129..................................................... 31,827
130..................................................... 34,478
131..................................................... 37,349
132..................................................... 40,460
133..................................................... 43,829
134..................................................... 47,325
135..................................................... 50,821
136..................................................... 54,317
137..................................................... 57,812
138..................................................... 61,308
139..................................................... 64,804
140 or more............................................. 68,300
------------------------------------------------------------------------
* * * * *
0
59. Amend Sec. 100.4 by:
[[Page 43456]]
0
a. Revising paragraphs (a) and (b); and
0
b. Revising introductory paragraph (c).
The revisions read as follows:
Sec. 100.4 Unwarrantable failure and immediate notification.
(a) The minimum penalty for any citation or order issued under
section 104(d)(1) of the Mine Act shall be $2,277.
(b) The minimum penalty for any order issued under section
104(d)(2) of the Mine Act shall be $4,553.
(c) The penalty for failure to provide timely notification to the
Secretary under section 103(j) of the Mine Act will be not less than
$5,692 and not more than $68,300 for the following accidents:
* * * * *
0
60. Amend Sec. 100.5 by revising paragraphs (c), (d), and (e) to read
as follows:
Sec. 100.5 Determination of penalty amount; special assessment.
* * * * *
(c) Any operator who fails to correct a violation for which a
citation has been issued under Section 104(a) of the Mine Act within
the period permitted for its correction may be assessed a civil penalty
of not more than $7,399 for each day during which such failure or
violation continues.
(d) Any miner who willfully violates the mandatory safety standards
relating to smoking or the carrying of smoking materials, matches, or
lighters shall be subject to a civil penalty of not more than $313 for
each occurrence of such violation.
(e) Violations that are deemed to be flagrant under section
110(b)(2) of the Mine Act may be assessed a civil penalty of not more
than $250,433. For purposes of this section, a flagrant violation means
``a reckless or repeated failure to make reasonable efforts to
eliminate a known violation of a mandatory health or safety standard
that substantially and proximately caused, or reasonably could have
been expected to cause, death or serious bodily injury.''
Note: The following Appendix will not appear in the Code of Federal
Regulations.
[[Page 43457]]
Appendix 1--Inflation Adjustment Act--Penalty Adjustments
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
New min
Last year Authority for Min (rounded New max (rounded
Agency Law Name/ Description CFR Citation adjusted last adjustment penalty Max penalty (non 11/15 Min 11/15 Max ($) to to nearest
(non IAA) (non IAA) (non IAA) IAA) ($) ($) nearest dollar)
($) dollar)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
MSHA........... Federal Mine Regular 30 CFR 100.3(A).. 2007 72 FR 13592...... ......... 60,000........... ......... 70,000........... ......... 68,300.
Safety & Health Assessment.
Act of 1977.
MSHA........... Federal Mine Penalty 30 CFR 100.3(G).. 2007 72 FR 13592...... 112 60,000........... 112 70,000........... 127 68,300.
Safety & Health Conversion Table.
Act of 1977.
MSHA........... Federal Mine Minimum Penalty 30 CFR 100.4(a).. 2007 72 FR 13592...... 2,000 ................. 2,000 ................. 2,277 .................
Safety & Health for any order
Act of 1977. issued under
104(d)(1) of the
Mine Act.
MSHA........... Federal Mine Minimum penalty 30 CFR 100.4(b).. 2007 72 FR 13592...... 4,000 ................. 4,000 ................. 4,553 .................
Safety & Health for any order
Act of 1977. issued under
104(d)(2) of the
Mine Act.
MSHA........... Federal Mine Penalty for 39 CFR 100.4(c).. 2007 72 FR 13592...... 5,000 60,000........... 5,000 65,000........... 5,692 68,300.
Safety & Health failure to
Act of 1977. provide timely
notification
under 103(j) of
the Mine Act.
MSHA........... Federal Mine Any operator who 30 CFR 100.5(C).. 2007 72 FR 13592...... ......... 6,500............ ......... 7,500............ ......... 7,399.
Safety & Health fails to correct
Act of 1977. a violation for
which a citation
or order was
issued under
104(a) of the
Mine Act.
MSHA........... Federal Mine Violation of 30 CFR 100.5(D).. 2007 72 FR 13592...... ......... 275.............. ......... 375.............. ......... 313.
Safety & Health mandatory safety
Act of 1977. standards
related to
smoking
standards.
MSHA........... Federal Mine Flagrant 30 CFR 100.5(e).. 2007 72 FR 13592...... ......... 220,000.......... ......... 242,000.......... ......... 250,433.
Safety & Health violations under
Act of 1977. 110(b)(2) of the
Mine Act.
EBSA........... Employee Section 209(b): 29 CFR 2575.2(a). 1974 Pub. L. 93-406... ......... 10............... ......... 11............... ......... 28.
Retirement Failure to
Income Security furnish reports
Act. (e.g., pension
benefit
statements) to
certain former
participants and
beneficiaries or
maintain records.
EBSA........... Employee Section 29 CFR 2575.2(b). 1987 Pub. L. 100-203.. ......... 1,000............ ......... 1,100............ ......... 2,063.
Retirement 502(c)(2)--Per
Income Security day for failure/
Act. refusal to
properly file
plan annual
report.
EBSA........... Employee Section 29 CFR 2575.2(c). 1993 Pub. L. 103-66... ......... 1,000............ ......... 1,000............ ......... 1,632.
Retirement 502(c)(4)--Per
Income Security day for failure
Act. to disclose
certain
documents upon
request under
ERISA 101(k) and
(l); failure to
furnish notices
under 101(j) and
514(e)(3)--each
statutory
recipient a
separate
violation.
EBSA........... Employee Section 29 CFR 2575.2(d). 1996 Pub. L. 104-91... ......... 1,000............ ......... 1,100............ ......... 1,502.
Retirement 502(c)(5)--Per
Income Security day for each
Act. failure to file
annual report
for Multiple
Employer Welfare
Arrangements
(MEWAs).
EBSA........... Employee Section 29 CFR 2575.2(e). 1997 Pub. L. 105-34... ......... 100 per day, not ......... 110 per day, not ......... 147 per day, not
Retirement 502(c)(6)--Per to exceed 1,000 to exceed 1,100 to exceed 1,472
Income Security day for each per request. per request. per request.
Act. failure to
provide
Secretary of
Labor requested
documentation
not to exceed a
per-request
maximum.
EBSA........... Employee Section 29 CFR 2575.2(f). 2002 Pub. L. 107-204.. ......... 100.............. ......... 100.............. ......... 131.
Retirement 502(c)(7)--Per
Income Security day for each
Act. failure to
provide notices
of blackout
periods and of
right to divest
employer
securities--each
statutory
recipient a
separate
violation.
[[Page 43458]]
EBSA........... Employee Section 29 CFR 2575.2(g). 2006 Pub. L. 109-280.. ......... 1,100............ ......... 1,100............ ......... 1,296.
Retirement 502(c)(8)--Per
Income Security each failure by
Act. an endangered
status
multiemployer
plan to adopt a
funding
improvement plan
or meet
benchmarks;
failure of a
critical status
multiemployer
plan to adopt a
rehabilitation
plan.
EBSA........... Employee Section 29 CFR 2575.2(h). 2009 Pub. L. 111-3.... ......... 100.............. ......... 100.............. ......... 110.
Retirement 502(c)(9)(A)--Pe
Income Security r day for each
Act. failure by an
employer to
inform employees
of CHIP coverage
opportunities
under Section
701(f)(3)(B)(i)(
l)--each
employee a
separate
violation.
EBSA........... Employee Section 29 CFR 2575.2(i). 2009 Pub. L. 111-3.... ......... 100.............. ......... 100.............. ......... 110.
Retirement 502(c)(9)(B)--Pe
Income Security r day for each
Act. failure by a
plan to timely
provide to any
State
information
required to be
disclosed under
Section
701(f)(3)(B)(ii)
, as added by
CHIP regarding
coverage
coordination--ea
ch participant/
beneficiary a
separate
violation.
EBSA........... Employee Section 29 CFR 2008 Pub. L. 110-233.. ......... 100.............. ......... 100.............. ......... 110.
Retirement 502(c)(10)--Fail 2575.2(j)(1).
Income Security ure by any plan
Act. sponsor of group
health plan, or
any health
insurance issuer
offering health
insurance
coverage in
connection with
the plan, to
meet the
requirements of
Sections
702(a)(1)(F),
(b)(3), (c) or
(d); or Section
701; or Section
702(b)(1) with
respect to
genetic
information--dai
ly per
participant and
beneficiary non-
compliance
period.
EBSA........... Employee Section 29 CFR 2008 Pub. L. 110-233.. 2,500 ................. 2,500 ................. 2,745 .................
Retirement 502(c)(10)--unco 2575.2(j)(2).
Income Security rrected de
Act. minimis
violation.
EBSA........... Employee Section 29 CFR 2008 Pub. L. 110-233.. 15,000 ................. 15,000 ................. 16,473 .................
Retirement 502(c)(10)--unco 2575.2(j)(3).
Income Security rrected
Act. violations that
are not de
minimis.
EBSA........... Employee Section 29 CFR 2008 Pub. L. 110-233.. ......... 500,000.......... ......... 500,000.......... ......... 549,095.
Retirement 502(c)(10)--unin 2575.2(j)(4).
Income Security tentional
Act. failure maximum
cap.
EBSA........... Employee Section 29 CFR 2575.2(k). 2014 Pub. L. 113-97... ......... 100.............. ......... 100.............. ......... 100.
Retirement 502(c)(12)--Per
Income Security day for each
Act. failure of a
CSEC plan in
restoration
status to adopt
a restoration
plan.
[[Page 43459]]
EBSA........... Employee Section 502(m)-- 29 CFR 2575.2(l). 1994 Pub. L. 103-465.. ......... 10,000........... ......... 10,000........... ......... 15,909.
Retirement Failure of
Income Security fiduciary to
Act. make a proper
distribution
from a defined
benefit plan
under section
206(e) of ERISA.
EBSA........... Employee Failure to 29 CFR 2575.2(m). 2010 Pub. L. 111-148.. ......... 1,000............ ......... 1,000............ ......... 1,087.
Retirement provide Summary
Income Security of Benefits
Act. Coverage under
PHS Act section
2715(f), as
incorporated in
ERISA section
715 and 29 CFR
2590.715-2715(e).
OSHA........... Occupational Serious Violation 29 CFR 1990 Pub. L. 101-508.. ......... 7,000............ ......... 7,000............ ......... 12,471.
Safety and 1903.15(d)(3).
Health Act.
OSHA........... Occupational Other-Than- 29 CFR 1990 Pub. L. 101-508.. ......... 7,000............ ......... 7,000............ ......... 12,471.
Safety and Serious. 1903.15(d)(4).
Health Act.
OSHA........... Occupational Willful or 29 CFR 1990 Pub. L. 101-508.. 5,000 70,000........... 5,000 70,000........... 8,908 124,709.
Safety and Repeated. 1903.15(d)(1)
Health Act. and 29 CFR
1903.15(d)(2).
OSHA........... Occupational Posting 29 CFR 1990 Pub. L. 101-508.. ......... 7,000............ ......... 7,000............ ......... 12,471.
Safety and Requirement. 1903.15(d)(6).
Health Act.
OSHA........... Occupational Failure to Abate. 29 CFR 1990 Pub. L. 101-508.. ......... 7,000............ ......... 7,000............ ......... 12,471.
Safety and 1903.15(d)(5).
Health Act.
WHD............ Family and FMLA............. 29 CFR 1993 Pub. L. 103-3.... ......... 100.............. ......... 110.............. ......... 163.
Medical Leave 825.300(a)(1).
Act.
WHD............ Fair Labor FLSA............. 29 CFR 578.3(a).. 1989 Pub. L. 101-157.. ......... 1,000............ ......... 1,100............ ......... 1,894.
Standards Act.
WHD............ Fair Labor Child Labor...... 29 CFR 2008 Pub. L. 110-233.. ......... 11,000........... ......... 11,000........... ......... 12,080.
Standards Act. 579.1(a)(1)(i)(A
).
WHD............ Fair Labor Child Labor 29 CFR 2008 Pub. L. 110-233.. ......... 50,000........... ......... 50,000........... ......... 54,910.
Standards Act. resulting in 579.1(a)(1)(i)(B
serious injury ).
or death.
WHD............ Fair Labor CL willful or 29 CFR 2008 Pub. L. 110-233.. ......... 100,000.......... ......... 100,000.......... ......... 109,820.
Standards Act. repeated 579.1(a)(1)(i)(B
resulting in ).
serious injury
or death.
WHD............ Migrant and MSPA............. 29 CFR 500.1(e).. 1983 Pub. L. 97-470... ......... 1,000............ ......... 1,000............ ......... 2,355.
Seasonal
Agricultural
Worker
Protection Act.
WHD............ Immigration & H1B.............. 20 CFR 1990 Pub. L. 101-649.. ......... 1,000............ ......... 1,000............ ......... 1,782.
Nationality Act. 655.810(b)(1).
WHD............ Immigration & H1B willful or 20 CFR 1998 Pub. L. 105-277.. ......... 5,000............ ......... 5,000............ ......... 7,251.
Nationality Act. discrimination. 655.810(b)(2).
WHD............ Immigration & H1B willful that 20 CFR 1998 Pub. L. 105-277.. ......... 35,000........... ......... 35,000........... ......... 50,758.
Nationality Act. resulted in 655.810(b)(3).
displacement of
a US worker.
WHD............ Immigration & H2B \17\......... 29 CFR 503.23.... 2005 Pub. L. 109-13... ......... 10,000........... ......... 10,000........... ......... 11,940.
Nationality Act.
WHD............ Immigration & D-1.............. 20 CFR 655.620... 1990 Pub. L. 101-649.. ......... 5,000............ ......... 5,000............ ......... 8,908.
Nationality Act.
WHD............ Contract Work CWHSSA........... 29 CFR 5.8(a).... 1962 Pub. L. 87-581... ......... 10............... ......... 10............... ......... 25.
Hours and Safety
Standards Act.
WHD............ Walsh-Healey Walsh-Healey..... 41 CFR 50- 1936 49 Stat. 2036.... ......... 10............... ......... 10............... ......... 25.
Public Contracts 201.3(e).
Act.
WHD............ Employee EPPA............. 29 CFR 801.42(a). 1988 Pub. L. 100-347.. ......... 10,000........... ......... 10,000........... ......... 19,787.
Polygraph
Protection Act.
WHD............ Immigration & H2A.............. 29 CFR 501.19(c). 2010 75 FR 6884....... ......... 1,500............ ......... 1,500............ ......... 1,631.
Nationality Act.
WHD............ Immigration & H2A willful or 29 CFR 2008 73 FR 77110...... ......... 5,000............ ......... 5,000............ ......... 5,491.
Nationality Act. discrimination. 501.19(c)(1).
WHD............ Immigration & H2A Safety or 29 CFR 2010 75 FR 6,884...... ......... 50,000........... ......... 50,000........... ......... 54,373.
Nationality Act. health resulting 501.19(c)(2).
in serious
injury or death.
WHD............ Immigration & H2A willful or 29 CFR 2010 75 FR 6884....... ......... 100,000.......... ......... 100,000.......... ......... 108,745.
Nationality Act. repeated safety 501.19(c)(4).
or health
resulting in
serious injury
or death.
WHD............ Immigration & H2A failing to 29 CFR 501.19(d). 2008 73 FR 77110...... ......... 5,000............ ......... 5,000............ ......... 5,491.
Nationality Act. cooperate in an
investigation.
WHD............ Immigration & H2A displacing a 29 CFR 501.19(e). 2010 75 FR 6,884...... ......... 15,000........... ......... 15,000........... ......... 16,312.
Nationality Act. US worker.
WHD............ Immigration & H2A improperly 29 CFR 501.19(f). 2010 75 FR 6,884...... ......... 15,000........... ......... 15,000........... ......... 16,312.
Nationality Act. rejecting a US
worker.
WHD............ Fair Labor Home Worker...... 29 CFR 530.302... 1988 53 FR 45706...... 10 500.............. 10 500.............. 20 989.
Standards Act.
OWCP........... Longshore and Failure to file 20 CFR 702.204... 1984 Pub. L. 98-426... ......... 10,000........... ......... 11,000........... ......... 22,587.
Harbor Workers' first report of
Compensation Act. injury or filing
a false
statement or
misrepresentatio
n in first
report.
[[Page 43460]]
OWCP........... Longshore and Failure to report 20 CFR 702.236... 1927 44 Stat. 1432.... ......... 100.............. ......... 110.............. ......... 275.
Harbor Workers' termination of
Compensation Act. payments.
OWCP........... Longshore and Discrimination 20 CFR 1984 Pub. L. 98-426... 1,000 5,000............ 1,100 5,500............ 2,259 11,293.
Harbor Workers' against 702.271(a)(2).
Compensation Act. employees who
claim
compensation or
testify in a
LHWCA proceeding.
OWCP........... Black Lung Failure to report 20 CFR 1978 Pub. L. 95-239... ......... 500.............. ......... 550.............. ......... 1,375.
Benefits Act. termination of 725.621(b), (d).
payments.
OWCP........... Black Lung Failure to file 20 CFR 725.621(d) 1978 Pub. L. 95-239... ......... 500.............. ......... 550.............. ......... 1,375.
Benefits Act. required reports.
OWCP........... Black Lung Failure to secure 20 CFR 726.300... 1978 Pub. L. 95-239... ......... 1,000............ ......... 1,000............ ......... 2,500.
Benefits Act. payment of
benefits.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 100 ................. 100 ................. 134 .................
Benefits Act. payment of 726.302(c)(2)(i).
benefits for
mines with fewer
than 25
employees.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 200 ................. 200 ................. 268 .................
Benefits Act. payment of 726.302(c)(2)(i).
benefits for
mines with 25-50
employees.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 300 ................. 300 ................. 402 .................
Benefits Act. payment of 726.302(c)(2)(i).
benefits for
mines with 51-
100 employees.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 400 ................. 400 ................. 535 .................
Benefits Act. payment of 726.302(c)(2)(i).
benefits for
mines with more
than 100
employees.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 100 ................. 100 ................. 134 .................
Benefits Act. payment of 726.302(c)(4).
benefits after
10th day of
notice.
OWCP........... Black Lung Failure to secure 20 CFR 2001 65 FR 79920...... 300 ................. 300 ................. 402 .................
Benefits Act. payment of 726.302(c)(5).
benefits for
repeat offenders.
OWCP........... Black Lung Failure to secure 20 CFR 1978 Pub. L. 95-239... ......... 1,100............ ......... 1,100............ ......... 2,750.
Benefits Act. payment of 726.302(c)(5).
benefits.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\17\ See supra note 6.
[[Page 43461]]
Signed at Washington, DC, this 24th day of June, 2016.
Thomas E. Perez,
Secretary, U.S. Department of Labor.
[FR Doc. 2016-15378 Filed 6-30-16; 8:45 am]
BILLING CODE 4510-HL-P