[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Rules and Regulations]
[Pages 59928-59931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23849]


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DEPARTMENT OF LABOR

Wage and Hour Division

29 CFR Parts 500, 501, 580 and 801

RIN 1235-AA28


Authorizing Electronic Payments of Civil Money Penalties

AGENCY: Wage and Hour Division, Department of Labor.

ACTION: Final rule.

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SUMMARY: In this final rule, the Department of Labor (Department) 
revises its regulations issued pursuant to the Migrant and Seasonal 
Agricultural Worker Protection Act (MSPA), the H-2A provisions of the 
Immigration and Nationality Act (H-2A), the Fair Labor Standards Act 
(FLSA), and the Employee Polygraph Protection Act (EPPA) governing the 
payment of civil money penalties (CMPs) assessed by the Wage and Hour 
Division (WHD). The regulatory revisions expand the CMP payment methods 
beyond the options specified in the current text by allowing for the 
payment of CMPs through an electronic payment alternative, and 
otherwise amend the regulations to ensure uniform payment instructions. 
The existing MSPA, H-2A, FLSA, and EPPA regulations require persons 
assessed a CMP under those statutory schemes to remit payment in person 
or by mail using a certified check or money order. In recognition of 
modern payment methods, the Department is amending these regulations to 
allow for payment of the CMPs via an electronic payment alternative, 
any successor system, or by any additional payment method that the 
Department may deem acceptable in the future. This action revises the 
regulatory text in the appropriate regulations

[[Page 59929]]

administered by WHD. This action is intended to simplify payment 
methods for persons assessed a CMP, and does not impose any new 
regulatory requirements.

DATES: This rule is effective November 7, 2019.

FOR FURTHER INFORMATION CONTACT: Robert Waterman, Division of 
Regulations, Legislation, and Interpretation, Wage and Hour Division, 
U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW, 
Washington, DC 20210, telephone: (202) 693-0406 (this is not a toll-
free number) or email: [email protected].

SUPPLEMENTARY INFORMATION: Publication of this document constitutes 
final action on these changes under the Administrative Procedure Act (5 
U.S.C. 553). Publication of a Notice of Proposed Rulemaking is 
unnecessary since the agency is merely updating its regulations to add 
alternatives for payment of CMPs and to improve consistency among its 
regulations. The rulemaking does not mandate payment via electronic 
payment method.
    This final rule is not a regulatory action under Executive Order 
13771 because it is not a significant action under Executive Order 
12866.

I. Background

    The Department's regulations at 29 CFR 500.144, 501.22, 580.18, and 
801.43 provide instructions for the payment of CMPs assessed by WHD 
under MSPA, H-2A, the FLSA, and the EPPA. The instructions currently 
require that payment be remitted by certified check or money order, to 
be mailed or delivered to WHD. Many members of the public may find 
these payment methods sufficient. However, the Department of the 
Treasury's Bureau of the Fiscal Service (Fiscal Service) analyzed WHD's 
CMP payment process and recommended that Pay.gov be used as an 
electronic payment option to improve its cash management practices and 
reduce paper-based collections. WHD accepted Fiscal Service's 
recommendation and has fully implemented Pay.gov as an additional 
method for paying CMPs. Pay.gov is a web transaction portal for public 
access to federal agency services, sponsored by the United States 
Department of the Treasury's Fiscal Service.\1\ WHD believes that an 
electronic payment option provides members of the public with a faster 
and less costly payment method than the current options of delivering 
or mailing certified checks or money orders. Many members of the public 
may find it in their interest to remit CMP payments electronically, 
thereby avoiding the costs associated with money orders, certified 
checks, certified mail, or courier service, as well as the cost of 
personnel time required to mail or deliver the CMP payments to WHD. The 
Department also recognizes that commonly accepted and preferred payment 
methods may continue to evolve. Accordingly, in this final rule, the 
Department adds an option for electronic payment of CMPs on www.pay.gov 
(or any successor system), permits payment via additional means that 
the Department may deem acceptable, and directs persons who wish to 
remit payment to WHD by certified check or money order to do so 
pursuant to WHD instructions that are provided during the resolution of 
a WHD investigation.\2\
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    \1\ See https://www.pay.gov/public/home/notices.
    \2\ The regulation at 29 CFR 503.26 similarly provides 
instructions for the payment of CMPs assessed by WHD under the H-2B 
provisions of the Immigration and Nationality Act. This final rule 
does not amend 29 CFR 503.26. Any revisions to that regulation will 
be issued separately.
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II. Summary of Changes to the Regulations

    In 29 CFR 500.144, 501.22, 580.18, and 801.43, the regulatory text 
currently provides that a person assessed a CMP shall remit promptly by 
mail or in person the amount to the Secretary by certified check or 
money order, made payable to the order of WHD. The Department has added 
a payment alternative to all these provisions to allow persons the 
option of submitting payment of CMPs electronically through Pay.gov (or 
any successor system). Recognizing that commonly accepted and preferred 
payment methods may continue to evolve, the Department has further 
revised these regulations to permit payment via any additional payment 
method that the Department may deem acceptable in the future. 
Instructions for any such additional payment method would be provided 
during the resolution of a WHD investigation. Additionally, the current 
text of these regulations lack consistency in their instructions for 
mailing or delivering CMP payment to WHD when payment is made by 
certified check or money order. In this final rule, the Department has 
revised these regulations to eliminate those inconsistencies.

III. Administrative Procedure Act

    Section 553(b)(3) of the Administrative Procedure Act (APA) 
provides that an agency is not required to publish a notice of proposed 
rulemaking in the Federal Register and solicit public comments when the 
agency has good cause to find that doing so would be ``impracticable, 
unnecessary, or contrary to the public interest.'' 5 U.S.C. 553(b)(3). 
The Department finds that good cause exists to dispense with the notice 
and public comment procedures for these minor amendments to its 
regulations based on the conclusion that such procedures are 
unnecessary. This rule adds an electronic payment option for persons 
assessed a CMP to submit their CMP payments to the Department and makes 
other minor changes to ensure consistent payment instructions. This 
rule does not impose any new regulatory obligations. Therefore, the 
Department is issuing these regulatory revisions in a final rule.
    Section 553(d) of the APA provides that substantive rules should 
take effect not less than thirty (30) days after the date they are 
published in the Federal Register unless ``otherwise provided by the 
agency for good cause found[.]'' 5 U.S.C. 553(d)(3). Since this rule 
merely provides alternative payment mechanisms and does not impose any 
additional regulatory requirements, the Department finds it is 
unnecessary to delay the effective date of the rule. Accordingly, the 
Department finds that good cause exists to make this rule effective on 
the date of publication.

IV. Executive Orders 12866, 13563; Small Business Regulatory 
Enforcement Fairness Act; Regulatory Flexibility

    This rule has been drafted and reviewed in accordance with 
Executive Order 12866, section 1(b), Principles of Regulations, as 
affirmed by Executive Order 13563. Section 6(a)(3) of Executive Order 
12866 requires that agencies assess both the costs and benefits of 
significant regulatory actions. Under Executive Order 12866, section 
3(f), a ``significant regulatory action'' is one that meets any of 
several 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 Office of Information and Regulatory Affairs (OIRA) in the 
Office of Management and Budget (OMB) has determined that this rule is 
not a ``significant regulatory action'' under Executive Order 12866, 
section 3(f) and waived review. This rule simply provides persons with 
alternative options for providing CMP payments to WHD and removes 
detailed, somewhat

[[Page 59930]]

inconsistent instructions for mailing or delivering checks or money 
orders for CMP payments. It does not impose any costs on employers or 
other persons, and does not meet any of the criteria for an 
economically significant rule specified by the Executive Order. 
Accordingly, there is no requirement for an assessment of potential 
costs and benefits under section 6(a)(3) of the order.
    Because no notice of proposed rulemaking is required for this rule 
under section 553(b) of the APA, the requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601) pertaining to regulatory flexibility do 
not apply to this rule. See 5 U.S.C. 601(2). Accordingly, the 
Department is not required to either certify that the final rule would 
not have a significant economic impact on a substantial number of small 
entities or conduct a regulatory flexibility analysis.

V. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA) 
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 is not subject to the PRA because 
any information collected under this rule is collected during the 
conduct of Department investigations, civil actions to which the agency 
is a party, or administrative proceedings, and therefore is exempt from 
the PRA's requirements. See 44 U.S.C. 3518; 5 CFR 1320.4(a)(2).

VI. Unfunded Mandates Reform Act

    This Final Rule has been reviewed in accordance with the Unfunded 
Mandates Reform Act of 1995 (UMRA). 2 U.S.C. 1501 et seq. For the 
purposes of the UMRA, this rule does not impose any Federal mandate 
that may result in increased expenditures by State, local or Tribal 
governments, or increased expenditures by the private sector, of more 
than $100 million in any year.

VII. Executive Order 13132 (Federalism)

    The Department has reviewed this rule in accordance with the 
Executive Order on Federalism (Executive Order 13132, 64 FR 43255, 
August 10, 1999). This rule does not have federalism implications as 
outlined in Executive Order 13132. The rule 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.

VIII. Executive Order 13175, Indian Tribal Governments

    The Department has reviewed this rule under the terms of Executive 
Order 13175 and determined it did not have ``tribal implications.'' The 
rule 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.'' As a result, no Tribal 
summary impact statement has been prepared.

List of Subjects

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, Investigations, 
Labor, Migrant labor, Penalties, Transportation, Wages.

29 CFR Part 580

    Administrative practice and procedure, Child labor, Penalties, 
Wages.

29 CFR Part 801

    Administrative practice and procedure, Employment, Lie detector 
tests, Penalties, Reporting and recordkeeping requirements.

    Dated: October 25, 2019.
Cheryl M. Stanton,
Administrator.

    For the reasons set forth above, the Department of Labor amends 
Title 29, Parts 500, 501, 580, and 801 of the Code of Federal 
Regulations as follows:

PART 500--MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION

0
1. The authority citation for part 500 continues 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
2. Revise Sec.  500.144 to read as follows:


Sec.  500.144  Civil money penalties--payment and collection.

    Where the assessment is directed in a final order by the Secretary 
or in a final judgment issued by a United States District Court, the 
amount of the penalty is immediately due and payable to the United 
States Department of Labor. The person assessed such penalty shall 
remit promptly the amount thereof, as finally determined, to the 
Secretary. Payment shall be made by certified check or money order made 
payable and delivered or mailed according to the instructions provided 
by the Department; through the electronic pay portal located at 
www.pay.gov or any successor system; or by any additional payment 
method deemed acceptable by the Department.

PART 501--ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY 
ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE 
IMMIGRATION AND NATIONALITY ACT

0
3. The authority citation for part 501 continues 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
4. Revise Sec.  501.22 to read as follows:


Sec.  501.22  Civil money penalties--payment and collection.

    Where a civil money penalty is assessed in a final order by the WHD 
Administrator, by an ALJ, or by the Administrative Review Board (ARB), 
the amount of the penalty must be received by the WHD Administrator 
within 30 days of the date of the final order. The person assessed such 
penalty shall remit the amount thereof, as finally determined, to the 
Secretary. Payment shall be made by certified check or money order made 
payable and delivered or mailed according to the instructions provided 
by the Department; through the electronic pay portal located at 
www.pay.gov or any successor system; or by any additional payment 
method deemed acceptable by the Department.

PART 580--CIVIL MONEY PENALTIES--PROCEDURES FOR ASSESSING AND 
CONTESTING PENALTIES

0
5. The authority citation for part 580 continues to read as follows:

    Authority: 29 U.S.C. 9a, 203, 209, 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's Order 01-2014 (Dec. 19,

[[Page 59931]]

2014), 79 FR 77527 (Dec. 24, 2014); 5 U.S.C. 500, 503, 551, 559; 103 
Stat. 938.


0
6. Revise Sec.  580.18(a) to read as follows:


Sec.  580.18  Collection and recovery of penalty.

    (a) When the determination of the amount of any civil money penalty 
provided for in this part becomes final under Sec.  580.5 in accordance 
with the administrative assessment thereof, or pursuant to the decision 
and order of an Administrative Law Judge in an administrative 
proceeding as provided in Sec.  580.12, or the decision of the Board 
pursuant to Sec.  580.16, the amount of the penalty as thus determined 
is immediately due and payable to the U.S. Department of Labor. The 
person assessed such penalty shall remit promptly the amount thereof, 
as finally determined, to the Secretary. Payment shall be made by 
certified check or money order made payable and delivered or mailed 
according to the instructions provided by the Department; through the 
electronic pay portal located at www.pay.gov or any successor system; 
or by any additional payment method deemed acceptable by the 
Department.
* * * * *

PART 801--APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF 
1988

0
7. The authority citation for part 801 continues 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
8. Revise Sec.  801.43 to read as follows:


Sec.  801.43  Civil money penalties--payment and collection.

    Where the assessment is directed in a final order of the 
Department, the amount of the penalty is immediately due and payable to 
the United States Department of Labor.
    The person assessed such penalty shall remit promptly the amount 
thereof, as finally determined, to the Secretary. Payment shall be made 
by certified check or money order made payable and delivered or mailed 
according to the instructions provided by the Department; through the 
electronic pay portal located at www.pay.gov or any successor system; 
or by any additional payment method deemed acceptable by the 
Department.

[FR Doc. 2019-23849 Filed 11-6-19; 8:45 am]
 BILLING CODE 4510-27-P