It’s not only the cost of eggs that is increasing. The U.S. Department of Labor (DOL) has published in the Federal Register the annual increases in civil money penalties required by the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015. Because the DOL enforces a broad range of employment laws regulating immigration, occupational safety and health, wage and hours, and employee benefits, the impact is significant. The increases became effective on January 16, 2023.
Here’s a sampling:
- For occupational safety and health violations, the maximum penalty for a “willful” or “repeated” violation is now $156,259 – up from $145,027. The minimum fine for a willful violation is $11,162. The maximum fine for serious, other-than-serious, failure-to-correct and posting requirement violations increases to $15,565 from $14,502. Failure-to-correct penalties are charged per day.
- For violations of the Federal Polygraph Protection Act, the maximum penalty increases to $24,793 from $23,011.
- For violation of child labor standards that cause the serious injury or death of a minor, the maximum penalty increases to $68,801 from $63,885; for willful or repeated violations, the maximum penalty increases to $137,602 from $127,710.
- For willful violation of the Family and Medical Leave Act posting requirement, the maximum penalty increases to $204 from $189.
Often, exposure to civil monetary penalties is in addition to exposure to class action litigation, counsel fees, liquidated damages and, for the most egregious violations, criminal penalties.
As part of their workplace New Year’s resolutions, now is the time for employers to review compliance, particularly where there is a renewed focus on enforcement and the imposition of penalties by the federal government. Otherwise, those responsible for compliance could end up with egg on their faces.
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