Here’s why employment law violations are going to start costing even more
Recently, the EEOC announced a dramatic increase in it’s notice-posting violations (they doubled!). Now, the DOL has followed suit, announcing numerous civil penalty increases. What’s behind all of this?
Back in November, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 was passed. It directs federal agencies to adjust their civil monetary penalties for inflation every year.
So not only are the following penalties increasing this year, expect them to climb every year.
What’s changing?
As HR Morning reported previously, the EEOC announced the penalty for violating the notice-posting (a.k.a., “poster) rules under the ADA, GINA and Title VII of the Civil Rights Act will more than double. The maximum penalty is $525 — up from $210.
Now, the DOL has released a list of the penalties increasing under its watch in 2016.
Some of the highlights include:
- The DOL’s penalty for willful violations of FLSA minimum wage and overtime rules will jump from $1,100 to $1,894.
- The FMLA penalty for violating the law’s posting requirements will increase from $110 to $163 for each separate offense.
- OSHA’s penalties are rising – with its top penalty for serious violations climbing from $7,000 to $12,471 and its top penalty for willful or repeated violations rising from $70,000 to $124,709.
- Numerous ERISA penalties will jump – for example, the penalty for not providing a summary of benefits and coverage to affected individuals will increase to $1,087 from $1,000, failing to inform employees of Children’s Health Insurance Program (CHIP) opportunities will increase to $110 from $100 and filing to provide notices to retirement plan participants informing them of automatic contribution arrangements will increase from $1,000 to $1,632.
Plus, many more.
Even the Department of Justice (DOJ) has gotten in on the act. It’s increasing the penalties for employers who knowingly employ an unauthorized worker and employers who commit other immigration-related violations.
Example: The minimum penalty for knowingly employing an unauthorized worker will increase from $375 to $539 per worker. And for paperwork violations — like those related to Form I-9 — the maximum penalty is increasing from $1,100 to $2,156.
When do the new penalties apply?
In general, the new civil penalty amounts are applicable to penalties that occurred after Nov. 2 and for which a civil monetary penalty was assessed after Aug. 1, 2016.
Info: For a chart of all the penalties increasing under the DOL, click here.
