Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5373 

TABLE I TO 201.1001—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS FOR VIOLATIONS FROM DECEMBER 10, 1996, 

THROUGH NOVEMBER 2, 2015—Continued 

U.S. Code citation Civil monetary penalty 

description 

Date of violation and corresponding penalty 

Dec. 10, 1996– 

Feb. 2, 2001 i

Feb. 3, 2001– 

Feb. 14, 2005 ii

Feb. 15, 2005– 

Mar. 3, 2009 iii

Mar. 4, 2009– 

Mar. 5, 2013 iv

Mar. 6, 2013– 

Nov. 2, 2015 v

15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes-Oxley Act Sec. 

105(c)(4)(D)(ii)).

For natural person .....................

For any other person ................

N/A 

N/A 

vii 750,000 vii 15,000,000 

800,000 

15,825,000 

900,000 

17,800,000 

950,000 

18,925,000 

i Release Nos. 33–7361, 34–37912, IA–1596, IC–22310, dated November 1, 1996 (effective December 9, 1996), previously found at 17 CFR 201.1001 and Table I 

to Subpart E of Part 201. ii Release Nos. 33–7946, 34–43897, IA–1921, IC–24846, dated January 31, 2001 (effective February 2, 2001), previously found at 17 CFR 201.1002 and Table II to 

Subpart E of Part 201. iii Release Nos. 33–8530, 34–51136, IA–2348, IC–26748, dated February 9, 2005 (effective February 14, 2005), previously found at 17 CFR 201.1003 and Table III 

to Subpart E of Part 201. iv Release Nos. 33–9009, 34–59449, IA–2845, IC–28635, dated February 25, 2009 (effective March 3, 2009), previously found at 17 CFR 201.1004 and Table IV to 

Subpart E of Part 201. v Release Nos. 33–9387, 34–68994, IA–3557, IC–30408, dated February 27, 2013 (effective March 5, 2013), previously found at 17 CFR 201.1005 and Table V to 

Subpart E of Part 201. viEffective from July 21, 2010 (enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111–203), through March 5, 2013. 

viiEffective from July 30, 2002 (enactment of the Sarbanes-Oxley Act of 2002, Pub. L. 107–204), through February 14, 2005. 

By the Commission. 

January 6, 2017. 

Brent J. Fields, 

Secretary. 

[FR Doc. 2017–00421 Filed 1–13–17; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

20 CFR Part 655 

Office of Workers’ Compensation 

Programs 

20 CFR Parts 702, 725, and 726 

Wage and Hour Division 

29 CFR Parts 500, 501, 530, 570, 578, 

579, 801, and 825 

Occupational Safety and Health 

Administration 

29 CFR Part 1903 

Employee Benefits Security 

Administration 

29 CFR Part 2560, 2575, and 2590 

Mine Safety and Health Administration 

30 CFR Part 100 

RIN 1290–AA31 

Department of Labor Federal Civil 

Penalties Inflation Adjustment Act 

Annual Adjustments for 2017 

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: Final rule. 

SUMMARY: The U.S. Department of Labor 

(Department) is publishing this final 

rule to adjust for inflation the civil 

monetary penalties assessed or enforced 

in its regulations, 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). The 

Inflation Adjustment Act requires the 

Department to annually adjust its civil 

money penalty levels for inflation no 

later than January 15 of each year. The 

Inflation Adjustment Act provides that 

agencies shall adjust civil monetary 

penalties notwithstanding Section 553 

of the Administrative Procedure Act 

(APA). Additionally, the Inflation 

Adjustment Act provides a cost-of-living 

formula for adjustment of the civil 

penalties. Accordingly, this final rule 

sets forth the Department’s 2017 annual 

adjustments for inflation to its civil 

monetary penalties, effective January 13, 

2017. 

DATES: This final rule is effective on 

January 13, 2017. As provided by the 

Inflation Adjustment Act, the increased 

penalty levels apply to any penalties 

assessed after the effective date of this 

rule. 

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 final 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 tollfree 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. Background 

II. Adjustment for 2017 

III. Discussion of Public Comments 

IV. Paperwork Reduction Act 

V. Administrative Procedure Act 

VI. Executive Order 12866: Regulatory 

Planning and Review, and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

VII. Regulatory Flexibility Act and Small 

Business Regulatory Enforcement 

Fairness Act 

VIII. 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. Background 

On November 2, 2015, Congress 

enacted the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015, Public Law 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 

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5374 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

1Civil monetary penalties under the H–2B 

program are addressed separately. 

2M–17–11, Implementation of the 2017 annual 

adjustment pursuant to the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015 

(Dec 16, 2016). 

3OMB provided the year-over-year multiplier, 

rounded to 5 decimal points. Id. at 1. 

4Appendix 1 consists of a table that provides 

ready access to key information about each penalty. 

5The Department also increased 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, 29 CFR part 5 and 41 CFR part 50–201, 

which have been delegated to WHD for 

enforcement. 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The Inflation Adjustment Act required 

agencies to: (1) Adjust the level of civil 

monetary penalties with an initial 

‘‘catch-up’’ adjustment through an 

interim final rule (IFR); and (2) make 

subsequent annual adjustments for 

inflation. The Department is required to 

publish an annual inflation adjustment 

no later than January 15, 2017, and by 

January 15 of each subsequent year. 

On July 1, 2016, the Department 

published an IFR that established the 

initial catch-up adjustment for civil 

penalties that the Department 

administers and requested comments. 

See 81 FR 43430 (DOL IFR). Nine 

comments were received on the 

Employment and Training 

Administration, Wage and Hour 

Division, Occupational Safety and 

Health Administration, and Employee 

Benefit Security Administration 

sections of the IFR, and are discussed 

below. 

This rule implements the annual 

inflation adjustment that the 

Department is required by the Inflation 

Adjustment Act to publish by January 

15, 2017 for civil monetary penalties 

assessed or enforced in the 

Department’s regulations.1 The Inflation 

Adjustment Act provides that the 

increased penalty levels apply to any 

penalties assessed after the effective 

date of the increase. Pursuant to the 

Inflation Adjustment Act, this final rule 

is published notwithstanding Section 

553 of the APA. 

II. Adjustment for 2017 

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.2 The Department first identified 

the most recent penalty amount, which 

was the amount established by the 

catch-up adjustment as set forth in the 

IFR published on July 1, 2016. 

The Department is required to 

calculate the annual adjustment based 

on the Consumer Price Index for all 

Urban Consumers (CPI–U). Annual 

inflation adjustments are based on the 

percent change between the October 

CPI–U preceding the date of the 

adjustment, and the prior year’s October 

CPI–U; in this case, the percent change 

between the October 2016 CPI–U and 

the October 2015 CPI–U. The cost-ofliving adjustment multiplier for 2017, 

based on the Consumer Price Index 

(CPI–U) for the month of October 2016, 

not seasonally adjusted, is 1.01636.3 In 

order to complete the 2017 annual 

adjustment, the Department multiplied 

the most recent penalty amount for each 

applicable penalty by the multiplier, 

1.01636, and rounded to the nearest 

dollar. 

As provided by the Inflation 

Adjustment Act, the increased penalty 

levels apply to any penalties assessed 

after the effective date of this rule.4

Accordingly, for penalties assessed after 

January 13, 2017, whose associated 

violations occurred after November 2, 

2015, the higher penalty amounts 

outlined in this rule will apply. The 

table below demonstrates the penalty 

amounts that apply: 

Violations occurring Penalty assessed Which penalty level applies 

On or before November 2, 2015 ................................. On or before August 1, 2016 ...................................... Pre-August 1, 2016 levels. 

On or before November 2, 2015 ................................. After August 1, 2016 ................................................... Pre-August 1, 2016 levels. 

After November 2, 2015 .............................................. After August 1, 2016, but on or before January 13, 

2017.

August 1, 2016 levels. 

After November 2, 2015 .............................................. After January 13, 2017 ............................................... January 13, 2017 levels. 

III. Discussion of Public Comments 

Nine organizations filed responsive 

comments with the Department within 

the public comment period for the IFR. 

The Department received comments 

from the Center for Progressive Reform 

(CPR); Farmworker Justice; Contractors 

Risk Management, Inc.; the North 

Carolina Department of Labor; the 

National Association of Heath 

Underwriters (NAHU); the Kentucky 

Labor Cabinet; the National 

Guestworker Alliance (NGA); the New 

Mexico Environment Department; and 

the Occupational Safety and Health 

State Plan Association (OSHSPA). 

Comments were received on the 

Employment and Training 

Administration, Wage and Hour 

Division, Occupational Safety and 

Health Administration, and Employee 

Benefit Security Administration 

sections of the IFR. No comments were 

received related to the Office of 

Workers’ Compensation Programs, 

Office of the Secretary, and Mine Safety 

and Health Administration sections. 

The following discussion addresses 

the comments and the Department’s 

responses. The Department has 

reviewed and considered these 

comments, but found none of them 

required a change in the penalty levels 

or regulatory text. 

A. Employment and Training 

Administration (20 CFR Part 655) and 

Wage and Hour Division (29 CFR Parts 

500, 501, 530, 570, 578, 579, 801, 825) 

In the IFR, the Department increased 

the civil monetary penalties enforced by 

Department’s Wage and Hour Division 

(WHD) under the Migrant and Seasonal 

Agricultural Worker Protection Act 

(MSPA), the Immigration and 

Nationality Act (INA) (specifically, the 

H–2A, D–1, and H–1B visa programs), 

the Fair Labor Standards Act (FLSA) 

(including the child labor provisions), 

the Employee Polygraph Protection Act, 

and the Family and Medical Leave Act.5

The civil monetary penalties authorized 

by the INA’s D–1 and H–1B visa 

programs are reflected in the 

Employment and Training 

Administration’s regulations, title 20 of 

the Code of Federal Regulations (CFR), 

but are enforced by WHD. The 

Department increased these civil 

monetary penalties pursuant to the 

‘‘catch-up’’ adjustment formula as 

specified in the Inflation Adjustment 

Act. The Department explained each 

increase in the preamble to the IFR. 

The Department received two 

comments addressing the increase of 

civil monetary penalties under programs 

administered by the WHD. Farmworker 

Justice, a national advocacy 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5375 

6This comment also addressed civil money 

penalties under the Occupational Safety and Health 

Act (OSH Act), which is administered by the 

Occupational Safety and Health Administration; 

that portion of Farmworker Justice’s comment is 

addressed below. 

7This comment also addressed civil money 

penalties under the OSH Act; that portion of NGA’s 

comment is addressed below. 

8The penalties increased include the range of 

penalties for willful citations, which includes both 

a minimum and a maximum. 

organization representing migrant and 

seasonal farmworkers, submitted a 

comment addressing civil monetary 

penalties under MSPA, H–2A, and 

FLSA.6 Farmworker Justice commented 

that while they were pleased that the 

civil monetary penalties under these 

programs had increased, the penalties 

remain ‘‘woefully inadequate to deter 

agricultural employers from violating 

labor laws and should be significantly 

increased.’’ Farmworker Justice 

recommended that all civil monetary 

penalties for these programs ‘‘be raised 

significantly in order to have an impact 

on the pervasive labor law violations in 

agriculture.’’ The National Guestworker 

Alliance (NGA), a membership 

organization representing contingent 

workers across labor sectors, submitted 

a comment addressing civil monetary 

penalties under the H–1B visa program.7

With respect to civil monetary penalties 

under the H–1B visa program, the NGA 

commented that while it supports the 

increases included in the IFR, ‘‘it 

believes that DOL should have 

increased the penalt[ies]’’ to the ‘‘150 

[percent] maximum allowed under the 

[Inflation Adjustment Act] to help 

ensure employer compliance with the 

regulation.’’ 

The Department agrees that civil 

monetary penalties serve an important 

role in deterring violations of the 

programs administered by the 

Department. Indeed, the Inflation 

Adjustment Act is intended to improve 

the effectiveness of civil monetary 

penalties and to maintain their deterrent 

effect. See DOL IFR, 81 FR at 43431. 

However, the Department increased 

civil monetary penalties under the H– 

1B, H–2A, FLSA, and MSPA programs 

in the IFR pursuant to the Inflation 

Adjustment Act’s mandatory ‘‘catch-up’’ 

adjustment formula, which is specified 

in the statute and is based on inflation. 

For this ‘‘catch-up’’ adjustment, the 

Inflation Adjustment Act required 

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 became the basis of the ‘‘catchup’’ 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. See 

Inflation Adjustment Act, Sec. 701. This 

cap is triggered only where the relevant 

calculation results in a higher penalty 

amount; the Inflation Adjustment Act 

does not permit agencies to increase 

civil monetary penalties up to this cap 

where the specified calculation results 

in an increase lower than 150 percent of 

the November 2015 penalty amount. Id. 

As explained in the preamble to the 

IFR, applying the ‘‘catch-up’’ formula 

required by the Inflation Adjustment 

Act, the civil monetary penalties under 

the FLSA, H–1B, H–2A, and MSPA were 

increased to the maximum amounts 

permissible under the Inflation 

Adjustment Act, none of which reached 

or exceeded the 150 percent cap. 

Accordingly, the Department may not 

further increase civil monetary penalties 

under these programs pursuant to the 

Inflation Adjustment Act, other than by 

making the subsequent annual 

adjustments for inflation. 

B. Occupational Safety and Health 

Administration (29 CFR Parts 1902, 

1903) 

In the IFR, the Department increased 

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, including 

conforming edits to the agency’s State 

Plan regulations. The Department 

increased these civil monetary penalties 

pursuant to the ‘‘catch-up’’ adjustment 

formula as specified in the Inflation 

Adjustment Act. The Department 

explained each increase in the preamble 

to the IFR. The Department received 

four comments related to State Plans, 

and four comments related to the civil 

penalty adjustments. 

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. There were four 

State Plan related comments submitted 

in response to the DOL IFR. One was 

from the Occupational Safety and 

Health State Plan Association 

(OSHSPA) and three from individual 

State Plans (North Carolina, Kentucky 

and New Mexico). Responses to these 

four comments are discussed below. 

Section 18(c)(2) of the OSH Act 

requires that a State Plan ‘‘provides for 

the development and enforcement of 

safety and health standards relating to 

one or more safety or health issues, 

which standards (and the enforcement 

of which standards) are or will be at 

least as effective in providing safe and 

healthful employment and places of 

employment as the standards 

promulgated under section 6 which 

relate to the same issues. . . .’’ Prior to 

the July 1, 2016 publication of the IFR, 

the State Plan Indices of Effectiveness 

for initial approval stated that State 

Plans must ‘‘[p]rovide[ ] effective 

sanctions against employers who violate 

State standards and orders, such as 

those prescribed in the Act.’’ See 29 

CFR 1902.4(c)(2)(xi) (2015). In the 

factors for determination of final 

approval status, the regulations require 

that, ‘‘[t]he State proposes penalties in 

a manner at least as effective as under 

the Federal program, including the 

proposing of penalties for first instance 

violations and the consideration of 

factors comparable to those required to 

be considered under the Federal 

program.’’ See 29 CFR 1902.37(b)(12). 

Thus, OSHA-approved State Plans 

must have maximum and minimum 8

penalty levels that are at least as 

effective as federal OSHA’s per Section 

18 (c)(2) of the OSH Act; See 29 CFR 

1902.4(c)(2)(xi); 1902.37(b)(12). It is 

OSHA’s long-standing position that ‘‘at 

least as effective,’’ in this context, 

means that State Plans must have 

maximum and minimum penalty levels 

that are at least as high as OSHA’s 

maximum and minimum penalty levels. 

Therefore, all State Plans must increase 

their maximum and minimum penalty 

levels to be at least as high as OSHA’s 

initial catch-up maximum and 

minimum penalty levels in 29 CFR 

1903.15(d), and must thereafter increase 

these maximums and minimums based 

on inflation. 

With the publication of the IFR, the 

location of OSHA’s maximum and 

minimum penalties was moved from 

Section 17 of the OSH Act to 29 CFR 

1903.15(d). To make it clear where the 

OSHA penalty levels are located, OSHA 

amended 29 CFR 1902.4(c)(2)(xi) to now 

read that State Plans must ‘‘[p]rovide[] 

effective sanctions against employers 

who violated State standards and 

orders, such as those prescribed in the 

Act and 29 CFR 1903.15(d)’’(emphasis 

added). This change was simply to add 

a reference to the new location of OSHA 

penalty levels, in 29 CFR 1903.15(d). 

OSHSPA submitted a letter requesting 

that OSHA make clear that the 

amendment to 29 CFR 1902.4(c)(2)(xi) is 

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not intended to require State Plans to 

have an identical penalty structure for 

assessed penalties. As explained above, 

State Plans have long been required to 

have effective sanctions as prescribed in 

the OSH Act. The penalty levels in the 

OSH Act (Section 17) have historically 

been OSHA’s maximum and minimum 

penalties, while OSHA’s structure or 

practice for assessing penalties has been 

developed through policy and is 

currently contained in OSHA’s Field 

Operations Manual. OSHA confirms 

that the amendment to § 1902.4(c)(2)(xi) 

refers only to the location of the new 

maximum and minimum penalty levels 

in 29 CFR 1903.15(d). The change to 

§ 1902.4(c)(2)(xi) does not expand 

OSHA’s scope of authority or control 

over State Plans’ penalties, nor does it 

alter OSHA’s obligation to analyze both 

State Plan maximum penalties and State 

Plan penalty assessment structures 

under the ‘‘at least as effective’’ lens. 

The North Carolina Department of 

Labor submitted a comment that took 

issue with OSHA’s amendment of 29 

CFR 1902.4(c)(2)(xi), and was joined by 

Kentucky Labor Cabinet and the New 

Mexico Environment Department. The 

North Carolina State Plan contended 

that OSHA’s amendment to 29 CFR 

1902.4(c)(2)(xi) was in excess of the 

authority granted by the Bipartisan 

Budget Act of 2015’s amendment to the 

Inflation Adjustment Act; not in 

conformance with the APA, 5 U.S.C. 

553; and arbitrary, capricious, and an 

abuse of discretion. 

The Inflation Adjustment Act directed 

OSHA to increase maximum and 

minimum penalties through an IFR 

issuing without prior notice and 

comment rather than a change to the 

OSH Act. OSHA has the inherent 

authority to make technical 

amendments to its regulations to 

conform to Congress’s direction to 

increase its penalty levels. With the 

change to the location of penalty levels 

to 29 CFR 1903.15(d), OSHA needed to 

update the reference in 29 CFR 

1902.4(c)(2)(xi) to point to both the Act 

and the new regulation. This change 

was merely the addition of a reference, 

or pointer, to increase clarity and 

transparency in the State Plan Indices of 

effectiveness. 

The North Carolina, Kentucky and 

New Mexico State Plans argue that the 

change to 29 CFR 1902.4(c)(2)(xi) 

violated the APA because it was not 

issued through notice-and-comment 

rulemaking, and the good cause 

exception to notice-and-comment 

rulemaking is not applicable. 

As noted by the North Carolina State 

Plan, the APA exception from notice 

and comment applies to regulations that 

make minor technical amendments and 

non-substantive corrections. See p. 3. 

That comports with the APA language 

that notice and comment is not required 

where they are ‘‘impractical, 

unnecessary, or contrary to the public 

interest.’’ 5 U.S.C. 553(b)(3)(B). The 

amendment to 29 CFR 1902.4(c)(2)(xi) 

fits within that exception because it is 

a minor, technical amendment that 

updated the reference to the location of 

OSHA maximum and minimum penalty 

levels. It is the ‘‘at least as effective’’ 

standard in OSH Act § 18 that requires 

State Plans to increase their maximum 

and minimum penalty levels, and the 

amendment to 29 CFR 1902.4(c)(2)(xi) 

only made clear to State Plans and all 

other stakeholders that the maximum 

and minimum penalty levels that State 

Plans are required to be at least as 

effective as, are now listed under 29 

CFR 1903.15(d), and are no longer in 

OSH Act § 17. There is no need for 

notice and comment on that type of 

‘‘pointer’’ reference. See, e.g., 

Corrections and Technical Amendments 

to 16 OSHA Standards, 76 FR 80735 

(Dec. 27, 2011) (updating crossreference from ‘‘Section 101(14)’’ of the 

Comprehensive Environmental 

Response Compensation and Liability 

Act (CERCLA) to ‘‘Section 103(14)’’ after 

Congress amended CERCLA). 

Nonetheless, DOL did accept comments 

on the IFR, and several State Plans took 

advantage of that opportunity to file 

comments, 

Further, the State Plan comments 

argue that the change to 29 CFR 

1902.4(c)(2)(xi) was arbitrary, 

capricious, and an abuse of discretion 

under the APA because it is not based 

on reasoned analysis. The North 

Carolina State Plan comment argues that 

OSHA should present current data to 

support the requirement that State Plans 

increase penalties to the level assessed 

by OSHA effective August 1, 2016 in 

order to be deemed ‘‘at least as 

effective.’’ Further, the North Carolina 

State Plan comment emphasizes that the 

‘‘at least as effective’’ standard does not 

require State Plans to have programs 

identical to OSHA’s. New Mexico joined 

in arguing that assessed penalty levels 

and injury rates are not correlated and 

thus penalty levels should not be part of 

the ‘‘at least as effective’’ analysis. 

In the Inflation Adjustment Act, 

Congress found that ‘‘(1) the 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) the impact of many civil monetary 

penalties has been and is diminished 

due to the effect of inflation.’’ See 28 

U.S.C. 2461 note, § 2(a). This finding is 

as applicable to State Plan penalties as 

it is to federal penalties. 

The regulations that OSHA adopted 

(29 CFR 1903.15(d)) address only the 

maximum and minimum penalty 

levels—they do not address penalties 

finally assessed or the methodology 

involved in calculating assessed 

penalties. The latter are matters to be 

determined under the ‘‘at least as 

effective’’ standard, on a case-by-case 

basis with each State Plan. 

OSHA has an obligation to ensure that 

State Plans continue to maintain 

maximum and minimum penalty levels 

that are at least as effective as OSHA’s. 

OSHA agrees that the ‘‘at least as 

effective’’ standard does not require 

State Plans to be identical to OSHA. 

However, as acknowledged by the 

OSHSPA comment, historically, State 

Plans have matched OSHA’s maximum 

and minimum penalties identically. In 

1990, when Congress last increased 

OSHA’s maximum and minimum 

penalty levels, all State Plans adopted 

identical penalty levels, resulting in the 

$7,000/$70,000 penalty levels in effect 

for 25 years for both OSHA and the 

State Plans. OSHA recognizes that the 

August 1, 2016 increase in OSHA’s 

maximum and minimum penalty levels 

is complicated by the requirement that 

the penalties levels increase annually, 

based on the cost-of-living adjustment, 

but that does not mean that State Plans 

do not have to increase their maximum 

and minimum penalty levels. OSHA 

will assist the State Plans to make these 

necessary changes occur. OSHA’s 

position has been and continues to be 

that State Plans must have maximum 

and minimum penalties that are at least 

as effective as OSHA’s. 

The IFR updated § 1903.15 to read in 

part, ‘‘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.’’ In its 

comments, Contractors Risk 

Management asked whether this means 

that the employer will be notified if 

there are no penalties proposed or no 

citations issued. At the closing of the 

inspection process, OSHA conducts a 

closing conference with the employer 

and the employee representatives to 

discuss the findings of the inspection. 

The compliance officer discusses 

possible courses of action an employer 

may take following an inspection, 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5377 

which could include an informal 

conference with OSHA or contesting 

citations and proposed penalties where 

citations and penalties are proposed. 

The compliance officer also discusses 

consultation services and employee 

rights. This closing conference is held 

regardless of whether citations and 

penalties are proposed. 

The IFR added § 1903.15(d) to provide 

the adjusted civil penalties for penalties 

proposed on or after August 1, 2016. 

Contractors Risk Management expressed 

concern about a case being opened 

before August 1, but higher penalty 

levied because the time OSHA takes to 

complete the case goes beyond August 

1. The Inflation Adjustment Act 

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’’ See 

Public Law 114–74 at § 701. OSHA 

attempted to complete open cases prior 

to the August 1 conversion date. 

However, in some cases, citations for 

inspections opened prior to August 1st 

were not issued until after August 1, 

and enhanced penalties were proposed 

under the new rules. OSHA made every 

effort to inform employers, through 

outreach, use of our Web site, and 

notices to affected employers, of the 

changes to our penalties and the 

potential impact on the inspection. 

The NGA commented that it supports 

the increases in penalties for employer 

violations of the OSH Act, but believes 

that the Department should have 

increased the penalties to the 150% 

maximum allowed under Inflation 

Adjustment Act to help ensure 

employer compliance with the law. 

Farmworker Justice similarly 

commented that civil monetary 

penalties under the OSH Act should be 

increased. The Department agrees that 

civil monetary penalties serve an 

important role in deterring violations of 

the programs administered by the 

Department. However, the Department 

increased civil monetary penalties 

under the OSH Act in the IFR pursuant 

to the Inflation Adjustment Act’s 

mandatory ‘‘catch-up’’ adjustment 

formula, which is specified in the 

statute and is based on inflation. For 

this ‘‘catch-up’’ adjustment, the 

Inflation Adjustment Act required 

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 became the basis of the ‘‘catchup’’ 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. See 

Inflation Adjustment, Sec. 701. This cap 

is triggered only where the relevant 

calculation results in a higher penalty 

amount; the Inflation Adjustment Act 

does not permit agencies to increase 

civil monetary penalties up to this cap 

where the specified calculation results 

in an increase lower than 150 percent of 

the November 2015 penalty amount. Id. 

By applying the ‘‘catch-up’’ formula 

required by the Inflation Adjustment 

Act, the civil monetary penalties under 

the OSH Act were increased to the 

maximum amounts permissible under 

the Inflation Adjustment Act, none of 

which reached or exceeded the 150 

percent cap. 

The Center for Progressive Reform 

commented that it applauds the agency 

for adjusting the penalties to the 

maximum amount permitted by the 

Inflation Adjustment Act, but it 

encourages OSHA to revise its informal 

settlement policies. In response to the 

penalty adjustments mandated by 

Congress, OSHA revised Chapter 6 of its 

Field Operations Manual. In revising the 

guidance, OSHA wanted to be 

consistent with current procedures and 

ensure that penalties were impactful. 

However, we were also mindful of the 

impact that these changes may have had 

on small businesses. To offset any 

undue impact, OSHA created an 

additional size category for businesses 

with 1–10 employees, and now offers a 

reduction of 70 percent for those 

smallest businesses. The informal 

settlement policy remains the same, but 

OSHA is closely monitoring the 

influence that the new penalties have on 

our contest rates, etc. to see where 

adjustments, if needed, may be 

appropriate. 

C. Employee Benefits Security 

Administration (29 CFR Part 2560, 2575, 

2590) 

In the IFR, the Department increased 

the civil monetary penalties 

administered by the Employee Benefits 

Security Administration to enforce 

provisions of the Employee Retirement 

Income Security Act of 1974, as 

amended, (ERISA). The Department 

increased these civil monetary penalties 

as required by the ‘‘catch-up’’ 

adjustment formula specified in the 

Inflation Adjustment Act. Minor 

modifications were made to 29 CFR 

2575.3 to clarify that future inflation 

adjustments to ERISA civil monetary 

penalties would be made by notice in 

the Federal Register without amending 

the code of federal regulations each year 

to reflect an increase in the penalty 

amount. 

The Department received one 

comment letter regarding the adjustment 

of the ERISA civil monetary penalties 

under the IFR. The commenter, the 

National Association of Health 

Underwriters (NAHU), stated that ‘‘the 

formula used to increase penalties was 

fairly applied in the IFR.’’ NAHU, 

however, questioned the ‘‘decision to 

impose increased penalties on 

employers at this time’’ due to the 

increased cost of compliance and 

reporting responsibilities placed on 

group health plans by the Patient 

Protection and Affordable Care Act 

(ACA). NAHU expressed concern ‘‘that 

increasing the potential penalties could 

have a detrimental impact on an 

employer’s potential willingness to offer 

group benefits, particularly for smaller 

employers that have not previously 

offered coverage.’’ Most ERISA civil 

monetary penalties affecting group 

health plans are expressed in terms of 

‘‘up to’’ or ‘‘not more than’’ a maximum 

penalty. The Department did not 

automatically impose the maximum 

penalty in the past and has no plans at 

this time to change its enforcement 

policy to maximize penalty collections 

following the catch-up adjustment. It is 

the view of the Department that neither 

the catch-up adjustment nor any 

subsequent adjustment will have the 

detrimental impact on group health 

plans suggested by NAHU. Accordingly, 

the unverifiable social cost of the catchup adjustment postulated by NAHU’s 

comment does not outweigh the benefits 

of increasing the ERISA civil monetary 

penalties by the otherwise required 

amount. 

Section 4(a) of the Inflation 

Adjustment Act states that ‘‘[n]ot later 

than July 1, 2016, and not later than 

January 15 of every year thereafter,’’ the 

head of each agency shall adjust civil 

monetary penalties in accordance with 

section 4(b). Section 4(b)(1) states that 

‘‘for purposes of the first adjustment’’ 

(i.e., the catch-up adjustment) the ‘‘head 

of each agency shall adjust the civil 

monetary penalties by IFR’’ that ‘‘shall 

take effect no later than August 1, 

2016.’’ Since the operative word of the 

statute is ‘‘shall,’’ the Department did 

not have the discretion to delay 

adjustment of the ERISA civil monetary 

penalties beyond August 1, 2016, except 

as otherwise provided by section 4(c) of 

the Inflation Adjustment Act. 

Under section 4(c), an agency could 

not delay or otherwise reduce the catchup adjustment unless: (1) After 

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5378 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

9See, OMB Mem. M–16–06 (Feb. 24, 2016), 

available at https://www.whitehouse.gov/sites/ 

default/files/omb/memoranda/2016/m-16-06.pdf. 

10 Id. 

publishing a notice of proposed 

rulemaking in the Federal Register, the 

agency determines that the increase in 

the penalty or penalty range would have 

a negative economic impact, or that the 

social costs of increasing the penalty 

would outweigh the benefits, and (2) 

OMB concurred with that 

determination. OMB advised that an 

agency seeking OMB’s concurrence to a 

reduction of the required catch-up 

adjustment must submit the associated 

notice of proposed rulemaking to the 

Office of Information and Regulatory 

Affairs (OIRA) of OMB for review by 

May 2, 2016.9 OMB also advised that its 

concurrence to a reduction of the catchup adjustment would be ‘‘rare.’’ 10 The 

Department decided not to pursue a 

reduction in the increase of any of the 

ERISA penalties, because, in the 

Department’s view, there was no 

negative economic impact or a verifiable 

social cost resulting from the catch-up 

adjustment. Since the Department did 

not submit the requisite notice of 

proposed rulemaking to OIRA by May 2, 

2016, the Department arguably does not 

have the authority to reduce a required 

catch-up adjustment to an ERISA 

penalty under section 4(c). Even if the 

Department currently has the authority 

to reduce a catch-up adjustment under 

section 4(c), the one comment received 

by the Department regarding ERISA 

penalties did not provide sufficient 

evidence of negative economic impact 

or social cost for the Department to seek 

a reduction of the increased ERISA 

penalties resulting from the catch-up 

adjustment. 

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. Administrative Procedure Act 

The Inflation Adjustment Act 

provides that agencies shall annually 

adjust civil monetary penalties for 

inflation notwithstanding Section 553 of 

the APA. Additionally, the Inflation 

Adjustment Act provides a 

nondiscretionary cost-of-living formula 

for annual adjustment of the civil 

monetary penalties. For these reasons, 

the requirements in sections 553(b), (c), 

and (d) of the APA, relating to notice 

and comment and requiring that a rule 

be effective 30 days after publication in 

the Federal Register, are inapplicable. 

VI. 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 Department has determined that 

this final rule is not a ‘‘significant’’ 

regulatory action and a cost-benefit and 

economic analysis is not required. This 

regulation merely adjusts civil monetary 

penalties in accordance with inflation as 

required by the Inflation Adjustment 

Act, and has no impact on disclosure or 

compliance costs. The benefit provided 

by the inflationary adjustment to the 

maximum civil monetary penalties is 

that of maintaining the incentive for the 

regulated community to comply with 

the laws enforced by the Department, 

and not allowing the incentive to be 

diminished by inflation. 

Executive Order 13563 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

if regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility to minimize 

burden. 

This final rule is exempt from the 

requirements of the APA because the 

Inflation Adjustment Act directed the 

Department to issue the annual 

adjustments without regard to Section 

553 of the APA. In that context, 

Congress has already determined that 

any possible increase in costs is justified 

by the overall benefits of such 

adjustments. This final rule makes only 

the statutory changes outlined herein; 

thus there are no alternatives or further 

analysis required by E.O. 13563. 

VII. 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 APA, 5 

U.S.C. 553(b). This final rule is exempt 

from the requirements of the APA 

because the Inflation Adjustment Act 

directed the Department to issue the 

annual adjustments without regard to 

Section 553 of the APA. Therefore, the 

requirements of the RFA applicable to 

notices of proposed rulemaking, 5 

U.S.C. 603, do not apply to this rule. 

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. 

VIII. Other Regulatory Considerations 

A. The Unfunded Mandates Reform Act 

of 1995 

Because the rule simply adjusts for 

inflation, it does not include any 

Federal mandate that may result in 

increased expenditures by State, local, 

or tribal governments; nor does it 

increase private sector expenditures by 

more than $100 million annually; nor 

does it significantly or uniquely affect 

small governments. Accordingly, the 

Unfunded Mandates Reform Act of 1995 

(2 U.S.C. 1501 et seq.) requires no 

further agency action or analysis. 

B. Executive Order 13132: Federalism 

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. OSHAapproved State Plans must have 

maximum and minimum penalty levels 

that are at least as effective as federal 

OSHA’s per Section 18 (c)(2) of the OSH 

Act; 29 CFR 1902.4(c)(2)(xi); 

1902.37(b)(12). State Plans are required 

to increase their penalties in alignment 

with OSHA’s penalty increases to 

maintain at least as effective penalty 

levels. 

State Plans are not required to impose 

monetary penalties on state and local 

government employers. See 

§ 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) 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5379 

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 final 

rule 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 final rule 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 final rule 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 final rule 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 final rule 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 final rule 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 final rule 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 final rule was drafted and 

reviewed in accordance with Executive 

Order 12988, Civil Justice Reform. This 

final rule 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. 

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 

Child labor, Law enforcement, 

Penalties. 

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. 

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5380 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

29 CFR Part 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. 

For the reasons set out in the 

preamble, 20 CFR chapters V and VI, 29 

CFR chapters V, XVII, and XXV, and 30 

CFR chapter I are amended as follows. 

Department of Labor 

Employment and Training 

Administration 

Title 20—Employees’ Benefits 

PART 655—TEMPORARY 

EMPLOYMENT OF FOREIGN 

WORKERS IN THE UNITED STATES 

■ 1. The authority citation for part 655 

continues to read as follows: 

Authority: Section 655.0 issued under 8 

U.S.C. 1101(a)(15)(E)(iii), 1101(a)(15)(H)(i) 

and (ii), 8 U.S.C. 1103(a)(6), 1182(m), (n) and 

(t), 1184(c), (g), and (j), 1188, and 1288(c) and 

(d); 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. 303(a)(8), Pub. L. 102– 

232, 105 Stat. 1733, 1748 (8 U.S.C. 1101 

note); sec. 323(c), Pub. L. 103–206, 107 Stat. 

2428; sec. 412(e), Pub. L. 105–277, 112 Stat. 

2681 (8 U.S.C. 1182 note); sec. 2(d), Pub. L. 

106–95, 113 Stat. 1312, 1316 (8 U.S.C. 1182 

note); 29 U.S.C. 49k; Pub. L. 107–296, 116 

Stat. 2135, as amended; Pub. L. 109–423, 120 

Stat. 2900; 8 CFR 214.2(h)(4)(i); and 8 CFR 

214.2(h)(6)(iii). 

Subpart A issued under 8 CFR 214.2(h). 

Subpart B issued under 8 U.S.C. 

1101(a)(15)(H)(ii)(a), 1184(c), and 1188; and 8 

CFR 214.2(h). 

Subparts F and G issued under 8 U.S.C. 

1288(c) and (d); sec. 323(c), Pub. L. 103–206, 

107 Stat. 2428; and 28 U.S.C. 2461 note, Pub. 

L. 114–74 at section 701. 

Subparts H and I issued under 8 U.S.C. 

1101(a)(15)(H)(i)(b) and (b)(1), 1182(n) and 

(t), and 1184(g) and (j); sec. 303(a)(8), Pub. L. 

102–232, 105 Stat. 1733, 1748 (8 U.S.C. 1101 

note); sec. 412(e), Pub. L. 105–277, 112 Stat. 

2681; 8 CFR 214.2(h); and 28 U.S.C. 2461 

note, Pub. L. 114–74 at section 701. 

Subparts L and M issued under 8 U.S.C. 

1101(a)(15)(H)(i)(c) and 1182(m); sec. 2(d), 

Pub. L. 106–95, 113 Stat. 1312, 1316 (8 U.S.C. 

1182 note); Pub. L. 109–423, 120 Stat. 2900; 

and 8 CFR 214.2(h). 

§§ 655.620, 655.801, and 655.810 

[Amended] 

■ 2. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount indicated in 

the middle column from wherever it 

appears in the paragraph and add in its 

place the dollar amount indicated in the 

right column. 

Paragraph Remove Add 

§ 655.620(a) ............................................................................................................................. $8,908 $9,054 

§ 655.801(b) ............................................................................................................................. 7,251 7,370 

§ 655.810(b)(1) introductory text .............................................................................................. 1,782 1,811 

§ 655.810(b)(2) introductory text .............................................................................................. 7,251 7,370 

§ 655.810(b)(3) introductory text .............................................................................................. 50,758 51,588 

Department of Labor 

Office of Workers’ Compensation 

Programs 

PART 702—ADMINISTRATION AND 

PROCEDURE 

■ 3. The authority citation for part 702 

continues 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. 

§§ 702.204, 702.236, and 702.271 

[Amended] 

■ 4. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount or date 

indicated in the middle column from 

wherever it appears in the paragraph 

and add in its place the dollar amount 

or date indicated in the right column. 

Paragraph Remove Add 

§ 702.204 ......................................................................................................................................... $22,587 ..................... $22,957. 

§ 702.204 ......................................................................................................................................... August 1, 2016 .......... January 13, 2017. 

§ 702.236 ......................................................................................................................................... $275 .......................... $279. 

§ 702.236 ......................................................................................................................................... August 1, 2016 .......... January 13, 2017. 

§ 702.271(a)(2) ................................................................................................................................. August 1, 2016 .......... January 13, 2017. 

§ 702.271(a)(2) ................................................................................................................................. $2,259 ....................... $2,296. 

§ 702.271(a)(2) ................................................................................................................................. $11,293 ..................... $11,478. 

PART 725—CLAIMS FOR BENEFITS 

UNDER PART C OF TITLE IV OF THE 

FEDERAL MINE SAFETY AND HEALTH 

ACT, AS AMENDED 

■ 5. The authority citation for part 725 

continues 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. 

§ 725.621 [Amended] 

■ 6. In § 725.621, amend paragraph (d) 

by removing ‘‘August 1, 2016’’ and 

adding in its place ‘‘January 13, 2017’’ 

and by removing ‘‘$1,375’’ and adding 

in its place ‘‘$1,397’’. 

PART 726—BLACK LUNG BENEFITS; 

REQUIREMENTS FOR COAL MINE 

OPERATOR’S INSURANCE 

■ 7. The authority citation for part 726 

continues to read as follows: 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5381 

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. 

§ 726.302 [Amended] 

■ 8. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount or date 

indicated in the middle column from 

wherever it appears in the paragraph 

and add in its place the dollar amount 

or date indicated in the right column. 

Paragraph Remove Add 

§ 726.302(c)(2)(i) .............................................................................................................................. August 1, 2016 .......... January 13, 2017. 

§ 726.302(c)(2)(i) .............................................................................................................................. $134 .......................... $136. 

§ 726.302(c)(2)(i) .............................................................................................................................. 268 ............................ 272. 

§ 726.302(c)(2)(i) .............................................................................................................................. 402 ............................ 409. 

§ 726.302(c)(2)(i) .............................................................................................................................. 535 ............................ 544. 

§ 726.302(c)(4) ................................................................................................................................. August 1, 2016 .......... January 13, 2017. 

§ 726.302(c)(4) ................................................................................................................................. $134 .......................... $136. 

§ 726.302(c)(5) ................................................................................................................................. August 1, 2016 .......... January 13, 2017. 

§ 726.302(c)(5) ................................................................................................................................. $402 .......................... $409. 

§ 726.302(c)(6) ................................................................................................................................. August 1, 2016 .......... January 13, 2017. 

§ 726.302(c)(6) ................................................................................................................................. $2,750 ....................... $2,795. 

Department of Labor 

Wage and Hour Division 

Title 29—Labor 

PART 500—MIGRANT AND SEASONAL 

AGRICULTURAL WORKER 

PROTECTION 

■ 9. 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. 

§ 500.1 [Amended] 

■ 10. In § 500.1, amend paragraph (e) by 

removing ‘‘$2,355’’ and adding in its 

place ‘‘$2,394’’. 

PART 501—ENFORCEMENT OF 

CONTRACTUAL OBLIGATIONS FOR 

TEMPORARY ALIEN AGRICULTURAL 

WORKERS ADMITTED UNDER 

SECTION 218 OF THE IMMIGRATION 

AND NATIONALITY ACT 

■ 11. 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 § 701. 

§ 501.19 [Amended] 

■ 12. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount indicated in 

the middle column from wherever it 

appears in the paragraph and add in its 

place the dollar amount indicated in the 

right column. 

Paragraph Remove Add 

§ 501.19(c) introductory text .................................................................................................... $1,631 $1,658 

§ 501.19(c)(1) ........................................................................................................................... 5,491 5,581 

§ 501.19(c)(2) ........................................................................................................................... 54,373 55,263 

§ 501.19(c)(4) ........................................................................................................................... 108,745 110,524 

§ 501.19(d) ............................................................................................................................... 5,491 5,581 

§ 501.19(e) ............................................................................................................................... 16,312 16,579 

§ 501.19(f) ................................................................................................................................ 16,312 16,579 

PART 530—EMPLOYMENT OF 

HOMEWORKERS IN CERTAIN 

INDUSTRIES 

■ 13. The authority citation for part 530 

continues 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. 

■ 14. In § 530.302, amend paragraph (a) 

by removing ‘‘$989’’ and adding in its 

place ‘‘$1,005’’ and revise paragraph (b) 

to read as follows: 

§ 530.302 Amounts of civil penalties. 

* * * * * 

(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: 

Nature of violation 

Penalty per affected homeworker 

Minor Substantial 

Repeated, 

intentional or 

knowing 

Recordkeeping ............................................................................................................................. $20–201 $201–402 $402–1,005 

Monetary violations ...................................................................................................................... 20–201 201–402 

Employment of homeworkers without a certificate ...................................................................... ........................ 201–402 402–1,005 

Other violations of statutes, regulations or employer assurances .............................................. 20–201 201–402 402–1,005 

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5382 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

PART 570—CHILD LABOR 

REGULATIONS, ORDERS AND 

STATEMENTS OF INTERPRETATION 

■ 15. The authority citation for Subpart 

G of part 570 continues 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 

§ 701. 

§ 570.140 [Amended] 

■ 16. In § 570.140, amend paragraph 

(b)(1) by removing ‘‘$12,080’’ and 

adding in its place ‘‘$12,278’’ and 

paragraph (b)(2) by removing ‘‘$54,910’’ 

and adding in its place ‘‘$55,808’’. 

PART 578—MINIMUM WAGE AND 

OVERTIME VIOLATIONS—CIVIL 

MONEY PENALTIES 

■ 17. The authority citation for part 578 

continues 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. 

§ 578.3 [Amended] 

■ 18. In § 578.3, amend paragraph (a) by 

removing ‘‘$1,894’’ and adding in its 

place ‘‘$1,925’’. 

PART 579—CHILD LABOR 

VIOLATIONS—CIVIL MONEY 

PENALTIES 

■ 19. The authority citation for part 579 

continues 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. 

§ 579.1 [Amended] 

■ 20. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount indicated in 

the middle column from wherever it 

appears in the paragraph and add in its 

place the dollar amount indicated in the 

right column. 

Paragraph Remove Add 

§ 579.1(a)(1)(i)(A) ..................................................................................................................... $12,080 $12,278 

§ 579.1(a)(1)(i)(B) ..................................................................................................................... 54,910 55,808 

§ 579.1(a)(2) ............................................................................................................................. 1,894 1,925 

PART 801—APPLICATION OF THE 

EMPLOYEE POLYGRAPH 

PROTECTION ACT OF 1988 

■ 21. 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. 

§ 801.42 [Amended] 

■ 22. In § 801.42, amend paragraph (a) 

by removing ‘‘$19,787’’ and adding in 

its place ‘‘$20,111’’. 

PART 825—THE FAMILY AND 

MEDICAL LEAVE ACT OF 1993 

■ 23. The authority citation for part 825 

continues 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. 

§ 825.300 [Amended] 

■ 24. In § 825.300 amend paragraph 

(a)(1) by removing ‘‘$163’’ and adding in 

its place ‘‘$166’’. 

Department of Labor 

Occupational Safety and Health 

Administration 

Title 29—Labor 

PART 1903—INSPECTIONS, 

CITATIONS, AND PROPOSED 

PENALTIES 

■ 25. The authority citation for part 

1903 continues 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). 

§ 1903.15 [Amended] 

■ 26. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount or date 

indicated in the middle column from 

wherever it appears in the paragraph 

and add in its place the dollar amount 

or date indicated in the right column. 

Paragraph Remove Add 

§ 1903.15(d) introductory text .......................................................................................................... on or after August 1, 

2016.

after January 13, 

2017. 

§ 1903.15(d)(1) ................................................................................................................................. $8,908 ....................... $9,054. 

§ 1903.15(d)(1) ................................................................................................................................. 124,709 ..................... 126,749. 

§ 1903.15(d)(2) ................................................................................................................................. 124,709 ..................... 126,749. 

§ 1903.15(d)(3) ................................................................................................................................. 12,471 ....................... 12,675. 

§ 1903.15(d)(4) ................................................................................................................................. 12,471 ....................... 12,675. 

§ 1903.15(d)(5) ................................................................................................................................. 12,471 ....................... 12,675. 

§ 1903.15(d)(6) ................................................................................................................................. 12,471 ....................... 12,675. 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5383 

Department of Labor 

Employee Benefits Security 

Administration 

Title 29—Labor 

PART 2575—ADJUSTMENT OF CIVIL 

PENALTIES UNDER ERISA TITLE I 

■ 27. The authority citation for subpart 

A of 29 CFR part 2575 continues 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). 

■ 28. Revise § 2575.3 to read as follows: 

§ 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, as 

required by the Inflation Adjustment 

Act, the civil monetary penalties 

described in § 2575.2 for violations 

occurring on or after November 2, 2015, 

and any future civil monetary penalties 

enforceable by the Secretary under title 

I of ERISA. The Secretary shall publish 

such annual adjustments in the Federal 

Register notwithstanding section 553 of 

the Administrative Procedure Act. 

Future penalties or adjustments to the 

amount of the penalty that are enacted 

by statute or regulation (other than an 

adjustment for inflation under the 

Inflation Adjustment Act) 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 date notice 

of the annual inflation adjustment is 

published in the Federal Register. 

Department of Labor 

Mine Safety and Health Administration 

Title 30—Mineral Resources 

PART 100—CRITERIA AND 

PROCEDURES FOR PROPOSED 

ASSESSMENT OF CIVIL PENALTIES 

■ 29. The authority citation for part 100 

continues 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; 

■ 30. In § 100.3, amend paragraph (a)(1) 

introductory text by removing 

‘‘$68,300’’ and adding in its place 

‘‘$69,417’’ and in paragraph (g) by 

revising Table XIV—Penalty Conversion 

Table to read as follows: 

TABLE XIV—PENALTY CONVERSION

TABLE

Points Penalty 

($) 

60 or fewer ........................... $129 

61 .......................................... 140 

62 .......................................... 151 

63 .......................................... 165 

64 .......................................... 178 

65 .......................................... 193 

66 .......................................... 209 

67 .......................................... 227 

68 .......................................... 245 

69 .......................................... 266 

70 .......................................... 288 

71 .......................................... 312 

72 .......................................... 339 

73 .......................................... 367 

74 .......................................... 396 

75 .......................................... 430 

76 .......................................... 467 

77 .......................................... 504 

78 .......................................... 547 

79 .......................................... 593 

80 .......................................... 642 

81 .......................................... 695 

82 .......................................... 753 

83 .......................................... 816 

84 .......................................... 884 

85 .......................................... 958 

86 .......................................... 1,038 

87 .......................................... 1,123 

88 .......................................... 1,218 

89 .......................................... 1,319 

90 .......................................... 1,429 

91 .......................................... 1,547 

92 .......................................... 1,676 

93 .......................................... 1,815 

94 .......................................... 1,967 

95 .......................................... 2,131 

96 .......................................... 2,308 

97 .......................................... 2,500 

98 .......................................... 2,709 

99 .......................................... 2,934 

100 ........................................ 3,179 

101 ........................................ 3,443 

102 ........................................ 3,730 

103 ........................................ 4,041 

104 ........................................ 4,377 

TABLE XIV—PENALTY CONVERSION

TABLE—Continued 

Points Penalty 

($) 

105 ........................................ 4,742 

106 ........................................ 5,137 

107 ........................................ 5,565 

108 ........................................ 6,029 

109 ........................................ 6,531 

110 ........................................ 7,075 

111 ........................................ 7,663 

112 ........................................ 8,303 

113 ........................................ 8,994 

114 ........................................ 9,743 

115 ........................................ 10,554 

116 ........................................ 11,433 

117 ........................................ 12,385 

118 ........................................ 13,417 

119 ........................................ 14,535 

120 ........................................ 15,745 

121 ........................................ 17,057 

122 ........................................ 18,477 

123 ........................................ 20,016 

124 ........................................ 21,684 

125 ........................................ 23,488 

126 ........................................ 25,445 

127 ........................................ 27,565 

128 ........................................ 29,861 

129 ........................................ 32,348 

130 ........................................ 35,042 

131 ........................................ 37,960 

132 ........................................ 41,122 

133 ........................................ 44,546 

134 ........................................ 48,099 

135 ........................................ 51,652 

136 ........................................ 55,206 

137 ........................................ 58,758 

138 ........................................ 62,311 

139 ........................................ 65,864 

140 or more .......................... 69,417 

* * * * * 

§§ 100.4 and 100.5 [Amended] 

■ 31. In the table below, for each 

paragraph indicated in the left column, 

remove the dollar amount indicated in 

the middle column from wherever it 

appears in the paragraph and add in its 

place the dollar amount indicated in the 

right column. 

Paragraph Remove Add 

§ 100.4(a) ................................................................................................................................. $2,277 $2,314 

§ 100.4(b) ................................................................................................................................. 4,553 4,627 

§ 100.4(c) introductory text ...................................................................................................... 5,692 5,785 

§ 100.4(c) introductory text ...................................................................................................... 68,300 69,417 

§ 100.5(c) ................................................................................................................................. 7,399 7,520 

§ 100.5(d) ................................................................................................................................. 313 318 

§ 100.5(e) ................................................................................................................................. 250,433 254,530 

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5384 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

Note: The following Appendix will not 

appear in the Code of Federal Regulations. 

Agency Law Name/description CFR citation 

2016 2017 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Regular Assessment ........ 30 CFR 100.3(A) .............. ........................ $68,300 ....... ........................ $69,417. 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Penalty Conversion Table 30 CFR 100.3(G) .............. $127 68,300 ......... $129 69,417. 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Minimum Penalty for any 

order issued under 

104(d)(1) of the Mine 

Act.

30 CFR 100.4(a) ............... 2,277 ..................... 2,314 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Minimum penalty for any 

order issued under 

104(d)(2) of the Mine 

Act.

30 CFR 100.4(b) ............... 4,553 ..................... 4,627 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Penalty for failure to provide timely notification 

under 103(j) of the Mine 

Act.

39 CFR 100.4(c) ............... 5,692 68,300 ......... 5,785 69,417. 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Any operator who fails to 

correct a violation for 

which a citation or order 

was issued under 

104(a) of the Mine Act.

30 CFR 100.5(C) .............. ........................ 7,399 ........... ........................ 7,520. 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Violation of mandatory 

safety standards related 

to smoking standards.

30 CFR 100.5(D) .............. ........................ 313 .............. ........................ 318. 

MSHA ....... Federal Mine Safety & 

Health Act of 1977.

Flagrant violations under 

110(b)(2) of the Mine 

Act.

30 CFR 100.5(e) ............... ........................ 250,433 ....... ........................ 254,530. 

EBSA ........ Employee Retirement Income Security Act.Section 209(b): Failure to 

furnish reports (e.g., 

pension benefit statements) to certain former 

participants and beneficiaries or maintain 

records.

29 CFR 2575.2(a) ............. ........................ 28 ................ ........................ 28. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(2)—Per 

day for failure/refusal to 

properly file plan annual 

report.

29 CFR 2575.2(b) ............. ........................ 2,063 ........... ........................ $2,097. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(4)—Per 

day for failure 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.

29 CFR 2575.2(c) ............. ........................ 1,632 ........... ........................ 1,659. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(5)—Per 

day for each failure to 

file annual report for 

Multiple Employer Welfare Arrangements 

(MEWAs).

29 CFR 2575.2(d) ............. ........................ 1,502 ........... ........................ 1,527. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(6)—Per 

day for each failure to 

provide Secretary of 

Labor requested documentation not to exceed 

a per-request maximum.

29 CFR 2575.2(e) ............. ........................ 147 per day, 

not to exceed 

$1,472 per 

request.

........................ 149 per day, 

not to exceed 

$1,496 per 

request. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(7)—Per 

day for each failure to 

provide notices of blackout periods and of right 

to divest employer securities—each statutory recipient a separate violation.

29 CFR 2575.2(f) .............. ........................ 131 .............. ........................ 133. 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5385 

Agency Law Name/description CFR citation 

2016 2017 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(8)—Per 

each failure by 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.

29 CFR 2575.2(g) ............. ........................ 1,296 ........... ........................ 1,317. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(9)(A)—Per 

day for each failure by 

an employer to inform 

employees of CHIP coverage opportunities 

under Section 

701(f)(3)(B)(i)(l)—each 

employee a separate 

violation.

29 CFR 2575.2(h) ............. ........................ 110 .............. ........................ 112. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(9)(B)—Per 

day for each 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— 

each participant/beneficiary a separate violation.

29 CFR 2575.2(i) .............. ........................ 110 .............. ........................ 112. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(10)—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 Sections 

702(a)(1)(F), (b)(3), (c) 

or (d); or Section 701; 

or Section 702(b)(1) 

with respect to genetic 

information—daily per 

participant and beneficiary non-compliance 

period.

29 CFR 2575.2(j)(1) ......... ........................ 110 .............. ........................ 112. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(10)—uncorrected de minimis 

violation.

29 CFR 2575.2(j)(2) ......... 2,745 ..................... 2,790. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(10)—uncorrected violations that 

are not de minimis.

29 CFR 2575.2(j)(3) ......... 16,473 ..................... 16,742. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(10)—unintentional failure maximum cap.29 CFR 2575.2(j)(4) ......... ........................ 549,095 ....... ........................ 558,078. 

EBSA ........ Employee Retirement Income Security Act.Section 502(c)(12)—Per 

day for each failure of a 

CSEC plan in restoration status to adopt a 

restoration plan.

29CFR 2575.2(k) .............. ........................ 100 .............. ........................ 102. 

EBSA ........ Employee Retirement Income Security Act.Section 502(m)—Failure of 

fiduciary to make a 

proper distribution from 

a defined benefit plan 

under section 206(e) of 

ERISA.

29 CFR 2575.2(l) .............. ........................ 15,909 ......... ........................ 16,169. 

EBSA ........ Employee Retirement Income Security Act.Failure to provide Summary of Benefits Coverage under PHS Act 

section 2715(f), as incorporated in ERISA 

section 715 and 29 CFR 

2590.715–2715(e).

29 CFR 2575.2(m) ............ ........................ 1,087 ........... ........................ 1,105. 

OSHA ....... Occupational Safety and 

Health Act.

Serious Violation ............... 29 CFR 1903.15(d)(3) ...... ........................ 12,471 ......... ........................ 12,675. 

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5386 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 

Agency Law Name/description CFR citation 

2016 2017 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

OSHA ....... Occupational Safety and 

Health Act.

Other-Than-Serious .......... 29 CFR 1903.15(d)(4) ...... ........................ 12,471 ......... ........................ 12,675. 

OSHA ....... Occupational Safety and 

Health Act.

Willful ................................ 29 CFR 1903.15(d)(1) ...... 8,908 124,709 ....... 9,054 126,749. 

OSHA ....... Occupational Safety and 

Health Act.

Repeated .......................... 29 CFR 1903.15(d)(2) ...... ........................ 124,709 ....... ........................ 126,749. 

OSHA ....... Occupational Safety and 

Health Act.

Posting Requirement ........ 29 CFR 1903.15(d)(6) ...... ........................ 12,471 ......... ........................ 12,675. 

OSHA ....... Occupational Safety and 

Health Act.

Failure to Abate ................ 29 CFR 1903.15(d)(5) ...... ........................ 12,471 ......... ........................ 12,675. 

WHD ......... Family and Medical Leave 

Act.

FMLA ................................ 29 CFR 825.300(a)(1) ...... ........................ 163 .............. ........................ 166. 

WHD ......... Fair Labor Standards Act FLSA ................................. 29 CFR 578.3(a) ............... ........................ 1,894 ........... ........................ 1,925. 

WHD ......... Fair Labor Standards Act Child Labor ....................... 29 CFR 579.1(a)(2) .......... ........................ 1,894 ........... ........................ 1,925. 

WHD ......... Fair Labor Standards Act Child Labor ....................... 29 CFR 570.140(b)(1) ...... ........................ 12,080 ......... ........................ 12,278. 

WHD ......... Fair Labor Standards Act Child Labor ....................... 29 CFR 579.1(a)(1)(i)(A) .. ........................ 12,080 ......... ........................ 12,278. 

WHD ......... Fair Labor Standards Act Child Labor that causes 

serious injury or death.

29 CFR 570.140(b)(2) ...... ........................ 54,910 ......... ........................ 55,808. 

WHD ......... Fair Labor Standards Act Child Labor that causes 

serious injury or death.

29 CFR 579.1(a)(1)(i)(B) .. ........................ 54,910 ......... ........................ 55,808. 

WHD ......... Fair Labor Standards Act CL willful or repeated that 

causes serious injury or 

death.

29 CFR 570.140(b)(2); 29 

CFR 579.1(a)(1)(i)(B).

........................ 109,820 ....... ........................ 111,616. 

WHD ......... Migrant and Seasonal Agricultural Worker Protection Act.MSPA ................................ 29 CFR 500.1(e) ............... ........................ 2,355 ........... ........................ 2,394. 

WHD ......... Immigration & Nationality 

Act.

H1B ................................... 20 CFR 655.810(b)(1) ...... ........................ 1,782 ........... ........................ 1,811. 

WHD ......... Immigration & Nationality 

Act.

H1B retaliation .................. 20 CFR 655.801(b) ........... ........................ 7,251 ........... ........................ 7,370. 

WHD ......... Immigration & Nationality 

Act.

H1B willful or discrimination.20 CFR 655.810(b)(2) ...... ........................ 7,251 ........... ........................ 7,370. 

WHD ......... Immigration & Nationality 

Act.

H1B willful that resulted in 

displacement of a US 

worker.

20 CFR 655.810(b)(3) ...... ........................ 50,758 ......... ........................ 51,588. 

WHD ......... Immigration & Nationality 

Act.

D–1 ................................... 20 CFR 655.620(a) ........... ........................ 8,908 ........... ........................ 9,054. 

WHD ......... Contract Work Hours and 

Safety Standards Act.

CWHSSA .......................... 29 CFR 5.5(b)(2) .............. ........................ 25 ................ ........................ 25. 

WHD ......... Contract Work Hours and 

Safety Standards Act.

CWHSSA .......................... 29 CFR 5.8(a) ................... ........................ 25 ................ ........................ 25. 

WHD ......... Walsh-Healey Public Contracts Act.Walsh-Healey ................... 41 CFR 50–201.3(e) ......... ........................ 25 ................ ........................ 25.

WHD ......... Employee Polygraph Protection Act.EPPA ................................ 29 CFR 801.42(a) ............. ........................ 19,787 ......... ........................ 20,111 

WHD ......... Immigration & Nationality 

Act.

H2A ................................... 29 CFR 501.19(c) ............. ........................ 1,631 ........... ........................ 1,658. 

WHD ......... Immigration & Nationality 

Act.

H2A willful or discrimination.29 CFR 501.19(c)(1) ........ ........................ 5,491 ........... ........................ 5,581. 

WHD ......... Immigration & Nationality 

Act.

H2A Safety or health resulting in serious injury 

or death.

29 CFR 501.19(c)(2) ........ ........................ 54,373 ......... ........................ 55,263. 

WHD ......... Immigration & Nationality 

Act.

H2A willful or repeated 

safety or health resulting 

in serious injury or 

death.

29 CFR 501.19(c)(4) ........ ........................ 108,745 ....... ........................ 110,524. 

WHD ......... Immigration & Nationality 

Act.

H2A failing to cooperate in 

an investigation.

29 CFR 501.19(d) ............. ........................ 5,491 ........... ........................ 5,581. 

WHD ......... Immigration & Nationality 

Act.

H2A displacing a US 

worker.

29 CFR 501.19(e) ............. ........................ 16,312 ......... ........................ 16,579. 

WHD ......... Immigration & Nationality 

Act.

H2A improperly rejecting a 

US worker.

29 CFR 501.19(f) .............. ........................ 16,312 ......... ........................ 16,579. 

WHD ......... Fair Labor Standards Act Home Worker ................... 29 CFR 530.302(a) ........... ........................ 989 .............. ........................ 1,005. 

WHD ......... Fair Labor Standards Act Home Worker ................... 29 CFR 530.302(b) ........... 20 989 .............. 20 1,005. 

OWCP ...... Longshore and Harbor 

Workers’ Compensation 

Act.

Failure to file first report of 

injury or filing a false 

statement or misrepresentation in first report.

20 CFR 702.204 ............... ........................ 22,587 ......... ........................ 22,957. 

OWCP ...... Longshore and Harbor 

Workers’ Compensation 

Act.

Failure to report termination of payments.20 CFR 702.236 ............... ........................ 275 .............. ........................ 279. 

OWCP ...... Longshore and Harbor 

Workers’ Compensation 

Act.

Discrimination against employees who claim compensation or testify in a 

LHWCA proceeding.

20 CFR 702.271(a)(2) ...... 2,259 11,293 ......... 2,296 11,478. 

OWCP ...... Black Lung Benefits Act ... Failure to report termination of payments.20 CFR 725.621(d) ........... ........................ 1,375 ........... ........................ 1,397. 

OWCP ...... Black Lung Benefits Act ... Failure to file required reports.20 CFR 725.621(d) ........... ........................ 1,375 ........... ........................ 1,397. 

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Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5387 

Agency Law Name/description CFR citation 

2016 2017 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

Min penalty 

(rounded to 

nearest dollar) 

Max penalty 

(rounded to 

nearest 

dollar) 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits.

20 CFR 726.300 ............... ........................ 2,500 ........... ........................ 2,541. 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits for mines 

with fewer than 25 employees.

20 CFR 726.302(c)(2)(i) ... 134 ..................... 136 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits for mines 

with 25–50 employees.

20 CFR 726.302(c)(2)(i) ... 268 ..................... 272 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits for mines 

with 51–100 employees.

20 CFR 726.302(c)(2)(i) ... 402 ..................... 409 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits for mines 

with more than 100 employees.

20 CFR 726.302(c)(2)(i) ... 535 ..................... 544 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits after 10th 

day of notice.

20 CFR 726.302(c)(4) ...... 134 ..................... 136 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits for repeat offenders.

20 CFR 726.302(c)(5) ...... 402 ..................... 409 

OWCP ...... Black Lung Benefits Act ... Failure to secure payment 

of benefits.

20 CFR 726.302(c)(5) ...... ........................ 2,750 ........... ........................ 2,795. 

Signed at Washington, DC this 9th day of 

January, 2017. 

Thomas E. Perez, 

Secretary, U.S. Department of Labor. 

[FR Doc. 2017–00614 Filed 1–13–17; 4:15 pm] 

BILLING CODE 4510–HL–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9810] 

RIN 1535–BN06 

Certain Transfers of Property to 

Regulated Investment Companies 

[RICs] and Real Estate Investment 

Trusts [REITs] 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations effecting the repeal of the 

General Utilities doctrine by the Tax 

Reform Act of 1986. The final 

regulations address the length of time 

during which a RIC or a REIT may be 

subject to corporate level tax on certain 

dispositions of property. The final 

regulations affect RICs and REITs. 

DATES: Effective Date: These regulations 

are effective January 18, 2017. 

Applicability Dates: For dates of 

applicability, see § 1.337(d)–7(g)(2)(iii). 

FOR FURTHER INFORMATION CONTACT: 

Austin M. Diamond-Jones, (202) 317– 

5363 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to 26 CFR part 1. On June 8, 2016, the 

Department of the Treasury (Treasury 

Department) and the IRS published 

temporary regulations (TD 9770) under 

section 337(d) (temporary regulations) 

in the Federal Register (81 FR 36793) 

concerning certain transfers of property 

to regulated investment companies 

(RICs) and real estate investment trusts 

(REITs). A notice of proposed 

rulemaking cross-referencing the 

temporary regulations (REG–126452–15) 

(proposed regulations) was published in 

the Federal Register (81 FR 36816) on 

the same day. A correction to the 

temporary regulations was published in 

the Federal Register (81 FR 41800) on 

June 28, 2016. The Treasury Department 

and the IRS received one written 

comment in response to the proposed 

regulations. The comment requested a 

public hearing, and a hearing was held 

on November 9, 2016. After 

consideration of the written comment 

and the comments made at the public 

hearing, the proposed regulations are 

adopted in part and as amended by this 

Treasury decision, and the 

corresponding temporary regulations are 

removed in part. The revisions adopted 

by this Treasury decision are discussed 

below. 

Summary of Comments and 

Explanation of Revisions 

The comment requested that the 

temporary regulations and the proposed 

regulations with respect to the 

recognition period be immediately 

withdrawn and the recognition period 

with respect to REITs be defined with 

reference to the recognition period of 

section 1374(d)(7), which is currently a 

five-year period as a result of section 

127(a) of the Protecting Americans 

Against Tax Hikes Act of 2015 (PATH 

Act), enacted as Division Q of the 

Consolidated Appropriations Act, 2016, 

Public Law 114–113, 129 Stat. 2422. 

The comment asserted that the change 

to the length of the recognition period 

in the temporary regulations and the 

proposed regulations was inconsistent 

with Congress’s intent in the PATH Act 

and with prior administrative guidance. 

On October 18, 2016, the Chairmen and 

Ranking Members of the Ways and 

Means Committee of the U.S. House of 

Representatives and the Finance 

Committee of the U.S. Senate addressed 

a letter to the Secretary of the Treasury 

stating that the recognition period in the 

temporary regulations and the proposed 

regulations was inconsistent with 

congressional intent and the 

longstanding practice of treating REITs 

and RICs as having the same built-in 

gain recognition period as S 

corporations, currently five years. The 

Chairmen and Ranking Members also 

asked that the temporary regulations 

and the proposed regulations be 

modified to provide that REITs, RICs 

and S corporations are all subject to the 

same five-year built-in gain recognition 

period in order to be consistent with 

congressional intent and longstanding 

practice. 

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