Vol. 81 Friday, 

No. 127 July 1, 2016 

Part IV 

Department of Labor 

29 CFR Part 5 

41 CFR Part 50–201 

Employment and Training Administration 

20 CFR Part 655 

Office of Workers’ Compensation Programs 

20 CFR Parts 702, 725, 726 

Wage and Hour Division 

29 CFR Parts 500, 501, 530, et al. 

Occupational Safety and Health Administration 

29 CFR Parts 1902, 1903 

Employee Benefits Security Administration 

29 CFR Parts 2560, 2575, 2590 

Mine Safety and Health Administration 

30 CFR Part 100 

Department of Labor Federal Civil Penalties Inflation Adjustment Act CatchUp Adjustments; Final Rule 


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43430 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 

DEPARTMENT OF LABOR 

Employment and Training 

Administration 

20 CFR Part 655 

Office of Workers’ Compensation 

Programs 

20 CFR Parts 702, 725, 726 

Office of the Secretary 

29 CFR Part 5 

41 CFR Part 50–201 

Wage and Hour Division 

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

579, 801, 825 

Occupational Safety and Health 

Administration 

29 CFR Parts 1902, 1903 

Employee Benefits Security 

Administration 

29 CFR Part 2560, 2575, 2590 

Mine Safety and Health Administration 

30 CFR Part 100 

RIN 1290–AA31 

Department of Labor Federal Civil 

Penalties Inflation Adjustment Act 

Catch-Up Adjustments 

AGENCY: Employment and Training 

Administration, Office of Workers’ 

Compensation Programs, Office of the 

Secretary, Wage and Hour Division, 

Occupational Safety and Health 

Administration, Employee Benefits 

Security Administration, and Mine 

Safety and Health Administration, 

Department of Labor. 

ACTION: Interim final rule; request for 

comments. 

SUMMARY: The U.S. Department of Labor 

is issuing this interim final rule to 

adjust the amounts of civil penalties 

assessed or enforced in its regulations. 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990 as amended by 

the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (Inflation Adjustment Act) requires 

agencies to adjust the levels of civil 

monetary penalties with an initial catchup adjustment, followed by annual 

adjustments for inflation. The 

Department is required to calculate the 

catch-up and subsequent annual 

adjustments based on the Consumer 

Price Index for all Urban Consumers. 

The Department must publish the 

interim final rule by July 1, 2016, and 

the new penalty levels are effective no 

later than August 1, 2016. 

DATES: This interim final rule is 

effective August 1, 2016. See 

SUPPLEMENTARY INFORMATION for 

applicability dates. Interested persons 

are invited to submit written comments 

on this interim final rule on or before 

August 15, 2016. 

ADDRESSES: You may submit comments, 

identified by Regulatory Information 

Number (RIN) 1290–AA31, by either of 

the following methods: 

Electronic Comments: Comments may 

be sent via http://www.regulations.gov, 

a Federal E-Government Web site that 

allows the public to find, review, and 

submit comments on documents that 

agencies have published in the Federal 

Register and that are open for comment. 

Simply type in ‘‘Department of Labor 

Federal Civil Penalties Inflation 

Adjustment Act Catch-Up Adjustments’’ 

(in quotes) in the Comment or 

Submission search box, click Go, and 

follow the instructions for submitting 

comments. 

Mail: Address written submissions to 

Tiffany Jones, U.S. Department of Labor, 

Room S–2312, 200 Constitution Avenue 

NW., Washington, DC 20210. 

Instructions: Please submit only one 

copy of your comments by only one 

method. All submissions must include 

the agency name and RIN, identified 

above, for this rulemaking. Please be 

advised that comments received will 

become a matter of public record and 

will be posted without change to http:// 

www.regulations.gov, including any 

personal information provided. 

Comments that are mailed must be 

received by the date indicated for 

consideration. 

Docket: For access to the docket to 

read background documents or 

comments, go to the Federal eRulemaking Portal at http://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Pamela Peters, Program Analyst, U.S. 

Department of Labor, Room S–2312, 200 

Constitution Avenue NW., Washington, 

DC 20210; telephone: (202) 693–5959 

(this is not a toll-free number). Copies 

of this proposed rule may be obtained 

in alternative formats (large print, 

Braille, audio tape or disc), upon 

request, by calling (202) 693–5959 (this 

is not a toll-free number). TTY/TDD 

callers may dial toll-free 1–877–889– 

5627 to obtain information or request 

materials in alternative formats. 

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents 

I. Regulatory Information 

II. Background 

III. Section-by-Section Analysis 

A. Employment and Training 

Administration 

B. Office of Workers’ Compensation 

Programs 

C. Office of the Secretary 

D. Wage and Hour Division 

E. Occupational Safety and Health 

Administration 

F. Employee Benefits Security 

Administration 

G. Mine Safety and Health Administration 

IV. Paperwork Reduction Act 

V. Executive Order 12866: Regulatory 

Planning and Review, and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

VI. Regulatory Flexibility Act and Small 

Business Regulatory Enforcement 

Fairness Act 

VII. Other Regulatory Considerations 

a. The Unfunded Mandates Reform Act of 

1995 

b. Executive Order 13132: Federalism 

c. Executive Order 13175: Indian Tribal 

Governments 

d. The Treasury and General Government 

Appropriations Act of 1999: Assessment 

of Federal Regulations and Policies on 

Families 

e. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

f. Environmental Impact Assessment 

g. Executive Order 13211: Energy Supply 

h. Executive Order 12630: Constitutionally 

Protected Property Rights 

i. Executive Order 12988: Civil Justice 

Reform Analysis 

I. Regulatory Information 

The U.S. Department of Labor 

(Department) is publishing this interim 

final rule (IFR) to adjust its civil 

monetary penalties for inflation 

pursuant to the Federal Civil Penalties 

Inflation Adjustment Act of 1990 as 

amended by the Federal Civil Penalties 

Inflation Adjustment Act Improvements 

Act of 2015 (Inflation Adjustment Act). 

This law requires the Department to 

publish an initial ‘‘catch-up 

adjustment’’ through an interim final 

rule. 

Pursuant to the Inflation Adjustment 

Act and 5 U.S.C. 553(b)(3)(B), the 

Department finds that good cause exists 

for issuing this IFR without prior notice 

and comment. By operation of the 

Inflation Adjustment Act, the 

Department must publish the catch-up 

adjustment by July 1, 2016, and the rule 

must be effective no later than August 

1, 2016. The Inflation Adjustment Act 

further provides that the increased 

penalty levels apply to any penalties 

assessed after the effective date of the 

increase. Additionally, the Inflation 

Adjustment Act provides a clear 


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Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43431 

1OMB Mem. M–16–06 (Feb. 24, 2016), https://

www.whitehouse.gov/sites/default/files/omb/

memoranda/2016/m-16–06.pdf. 

2OMB has provided the relevant year-over-year 

multipliers, rounded to 5 decimal points. Id. at 6. 

3Appendix 1 consists of a table that provides 

ready access to key information about each penalty. 

formula for adjustment of the civil 

penalties, leaving little room for 

discretion. For these reasons, the 

Department finds that notice and 

comment would be impracticable and 

unnecessary in this situation and 

contrary to the language of the Inflation 

Adjustment Act. 

II. Background 

On November 2, 2015, the President 

signed into law the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015, Pub. L. 114– 

74, 701 (Inflation Adjustment Act), 

which further amended the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990 as previously amended by the 

1996 Debt Collection Improvement Act 

(collectively, the ‘‘Prior Inflation 

Adjustment Act’’), to improve the 

effectiveness of civil monetary penalties 

and to maintain their deterrent effect. 

The Inflation Adjustment Act requires 

agencies to: (1) Adjust the level of civil 

monetary penalties with an initial 

‘‘catch-up’’ adjustment through an 

interim final rulemaking (IFR); and (2) 

make subsequent annual adjustments 

for inflation. 

The Inflation Adjustment Act amends 

the Prior Inflation Adjustment Act in 

two key respects. First, the Inflation 

Adjustment Act rescinds an exemption 

that previously disallowed inflationary 

adjustments for violations of the 

Occupational Safety and Health Act 

(OSH Act). As a result, the Department 

is updating the penalties under the OSH 

Act for the first time since 1990. 

Second, the Inflation Adjustment Act 

substantially revises the method of 

calculating inflation adjustments. The 

Prior Inflation Adjustment Act required 

adjustments to civil penalties to be 

rounded significantly. For example, a 

penalty increase that was greater than 

$1,000, but less than or equal to 

$10,000, would be rounded to the 

nearest multiple of $1,000. As a result, 

penalties were increased infrequently, 

and when they were finally increased, 

the amounts of the increases were 

sometimes substantial. Over time, this 

formula caused most of the 

Department’s penalties to lose value 

relative to total inflation for long 

periods of time, thereby undermining 

the Prior Inflation Adjustment Act’s 

purposes of maintaining the deterrent 

effect of civil money penalties and 

promoting compliance with the law. 

The Inflation Adjustment Act has 

removed these rounding rules; now, 

penalties are simply rounded to the 

nearest dollar. This rounding ensures 

that penalties will be increased each 

year to more effectively keep up with 

inflation, and ensures that penalties are 

more evenly established. 

Furthermore, the Inflation Adjustment 

Act provides for an initial ‘‘catch-up’’ 

adjustment that generally excludes prior 

inflationary adjustments under the Prior 

Inflation Adjustment Act. For this catchup adjustment, the Inflation Adjustment 

Act requires agencies to identify, for 

each penalty, the year and 

corresponding amount(s) for which the 

penalty amount, the maximum penalty 

level, or range of minimum and 

maximum penalties was established 

(i.e., originally enacted by Congress or 

by regulation) or last adjusted other than 

pursuant to the Prior Inflation 

Adjustment Act. That amount becomes 

the basis of any such catch-up 

adjustment, subject to a cap on any 

penalty increase of 150 percent of the 

current penalty amount as of November 

2015—allowing for a total new penalty 

of no more than 250 percent of the 

November 2015 penalty amount. The 

Inflation Adjustment Act also mandates 

that the catch-up adjustment apply to 

any civil monetary penalty assessed 

after August 1, 2016, ‘‘including those 

whose associated violation predated 

such increase.’’ Pub. L. 114–74 at § 701. 

The adjusted civil penalty amounts are 

applicable only to civil penalties 

assessed after August 1, 2016, whose 

associated violations occurred after 

November 2, 2015, the date of 

enactment of the Inflation Adjustment 

Act. Therefore, violations occurring on 

or before November 2, 2015, as well as 

assessments made prior to August 1, 

2016 whose associated violations 

occurred after November 2, 2015, will 

continue to be subject to the civil 

monetary penalty amounts currently set 

forth in the the Department’s prior 

regulations at 20 CFR parts 655, 702, 

725, and 726; 29 CFR parts 5, 500, 501, 

530, 570, 578, 579, 801, 825, 1902, 1903, 

2560, 2575, and 2590; 30 CFR part 100; 

and 41 CFR part 50–201 (or as set forth 

by statute if the amount has not yet been 

adjusted by regulation).. 

The Department has undertaken a 

thorough review of civil penalties 

administered by its various components 

pursuant to the Inflation Adjustment 

Act and in accordance with guidance 

issued by the Office of Management and 

Budget.1 The Department first identified 

for each penalty the year and 

corresponding amount or amounts for 

which the maximum penalty level or 

range of minimum and maximum 

penalties was established or last 

adjusted, other than pursuant to the 

Prior Inflation Adjustment Act. Then 

the Department determined the 

applicable inflation adjustments based 

upon the percent change between the 

October Consumer Price Index for all 

Urban Consumers (CPI–U) for the 

preceding year versus the year of 

enactment or last adjustment.2 The 

Department compared the amount of the 

penalty adjustment against the 150 

percent cap and added the lower of the 

two to the existing penalty to compute 

the new penalty. This IFR establishes 

the initial catch-up adjustment for civil 

penalties as described.3

III. Section-by-Section Analysis 

The following section-by-section 

discussion of this IFR presents the 

contents of each section in more detail. 

The Department invites comments on 

any issues addressed in this IFR. 

A. Employment and Training 

Administration (20 CFR Part 655) 

1. General 

This section A of the preamble 

addresses civil monetary penalties 

authorized by the Immigration and 

Nationality Act’s (INA) D–1 and H–1B 

visa programs and that are reflected in 

the Employment and Training 

Administration’s regulations, but are 

enforced by the Department’s Wage and 

Hour Division (WHD). Paragraph 2(a) 

involves violations of the D–1 visa 

program, and paragraph 2(b) involves 

violations of the H–1B visa program. 

2. Specific Penalty Increases 

a. Section 655.620—Civil Money 

Penalties and Other Remedies 

Section 258(c)(4)(E)(i) of the INA, 8 

U.S.C. 1288(c)(4)(E)(i), and existing 20 

CFR 655.620(a), provide for the 

imposition of civil money penalties 

where the Secretary of Labor (Secretary) 

finds, after notice and an opportunity 

for hearing, that there has been a 

violation of, or misrepresentation in, the 

attestations by employers using alien 

crewmembers for longshore activities in 

U.S. ports, pursuant to the D–1 visa 

program, or of the Secretary’s 

regulations regarding the D–1 program. 

These authorities provide that such civil 

money penalties are not to exceed 

$5,000 for each alien crewmember with 

respect to whom there has been a 

violation. The maximum penalty 

amount last established by statute or 

regulation, other than the Prior Inflation 

Adjustment Act, was set in 1990 and is 

the same as the existing maximum 


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penalty amount. See Immigration Act of 

1990, Pub. L. 101–649, 203(a)(1) (Nov. 

29, 1990). 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 1990 of 1.78156, which 

resulted in a maximum penalty of 

$8,908. The amount of the increase from 

$5,000 to $8,908 is $3,908, which is less 

than the statutory cap of 150 percent of 

the existing $5,000 penalty, which is 

$7,500; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 655.620(a) is 

revised to increase the maximum 

penalty for violations specified therein 

from $5,000 to $8,908 for each alien 

crewmember with respect to whom 

there has been a violation. 

b. Section 655.810—What remedies may 

be ordered if violations are found? 

Section 212(n)(2)(C) of the INA, 8 

U.S.C. 1182(n)(2)(C), and existing 20 

CFR 655.810(b) provide for the 

imposition of civil money penalties for 

certain violations of the H–1B visa 

program. There are three levels of civil 

money penalties provided for by these 

authorities. 

First, existing § 655.810(b)(1) provides 

for a civil money penalty, not to exceed 

$1,000 per violation, for certain specific 

violations of the H–1B program. See 

§ 655.810(b)(1)(i)–(vi). The maximum 

penalty amount last established by 

statute or regulation, other than the 

Prior Inflation Adjustment Act, was set 

in 1990 and is the same as the existing 

maximum penalty amount. See 

Immigration Act of 1990, Pub. L. 101– 

649, 205(3) (Nov. 29, 1990). In 1998, 

Congress amended the INA by, in part, 

providing for additional civil money 

penalties in the H–1B program, as 

discussed below. See American 

Competitiveness and Workforce 

Improvement Act of 1998 (ACWIA), Div. 

C, Title IV, of Pub. L. 105–277, 413(a) 

(Oct. 21, 1998). The 1998 amendments 

did not adjust the $1,000 civil money 

penalty reflected in existing 

§ 655.810(b)(1). Accordingly, we 

consider 1990 as the year in which this 

maximum penalty amount was last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act. 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 1990 of 1.78156, which 

resulted in a maximum penalty of 

$1,782. The amount of the increase from 

$1,000 to $1,782 is $782, which is less 

than the statutory cap of 150 percent of 

the existing $1,000 penalty, which is 

$1,500; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 655.810(b)(1) is 

revised to increase the maximum 

penalty for violations specified therein 

from $1,000 to $1,782 per violation. 

Second, existing § 655.810(b)(2) 

provides for a civil money penalty, not 

to exceed $5,000 per violation for 

certain willful violations specified 

therein and for discrimination against 

an employee, as described in 20 CFR 

655.801(a). The civil money penalty for 

discrimination against an employee is 

also referenced in § 655.801(b). The 

maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was set in 1998 and is 

the same as the existing maximum 

penalty amount. See ACWIA § 413(a). 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 1998 of 1.45023, which 

resulted in a maximum penalty of 

$7,251. The amount of the increase from 

$5,000 to $7,251 is $2,251, which is less 

than the statutory cap of 150 percent of 

the existing $5,000 penalty, which is 

$7,500; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 655.810(b)(2) is 

revised to increase the maximum 

penalty for violations specified therein 

from $5,000 per violation to $7,251 per 

violation. Conforming changes to reflect 

the adjusted civil money penalty 

amount were also made to 20 CFR 

655.801(b). 

Third, existing § 655.810(b)(3) 

provides for a civil money penalty, not 

to exceed $35,000 per violation, where 

an employer displaced a U.S. worker 

employed by the employer in the period 

beginning 90 days before and ending 90 

days after the filing of an H–1B petition 

in conjunction with certain willful 

violations specified therein. The 

maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was set in 1998 and is 

the same as the existing maximum 

penalty amount. See ACWIA § 413(a). 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 1998 of 1.45023, which 

resulted in a maximum penalty of 

$50,758. The amount of the increase 

from $35,000 to $50,758 is $15,758, 

which is less than the statutory cap of 

150 percent of the existing $35,000 

penalty, which is $52,500; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 655.810(b)(3) is revised to increase the 

maximum penalty for violations 

specified therein from $35,000 to 

$50,578 per violation. 

B. Office of Workers’ Compensation 

Programs (20 CFR Parts 702, 725, 726) 

1. General 

This section B of the preamble 

addresses the civil monetary penalties 

administered by Office of Workers’ 

Compensation Programs (OWCP) to 

enforce provisions of the Longshore and 

Harbor Workers’ Compensation Act 

(Longshore Act), and the Longshore Act 

extensions, the Defense Base Act, the 

District of Columbia Workmen’s 

Compensation Act, the Outer 

Continental Shelf Lands Act, and the 

Black Lung Benefits Act (BLBA). 

Paragraphs 2(a) through (f) explain 

revisions to each of the civil penalties 

administered and enforced by OWCP. 

2. Specific Penalty Increases 

a. Section 702.204—Employer’s Report; 

Penalty for Failure To Furnish and or 

Falsifying 

Existing § 702.201 requires employers 

to furnish a report of an employee’s 

injury (resulting in the loss of one or 

more shifts) or death within 10 days of 

the injury or death, or an employer’s 

knowledge of the same, and to provide 

additional supplemental information 

upon request. Existing § 702.204 

provides that an employer who, on or 

after November 17, 1997, knowingly and 

willfully fails or refuses to file any 

report required by § 702.201 or who 

knowingly or willfully makes a false 

statement or misrepresentation on any 

report shall be subject to a civil penalty 

not to exceed $11,000 for each failure, 

refusal, false statement, or 

misrepresentation. It provides that an 

employer who does so before November 

17, 1997 shall be subject to a civil 

penalty not to exceed $10,000 for each 

instance. The maximum penalty amount 

last established by statute or regulation 

other than pursuant to the Inflation 

Adjustment Act was $10,000 in 1984. 

See Public Law 98–426. 

To adjust the existing civil penalty for 

this section, the Department multiplied 

the penalty amount last established by 

statute or regulation other than pursuant 

to the Inflation Adjustment Act, 

$10,000, by the inflation adjustment 

factor for 1984 of 2.25867, which 

resulted in a penalty of $22,587 

(rounded to the nearest dollar). The 

amount of the increase from existing 

§ 702.204’s $11,000 penalty to $22,587 

is $11,587. $11,587 is less than the 

statutory cap of 150 percent of the 


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Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43433 

existing $11,000 penalty, which is 

$16,500. Accordingly, the amount of the 

increase is not limited by the statutory 

cap. For penalties assessed after August 

1, 2016, whose associated violations 

occurred after November 2, 2015, final 

§ 702.204 therefore increases the 

maximum penalty for each failure to 

furnish or falsifying an employer’s 

report from $11,000 to $22,587. 

b. Section 702.236—Penalty for Failure 

To Report Termination of Payments 

Existing § 702.235 requires employers 

to notify the district director within 16 

days after making a final payment of 

compensation. Existing § 702.236 

provides that an employer who, on or 

after November 17, 1997, fails to notify 

the district director that a final payment 

of compensation has been made as 

required by § 702.235, shall be assessed 

a civil penalty in the amount of $110. 

It provides that an employer who does 

so before November 17, 1997 shall be 

assessed a civil penalty in the amount 

of $100. The penalty amount last 

established by statute or regulation 

other than pursuant to the Inflation 

Adjustment Act was $100 in 1927. See 

33 U.S.C. 914(g). 

To adjust the existing civil penalty for 

this section, the Department multiplied 

the penalty amount last established by 

statute or regulation other than pursuant 

to the Inflation Adjustment Act, $100, 

by the inflation adjustment factor for 

1927 of 13.66885, which resulted in a 

penalty of $1,367 (rounded to the 

nearest dollar). The amount of the 

increase from existing § 702.236’s $110 

penalty to $1,367 is $1,257, which 

would be more than the statutory cap of 

150 percent of the existing $110 penalty, 

which is $165. Accordingly, the amount 

of the increase is limited by the 

statutory cap to a total of $165. For 

penalties assessed after August 1, 2016, 

whose associated violations occurred 

after November 2, 2015, final § 702.236 

therefore increases the penalty for 

failure to report termination of 

payments from $110 to $275 (the 

current $110 penalty amount plus the 

$165 statutory cap). 

c. Section 702.271—Discrimination; 

Against Employees Who Bring 

Proceedings, Prohibition and Penalty 

Existing § 702.271(a)(1) provides that 

no employer or its agent may discharge 

or in any manner discriminate against 

an employee as to his or her 

employment because that employee has 

claimed or attempted to claim 

compensation under the Longshore and 

Harbor Workers’ Compensation Act, or 

has testified or is about to testify in a 

proceeding under that Act. Existing 

§ 702.271(a)(2) provides that any 

employer who, on or after November 17, 

1997, violates § 702.271 shall be liable 

for a penalty of not less than $1,100 or 

more than $5,500. It provides that an 

employer who does so before November 

17, 1997 shall be liable for a penalty of 

not less than $1,000 or more than 

$5,000. The penalty amounts last 

established by statute or regulation 

other than pursuant to the Inflation 

Adjustment Act were a minimum 

amount of $1,000 and a maximum 

amount of $5,000 in 1984. See Public 

Law 98–426. 

To adjust the civil penalties for this 

section, the Department multiplied the 

minimum and maximum penalty 

amounts last established by statute or 

regulation other than pursuant to the 

Inflation Adjustment Act, $1,000 and 

$5,000, respectively, by the inflation 

adjustment factor for 1984 of 2.25867, 

which resulted in a minimum penalty of 

$2,259 (rounded to the nearest dollar) 

and a maximum penalty of $11,293 

(rounded to the nearest dollar). The 

amount of the increase from existing 

§ 702.271(a)(2)’s $1,100 minimum 

penalty to $2,259 is $1,159, which is 

less than the statutory cap of 150 

percent of the existing $1,100 minimum 

penalty, which is $1,650. The amount of 

the increase from existing 

§ 702.271(a)(2)’s $5,500 maximum 

penalty to $11,293 is $5,793. $5,793 is 

less than the statutory cap of 150 

percent of the existing $5,500 maximum 

penalty, which is $8,250. Accordingly, 

neither the amount of the increased 

minimum nor the increased maximum 

penalty is limited by the statutory cap. 

For penalties assessed after August 1, 

2016, whose associated violations 

occurred after November 2, 2015, final 

§ 702.271 therefore increases the 

minimum penalty for discrimination 

against employees who claim 

compensation or bring proceedings 

under the Act from $1,100 to $2,259, 

and increases the maximum penalty 

from $5,500 to $11,293. 

The Department also changes the 

‘‘that’’ in the first sentence of 

§ 702.271(a)(2) to ‘‘than’’ to correct a 

typo in the regulation and twice corrects 

the phrase ‘‘liable to a penalty’’ to 

‘‘liable for a penalty.’’ No substantive 

change results from or is intended by 

these technical edits. 

d. Section 725.621—Reports 

Existing § 725.621(a) requires 

employers to notify the district director 

upon making a first payment of benefits 

and upon suspension, reduction, or 

increase of payments. Existing 

§ 725.621(b) requires employers to 

notify the district director, within 16 

days after making a final payment of 

benefits. Existing § 724.621(c) allows the 

Director to prescribe additional 

reporting by operators, other employers, 

or carriers. Existing § 725.621(d) 

provides that an employer who does not 

file a report required by the section, 

after January 19, 2001, shall be subject 

to a civil penalty not to exceed $550 for 

each failure or refusal to file. It provides 

that an employer who does so on or 

before January 19, 2001, shall be subject 

to a civil penalty not to exceed $500 for 

each failure or refusal to file. The 

maximum penalty amount last 

established by statute or regulation 

other than pursuant to the Inflation 

Adjustment Act was $500 in 1978. See 

Public Law 95–239. 

To adjust the existing civil penalty for 

this section, the Department multiplied 

the penalty amount last established by 

statute or regulation other than pursuant 

to the Inflation Adjustment Act, $500, 

by the inflation adjustment factor for 

1978 of 3.54453, which resulted in a 

penalty of $1,772 (rounded to the 

nearest dollar). The amount of the 

increase from existing § 725.621(d)’s 

$550 penalty to $1,772 is $1,222, which 

is more than the statutory cap of 150 

percent of the existing $550 penalty, 

which is $825. Accordingly, the amount 

of the increase is limited by the 

statutory cap to a total of $825. For 

penalties assessed after August 1, 2016, 

whose associated violations occurred 

after November 2, 2015, final § 725.261 

therefore increases the maximum 

penalty for each failure or refusal to 

furnish an employer’s required report 

from $550 to $1,375 (the current $550 

penalty amount plus the $825 statutory 

cap). 

e. Section 726.300—Purpose and Scope 

Section 423 of the Black Lung 

Benefits Act and existing § 726.4 require 

each coal mine operator to secure its 

liability for benefits either by qualifying 

as a self-insurer in accordance with 

regulations prescribed by the Secretary, 

or by insuring and keeping insured the 

payment of such benefits with a 

licensed workers’ compensation insurer. 

30 U.S.C. 933(a); 20 CFR 726.4. Section 

423 also provides that each coal mine 

operator failing to meet its insurance 

obligation shall be subject to a civil 

money penalty of up to $1,000 per day. 

30 U.S.C. 933(d)(1). Existing § 726.300 

identifies the purpose and scope of 

Subpart D of Part 726, which is to set 

forth definitions, criteria, and 

procedures for assessing this civil 

money penalty. In so doing, it references 

the Black Lung Benefits Act’s maximum 

daily penalty of $1,000. This statutory 

maximum, however, is adjusted by the 


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Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended. 

Thus, the existing regulation is 

amended to refer to the adjusted penalty 

amount authorized by the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended. 

f. Section 726.302—Determination of 

Penalty 

Existing § 726.302 provides the 

method for determining the amount of 

any penalty assessed against a coal mine 

operator for failure to secure the 

payment of benefits in violation of 

Section 423 of the Black Lung Benefits 

Act and existing § 726.4. Existing 

§ 726.302(b) provides that the penalty 

will be calculated by multiplying the 

daily base penalty amount or amounts 

by the number of days during which the 

operator was required to and failed to 

secure its obligations. Existing 

§ 726.302(c)(i) explains that the daily 

base penalty amount is $100 per day for 

operators employing fewer than 25 

employees, $200 per day for operators 

employing 25 to 50 employees, $300 per 

day for operators employing 51 to 100 

employees, and $400 per day for 

operators employing more than 100 

employees. Existing § 726.302(c)(4) 

provides that the daily base penalty 

amounts in § 726.302(c)(2)(i) will 

increase by $100 on the 11th day after 

the operator receives the Director’s 

notice of violation. Existing 

§ 726.302(c)(5) provides that if an 

operator or certain of its related entities 

has violated § 726.4 and been assessed 

a penalty, the daily base penalty amount 

shall increase by $300. It also provides 

that an operator who violates § 726.4 

after January 19, 2001, shall be subject 

to a maximum daily base penalty of 

$1,100, and that an operator that 

violates it on or before January 19, 2001, 

shall be subject to a maximum daily 

base penalty amount of $1,000. The 

daily base penalty amounts and 

increases in paragraphs (c)(2)(i), (c)(4), 

and (c)(5) were established by regulation 

in 2001 and have not subsequently been 

increased by the Inflation Adjustment 

Act or otherwise. See 65 FR 79920. The 

maximum daily base penalty amount 

last established by statute or regulation 

other than pursuant to the Inflation 

Adjustment Act was $1,000 in 1978. See 

Public Law 95–239. 

To adjust the existing daily base 

penalty for operators employing fewer 

than 25 employees, the Department 

multiplied the existing $100 penalty by 

the inflation adjustment factor for 2001 

of 1.33842, which resulted in a penalty 

of $134 (rounded to the nearest dollar). 

To adjust the existing daily base penalty 

for operators employing 25 to 50 

employees, the Department multiplied 

the existing $200 penalty by the 

inflation adjustment factor for 2001 of 

1.33842, which resulted in a penalty of 

$268 (rounded to the nearest dollar). To 

adjust the existing daily base penalty for 

operators employing 51 to 100 

employees, the Department multiplied 

the existing $300 penalty by the 

inflation adjustment factor for 2001 of 

1.33842, which resulted in a penalty of 

$402 (rounded to the nearest dollar). To 

adjust the existing daily base penalty for 

operators employing more than 100 

employees, the Department multiplied 

the existing $400 penalty by the 

inflation adjustment factor for 2001 of 

1.33842, which resulted in a penalty of 

$535 (rounded to the nearest dollar). To 

adjust the existing daily base penalty 

increase for operators who fail to 

respond to the Director’s notice of 

violation more than 10 days after receipt 

in paragraph (c)(4), the Department 

multiplied the existing $100 penalty 

increase by the inflation adjustment 

factor for 2001 of 1.33842, which 

resulted in a penalty increase of $134 

(rounded to the nearest dollar). To 

adjust the existing daily base penalty 

increase for operators who have been 

subject to a previous penalty assessment 

in paragraph (c)(5), the Department 

multiplied the existing $300 penalty 

increase by the inflation adjustment 

factor for 2001 of 1.33842, which 

resulted in a penalty increase of $402 

(rounded to the nearest dollar). The 

Department has not previously updated 

these penalty amounts pursuant to the 

Inflation Adjustment Act and the 

multiplier for each (1.33842) is less than 

2.5, the penalty amount (100 percent) 

plus the statutory cap (150 percent). 

Thus, the amount of the increase for 

each is necessarily less than the 

statutory cap of 150 percent of the 

existing penalty amount. For penalties 

assessed after August 1, 2016, whose 

associated violations occurred after 

November 2, 2015, final § 726.302 

therefore increases the daily base 

penalty for operators employing fewer 

than 25 employees from $100 to $134; 

increases the daily base penalty for 

operators employing 25 to 50 employees 

from $200 to $268; increases the daily 

base penalty for operators employing 51 

to 100 employees from $300 to $402; 

increases the daily base penalty for 

operators employing more than 100 

employees from $400 to $535; increases 

the daily base penalty increase for 

operators who continue to be in 

violation more than 10 days after 

receiving the Director’s notice of 

violation from $100 to $134; and 

increases the daily base penalty increase 

for operators who have been subject to 

a previous penalty assessment from 

$300 to $402. 

To adjust the existing maximum daily 

base penalty in paragraph (c)(5), the 

Department multiplied the penalty 

amount last established by statute or 

regulation other than pursuant to the 

Inflation Adjustment Act, $1,000, by the 

inflation adjustment factor for 1978 of 

3.54453, which resulted in a penalty of 

$3,545 (rounded to the nearest dollar). 

The amount of the increase from 

existing § 726.302(c)(5)’s $1,100 

maximum penalty to $3,545 is $2,445, 

which is more than the statutory cap of 

150 percent of the existing $1,100 

penalty, which is $1,650. Accordingly, 

the amount of the increase is limited by 

the statutory cap to a total of $1,650. For 

penalties assessed after August 1, 2016, 

whose associated violations occurred 

after November 2, 2015, final § 726.302 

therefore increases the maximum daily 

base penalty for any violation of § 726.4 

from $1,100 to $2,750 (the current 

$1,100 penalty amount plus the $1,650 

statutory cap). 

The Department also moves 

discussion of the maximum daily base 

penalty from subparagraph (c)(5) to new 

subparagraph (c)(6) for greater clarity. 

No substantive change results from or is 

intended by this technical edit. 

C. Office of the Secretary (29 CFR Part 

5 and 41 CFR Part 50–201) 

1. General 

This section C of the preamble 

addresses the civil monetary penalties 

provisions of the Contract Work Hours 

and Safety Standards Act (CWHSSA) 

and the Walsh-Healey Public Contracts 

Act (PCA), as amended. These 

provisions are included in regulations 

established by the Office of the 

Secretary, which have been delegated to 

WHD for enforcement. Paragraphs 2(a) 

and (b) explain revisions to each of 

these civil money penalties. 

2. Specific Penalty Increases 

a. Section 5.8(a)—Liquidated Damages 

Under the Contract Work Hours and 

Safety Standards Act 

Section 3702(c) of title 40 of the 

United States Code and existing 29 CFR 

5.8(a) impose ‘‘liquidated damages’’ if a 

laborer or mechanic is not paid wages 

at a rate not less than one and one-half 

times the basic rate of pay for all hours 

worked in excess of forty hours in any 

workweek on contracts covered by 

CWHSSA, to be computed with respect 

to each laborer or mechanic employed 


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4Although the statute and regulation refer to the 

amount assessed as ‘‘liquidated damages’’ it is 

appropriate to treat the amount as a civil money 

penalty for purposes of the Inflation Adjustment 

Act because the amount due is paid to the 

government, not the laborer or mechanic. Indeed, 

the Department of Labor has long recognized that 

the CWHSSA damages provision ‘‘operate[s] as [a] 

civil monetary penalt[y].’’ Letter to Honorable Carl 

Levin, Chairman, Subcommittee on Oversight of 

Government Management, from Ann McLaughlin, 

Secretary of Labor, (Feb. 22, 1988). 

5Although the statute and regulation refer to the 

amount assessed as ‘‘liquidated damages’’ it is 

appropriate to treat the amount as a civil money 

penalty for purposes of the Inflation Adjustment 

Act because the amount due is paid to the 

government, not the worker. Indeed, the 

Department of Labor has long recognized that the 

Walsh-Healey Public Contracts Act damages 

provision ‘‘operate[s] as [a] civil monetary 

penalt[y].’’ Letter to Honorable Carl Levin, 

Chairman, Subcommittee on Oversight of 

Government Management, from Ann McLaughlin, 

Secretary of Labor, (Feb. 22, 1988). 

6The Department and the Department of 

Homeland Security are jointly publishing a separate 

IFR to implement the Inflation Adjustment Act’s 

requirements with respect to the civil money 

penalty provisions found at 29 CFR 503.23. 

in violation of CWHSSA.4 The penalty 

amount of $10 for each calendar day in 

the workweek on which such individual 

was required or permitted to work in 

excess of forty hours without payment 

of required overtime wages was last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act in 1962 and is the same 

as the existing penalty amount. See 

Contract Work Hours Standards Act, 

Title I of Public Law 87–581, § 102(b)(2) 

(Aug. 13, 1962). 

To adjust the existing penalty for this 

section, the Department multiplied that 

penalty amount of $10 by the inflation 

adjustment factor for 1962 of 7.82362, 

which would have resulted in a penalty 

of $78. The amount of the increase 

from $10 to $78 is $68, which exceeds 

the statutory cap of 150 percent of the 

existing $10, which is $15; accordingly, 

the amount of the increase is limited by 

the statutory cap to a total of $15. 

Consequently, § 5.8(a) is revised to 

increase the penalty if a laborer or 

mechanic is not paid wages at least one 

and one-half times the basic rate of pay 

for all hours worked in excess of forty 

hours in any workweek from $10 to $25 

for each calendar day in the workweek 

on which such individual was required 

or permitted to work in excess of forty 

hours without payment of required 

overtime wages. Conforming changes to 

reflect the adjusted penalty amount 

were also made to § 5.5(b)(2). 

b. Section 50–201.3—Public Contracts, 

Department of Labor; Insertion of 

Stipulations. 

Section 6503(b)(1) of title 41 of the 

United States Code and existing 41 CFR 

50–201.3(e) impose ‘‘liquidated 

damages’’ 5 of $10 per day for each 

individual under 16 years of age and 

each incarcerated individual knowingly 

employed in the performance of a 

contract covered by the PCA, as 

amended. The penalty amount of $10 

for each day and for each individual 

under 16 years of age and each 

incarcerated individual knowingly 

employed was last established by statute 

or regulation other than the Prior 

Inflation Adjustment Act in 1936 and is 

the same as the existing penalty amount. 

See Walsh-Healey Act of 1936, 49 Stat. 

2036, § 2 (June 30, 1936). 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that penalty amount of $10 

by the inflation adjustment factor for 

1936 of 16.98843, which would have 

resulted in a penalty of $170. The 

amount of the increase from $10 to $170 

is $160, which exceeds the statutory cap 

of 150 percent of the existing $10 

penalty, which is $15. Accordingly, the 

amount of the increase is limited by the 

statutory cap to a total of $15. 

Consequently, § 50–201.3(e) is revised 

to increase the penalty for the knowing 

employment on a covered contract of 

individuals under 16 or who are 

incarcerated from $10 to $25 per day. 

D. Wage and Hour Division (29 CFR 

Parts 500, 501, 530, 570, 578, 579, 801, 

825) 

1. General 

This section D of the preamble 

addresses the civil monetary penalties 

administered by WHD to enforce 

provisions of the Migrant and Seasonal 

Agricultural Worker Protection Act, the 

Immigration and Nationality Act,6 the 

Fair Labor Standards Act, the Employee 

Polygraph Protection Act, and the 

Family and Medical Leave Act. 

Paragraphs 2(a) through (g) explain 

revisions to each of these civil penalties 

administered and enforced by WHD. 

a. Section 500.1—Purpose and Scope 

Section 503(a)(1) of the Migrant and 

Seasonal Agricultural Worker Protection 

Act (MSPA), 29 U.S.C. 1853(a)(1), and 

existing 29 CFR 500.1(e), authorize the 

Secretary to impose a civil money 

penalty of not more than $1,000 per 

violation on persons who violate MSPA 

or any regulation under MSPA. The 

maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was set in 1983 and is 

the same as the existing maximum 

penalty amount. See MSPA, Public Law 

97–470 (Jan. 14, 1983). 

To adjust the existing civil money 

penalty for this paragraph, the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 1983 of 2.35483, 

which resulted in a maximum penalty 

of $2,355. The amount of the increase 

from $1,000 to $2,355 is $1,355, which 

is less than the statutory cap of 150 

percent of the existing $1,000 penalty, 

which is $1,500; accordingly, the 

amount of the increase is not limited by 

the statutory cap. Consequently, 

§ 500.1(e) is revised to increase the 

maximum penalty for violations of 

MSPA or the MSPA regulations from 

$1,000 to $2,355 per violation. 

b. Section 501.19—Civil Money Penalty 

Assessment 

Section 218(g)(2) of the INA, 8 U.S.C. 

1188(g)(2), authorizes the Secretary of 

Labor to impose appropriate penalties in 

order to assure employer compliance 

with the terms and conditions of 

employment under the H–2A visa 

program. Pursuant to this and other 

authorities, the Secretary has 

promulgated regulations through notice 

and comment rulemaking regarding the 

assessment of civil money penalties. 

See, e.g., Final Rule, Temporary 

Agricultural Employment of H–2A 

Aliens in the United States, 75 FR 6884 

(Feb. 12, 2010) (codified at 29 CFR part 

501 and 20 CFR part 655) (2010 H–2A 

Final Rule). 29 CFR 501.19(a) of these 

regulations provides for the imposition 

of civil money penalties for each 

violation of the work contract, or the 

obligations imposed by 8 U.S.C. 1188, 

20 CFR part 655, subpart B, or the 

regulations in 29 CFR part 501. Section 

501.19(c) through (f) provides the 

maximum civil money penalty amounts 

for various violations as specified 

below. 

First, existing § 501.19(c) provides 

that a civil money penalty for each 

violation of the work contract or of the 

H–2A visa program’s statutory or 

regulatory requirements will not exceed 

$1,500 per violation, with exceptions as 

specified below. The maximum penalty 

amount last established by statute or 

regulation other than the Prior Inflation 

Adjustment Act was set in 2010 and is 

the same as the existing maximum 

penalty amount. See 2010 H–2A Final 

Rule. 

To adjust the existing civil money 

penalty for § 501.19(c), the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 2010 of 1.08745, which 

resulted in a maximum penalty of 

$1,631. The amount of the increase from 

$1,500 to $1,631 is $131, which is less 

than the statutory cap of 150 percent of 


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the existing $1,500 penalty, which is 

$2,250; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 501.19(c) is revised 

to increase the maximum penalty for 

violations specified therein from $1,500 

to $1,631 per violation. 

Second, existing § 501.19(c)(1) 

provides that a civil money penalty for 

each willful violation of the work 

contract, of the H–2A visa program’s 

statutory or regulatory requirements, or 

for each act of discrimination prohibited 

by § 501.4 shall not exceed $5,000. The 

maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was set in 2008 and is 

the same as the existing maximum 

penalty amount. See Final Rule, 

Temporary Agricultural Employment of 

H–2A Aliens in the United States; 

Modernizing the Labor Certification 

Process and Enforcement, 73 FR 77,110 

(Dec. 18, 2008) (2008 H–2A Final Rule). 

This penalty amount was not adjusted 

by the H–2A 2010 Final Rule. 

Accordingly, we consider 2008 as the 

year in which this maximum penalty 

amount was last established by statute 

or regulation other than the Prior 

Inflation Adjustment Act. 

To adjust the existing civil money 

penalty for § 501.19(c)(1), the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 2008 of 1.09819, 

which resulted in a maximum penalty 

of $5,491. The amount of the increase 

from $5,000 to $5,491 is $491, which is 

less than the statutory cap of 150 

percent of the existing $5,000 penalty, 

which is $7,500; accordingly, the 

amount of the increase is not limited by 

the statutory cap. Consequently, 

§ 501.19(c)(1) is revised to increase the 

maximum penalty for violations 

specified therein from $5,000 to $5,491. 

Third, existing § 501.19(c)(2) provides 

that a civil money penalty for a 

violation of a housing or transportation 

safety and health provision of the work 

contract or of the H–2A visa program’s 

statutory or regulatory requirements that 

proximately causes the death or serious 

injury of any worker shall not exceed 

$50,000 per worker. The maximum 

penalty amount last established by 

statute or regulation other than the Prior 

Inflation Adjustment Act was set in 

2010 and is the same as the existing 

maximum penalty amount. See 2010 

H–2A Final Rule. 

To adjust the existing civil money 

penalty for § 501.19(c)(2), the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 2010 of 1.08745, 

which resulted in a maximum penalty 

of $54,373. The amount of the increase 

from $50,000 to $54,373 is $4,373, 

which is less than the statutory cap of 

150 percent of the existing $50,000 

penalty, which is $75,000; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 501.19(c)(2) is revised to increase the 

maximum penalty for violations 

specified therein from $50,000 to 

$54,373 per worker. 

Fourth, existing § 501.19(c)(4) 

provides that a civil money penalty for 

a repeat or willful violation of a housing 

or transportation safety and health 

provision of the work contract or of the 

H–2A visa program’s statutory or 

regulatory requirements that 

proximately causes the death or serious 

injury of any worker shall not exceed 

$100,000 per worker. The maximum 

penalty amount last established by 

statute or regulation other than the Prior 

Inflation Adjustment Act was set in 

2010 and is the same as the existing 

maximum penalty amount. See 2010 

H–2A Final Rule. 

To adjust the existing civil money 

penalty for § 501.19(c)(4), the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 2010 of 1.08745, 

which resulted in a maximum penalty 

of $108,745. The amount of the increase 

from $100,000 to $108,745 is $8,745, 

which is less than the statutory cap of 

150 percent of the existing $100,000 

penalty, which is $150,000; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 501.19(c)(4) is revised to increase the 

maximum penalty for violations 

specified therein from $100,000 to 

$108,745 per worker. 

Fifth, existing § 501.19(d) provides 

that a civil money penalty for failure to 

cooperate with a WHD investigation 

shall not exceed $5,000 per 

investigation. The maximum penalty 

amount last established by statute or 

regulation other than the Prior Inflation 

Adjustment Act was set in 2008 and is 

the same as the existing maximum 

penalty amount. See 2008 H–2A Final 

Rule. This penalty amount was not 

adjusted by the H–2A 2010 Final Rule. 

Accordingly, we consider 2008 as the 

year in which this maximum penalty 

amount was last established by statute 

or regulation other than the Prior 

Inflation Adjustment Act. 

To adjust the existing civil money 

penalty for § 501.19(d), the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 2008 of 1.09819, which 

resulted in a maximum penalty of 

$5,491. The amount of the increase from 

$5,000 to $5,491 is $491, which is less 

than the statutory cap of 150 percent of 

the existing $5,000 penalty, which is 

$7,500; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 501.19(d) is 

revised to increase the maximum 

penalty for failure to cooperate with a 

WHD investigation from $5,000 to 

$5,491 per investigation. 

Sixth, existing § 501.19(e) provides 

that a civil money penalty for laying off 

or displacing any U.S. worker 

employed, under the circumstances 

specified therein, shall not exceed 

$15,000 per violation per worker. The 

maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was set in 2010 and is 

the same as the existing maximum 

penalty amount. See 2010 H–2A Final 

Rule. 

To adjust the existing civil money 

penalty for § 501.19(e), the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 2010 of 1.08745, which 

resulted in a maximum penalty of 

$16,312. The amount of the increase 

from $15,000 to $16,312 is $1,312, 

which is less than the statutory cap of 

150 percent of the existing $15,000 

penalty, which is $22,500; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 501.19(e) is revised to increase the 

maximum penalty for violations 

specified therein from $15,000 to 

$16,312 per violation per worker. 

Finally, existing § 501.19(f) provides 

that a civil money penalty for 

improperly rejecting a U.S. worker who 

is an applicant for employment, in 

violation of the H–2A visa program’s 

statutory or regulatory requirements, 

shall not exceed $15,000 per violation 

per worker. The maximum penalty 

amount last established by statute or 

regulation other than the Prior Inflation 

Adjustment Act was set in 2010 and is 

the same as the existing maximum 

penalty amount. See 2010 H–2A Final 

Rule. 

To adjust the existing civil money 

penalty for § 501.19(f), the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 2010 of 1.08745, which 

resulted in a maximum penalty of 

$16,312. The amount of the increase 

from $15,000 to $16,312 is $1,312, 

which is less than the statutory cap of 

150 percent of the existing $15,000 

penalty, which is $22,500; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 501.19(f) is revised to increase the 

maximum penalty for violations 


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7Except for child labor violations, which are 

covered under 29 CFR part 579. 

specified therein from $15,000 to 

$16,312 per violation per worker. 

c. Section 530.302—Amounts of Civil 

Money Penalties 

Section 11(d) of the Fair Labor 

Standards Act (FLSA), 29 U.S.C. 211(d), 

authorizes the Administrator of the 

WHD to issue such regulations and 

orders as necessary to assure 

compliance with the FLSA’s 

requirements with respect to industrial 

homework. Pursuant to this and other 

authorities, the Administrator has 

promulgated regulations through notice 

and comment rulemaking. See Final 

Rule, Employment of Homeworkers in 

Certain Industries; Records To Be Kept 

by Employers, 53 FR 45706 (Nov. 10, 

1988) (codified at 29 CFR parts 516 and 

530). Section 530.302 of these 

regulations provides for the imposition 

of civil money penalties. Existing 

§ 530.302(a) imposes a civil money 

penalty of not more than $500 per 

affected homeworker for any violation 

of the FLSA related to homework 7, or of 

part 530, or of the assurances given in 

connection with the issuance of a 

homeworker certificate. Existing 

§ 530.302(b) states that the amount of 

civil money penalties shall be 

determined per affected homeworker 

within the limits set forth in a following 

table, except that no penalty shall be 

assessed in the case of violations which 

are deemed to be de minimis in 

nature. The table appears in the 

existing regulation as follows in Table 

A: 

TABLE A—EXISTING HOMEWORK PENALTIES

Nature of violation 

Penalty per affected homeworker 

Minor Substantial 

Repeated, 

intentional 

or knowing 

Recordkeeping ............................................................................................................................. $10–100 $100–200 $200–500 

Monetary violations ...................................................................................................................... $10–100 $100–200 ........................

Employment of homeworkers without a certificate ...................................................................... ........................ $100–200 $200–500 

Other violations of statutes, regulations or employer assurances .............................................. $10–100 $100–200 $200–500 

The maximum penalty amount last 

established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was $500 in 1988 and 

is the same as the existing maximum 

penalty amount. See 53 FR 45706, 

45724. 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied the maximum penalty 

amount of $500 by the inflation 

adjustment factor for 1988 of 1.97869, 

which resulted in a maximum penalty 

of $989. The amount of the increase 

from $500 to $989 is $489, which is less 

than the statutory cap of 150 percent of 

the existing $500 penalty, which is 

$750; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 530.302(a) and (b) 

are revised to increase the maximum 

penalty from $500 to $989 and the 

percentage of that maximum penalty 

amount for minor (2 percent to 20 

percent); substantial (20 percent to 40 

percent); or repeated, intentional, or 

knowing (40 percent to 100 percent) 

violations by the same percentages of 

the adjusted maximum penalty amount 

as under the existing section. As a 

result, the revised penalty amounts are 

$20–198 for a minor violation; $198–396 

for a substantial violation; and $396– 

989 for a repeated, intentional, or 

knowing violation. 

d. Section 578.3—What types of 

violations may result in a penalty being 

assessed? 

Section 16(e)(2) of the FLSA, 29 

U.S.C. 216(e)(2), and existing 29 CFR 

578.3(a), provide for the assessment of 

civil money penalties for any person 

who repeatedly or willfully violates 

section 6 (minimum wage) or section 7 

(overtime) of the FLSA. Existing 

§ 578.3(a) provides for a civil money 

penalty of up to $1,100 per violation, 

and that level is the result of an 

inflation adjustment in 2001. See Final 

Rule, Adjustment of Civil Money 

Penalties for Inflation, 66 FR 63501 

(Dec. 7, 2001). The maximum penalty 

amount last established by statute or 

regulation other than the Prior Inflation 

Adjustment Act was $1,000 in 1989. See 

Fair Labor Standards Amendments of 

1989, Pub. L. 101–157, § 9 (Nov. 17, 

1989). 

To adjust the existing civil money 

penalty for this paragraph, the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 1989 of 1.89361, 

which resulted in a maximum penalty 

of $1,894. The amount of the increase 

from $1,100 to $1,894 is $794, which is 

less than the statutory cap of 150 

percent of the existing $1,100 penalty, 

which is $1,650; accordingly, the 

amount of the increase is not limited by 

the statutory cap. Consequently, 

§ 578.3(a) is revised to increase the 

maximum penalty for a repeated or 

willful violation of section 6 (minimum 

wage) or section 7 (overtime) of the 

FLSA from $1,100 to $1,894 per 

violation. 

Conforming changes to reflect the 

adjusted maximum civil money penalty 

amount were also made to § 579.1(a)(2). 

In addition, historical information 

concerning penalties for repeated or 

willful violations of Sections 6 or 7 of 

the FLSA contained in 29 CFR 578.1 is 

revised to reflect the passage of the 

Federal Civil Penalties Inflation 

Adjustment Act Improvement Act of 

2015 (Pub. L. 114–74) and its 

requirement to make civil money 

penalty adjustments annually. 

e. Section 579.1—Purpose and Scope 

Section 16(e)(1)(A) of the FLSA and 

existing 29 CFR 579.1(a)(1)(i) provide 

for the imposition of civil money 

penalties for any violations of the 

provisions of sections 12 or 13(c) of the 

FLSA, relating to child labor, or any 

regulation issued pursuant to such 

sections. There are three levels of civil 

money penalties provided for by these 

authorities. 

First, existing § 579.1(a)(1)(i)(A) 

provides for a civil money penalty, not 

to exceed $11,000, for each employee 

who was the subject of a child labor 

violation. This penalty corresponds to 

the statutory provision at 29 U.S.C. 

216(e)(1)(A)(i). The penalty amount last 

established by statute or regulation for 

this provision other than the Prior 


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Inflation Adjustment Act was $11,000 in 

2008. See Genetic Information 

Nondiscrimination Act of 2008 (GINA), 

Pub. L. 110–233, § 302(a) (May 21, 

2008). 

To adjust the existing civil money 

penalty for this paragraph, the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 2008 of 1.09819, 

which resulted in a maximum penalty 

of $12,080. The amount of the increase 

from $11,000 to $12,080 is $1,080, 

which is less than the statutory cap of 

150 percent of the existing $11,000 

penalty, which is $16,500; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 579.1(a)(1)(i)(A) is revised to increase 

the maximum penalty for violations of 

the provisions of sections 12 or 13(c) of 

the FLSA, relating to child labor, or any 

regulation issued pursuant to such 

sections, from $11,000 to $12,080 for 

each employee who was the subject of 

such a violation. 

Conforming changes to reflect the 

adjusted maximum civil money penalty 

amount were also made to 29 CFR 

570.140(b)(1). 

Second, existing § 579.1(a)(1)(i)(B) 

provides for a civil money penalty, not 

to exceed $50,000, for each violation of 

section 12 or 13(c) of the FLSA, relating 

to child labor, or any regulation issued 

pursuant to those sections that causes 

the death or serious injury of any 

employee under the age of 18 years. 

This penalty corresponds to the 

statutory provision at 29 U.S.C. 

216(e)(1)(A)(ii). That maximum amount 

was last established by statute or 

regulation other than the Prior Inflation 

Adjustment Act in 2008 and is the same 

as the existing maximum penalty 

amount. See GINA § 302(a). 

To adjust the existing civil money 

penalty for this paragraph, the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 2008 of 1.09819, 

which resulted in a maximum penalty 

of $54,910. The amount of the increase 

from $50,000 to $54,910 is $4,910, 

which is less than the statutory cap of 

150 percent of the existing $50,000 

penalty, which is $75,000; accordingly, 

the amount of the increase is not limited 

by the statutory cap. Consequently, 

§ 579.1(a)(1)(i)(B) is revised to increase 

the maximum penalty for violations of 

that provision, from $50,000 to $54,910 

for each such violation. 

Section 579.5(a) has also been revised 

to remove superfluous language 

regarding the effective date of this civil 

money penalty. Conforming changes to 

reflect the adjusted maximum civil 

money penalty amount were also made 

to 29 CFR 570.140(b)(2). 

Third, existing § 579.1(a)(1)(i)(B) also 

provides that the maximum penalty for 

a violation of section 12 or 13(c) of the 

FLSA, relating to child labor, or any 

regulation issued pursuant to those 

sections that causes the death or serious 

injury of any employee under the age of 

18 years may be doubled if the violation 

is repeated or willful. Therefore, under 

revised § 579.1(a)(1)(i)(B), the maximum 

penalty amount for such a willful or 

repeated violation is calculated by 

doubling the adjusted penalty of 

$54,910 for a child labor violation 

resulting in serious injury or death (i.e., 

$109,820). No change to regulatory text 

is needed to make this adjustment. 

In addition, existing § 579.1(a) and (b) 

are revised to reflect the passage of the 

Federal Civil Penalties Inflation 

Adjustment Act Improvement Act of 

2015 (Pub. L. 114–74) and its 

requirement to make civil money 

penalty adjustments annually, and to 

remove superseded information 

regarding the effective date of increased 

civil money penalties. 

f. Section 801.42—Civil Money 

Penalties—Assessment 

Section 6(a)(1) of the Employee 

Polygraph Protection Act of 1988 

(EPPA), 29 U.S.C. 2005(a)(1) and 

existing 29 CFR 801.42(a) impose a civil 

money penalty of not more than $10,000 

for any violation of the EPPA or of part 

801. The maximum penalty amount 

last established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was $10,000 in 1988 

and is the same as the existing 

maximum penalty amount. See EPPA, 

Pub. L. 100–347 (June 27, 1988). 

To adjust the existing civil money 

penalty for this section, the Department 

multiplied that maximum penalty 

amount by the inflation adjustment 

factor for 1988 of 1.97869, which 

resulted in a penalty of $19,787. The 

amount of the increase from $10,000 to 

$19,787 is $9,787, which is less than the 

statutory cap of 150 percent of the 

existing $10,000 penalty, which is 

$15,000; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 801.42(a) is 

revised to increase the maximum 

penalty for a violation of the EPPA from 

$10,000 to $19,787. 

g. Section 825.300—Employer Notice 

Requirements 

Section 109(b) of the Family and 

Medical Leave Act (FMLA), as 

amended, 29 U.S.C. 2619(b), and 

existing 29 CFR 825.300(a)(1) provide 

for the assessment of a civil money 

penalty for each willful violation of the 

posting requirement of the FMLA. 

Existing § 825.300(a)(1) provides for a 

civil money penalty of up to $110 for 

each separate offense, and that level is 

the result of an inflation adjustment in 

2008. See Final Rule, The Family and 

Medical Leave Act of 1993, 73 FR 67934 

(Nov. 17, 2008). The penalty amount 

last established by statute or regulation 

other than the Prior Inflation 

Adjustment Act was $100 in 1993. See 

FMLA of 1993, Pub. L. 103–3, § 109(b) 

(Feb. 5, 1993). 

To adjust the existing civil money 

penalty for this paragraph, the 

Department multiplied that maximum 

penalty amount by the inflation 

adjustment factor for 1993 of 1.63238, 

which resulted in a maximum penalty 

of $163. The amount of the increase 

from $110 to $163 is $53, which is less 

than the statutory cap of 150 percent of 

the existing $110 penalty, which is 

$165; accordingly, the amount of the 

increase is not limited by the statutory 

cap. Consequently, § 578.300(a)(1) is 

revised to increase the penalty for 

violations of the posting requirement of 

the FMLA from $110 to $163 for each 

separate offense. 

E. Occupational Safety and Health 

Administration (29 CFR Parts 1902, 

1903) 

1. General 

This section E of the preamble 

addresses the civil monetary penalties 

administered by the Occupational 

Safety and Health Administration 

(OSHA) to enforce provisions of the 

Occupational Safety & Health Act of 

1970 (OSH Act), as amended. Paragraph 

2(a) explains conforming edits to the 

agency’s State Plan regulations. 

Paragraph 2(b) explains revisions to 

each of the civil penalties administered 

and enforced by OSHA. 

2. Specific Penalty Increases 

a. Section 1902.4(c)(2)(xi)—Indices of 

Effectiveness 

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

provides that a State may assume 

responsibility for development and 

enforcement of its own occupational 

safety and health standards by 

submitting a State Plan. State Plan 

regulations at 29 CFR 1902.3(c)(1) and 

(d)(1) provide that State Plans must 

develop or adopt occupational safety 

and health standards and an 

enforcement program for those 

standards that are at least as effective as 

federal OSHA’s standards and 

enforcement program. Existing 

§ 1902.4(c)(2)(xi) provides that in order 

to satisfy this requirement of 


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8Section 502(c)(4) was enacted in 1993 by Pub. 

L. 103–66, 107 Stat.312. A new violation was added 

to section 502(c)(4) in 2006 by Pub. L. 109–280, 120 

Stat. 780. Section 502(c)(7) was enacted in 2002 by 

Pub. L. 107–204, 116 Stat. 745. Section 502(c)(7) 

also was amended in 2006 by Pub. L. 109–208, 120 

Stat. 780, to add a new violation. 

effectiveness, State Plans must have 

effective sanctions, such as those 

prescribed in the OSH Act. This IFR 

amends § 1902.4(c)(2)(xi) to clarify that 

State Plans must provide sanctions as 

effective as those set forth in the OSH 

Act and in § 1903.15(d), against privatesector employers who violate State 

standards and orders. 

b. Section 1903.15—OSH Act Penalties 

The penalty amounts set forth in 

section 17(a) to (d) and (i) of the OSH 

Act (29 U.S.C. 666(a) to (d) and (i)) were 

last updated by the Omnibus Budget 

Reconciliation Act of 1990 on November 

5, 1990. Pub. L. 101–508. To adjust the 

civil penalties for Section 17(a) to (d) 

and (i), the Department multiplied the 

penalty amounts by the inflation 

adjustment factor for 1990 of 1.78156. 

None of the resulting penalty amounts 

exceeded the 150 percent statutory cap. 

Other references to penalty amounts in 

Part 1903 are also amended by the new 

penalty amounts set out in § 1903.15(d). 

i. Willful or Repeated Violation of the 

OSH Act, 29 U.S.C 666(a) 

Section 17(a) of the OSH Act, 29 

U.S.C 666(a), provides that employers 

who willfully or repeatedly violate the 

requirements of section 5 of the OSH 

Act, any standards, rules or orders 

promulgated under section 6 of the OSH 

Act, or applicable regulations may be 

assessed a civil penalty of not more than 

$70,000 for each violation, but not less 

than $5,000 for each willful violation. 

No minimum penalty is set forth in the 

OSH Act for repeated violations. To 

adjust the existing civil money penalty 

for this paragraph, the Department 

multiplied the penalty amounts by the 

inflation adjustment factor for 1990 of 

1.78156, which resulted in a maximum 

penalty of $124,709 for willful and 

repeated violations, and a minimum 

penalty of $8,908 for willful violations. 

The updated civil monetary penalties 

for willful and repeated violations are 

set out in § 1903.15(d)(1) and (2). 

ii. Serious Violation of the OSH Act of 

1970, 29 U.S.C 666(b) 

Section 17(b) of the OSH Act, 29 

U.S.C 666(b), provides that employers 

who have received a citation for a 

serious violation of the requirements of 

section 5 of the OSH Act, of any 

standard, rule, or order promulgated 

under section 6 of the OSH Act, or 

applicable regulations may be assessed 

a civil penalty up to $7,000 for each 

violation. After applying the inflation 

adjustment factor, the penalty amounts 

were rounded to the nearest dollar, 

which resulted in a maximum penalty 

of $12,471. The updated maximum civil 

monetary penalty for serious violations 

is set out in § 1903.15(d)(3). 

iii. Other-Than-Serious Violation of the 

OSH Act of 1970, 29 U.S.C 666(c) 

Section 17(c) of the OSH Act, 29 

U.S.C 666(c), provides that employers 

who have received a citation for a 

violation of the requirements of section 

5 of the OSH Act, any standard, rule or 

order promulgated under section 6 of 

the OSH Act, or applicable regulations, 

and such violation is determined not to 

be of a serious nature, may be assessed 

a civil penalty of up to $7,000 for each 

violation. After applying the inflation 

adjustment factor, the penalty amounts 

were rounded to the nearest dollar, 

which resulted in a maximum penalty 

of $12,471 for each day during which 

such failure or violation continues. The 

updated maximum civil monetary 

penalty for other-than-serious violations 

is set out in § 1903.15(d)(4). 

iv. Failure To Correct a Violation of the 

OSH Act of 1970, 29 U.S.C 666(d) 

Section 17(d), 29 U.S.C 666(d), 

provides that any employer who fails to 

correct a violation for which a citation 

has been issued under section 9(a) of the 

OSH Act within the period permitted 

for the correction may be assessed a 

civil penalty of not more than $7,000 for 

each day during which such failure or 

violation continues. After applying the 

inflation adjustment factor, the penalty 

amounts are rounded to the nearest 

dollar, which resulted in a maximum 

penalty of $12,471. The updated 

maximum civil monetary penalty for 

failing to correct a violation is set out in 

§ 1903.15(d)(5). 

v. Violation of a Posting Requirement of 

the OSH Act of 1970, 29 U.S.C 666(i) 

Section 17(i) of the OSH Act, 29 

U.S.C. 666(i), provides that employers 

who violate any of the posting 

requirements, as prescribed under 

provisions of the OSH Act, shall be 

assessed a civil penalty of up to $7,000 

for each violation. After applying the 

inflation adjustment factor, the penalty 

amounts are rounded to the nearest 

dollar, which resulted in a maximum 

penalty of $12,471. The updated 

maximum civil monetary penalty for 

violations of the posting requirements is 

set out in § 1903.15(d)(6). 

F. Employee Benefits Security 

Administration (29 CFR Part 2560, 2575, 

2590) 

1. General 

This section F of the preamble 

addresses the civil monetary penalties 

administered by EBSA to enforce title I 

of the Employee Retirement Income 

Security Act of 1974, as amended, 

(ERISA). Paragraph 2(a) explains how 

the Department determined the date 

each civil monetary penalty was last 

adjusted by law or regulation (other 

than the Prior Inflation Adjustment Act, 

as amended), and Paragraph 2(b) 

describes the calculation of the catch-up 

adjustment for each ERISA civil 

monetary penalty through the use of a 

table. Paragraph 2(c) addresses the 

restructuring of 29 CFR part 2575 and 

other technical changes to the 

Department’s regulations needed to 

reflect the amendments made to the 

Prior Inflation Adjustment Act by the 

Inflation Adjustment Act. 

2. Specific Penalty Increases 

a. Determination of Date Civil Monetary 

Penalty was Last Adjusted by Law or 

Regulation (Other Than the Prior 

Inflation Adjustment Act) 

Section 5(b)(2)(B) of the Inflation 

Adjustment Act states that the initial 

cost-of-living adjustment (i.e., catch-up 

adjustment) shall be applied to the 

‘‘amount of the civil monetary penalty 

as it was most recently established or 

adjusted under a provision of law other 

than the [Prior Inflation Adjustment 

Act].’’ OMB guidance clarifies that the 

definition of the term ‘‘law’’ includes 

regulations where the statute grants the 

agency authority to establish a penalty 

or the dollar amount of the penalty by 

regulation. The Department has 

determined that no ERISA penalty 

amount has been adjusted by regulation 

or statute (other than the Prior Inflation 

Adjustment Act) subsequent to the 

enactment of the statute that established 

the initial amount of the penalty. 

Certain ERISA civil monetary 

penalties apply to violations of more 

than one ERISA provision. For example, 

new violations of ERISA were 

subsequently added to the civil penalty 

provisions of sections 502(c)(4), and 

502(c)(7).8 The addition of a violation to 

an existing penalty statute neither 

establishes nor adjusts the ‘‘amount of 

the civil monetary penalty’’ within the 

meaning of section 5(b)(2)(B) of the 

Inflation Adjustment Act. Because no 

ERISA civil monetary penalty amount 

has been adjusted by law (other than the 

Prior Inflation Adjustment Act) 

subsequent to its establishment, the 

enactment date of an ERISA penalty 

statute rather than the date a violation 

first becomes subject to the penalty 


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9Pub. L. 109–280, August 17, 2006, effective for 

failures occurring in plan years beginning after 

2007. 

10 Initially, section 502(c)(4) applied to a failure 

of a group health plan administrator to furnish 

information to the Medicare Medicaid Coverage 

Data Bank under former section 101(f) of ERISA. 

This requirement was repealed effective October 2, 

1996, by the Child Support Incentive Act of 1998, 

Pub. L. 105–200. The reference to section 101(f) in 

section 502(c)(4) was deleted and replaced with a 

reference to violation of the notice requirements of 

section 302(b)(7)(F)(vi) of ERISA by section 

104(a)(2) of the Pension Funding Equity Act of 

2004, Pub. L. 108–218. Sections 103(b)(2), 502(a)(2), 

502(b)(2) and 902(f)(2) of the PPA deleted the 

reference to section 302(b)(7)(F)(vi) and replaced it 

with references to violations of sections 101(j), 

101(k), 101(l) and section 514(e)(3) of ERISA. 

11Section 5(2)(b)(C) of the Inflation Adjustment 

Act states that increase in the penalty resulting from 

the initial or catch-up adjustment may not be 

greater than 150 percent of the penalty amount on 

November 2, 2015. Mathematically, a maximum 

increase of 150 percent equals 250 percent of the 

penalty. See Bipartisan Budget Act of 2015 Section 

by Section Summary at p. 6 available at http://

docs.house.gov/meetings/RU/RU00/CPRT-114- 

RU00-D001.pdf. 

determines both the amount of and the 

date from which the penalty is adjusted. 

For example, a failure to furnish certain 

multiemployer plan financial and 

actuarial information upon request 

under section 101(k) of ERISA will be 

subject to a penalty under ERISA 

section 502(c)(4) adjusted for inflation 

from 1993 (the year of enactment of 

section 502(c)(4), even though section 

101(k) violations did not become subject 

to section 502(c)(4) until 2008.9 This 

interpretation tracks the language of the 

statute and ensures that ERISA 

violations subject to the same penalty 

are adjusted for inflation in a consistent 

manner. The Department is of the view 

that this consistency will in turn reduce 

both confusion and, ultimately, the 

burden upon the regulated community. 

The enactment dates of the ERISA 

statutes establishing the amount of the 

civil monetary penalties follow in Table 

B: 

TABLE B—ENACTMENT DATES

Penalty statute: U.S.C. and ERISA 

citations 

Law (other than prior Inflation Adjustment Act) most recently establishing 

amount of ERISA civil monetary penalties Enactment date 

29 U.S.C. § 1059(b)/ERISA § 209(b) ....... Section 209(b) of the Employee Retirement Income Security Act of 1974, Pub. 

L. 93–406, 88 Stat. 829.

September 2, 1974. 

29 U.S.C. § 1132(c)(2)/ERISA § 502(c)(2) Section 9342(c)(2) of the Omnibus Reconciliation Act of 1987, Pub. L. 100– 

203, 101 Stat. 1330.

December 22, 

1987. 

29 U.S.C. § 1132(c)(4)/ERISA § 502(c)(4) Section 4301(c)(2) of the Omnibus Budget Reconciliation Act of 1993, Pub. L. 

103–66, 107 Stat. 312.

August 10, 1993.10

29 U.S.C. § 1132(c)(5)/ERISA § 502(c)(5) Section 101(e)(2) of the Health Insurance and Portability and Accountability 

Act of 1996, Pub. L. 104–91, 110 Stat. 1936.

August 21, 1996. 

29 U.S.C. § 1132(c)(6)/ERISA § 502(c)(6) Section 1503(c)(2)(B) of the Taxpayer Relief Act of 1997, Pub. L. 105–34, 111 

Stat. 788.

August 5, 1997. 

29 U.S.C. § 1132(c)(7)/ERISA § 502(c)(7) Section 306(b)(3) of the Sarbanes-Oxley Act of 2002, Pub. L. 107–204, 116 

Stat. 745.

July 30, 2002. 

29 U.S.C. § 1132(c)(8)/ERISA § 502(c)(8) Section 202(b)(3) of the Pension Protection Act of 2006 (PPA), Pub. L. 109– 

280, 120 Stat. 780.

August 17, 2006. 

29 U.S.C. § 1132(c)(9)(A)/ERISA 

§ 502(c)(9)(A).

Section 311(b)(1)(E) of the Children’s Health Insurance Program Reauthorization Act of 2009, Pub .L. 111–3, 123 Stat. 8.February 4, 2009. 

29 U.S.C. § 1132(c)(9)(B)/ERISA 

§ 502(c)(9)(B).

Section 311(b)(1)(E) of the Children’s Health Insurance Program Reauthorization Act of 2009, Pub. L. 111–3, 123 Stat. 8.February 4, 2009. 

29 U.S.C. § 1132(c)(10)/ERISA 

§§ 502(c)(10)(B)(i), (C)(i), (C) (ii), and 

(D)(iii)(II).

Section 101(e) of the Genetic Information Nondiscrimination Act of 2008, Pub. 

L. 110–233, 122 Stat. 881.

May 21, 2008. 

29 U.S.C. § 1132(c)(12)/ERISA 

§ 502(c)(12).

Section 102(b)(6)(B) of the Cooperative and Small Employer Charity Pension 

Flexibility Act, Pub. L. 113–97, 128 Stat. 1101.

April 7, 2014. 

29 U.S.C. § 1132(m)/ERISA § 502(m) ..... Section 761(a)(9)(B)(ii) of the Uruguay Round Agreements Act, Pub. L. 103– 

465, 108 Stat. 4809.

December 8, 1994. 

29 U.S.C. § 1185d and 42 U.S.C. 

§ 300gg–15/ERISA § 715.

Sections 1001(5) and 1562(e) of the Patient Protection and Affordable Care 

Act, Pub. L. 111–148, 124 Stat. 119.

March 23, 2010. 

b. Calculation of Catch-Up Inflation 

Adjustment 

TableC shows the calculation of the 

catch-up adjustment. Column (1) 

contains the United States Code and 

ERISA citations for the penalty statute. 

Column (2) contains the dollar amount 

most recently established by law (other 

than the Prior Inflation Adjustment Act) 

for each ERISA civil monetary penalty 

along with a description of the 

violations subject to the penalty. 

Column (3) sets out the year the amount 

of the civil monetary penalty was most 

recently established by law (other than 

the Prior Inflation Adjustment Act) 

based on the date of enactment found in 

Table B. Column (4) sets out the factor 

determined by OMB to adjust for 

inflation from October of the 

corresponding year in column (3) to 

October 2015. Column (5) sets out the 

adjusted civil monetary penalty 

resulting from the product of the dollar 

amount of the civil monetary penalty set 

out in Column (2) multiplied by the 

inflation factor in column (4). Column 

(6) sets out the actual civil monetary 

penalty in effect on November 2, 2015. 

Column (7) sets out the maximum catchup penalty, which is the sum of the 

penalty amount in Column (6) plus the 

maximum penalty increase of 150 

percent for a total of 250 percent of the 

2015 penalty.11 Column (8) reflects the 

actual catch-up penalty, effective 

August 1, 2016, which is the lesser of 

the adjusted civil monetary penalty in 

Column (5) or the maximum civil 

monetary penalty in Column (7). 


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TABLE C—CALCULATION OF CATCH-UP ADJUSTMENT

(1) (2) (3) (4) (5) (6) (7) (8) 

ERISA penalty statute 

Civil monetary penalty 

(CMP) amount last 

established by law and 

description of ERISA 

violations subject to 

the CMP 

Year CMP 

amount last 

set by law 

other than 

prior Inflation Adjustment Act 

Inflation 

factor for 

year in 

column (3) 

Adjusted CMP— 

$ amount in 

column (2) × factor 

in column (4) 

CMP 

Amount 11/02/

2015 

CMP Cap—2.5 × column (6) 

Catch-Up CMP— 

lesser of column 

(5) or (7) 

29 U.S.C. 1059(b)/ 

ERISA § 209(b).

$10 per employee for failure to furnish reports 

(e.g., pension benefit 

statements) to certain 

former participants and 

beneficiaries or maintain 

records. 

1974 4.65436 $47 ....................... $11 ....................... $28 ....................... $28. 

29 U.S.C. 

1132(c)(2)/ERISA 

§ 502(c)(2).

Up to $1,000 per day for 

each: 

• Failure or refusal to file 

annual report (Form 

5500) required by ERISA 

§ 104; and.

1987 2.06278 2,063 .................... 1,100 .................... 2,750 .................... 2,063. 

• Failure of a multiemployer plan to certify endangered or critical status under § 305(b)(3)(C) 

treated as failure to file 

annual report. 

29 U.S.C. 

1132(c)(4)/ERISA 

§ 502(c)(4).

Up to a $1000 per day for 

each: 

• Failure to notify participants under ERISA 

§ 101(j) of certain benefit 

restrictions and/or limitations arising under Internal Revenue Code section 436;.

1993 1.63238 1,632 .................... 1,000 .................... 2,500 .................... 1,632. 

• Failure to furnish certain 

multiemployer plan financial and actuarial reports 

upon request under 

ERISA§ 101(k). 

• Failure to furnish estimate of withdrawal liability upon request under 

ERISA § 101(l); and 

• Failure to furnish automatic contribution arrangement notice under 

ERISA § 514(e)(3). 

29 U.S.C. 

1132(c)(5)/ERISA 

§ 502(c)(5).

Up to $1,000 per day for 

each failure of a multiple 

employer welfare arrangement to file report 

required by regulations 

issued under ERISA 

§ 101(g). 

1996 1.50245 1,502 .................... 1,100 .................... 2,750 .................... 1,502. 

29 U.S.C. 

1132(c)(6)/ERISA 

§ 502(c)(6).

Up to $100 per day for failure to furnish information 

requested by Secretary 

of Labor under ERISA 

§ 104(a)(6) but not greater than $1,000 per request. 

1997 1.47177 147 not to exceed 

1,472.

110 not to exceed 

1,100.

275 not to exceed 

2,750.

147 not to exceed 

1,472. 

29 U.S.C. 

1132(c)(7)/ERISA 

§ 502(c)(7).

Up to $100 per day for 

each failure to furnish a 

required blackout notice 

under section 101(i) of 

ERISA and of right to divest employer securities 

under section 101(m)— 

each statutory recipient a 

separate violation. 

2002 1.31185 131 ....................... 100 ....................... 250 ....................... 131. 


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TABLE C—CALCULATION OF CATCH-UP ADJUSTMENT—Continued 

(1) (2) (3) (4) (5) (6) (7) (8) 

ERISA penalty statute 

Civil monetary penalty 

(CMP) amount last 

established by law and 

description of ERISA 

violations subject to 

the CMP 

Year CMP 

amount last 

set by law 

other than 

prior Inflation Adjustment Act 

Inflation 

factor for 

year in 

column (3) 

Adjusted CMP— 

$ amount in 

column (2) × factor 

in column (4) 

CMP 

Amount 11/02/

2015 

CMP Cap—2.5 × column (6) 

Catch-Up CMP— 

lesser of column 

(5) or (7) 

29 U.S.C. 

1132(c)(8)/ERISA 

§ 502(c)(8).

Up to $1,100 per day for 

failure by a plan sponsor 

of a multiemployer plan 

in endangered status to 

adopt a funding improvement plan or a multiemployer plan in critical status to adopt a rehabilitation plan. Penalty also 

applies to a plan sponsor 

of an endangered status 

plan (other than a seriously endangered plan) 

that fails to meet its 

benchmark by the end of 

the funding improvement 

period. 

2006 1.17858 1,296 .................... 1,100 .................... 2,750 .................... 1,296. 

29 U.S.C. 

1132(c)(9)(A)/

ERISA 

§ 502(c)(9)(A).

Up to $100 per day for 

each failure by an employer to inform employees of CHIP coverage 

opportunities under 

ERISA 

§ 701(f)(3)(B)(i)(l)—each 

employee a separate violation. 

2009 1.10020 110 ....................... 100 ....................... 250 ....................... 110. 

29 U.S.C. 1132(c) 

(9)(B)/ERISA 

§ 502(c)(9) (B).

Up to $100 per day for 

each failure by a plan administrator to timely provide to any State information required to be 

disclosed under ERISA 

§ 701(f)(3)(B)(ii), regarding coverage coordination—each participant/

beneficiary a separate 

violation. 

2009 1.10020 110 ....................... 100 ....................... 250 ....................... 110. 

29 U.S.C. 

1132(c)(10)/

ERISA 

§ 502(c)(10).

$100 per participant or beneficiary per day during 

noncompliance period for 

failure by any plan sponsor of group health plan, 

or any health insurance 

issuer offering health insurance coverage in connection with the plan, to 

meet the requirements of 

ERISA §§ 702(a)(1)(F), 

(b)(3), (c) or (d); or § 701; 

or § 702(b)(1) with respect to genetic information. See ERISA 

§ 502(c)(10)(B)(i). 

2008 1.09819 110 ....................... 100 ....................... 250 ....................... 110. 

Minimum penalty of $2,500 

per participant or beneficiary for de minimis failures not corrected prior 

to notice from Secretary 

of Labor. See ERISA 

§ 502(c)(10)(C)(i). 

2008 1.09819 2,745 .................... 2,500 .................... 6,250 .................... 2,745. 

Minimum penalty of 

$15,000 per participant 

or beneficiary for failures 

which are not corrected 

prior to notice from Secretary of Labor and are 

not de minimis. See 

ERISA § 502(c)(10)(C)(ii). 

2008 1.09819 16,473 .................. 15,000 .................. 37,500 .................. 16,473. 

$500,000 cap on unintentional failures. See 

ERISA 

§ 502(c)(10)(D)(iii)(II). 

2008 1.09819 549,095 ................ 500,000 ................ 1.25 million ........... 549,095. 


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TABLE C—CALCULATION OF CATCH-UP ADJUSTMENT—Continued 

(1) (2) (3) (4) (5) (6) (7) (8) 

ERISA penalty statute 

Civil monetary penalty 

(CMP) amount last 

established by law and 

description of ERISA 

violations subject to 

the CMP 

Year CMP 

amount last 

set by law 

other than 

prior Inflation Adjustment Act 

Inflation 

factor for 

year in 

column (3) 

Adjusted CMP— 

$ amount in 

column (2) × factor 

in column (4) 

CMP 

Amount 11/02/

2015 

CMP Cap—2.5 × 

column (6) 

Catch-Up CMP— 

lesser of column 

(5) or (7) 

29 U.S.C. 

1132(c)(12)/ 

ERISA 

§ 502(c)(12).

Up to $100 per day for failure of CSEC plan sponsor to establish or update 

a funding restoration 

plan. 

2014 1.00171 100 ....................... 100 ....................... 250 ....................... 100. 

29 U.S.C. 1132(m)/ 

ERISA § 502(m).

Up to $10,000 per distribution prohibited by ERISA 

§ 206(e). 

1994 1.59089 15,909 .................. 10,000 .................. 25,000 .................. 15,909. 

29 U.S.C. 1185d 

and 42 U.S.C. 

300gg–15/ERISA 

§ 715.

Up to $1000 per failure to 

provide Summary of Benefits Coverage under 

Public Health Services 

Act section 2715(f), as 

incorporated in ERISA 

section § 715 and 29 

CFR 2590.715–2715(e). 

2010 1.08745 1,087 .................... 1,000 .................... 2,500 .................... 1,087. 

c. Structure 

Currently, subpart A of part 2575 

(Adjustment of Civil Penalties under 

ERISA Title I) of title 29 of the Code of 

Federal Regulations contains 7 sections 

(one general section and a separate 

section for the six previously adjusted 

penalties). Due to the large number of 

title I penalties adjusted for inflation by 

this IFR, the Department has decided to 

simplify the structure of subpart A of 

part 2575. This IFR replaces 

§§ 2575.100, 2575.209b–1, 2575.502c–2, 

2575.502c–5, and 2575.502c–6 with 

new §§ 2575.1, 2575.2, and 2575.3. 

Section 2575.1 In general contains the 

implementing language. Section 2575.2 

Catch-up adjustments to civil monetary 

penalties sets out the inflation 

adjustments for each ERISA penalty 

from establishment of the penalty 

amount through August 1, 2016. Section 

2575.3 Subsequent adjustments to civil 

monetary penalties addresses post-2016 

non-regulatory inflation adjustments. 

Also, as a result of the amendments 

made to the Prior Inflation Adjustment 

Act by the Inflation Adjustment Act, the 

IFR also makes minor technical changes 

to §§ 2560.502c–2, 2560.502c–4, 

2560.502c–5, 2560.502c–6, 2560.502c– 

7, and 2560.502c–8 of 29 CFR part 2560 

and § 2590.715–2715(e) of 29 CFR part 

2950. 

G. Mine Safety and Health 

Administration (30 CFR Part 100) 

1. General 

This section G of the preamble 

addresses the civil monetary penalties 

administered by Mine Safety and Health 

Administration (MSHA) to enforce 

provisions of the Federal Mine Safety & 

Health Act of 1977 (Mine Act) (Pub. L. 

91–173), as amended. Paragraphs 2(a) 

through (c) explain revisions to each of 

the civil penalties administered and 

enforced by MSHA. 

2. Specific Penalty Adjustments 

In accordance with the Inflation 

Adjustment Act, MSHA is adjusting its 

penalty amounts in §§ 100.3, 100.4, and 

100.5 by calculating the catch-up 

adjustments for these penalties from the 

date of the last statute or regulation 

(other than the Prior Inflation 

Adjustment Act) that set these penalties. 

All MSHA penalties were last set in 

2007. See 72 FR 13592 (Mar. 22, 2007). 

Subsequently (after 2007), some but not 

all of MSHA’s penalties also were 

adjusted for inflation. This rule uses the 

2007 final rule as the base year in 

calculating all of MSHA’s penalty 

inflation adjustments, rounded to the 

nearest dollar. While this has resulted in 

different relative impacts on particular 

penalty amounts depending on whether 

any inflation adjustments occurred for 

that penalty since 2007, the net effect of 

these adjustments is to increase MSHA’s 

penalties. 

a. Section 100.3—Determination of 

Penalty Amount; Regular Assessment 

Regularly assessed penalties are 

established by a penalty conversion 

table in part 100 that sets penalties 

based on the number of points a citation 

has been assigned. MSHA assigns points 

using a number of factors described in 

part 100, including the negligence of the 

operator and the gravity of the violation, 

among other criteria. Currently, a range 

of points—from 60 or fewer to 144 or 

more—is available; more points result in 

higher penalties. Penalties can range 

anywhere at or between the minimum 

penalty and the maximum penalty, 

based on the number of points assigned. 

Thus, the effect of MSHA’s penalty 

conversion table as a whole is a function 

of both the amount of the minimum and 

maximum penalties and the rate of the 

progression between those two outer 

points. In order to fully assess how to 

adjust for inflation as prescribed by the 

statute, it is necessary to look at the 

interaction of all three of these factors— 

minimum penalty, maximum penalty, 

and the rate of progression between the 

two. As described below, we have 

adjusted all three elements. The result is 

an upward adjustment for inflation 

equal to 13.6% for penalties assessed 

overall pursuant to the penalty table 

(calculated using MSHA’s 2015 penalty 

data). 

Existing § 100.3(a)(1) provides that an 

operator of any mine in which a 

violation of a mandatory health or safety 

standard occurs or who violates any 

other provisions of the Mine Act shall 

be regularly assessed a civil penalty of 

not more than $70,000. To calculate the 

adjustment of this penalty under the 

Inflation Adjustment Act, MSHA 

multiplied $60,000, the maximum civil 

penalty last established by regulation 

(other than the Prior Inflation 

Adjustment Act) in 2007 (72 FR 13592), 

by the inflation adjustment factor for 

2007 of 1.13833, which results in a 

penalty amount of $68,300. The 

inflation-adjusted amount of $8,300 is 

less than the statutory catch-up 

adjustment cap of a 150 percent increase 

of the $70,000 penalty in effect as of 

November 2, 2015, which is $105,000. 

Therefore, the maximum regular 


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assessment for an operator of any mine 

in which a violation of a mandatory 

health or safety standard occurs or who 

violates any other provisions of the 

Mine Act is $68,300, a decrease of 

$1,700 from the existing penalty amount 

of $70,000. The new maximum penalty 

of $68,300 is also the maximum amount 

available under MSHA’s penalty 

conversion table in § 100.3(g). 

Section 100.3(g) provides the penalty 

conversion table used to convert total 

penalty points to a dollar amount. As 

discussed above, the points are assigned 

to a violation based on the criteria listed 

in 30 CFR part 100. The existing penalty 

conversion table assigns dollar amounts 

to penalty points that range from 60 or 

fewer to 144 or more. For this final rule, 

MSHA is using the penalty point 

conversion table last established by 

regulation (other than the Prior Inflation 

Adjustment Act) in 2007 (72 FR 

13592)—both for purposes of 

determining minimum and maximum 

penalties and the point range between 

those two points. The penalty point 

range in the 2007 regulation used a 

penalty point range from 60 points or 

fewer to 140 points or more. For this 

reason, MSHA is changing the existing 

penalty point maximum of 144 points or 

more back to the maximum of 140 

points or more. As described below, the 

result is an upward adjustment for 

inflation equal to 13.6 percent for 

penalties assessed overall (using 2015 

penalty data) pursuant to the penalty 

conversion table. 

To adjust the existing minimum 

penalty for inflation, MSHA multiplied 

$112, the minimum civil penalty last 

established by regulation (other than 

under the Prior Inflation Adjustment 

Act) in 2007 (72 FR 13592), by the 

inflation adjustment factor for 2007 of 

1.13833, which resulted in a penalty of 

$127. The $15 penalty increase is less 

than the statutory catch-up adjustment 

cap of a 150 percent increase of the $112 

penalty in effect as of November 2, 

2015, which is $168. Therefore, the 

minimum penalty in the penalty 

conversion table is $127. 

The inflation adjusted penalty 

conversion table in § 100.3(g) maintains 

the minimum penalty for 60 points or 

fewer at the new inflation-adjusted 

amount of $127. For each additional 

point above 60 up to 140, the existing 

penalty conversion table increased the 

dollar penalty by the same 2007 

inflation adjustment factor of 1.13833 

for each point. After calculating all 

values, MSHA rounded all values to the 

nearest dollar. Although the maximum 

penalty decreased from $70,000 to 

$68,3000, applying the new table to 

MSHA’s 2015 assessment data results in 

a 13.6 percent increase (just slightly less 

than the 13.8 percent inflation 

adjustment for 2007). 

b. Section 100.4—Unwarrantable 

Failure and Immediate Notification 

Section 100.4(a) provides the 

minimum penalty for citations or orders 

issued under § 104(d)(1) of the Mine Act 

at $2,000. To adjust the existing 

minimum penalty for inflation, MSHA 

multiplied $2,000, the minimum 

penalty last established by regulation 

(other than under the Prior Inflation 

Adjustment Act) in 2007 (72 FR 13592), 

by the inflation adjustment factor for 

2007 of 1.13833, which resulted in a 

penalty of $2,277. The penalty increase 

of $277 is less than the statutory catchup adjustment cap of a 150 percent 

increase of the $2,000 penalty in effect 

as of November 2, 2015, which is 

$3,000. Therefore, the minimum penalty 

for any citation or order issued under 

section 104(d)(1) of the Mine Act is 

$2,277. 

Section 100.4(b) states that the 

minimum penalty for any order issued 

under section 104(d)(2) of the Mine Act 

is $4,000. To adjust the existing 

minimum penalty for inflation, MSHA 

multiplied $4,000, the minimum 

penalty last established by regulation 

(other than under the Prior Inflation 

Adjustment Act) in 2007 (72 FR 13592), 

by the inflation adjustment factor for 

2007 of 1.13833, which resulted in a 

penalty of $4,553. The penalty increase 

of $553 is less than the statutory catchup adjustment cap of a 150 percent 

increase of the $4,000 penalty in effect 

as of November 2, 2015, which is 

$6,000. Therefore, the minimum penalty 

for any citation or order issued under 

section 104(d)(2) of the Mine Act is 

$4,553. 

Section 100.4(c) states that the 

penalty for failure to provide timely 

notification of a death or entrapment of 

a miner or miners at a mine to the 

Secretary of Labor under section 103(j) 

of the Mine Act, as amended, will not 

be less than a penalty of $5,000 and not 

more than a penalty of $65,000. To 

adjust the existing minimum penalty, 

MSHA multiplied $5,000, the minimum 

civil penalty last established by 

regulation (other than under the Prior 

Inflation Adjustment Act) in 2007 (72 

FR 13592), by the inflation adjustment 

factor for 2007 of 1.13833, which 

resulted in a penalty of $5,692. The 

penalty increase of $692 is less than the 

statutory catch-up adjustment cap of a 

150 percent increase of the $5,000 

penalty in effect as of November 2, 

2015, which is $7,500. Therefore, the 

minimum penalty for failure to provide 

timely notification to the Secretary 

under section 103(j) of the Mine Act is 

$5,692. To adjust the existing maximum 

penalty, MSHA multiplied $60,000, the 

maximum penalty last established by 

regulation (other than under the Prior 

Inflation Adjustment Act) in 2007 (72 

FR 13592), by the inflation adjustment 

factor for 2007 of 1.13833, which 

resulted in a penalty of $68,300. The 

penalty increase of $8,300 is less than 

the statutory catch-up adjustment cap of 

a 150 percent increase of the $65,000 

penalty in effect as of November 2, 

2015, which is $97,500. Therefore, the 

maximum penalty for failure to provide 

timely notification to the Secretary 

under section 103(j) of the Mine Act is 

$68,300. 

c. Section 100.5—Determination of 

Penalty Amount; Special Assessment 

Section 100.5(c) addresses penalties 

that may be assessed daily to an 

operator who fails to correct a violation 

for which a citation or order has been 

issued under Section 104(a) of the Mine 

Act. The existing maximum daily 

penalty assessment is $7,500. 

To adjust the penalty for inflation, 

MSHA multiplied $6,500, the penalty 

amount last established by regulation 

(other than under the Prior Inflation 

Adjustment Act) in 2007 (72 FR 13592), 

by the inflation adjustment factor for 

2007 of 1.13833, which resulted in a 

penalty of $7,399. The inflationadjusted amount of $899 is less than the 

statutory catch-up adjustment cap of a 

150 percent increase of the $7,500 

penalty in effect as of November 2, 

2015, which is $11,250. Therefore, the 

daily penalty assessed an operator who 

fails to correct a violation for which a 

citation or order has been issued under 

Section sec. 104(a) of the Mine Act is 

$7,399, a decrease of $101 from the 

existing penalty amount of $7,500. 

Section 100.5(d) addresses penalties 

for miners who violate mandatory safety 

standards relating to smoking and 

smoking materials underground. The 

existing maximum smoking penalty is 

$375. To adjust the penalty for inflation, 

MSHA multiplied the penalty $275, the 

maximum smoking penalty amount last 

established by regulation (other than 

under the Prior Inflation Adjustment 

Act) in 2007 (72 FR 13592), by the 

inflation adjustment factor for 2007 of 

1.13833, which resulted in a penalty of 

$313. The inflation-adjusted amount of 

$38 is less than the statutory catch-up 

adjustment cap of a 150 percent increase 

of the $375 penalty in effect as of 

November 2, 2015, which is $563. 

Therefore, the penalty assessed for a 

miner who violates mandatory safety 

standards relating to smoking and 

smoking materials underground is $313, 


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12The total penalties collected in fiscal years 

2013 and 2014 were adjusted for inflation using the 

CPI–U to put them into fiscal year 2015 dollars 

previous to the calculation of three-year collection 

averages. 

13Exceptions were made to this method with 

respect to three provisions of the Mine Act. To 

calculate projected total penalty collections under 

sections 104(d)(1) and 104(d)(2), the three-year 

averages of penalties collected under each provision 

between fiscal years 2013 and 2015 were multiplied 

by the percentage increases in the minimum 

required penalties for each statute. To calculate 

projected total penalties collected using MSHA’s 

penalty conversion table, MSHA used the detailed 

assessment data from fiscal years 2013, 2014, and 

2015 to estimate total assessed dollar values for 

each year using both the existing and new 

conversion tables. The total dollar values produced 

using the new inflation-adjusted conversion table 

were then compared to the dollar values produced 

using the existing conversion table. The resulting 

annual percent changes for fiscal years 2013, 2014, 

and 2015 were 13.5 percent, 13.5 percent, and 13.6 

percent respectively. These annual percentages 

were then multiplied by the annual dollar 

collection totals for each fiscal year to obtain 

projected collections by fiscal year, and a three-year 

average was then taken to produce a single 

projected collection total. 

14See generally Gary S. Becker, Essays in the 

Economics of Crime and Punishment, Ch. 1 (1974), 

available at http://www.nber.org/chapters/

c3625.pdf. These concepts are also reflected in the 

Continued 

a decrease of $62 from the existing 

penalty amount of $375. 

Section 100.5(e) provides a maximum 

penalty for violations that are deemed to 

be flagrant under 110(b)(2) of the Mine 

Act. The existing maximum penalty is 

$242,000. To adjust the penalty for 

inflation, MSHA multiplied $220,000, 

the penalty last established by 

regulation (other than under the Prior 

Inflation Adjustment Act) in 2007 (72 

FR 13592), by the inflation adjustment 

factor for 2007 of 1.13833, which 

resulted in a penalty of $250,433. The 

penalty increase of $8,433 is less than 

the statutory catch-up adjustment 

increase cap of a 150 percent increase of 

the $242,000 penalty in effect as of 

November 2, 2015, which is $363,000. 

Therefore, the maximum penalty for 

violations that are deemed flagrant 

under sec. 110(b) of the Mine Act is 

$250,433. 

IV. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507(d)) requires that the 

Department consider the impact of 

paperwork and other information 

collection burdens imposed on the 

public. The Department has determined 

that this final rule does not require any 

collection of information. 

V. Executive Order 12866: Regulatory 

Planning and Review, and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

Executive Order 12866 requires that 

regulatory agencies assess both the costs 

and benefits of significant regulatory 

actions. Under the Executive Order, a 

‘‘significant regulatory action’’ is one 

meeting any of a number of specified 

conditions, including the following: 

Having an annual effect on the economy 

of $100 million or more; creating a 

serious inconsistency or interfering with 

an action of another agency; materially 

altering the budgetary impact of 

entitlements or the rights of entitlement 

recipients, or raising novel legal or 

policy issues. The IFR’s increases in the 

maximum civil money penalties that 

agencies are authorized to assess for 

violations of laws they administer are 

required by the statutorily-mandated 

provisions of the Inflation Adjustment 

Act, which was enacted by Congress as 

part of the Bipartisan Budget Act of 

2015. This IFR is a ‘‘significant’’ 

regulatory action because the 

Department’s analysis shows that it 

could potentially have an annual effect 

on the economy of more than $100 

million. 

The Department considered two 

potential effects of the increased 

penalties mandated by the Inflation 

Adjustment Act: (1) Increased transfers 

from employers and others who violate 

the law (and therefore pay penalties) to 

the government; and (2) the benefits to 

workers, retirees, and responsible 

employers and others of increased 

penalties that will encourage greater 

compliance with the laws that the 

Department enforces. Each of these 

effects is discussed in turn. 

Transfers to Government 

The Department estimated the 

increased transfers from employers and 

others who violate the law to the 

government by conducting a provisionby-provision analysis of each of the 

penalties affected by the Inflation 

Adjustment Act. The Department 

considered the total dollar amount of 

penalties collected under each affected 

penalty over the immediately preceding 

three complete fiscal years (2013, 2014, 

and 2015) to calculate the average total 

penalties collected under each statute.12

Then the Department projected how the 

amount collected under each statute 

would increase if it did so in proportion 

to the percentage increase of the 

maximum penalty for that statute.13 The 

result—approximately $140 million in 

additional transfers from the regulated 

community to the government each 

year—is enumerated by agency in Table 

D. 

TABLE D—PROJECTED PENALTIES

[Inflation Adjustment Act: Total penalties by agency, 3-year average (2013–2015)] 

Agency 

Dollar Amount Collected 

($FY2015) 

Total 

(current 

penalties) 

Total 

(projected 

penalties) 

Numeric 

change 

EBSA ........................................................................................................................................... $17,667,363 $33,134,336 $15,466,973 

MSHA ........................................................................................................................................... 73,112,904 82,812,155 9,699,251 

OSHA (federal) ............................................................................................................................ 141,969,042 252,927,499 110,958,457 

OWCP .......................................................................................................................................... 19,674 45,470 25,797 

WHD/ETA/OSEC ......................................................................................................................... 6,894,835 10,541,217 3,646,383 

Total ...................................................................................................................................... 239,663,817 379,460,677 139,796,860 

The Department notes that this 

amount could be an overestimate of 

transfers given that its collections are 

likely to be lower than projected under 

the new penalties established by the 

Inflation Adjustment Act. First, it does 

not account for a key factor 

underpinning long-established 

deterrence principles: That rational 

actors are less likely to commit 

violations when faced with higher 

penalties.14 It is therefore conceivable 


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43446 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 

Inflation Adjustment Act. 28 U.S.C. 2461 Note, Sec. 

2(a)(1) (‘‘[T]he power of Federal agencies to impose 

civil monetary penalties for violations of Federal 

law and regulations plays an important role in 

deterring violations and furthering the policy goals 

embodied in such laws and regulations[.]’’); 2(b)(2) 

(‘‘The purpose of this Act is to establish a 

mechanism that shall . . . maintain the deterrent 

effect of civil monetary penalties and promote 

compliance with the law.’’); S. 535: Hearing before 

Subcomm. Legis & Nat’l Sec. of the H. Comm. Gov’t 

Ops., 101st Cong. 3 (1990) (hereinafter 1990 

Hearing) (statement of Rep. Conyers) (‘‘At the heart 

. . . of regulatory statutes . . . are the monetary 

fines intended to both penalize and deter practices 

prohibited by these laws.’’); Id. at 70 (statement of 

HHS Inspector Gen. Kusserow) (‘‘We have found 

that civil monetary penalties are a very effective 

enforcement tool [and] have also seen them become 

a very good deterrent against fraud.’’). Research 

suggests that the same concepts apply in labor law 

violations as well. See, e.g., Orley Ashenfelter & 

Robert S. Smith, Compliance with the Minimum 

Wage Law, 87 Journal of Political Economy 333 

(1979), available at http://www.jstor.org/stable/

1832090?seq=1#page_scan_tab_contents. 

15 In addition, it is important to note that the IFR 

does not revoke existing provisions of the laws 

above that provide the Department with discretion 

in determining the appropriate civil penalty 

amounts below any particular maximum penalty. 

Nor does the IFR amend any requirements in these 

laws that the Department consider mitigating 

factors in making such determinations, such as the 

severity of the violation, the number of workers 

affected by the violation, the entity’s compliance 

history, or the size of the entity. 

16Entities that violate the basic labor protections 

described above such that they are subject to civil 

penalties have often benefitted from their noncompliance with such requirements over a length 

of time before being investigated, assessed and 

required to pay penalties for their illegal activities. 

As noted above, the rule only adjusts the authorized 

levels of civil money penalties to account for 

inflation over time. Of course, to the extent that 

civil penalties increase, there will be increased 

revenues to the government from entities that have 

been found to have violated the law. See 1990 

Hearing at 15 (discussing the importance of the 

government fully understanding how many civil 

monetary penalties are assessed and collected and 

discussing the benefit to taxpayers of increased 

revenue for government). 

that the increase in penalties collected 

would not be proportional to the 

increase in penalties that might be 

assessed by an agency, but would 

instead be less.15 In addition, this 

estimate also assumes that the 

Department’s collections will continue 

at approximately the same rate each 

year despite increased penalties. 

Together, these factors suggest that the 

amount of the transfers from the 

regulated community to the government 

is likely to be lower than the $140 

million projected above. 

OSHA’s penalty increases under the 

Inflation Adjustment Act will 

necessitate an increase to the maximum 

and minimum penalty amounts required 

by states that administer their own 

occupational safety and health programs 

as well. Section 18 of the OSH Act (29 

U.S.C. 667) requires states with OSHAapproved State Plans covering privatesector and state and local government 

employees to have standards and an 

enforcement program that are at least as 

effective as Federal OSHA’s standards 

and enforcement program. Twenty-two 

(22) States and U.S. territories have 

State Plans that cover private sector 

employees and state and local 

government employees: Alaska, 

Arizona, California, Hawaii, Indiana, 

Iowa, Kentucky, Maryland, Michigan, 

Minnesota, Nevada, New Mexico, North 

Carolina, Oregon, Puerto Rico, South 

Carolina, Tennessee, Utah, Vermont, 

Virginia, Washington, and Wyoming. 

The existing regulation at 29 CFR 

1902.4(c)(2)(xi) provides that in order to 

satisfy this requirement of effectiveness, 

State Plans must have effective 

sanctions, such as those prescribed in 

the OSH Act. Similarly, 29 CFR 

1902.37(b)(12) requires State Plans with 

final approval to propose penalties in a 

manner at least as effective as under the 

federal program. This IFR amends 29 

CFR 1902.4(c)(2)(xi) to clarify that State 

Plans must provide sanctions as 

effective as those set forth in the OSH 

Act and in 29 CFR 1903.15(d). 

OSHA will require State Plans to 

increase their penalties to reflect the 

federal penalties increases at the state 

levels in order to maintain this ‘‘at least 

as effective’’ status. If every State Plan 

state increases its own penalties in line 

with the federal increases, using the 

same methodology outlined above, the 

additional transfer from employers to 

OSHA State Plans would be $57.1 

million, as enumerated in Table E. 

TABLE E—PROJECTED PENALTIES

[Inflation Adjustment Act: OSHA state plans, 3-Year average (2013–2015)] 

Dollar amount collected ($FY2015) 

Total (current 

penalties) 

Total (projected 

penalties) 

Numeric 

change 

OSHA State Plans ................................................................................................................. $73,121,821 $130,271,603 $57,149,782 

Benefits to Workers, Retirees, and 

Responsible Employers 

Meanwhile, the Inflation Adjustment 

Act’s penalty increase will have 

significant benefits for workers, retirees, 

and responsible employers and others in 

the regulated community. While most 

employers play by the rules, there are 

too many cases where workers are 

cheated out of their hard-earned wages 

or retirement benefits or forced to 

endure an unsafe workplace. By 

deterring violations and promoting 

compliance, more workers and retirees 

will benefit from the core employment 

law protections that the Department 

administers and enforces. Furthermore, 

responsible employers and others who 

remain in compliance with the 

Department’s laws will face less 

competition from the minority of 

employers who make a calculated 

decision to save money by eschewing 

compliance with these laws.16 Those 

who follow the law will essentially 

benefit from a more level playing field 

when competing with those who do not. 

The Department has been unable to 

quantify these significant benefits. 

VI. Regulatory Flexibility Act and 

Small Business Regulatory Enforcement 

Fairness Act 

The Regulatory Flexibility Act, 5 

U.S.C. 601 et seq. (RFA), imposes 

certain requirements on Federal agency 

rules that are subject to the notice and 

comment requirements of the 

Administrative Procedure Act (APA), 5 

U.S.C. 553(b), and that are likely to have 

a significant economic impact on a 

substantial number of small entities. 

This IFR is exempt from the 

requirements of the APA because the 

Inflation Adjustment Act directed the 

Department to issue an interim final 

rule. Therefore, the requirements of the 

RFA applicable to notices of proposed 

rulemaking, 5 U.S.C. 603, do not apply 

to this IFR. Accordingly, the Department 

is not required to either certify that the 

IFR would not have a significant 

economic impact on a substantial 

number of small entities or conduct a 

regulatory flexibility analysis. 


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VII. Other Regulatory Considerations 

A. The Unfunded Mandates Reform Act 

of 1995 

The Department estimates that the IFR 

may result in transfers of up to $140 

million per year, and acknowledges that 

this IFR may yield effects that make it 

subject to UMRA requirements. 

Therefore, the Department carried out 

the requisite cost-benefit analysis in the 

section discussing Executive Orders 

12866 and 13563 above. 

B. Executive Order 13132: Federalism 

As described above, Section 18 of the 

OSH Act (29 U.S.C. 667) requires 

OSHA-approved State Plans to have 

standards and an enforcement program 

that are at least as effective as federal 

OSHA’s standards and enforcement 

program. The existing regulation at 29 

CFR 1902.4(c)(2)(xi) provides that in 

order to satisfy this requirement of 

effectiveness, State Plans must have 

effective sanctions, such as those 

prescribed in the OSH Act. Similarly, 29 

CFR 1902.37(b)(12) requires State Plans 

with final approval to propose penalties 

in a manner at least as effective as under 

the federal program. This IFR amends 

29 CFR 1902.4(c)(2)(xi) to clarify that 

State Plans must provide sanctions as 

effective as those set forth in the OSH 

Act and in 29 CFR 1903.15(d). 

In accordance with Part 1953, State 

Plans are required to adopt penalty 

changes that are at least as effective as 

federal OSHA, within six months after 

publication of the Department’s IFR 

amending OSHA’s penalties. Thereafter, 

OSHA penalties will be increased by the 

cost-of-living adjustment for every 

subsequent year by January 15th. State 

Plans will also be required to increase 

their penalties regularly in the future to 

maintain at least as effective penalty 

levels. 

State Plans are not required to impose 

monetary penalties on state and local 

government employers. See 

§ 1956.11(c)(2)(x). Five (5) states and 

one territory have State Plans that cover 

only state and local government 

employees: Connecticut, Illinois, New 

Jersey, New York, Maine, and the Virgin 

Islands. Therefore, the requirements to 

increase the penalty levels do not apply 

to these State Plans. Twenty-one (21) 

states and one U.S. territory have State 

Plans that cover both private sector 

employees and state and local 

government employees: Alaska, 

Arizona, California, Hawaii, Indiana, 

Iowa, Kentucky, Maryland, Michigan, 

Minnesota, Nevada, New Mexico, North 

Carolina, Oregon, Puerto Rico, South 

Carolina, Tennessee, Utah, Vermont, 

Virginia, Washington, and Wyoming. 

These states must increase their 

penalties for private-sector employers. 

Other than as listed above, this IFR 

does not have federalism implications 

because it does not have substantial 

direct effects on the states, on the 

relationship between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Accordingly, 

Executive Order 13132, Federalism, 

requires no further agency action or 

analysis. 

C. Executive Order 13175: Indian Tribal 

Governments 

This IFR does not have ‘‘tribal 

implications’’ because it does not have 

substantial direct effects on one or more 

Indian tribes, on the relationship 

between the Federal government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal government and Indian tribes. 

Accordingly, Executive Order 13175, 

Consultation and Coordination with 

Indian Tribal Governments, requires no 

further agency action or analysis. 

D. The Treasury and General 

Government Appropriations Act of 

1999: Assessment of Federal 

Regulations and Policies on Families 

This IFR will have no effect on family 

well-being or stability, marital 

commitment, parental rights or 

authority, or income or poverty of 

families and children. Accordingly, 

section 654 of the Treasury and General 

Government Appropriations Act of 1999 

(5 U.S.C. 601 note) requires no further 

agency action, analysis, or assessment. 

E. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

This IFR will have no adverse impact 

on children. Accordingly, Executive 

Order 13045, Protection of Children 

from Environmental Health Risks and 

Safety Risks, as amended by Executive 

Orders 13229 and 13296, requires no 

further agency action or analysis. 

F. Environmental Impact Assessment 

A review of this Final Rule in 

accordance with the requirements of the 

National Environmental Policy Act of 

1969 (NEPA), 42 U.S.C. 4321 et seq.; the 

regulations of the Council on 

Environmental Quality, 40 CFR 1500 et 

seq.; and the Departmental NEPA 

procedures, 29 CFR part 11, indicates 

that the Final Rule will not have a 

significant impact on the quality of the 

human environment. As a result, there 

is no corresponding environmental 

assessment or an environmental impact 

statement. 

G. Executive Order 13211: Energy 

Supply 

This IFR has been reviewed for its 

impact on the supply, distribution, and 

use of energy because it applies, in part, 

to the coal mining and uranium 

industries. MSHA has concluded that 

the adjustment of civil monetary 

penalties to keep pace with inflation 

and thus maintain the incentive for 

operators to maintain safe and healthful 

workplaces is not a significant energy 

action because it is not likely to have a 

significant adverse effect on the supply, 

distribution, or use of energy. 

This IFR has not been identified to 

have other impacts on energy supply. 

Accordingly, Executive Order 13211 

requires no further Agency action or 

analysis. 

H. Executive Order 12630: 

Constitutionally Protected Property 

Rights 

This IFR will not implement a policy 

with takings implications. Accordingly, 

Executive Order 12630, Governmental 

Actions and Interference with 

Constitutionally Protected Property 

Rights, requires no further agency action 

or analysis. 

I. Executive Order 12988: Civil Justice 

Reform Analysis 

This IFR was drafted and reviewed in 

accordance with Executive Order 12988, 

Civil Justice Reform. This IFR was 

written to provide a clear legal standard 

for affected conduct and was carefully 

reviewed to eliminate drafting errors 

and ambiguities, so as to minimize 

litigation and undue burden on the 

Federal court system. The Department 

has determined that this IFR meets the 

applicable standards provided in 

section 3 of Executive Order 12988. 

List of Subjects 

20 CFR Part 655 

Immigration, Penalties, Labor. 

20 CFR Part 702 

Administrative practice and 

procedure, Longshore and harbor 

workers, Penalties, Reporting and 

recordkeeping requirements, Workers’ 

compensation. 

20 CFR Part 725 

Administrative practice and 

procedure, Black lung benefits, Coal 

miners, Penalties, Reporting and 

recordkeeping requirements. 


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43448 Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 

20 CFR Part 726 

Administrative practice and 

procedure, Black lung benefits, Coal 

miners, Mines, Penalties. 

29 CFR Part 5 

Administrative practice and 

procedure, Construction industry, 

Employee benefit plans, Government 

contracts, Law enforcement, Minimum 

wages, Penalties, Reporting and 

recordkeeping requirements. 

29 CFR Part 500 

Administrative practice and 

procedure, Aliens, Housing, Insurance, 

Intergovernmental relations, 

Investigations, Migrant labor, Motor 

vehicle safety, Occupational safety and 

health, Penalties, Reporting and 

recordkeeping requirements, Wages, 

Whistleblowing. 

29 CFR Part 501 

Administrative practice and 

procedure, Agriculture, Aliens, 

Employment, Housing, Housing 

standards, Immigration, Labor, Migrant 

labor, Penalties, Transportation, Wages. 

29 CFR Part 530 

Administrative practice and 

procedure, Clothing, Homeworkers, 

Indians—arts and crafts, Penalties, 

Reporting and recordkeeping 

requirements, Surety bonds, Watches 

and jewelry. 

29 CFR Part 570 

Administrative practice and 

procedure, Agriculture, Child labor, 

Intergovernmental relations, 

Occupational safety and health, 

Reporting and recordkeeping 

requirements. 

29 CFR Part 578 

Penalties, Wages. 

29 CFR Part 579 

Child labor, Penalties. 

29 CFR Part 801 

Administrative practice and 

procedure, Employment, Lie detector 

tests, Penalties, Reporting and 

recordkeeping requirements. 

29 CFR Part 825 

Administrative practice and 

procedure, Airmen, Employee benefit 

plans, Health, Health insurance, Labor 

management relations, Maternal and 

child health, Penalties, Reporting and 

recordkeeping requirements, Teachers. 

29 CFR Parts 1902 and 1903 

Intergovernmental relations, Law 

enforcement, Occupational Safety and 

Health, Penalties. 

29 CFR Part 2560 

Employee benefit plans, Employee 

Retirement Income Security Act, Law 

enforcement, Penalties, Pensions, 

Reporting and recordkeeping 

29 CFR Part 2575 

Administrative practice and 

procedure, Employee benefit plans, 

Employee Retirement Income Security 

Act, Health care, Penalties, Pensions 

29 CFR Part 2590 

Employee benefit plans, Employee 

Retirement Income Security Act, Health 

care, Health insurance, Penalties, 

Pensions, Reporting and recordkeeping 

30 CFR Part 100 

Mine safety and health, Penalties. 

41 CFR Part 50–201 

Child labor, Government 

procurement, Minimum wages, 

Occupational safety and health, 

Reporting and recordkeeping 

requirements. 

Department of Labor 

Employment and Training 

Administration 

For the reasons stated in the 

preamble, 20 CFR part 655 is amended 

as follows: 

Title 20—Employees’ Benefits 

PART 655—TEMPORARY 

EMPLOYMENT OF FOREIGN 

WORKERS IN THE UNITED STATES 

■ 1. Revise the general authority citation 

for part 655 to read as follows: 

Authority: Section 655.0 issued under 8 

U.S.C. 1101(a)(15)(H)(i) and (ii), 1182(m), (n), 

and (t), 1184, 1188, and 1288(c) and (d); 29 

U.S.C. 49 et seq.; sec. 3(c)(1), Pub. L. 101– 

238, 103 Stat. 2099, 2102 (8 U.S.C. 1182 

note); sec. 221(a), Pub. L. 101–649, 104 Stat. 

4978, 5027 (8 U.S.C. 1184 note); sec. 323, 

Pub. L. 103–206, 107 Stat. 2149; Title IV, 

Pub. L. 105–277, 112 Stat. 2681; Pub. L. 106– 

95, 113 Stat. 1312 (8 U.S.C. 1182 note); and 

8 CFR 213.2(h)(4)(i). Section 655.00 issued 

under 8 U.S.C. 1101(a)(15)(H)(ii), 1184, and 

1188; 29 U.S.C. 49 et seq.; and 8 CFR 

214.2(h)(4)(i). Subparts A and C issued under 

8 U.S.C. 1101(a)(15)(H)(ii)(b) and 1184; 29 

U.S.C. 49 et seq.; and 8 CFR 214.2(h)(4)(i) ; 

and 28 U.S.C. 2461 note (Federal Civil 

Penalties Inflation Adjustment Act of 1990), 

Pub. L. 114–74 at § 701. Subpart B issued 

under 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184, 

and 1188; and 29 U.S.C. 49 et seq; and 28 

U.S.C. 2461 note, Pub. L. 114–74 at § 701. 

Subparts D and E issued under 8 U.S.C. 

1101(a)(15)(H)(i)(a), 1182(m), and 1184; 29 

U.S.C. 49 et seq.; and sec. 3(c)(1), Pub. L. 

101–238, 103 Stat. 2099, 2103 (8 U.S.C. 1182 

note). Subparts F and G issued under 8 

U.S.C. 1184 and 1288(c); and 29 U.S.C. 49 et 

seq; and 28 U.S.C. 2461 note, Pub. L. 114– 

74 at § 701. Subparts H and I issued under 

8 U.S.C. 1101(a)(15)(H)(i)(b) and (b1), 

1182(n), 1182(t), and 1184; 29 U.S.C. 49 et 

seq.; sec 303(a)(8), Pub. L. 102–232, 105 Stat. 

1733, 1748 (8 U.S.C. 1182 note); and Title IV, 

Pub. L. 105–277, 112 Stat. 2681; and 28 

U.S.C. 2461 note, Pub. L. 114–74 at § 701. 

Subparts J and K issued under 29 U.S.C. 49 

et seq.; and sec. 221(a), Pub. L. 101–649, 104 

Stat. 4978, 5027 (8 U.S.C. 1184 note). 

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

1101(a)(15)(H)(i)(c), 1182(m), and 1184; and 

29 U.S.C. 49 et seq. 

■ 2. Amend § 655.620 by revising 

paragraph (a) to read as follows: 

§ 655.620 Civil money penalties and other 

remedies. 

(a) The Administrator may assess a 

civil money penalty not to exceed 

$8,908 for each alien crewmember with 

respect to whom there has been a 

violation of the attestation or subpart F 

or G of this part. The Administrator may 

also impose appropriate remedy(ies). 

* * * * * 

■ 3. Amend § 655.801 by revising 

paragraph (b) to read as follows: 

§ 655.801 What protection do employees 

have from retaliation? 

* * * * * 

(b) It shall be a violation of this 

section for any employer to engage in 

the conduct described in paragraph (a) 

of this section. Such conduct shall be 

subject to the penalties prescribed by 

sections 212(n)(2)(C)(ii) or (t)(3)(C)(ii) of 

the INA and § 655.810(b)(2), i.e., a fine 

of up to $7,251, disqualification from 

filing petitions under section 204 or 

section 214(c) of the INA for at least two 

years, and such further administrative 

remedies as the Administrator considers 

appropriate. 

* * * * * 

■ 4. Amend § 655.810 by revising 

paragraphs (b)(1), (2) and (3) 

introductory text, to read as follows: 

§ 655.810 What remedies may be ordered 

if violations are found? 

* * * * * 

(b) * * * 

(1) An amount not to exceed $1,782 

per violation for: 

* * * * * 

(2) An amount not to exceed $7,251 

per violation for: 

* * * * * 

(3) An amount not to exceed $50,758 

per violation where an employer 

(whether or not the employer is an H– 

1B-dependent employer or willful 

violator) displaced a U.S. worker 

employed by the employer in the period 

beginning 90 days before and ending 90 

days after the filing of an H–1B petition 


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in conjunction with any of the following 

violations: 

* * * * * 

Department of Labor 

Office of Workers’ Compensation 

Programs 

For the reasons stated in the 

preamble, 20 CFR parts 702, 725, and 

726 are amended as follows: 

Title 20—Employees’ Benefits 

PART 702—ADMINISTRATION AND 

PROCEDURE 

■ 5. The authority citation for part 702 

is revised to read as follows: 

Authority: 5 U.S.C. 301, and 8171 et seq.; 

33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.; 

43 U.S.C. 1333; 28 U.S.C. 2461 note (Federal 

Civil Penalties Inflation Adjustment Act of 

1990); Pub. L. 114–74 at sec.701; 

Reorganization Plan No. 6 of 1950, 15 FR 

3174, 64 Stat. 1263; Secretary’s Order 10– 

2009, 74 FR 58834. 

■ 6. Revise § 702.204 to read as follows: 

§ 702.204 Employer’s report; penalty for 

failure to furnish and or falsifying. 

Any employer, insurance carrier, or 

self-insured employer who knowingly 

and willfully fails or refuses to send any 

report required by § 702.201, or who 

knowingly or willfully makes a false 

statement or misrepresentation in any 

report, shall be subject to a civil penalty 

not to exceed $22,587 for each such 

failure, refusal, false statement, or 

misrepresentation for which penalties 

are assessed after August 1, 2016. The 

district director has the authority and 

responsibility for assessing a civil 

penalty under this section. 

■ 7. Revise § 702.236 to read as follows: 

§ 702.236 Penalty for failure to report 

termination of payments. 

Any employer failing to notify the 

district director that the final payment 

of compensation has been made as 

required by § 702.235 shall be assessed 

a civil penalty in the amount of $275 for 

any violation for which penalties are 

assessed after August 1, 2016. The 

district director has the authority and 

responsibility for assessing a civil 

penalty under this section. 

■ 8. In § 702.271, revise paragraph (a)(2) 

to read as follows: 

§ 702.271 Discrimination; against 

employees who bring proceedings, 

prohibition and penalty. 

(a)(1) * * * 

(2) Any employer who violates this 

section, and has penalties assessed for 

such violation after August 1, 2016, 

shall be liable for a penalty of not less 

than $2,259 or more than $11,293 to be 

paid (by the employer alone, and not by 

a carrier) to the district director for 

deposit in the special fund described in 

section 44 of the Act, 33 U.S.C. 944; and 

shall restore the employee to his or her 

employment along with all wages lost 

due to the discrimination unless the 

employee has ceased to be qualified to 

perform the duties of employment. 

* * * * * 

PART 725—CLAIMS FOR BENEFITS 

UNDER PART C OF TITLE IV OF THE 

FEDERAL MINE SAFETY AND HEALTH 

ACT, AS AMENDED 

■ 9. The authority citation for part 725 

is revised to read as follows: 

Authority: 5 U.S.C. 301; 28 U.S.C. 2461 

note (Federal Civil Penalties Inflation 

Adjustment Act of 1990); Pub. L. 114–74 at 

sec. 701; Reorganization Plan No. 6 of 1950, 

15 FR 3174; 30 U.S.C. 901 et seq., 902(f), 921, 

932, 936; 33 U.S.C. 901 et seq.; 42 U.S.C. 405; 

Secretary’s Order 10–2009, 74 FR 58834. 

■ 10. In § 725.621, revise paragraph (d) 

to read as follows: 

§ 725.621 Reports. 

* * * * * 

(d) Any employer who fails or refuses 

to file any report required of such 

employer under this section, and has 

penalties assessed for such failure or 

refusal after August 1, 2016, shall be 

subject to a civil penalty not to exceed 

$1,375 for each failure or refusal, which 

penalty shall be determined in 

accordance with the procedures set 

forth in subpart D of part 726 of this 

subchapter, as appropriate. 

* * * * * 

PART 726—BLACK LUNG BENEFITS; 

REQUIREMENTS FOR COAL MINE 

OPERATOR’S INSURANCE 

■ 11. The authority citation for part 726 

is revised to read as follows: 

Authority: 5 U.S.C. 301; 33 U.S.C. 901 et 

seq., 902(f), 925, 932, 933, 934, 936; 33 U.S.C. 

901 et seq.; 28 U.S.C. 2461 note (Federal Civil 

Penalties Inflation Adjustment Act of 1990); 

Pub. L. 114–74 at sec. 701; Reorganization 

Plan No. 6 of 1950, 15 FR 3174; Secretary’s 

Order 10–2009, 74 FR 58834. 

■ 12. Revise § 726.300 to read as 

follows. 

§ 726.300 Purpose and scope. 

Any operator which is required to 

secure the payment of benefits under 

section 423 of the Act and § 726.4 and 

which fails to secure such benefits, shall 

be subject to a civil penalty of not more 

than $1,000, as adjusted by the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990, as amended, for each day 

during which such failure occurs. If the 

operator is a corporation, the president, 

secretary, and treasurer of the operator 

shall also be severally liable for the 

penalty based on the operator’s failure 

to secure the payment of benefits. This 

subpart defines those terms necessary 

for administration of the civil money 

penalty provisions, describes the criteria 

for determining the amount of penalty 

to be assessed, and sets forth applicable 

procedures for the assessment and 

contest of penalties. 

■ 13. In § 726.302, revise paragraphs 

(c)(2)(i), (4), and (5) and add (c)(6) to 

read as follows: 

§ 726.302 Determination of penalty. 

* * * * * 

(c)(1) * * * 

(2)(i) The daily base penalty amount 

shall be determined based on the 

number of persons employed in coal 

mine employment by the operator, or 

engaged in coal mine employment on 

behalf of the operator, on each day of 

the period defined by this section. 

For penalties assessed after August 1, 

2016, the daily base penalty amount 

shall be computed as follows: 

Employees Penalty 

(per day) 

Less than 25 ......................... $134 

25–50 .................................... 268 

51–100 .................................. 402 

More than 100 ...................... 535 

* * * * * 

(4) Commencing with the 11th day 

after the operator’s receipt of the 

notification sent by the Director 

pursuant to § 726.303, for penalties 

assessed after August 1, 2016, the daily 

base penalty amounts set forth in 

paragraph (c)(2)(i) shall be increased by 

$134. 

(5) In any case in which the operator, 

or any of its principals, or an entity in 

which the operator’s president, 

secretary, or treasurer were employed, 

has been the subject of a previous 

penalty assessment under this part, for 

penalties assessed after August 1, 2016, 

the daily base penalty amounts shall be 

increased by $402. 

(6) The maximum daily base penalty 

amount applicable to any violation of 

§ 726.4 for which penalties are assessed 

after August 1, 2016, shall be $2,750. 

* * * * * 

Department of Labor 

Office of the Secretary of Labor 

For the reasons stated in the 

preamble, 29 CFR part 5 is amended as 

follows: 


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Title 29—Labor 

PART 5—LABOR STANDARDS 

PROVISIONS APPLICABLE TO 

CONTRACTS COVERING FEDERALLY 

FINANCED AND ASSISTED 

CONSTRUCTION (ALSO LABOR 

STANDARDS PROVISIONS 

APPLICABLE TO NONCONSTRUCTION 

CONTRACTS SUBJECT TO THE 

CONTRACT WORK HOURS AND 

SAFETY STANDARDS ACT) 

■ 14. The authority citation for part 5 is 

revised to read as follows: 

Authority: 5 U.S.C. 301; R.S. 161, 64 Stat. 

1267; Reorganization Plan No. 14 of 1950, 5 

U.S.C. appendix; 40 U.S.C. 3141 et seq.; 40 

U.S.C. 3145; 40 U.S.C. 3148; 40 U.S.C. 3701 

et seq.; and the laws listed in 5.1(a) of this 

part; Secretary’s Order No. 01–2014 (Dec. 19, 

2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 

2461 note (Federal Civil Penalties Inflation 

Adjustment Act of 1990); Pub. L. 114–74 at 

§ 701, 129 Stat 584. 

■ 15. Amend § 5.5 by revising the last 

sentence of paragraph (b)(2) to read as 

follows: 

§ 5.5 Contract provisions and related 

matters. 

* * * * * 

(b) * * * 

(2) * * * Such liquidated damages 

shall be computed with respect to each 

individual laborer or mechanic, 

including watchmen and guards, 

employed in violation of the clause set 

forth in paragraph (b)(1) of this section, 

in the sum of $25 for each calendar day 

on which such individual was required 

or permitted to work in excess of the 

standard workweek of forty hours 

without payment of the overtime wages 

required by the clause set forth in 

paragraph (b)(1) of this section. 

* * * * * 

■ 16. Amend § 5.8 by revising the 

second sentence in paragraph (a) to read 

as follows: 

§ 5.8 Liquidated damages under the 

Contract Work Hours and Safety Standards 

Act. 

(a) * * * In the event of violation of 

this provision, the contractor and any 

subcontractor shall be liable for the 

unpaid wages and in addition for 

liquidated damages, computed with 

respect to each laborer or mechanic 

employed in violation of the Act in the 

amount of $25 for each calendar day in 

the workweek on which such individual 

was required or permitted to work in 

excess of forty hours without payment 

of required overtime wages. 

* * * * * 

Department of Labor 

Wage and Hour Division 

For the reasons stated in the 

preamble, 29 CFR parts 500, 501, 530, 

570, 578, 579, 801, and 825 are 

amended as follows: 

Title 29—Labor 

PART 500—MIGRANT AND SEASONAL 

AGRICULTURAL WORKER 

PROTECTION 

■ 17. The authority citation for part 500 

is revised to read as follows: 

Authority: Pub. L. 97–470, 96 Stat. 2583 

(29 U.S.C. 1801–1872); Secretary’s Order No. 

01–2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 

24, 2014); 28 U.S.C. 2461 Note (Federal Civil 

Penalties Inflation Adjustment Act of 1990); 

and Pub. L. 114–74, 129 Stat 584. 

■ 18. Amend § 500.1 by revising the 

second sentence in paragraph (e) to read 

as follows: 

§ 500.1 Purpose and scope. 

* * * * * 

(e) * * * As provided in the Act, the 

Secretary is empowered, among other 

things, to impose an assessment and to 

collect a civil money penalty of not 

more than $2,355 for each violation, to 

seek a temporary or permanent 

restraining order in a U.S. District Court, 

and to seek the imposition of criminal 

penalties on persons who willfully and 

knowingly violate the Act or any 

regulation under the Act.* * * 

* * * * * 

PART 501—ENFORCEMENT OF 

CONTRACTUAL OBLIGATIONS FOR 

TEMPORARY ALIEN AGRICULTURAL 

WORKERS ADMITTED UNDER 

SECTION 218 OF THE IMMIGRATION 

AND NATIONALITY ACT 

■ 19. Revise the authority citation for 

part 501 to read as follows: 

Authority: 8 U.S.C. 1101(a)(15)(H)(ii)(a), 

1184(c), and 1188; 28 U.S.C. 2461 Note 

(Federal Civil Penalties Inflation Adjustment 

Act of 1990); and Pub. L. 114–74 at § 701. 

■ 20. Amend § 501.19 by revising 

paragraphs (c) introductory text, (c)(1), 

(2), (4), (d), (e), and (f) to read as 

follows: 

§ 501.19 Civil money penalty assessment. 

* * * * * 

(c) A civil money penalty for each 

violation of the work contract or a 

requirement of 8 U.S.C. 1188, 20 CFR 

part 655, subpart B, or the regulations in 

this part will not exceed $1,631 per 

violation, with the following exceptions: 

(1) A civil money penalty for each 

willful violation of the work contract, or 

of 8 U.S.C. 1188, 20 CFR part 655, 

subpart B, or the regulations in this part, 

or for each act of discrimination 

prohibited by § 501.4 shall not exceed 

$5,491; 

(2) A civil money penalty for a 

violation of a housing or transportation 

safety and health provision of the work 

contract, or any obligation under 8 

U.S.C. 1188, 20 CFR part 655, subpart B, 

or the regulations in this part, that 

proximately causes the death or serious 

injury of any worker shall not exceed 

$54,373 per worker; 

* * * * * 

(4) A civil money penalty for a repeat 

or willful violation of a housing or 

transportation safety and health 

provision of the work contract, or any 

obligation under 8 U.S.C. 1188, 20 CFR 

part 655, subpart B, or the regulations in 

this part, that proximately causes the 

death or serious injury of any worker, 

shall not exceed $108,745 per worker. 

(d) A civil money penalty for failure 

to cooperate with a WHD investigation 

shall not exceed $5,491 per 

investigation. 

(e) A civil money penalty for laying 

off or displacing any U.S. worker 

employed in work or activities that are 

encompassed by the approved 

Application for Temporary Employment 

Certification for H–2A workers in the 

area of intended employment either 

within 60 days preceding the date of 

need or during the validity period of the 

job order, including any approved 

extension thereof, other than for a 

lawful, job-related reason, shall not 

exceed $16,312 per violation per 

worker. 

(f) A civil money penalty for 

improperly rejecting a U.S. worker who 

is an applicant for employment, in 

violation of 8 U.S.C. 1188, 20 CFR part 

655, subpart B, or the regulations in this 

part, shall not exceed $16,312 per 

violation per worker. 

PART 530—EMPLOYMENT OF 

HOMEWORKERS IN CERTAIN 

INDUSTRIES 

■ 21. The authority citation for part 503 

is revised to read as follows: 

Authority: Sec. 11, 52 Stat. 1066 (29 U.S.C. 

211) as amended by sec. 9, 63 Stat. 910 (29 

U.S.C. 211(d)); Secretary’s Order No. 01–2014 

(Dec. 19, 2014), 79 FR 77527 (Dec. 24, 2014); 

28 U.S.C. 2461 note (Federal Civil Penalties 

Inflation Adjustment Act of 1990); Pub. L. 

114–74 at § 701, 129 Stat 584. 

■ 22. Revise § 530.302 to read as 

follows: 


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§ 530.302 Amounts of civil money 

penalties. 

(a) A civil money penalty, not to 

exceed $989 per affected homeworker 

for any one violation, may be assessed 

for any violation of the Act or of this 

part or of the assurances given in 

connection with the issuance of a 

certificate. 

(b) The amount of civil money 

penalties shall be determined per 

affected homeworker within the limits 

set forth in the following schedule, 

except that no penalty shall be assessed 

in the case of violations which are 

deemed to be de minimis in nature: 

Nature of violation 

Penalty per affected homeworker 

Minor Substantial 

Repeated, 

intentional 

or knowing 

Recordkeeping ............................................................................................................................. $20–198 $198–396 $396–989 

Monetary violations ...................................................................................................................... 20–198 198–396 

Employment of homeworkers without a certificate ...................................................................... ........................ 198–396 396–989 

Other violations of statutes, regulations or employer assurances .............................................. 20–198 198–396 396–989 

PART 570—CHILD LABOR 

REGULATIONS, ORDERS AND 

STATEMENTS OF INTERPRETATION 

■ 23. The authority citation for Subpart 

G of part 570 is revised to read as 

follows: 

Authority: 52 Stat. 1060–1069, as 

amended; 29 U.S.C. 201–219; 28 U.S.C. 2461 

note (Federal Civil Penalties Inflation 

Adjustment Act of 1990); Pub. L. 114–74 at 

§ 701. 

■ 24. Amend § 570.140 by revising 

paragraphs (b)(1) and (2) to read as 

follows: 

§ 570.140 General. 

* * * * * 

(b) * * * 

(1) $12,080 for each employee who 

was the subject of such a violation; or 

(2) $54,910 with regard to each such 

violation that causes the death or 

serious injury of any employee under 

the age of 18 years, which penalty may 

be doubled where the violation is 

repeated or willful. 

* * * * * 

PART 578—MINIMUM WAGE AND 

OVERTIME VIOLATIONS—CIVIL 

MONEY PENALTIES 

■ 25. The authority citation for part 578 

is revised to read as follows: 

Authority: Sec. 9, Pub. L. 101–157, 103 

Stat. 938, sec. 3103, Pub. L. 101–508, 104 

Stat. 1388–29 (29 U.S.C. 216(e)), Pub. L. 101– 

410, 104 Stat. 890 (28 U.S.C. 2461 note), as 

amended by Pub. L. 104–134, section 

31001(s), 110 Stat. 1321–358, 1321–373, and 

Pub. L. 114–74, 129 Stat 584. 

■ 26. Amend § 578.1 by revising the first 

two sentences to read as follows: 

§ 578.1 What does this part cover? 

Section 9 of the Fair Labor Standards 

Amendments of 1989 amended section 

16(e) of the Act to provide that any 

person who repeatedly or willfully 

violates the minimum wage (section 6) 

or overtime provisions (section 7) of the 

Act shall be subject to a civil money 

penalty not to exceed $1,000 for each 

such violation. The Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (Pub. L. 101–410), as amended by 

the Debt Collection Improvement Act of 

1996 (Pub. L. 104–134, section 31001(s)) 

and the Federal Civil Penalties Inflation 

Adjustment Act Improvement Act of 

2015 (Pub. L. 114–74, section 701), 

requires that inflationary adjustments be 

annually made in these civil money 

penalties according to a specified costof-living formula. * * * 

■ 27. Amend § 578.3 by revising 

paragraph (a) to read as follows: 

§ 578.3 What types of violations may result 

in a penalty being assessed? 

(a) A penalty of up to $1,894 per 

violation may be assessed against any 

person who repeatedly or willfully 

violates section 6 (minimum wage) or 

section 7 (overtime) of the Act. The 

amount of the penalty will be 

determined by applying the criteria in 

§ 578.4. 

* * * * * 

PART 579—CHILD LABOR 

VIOLATIONS—CIVIL MONEY 

PENALTIES 

■ 28. The authority citation for part 579 

is revised to read as follows: 

Authority: 29 U.S.C. 203(l), 211, 212, 

213(c), 216; Reorg. Plan No. 6 of 1950, 64 

Stat. 1263, 5 U.S.C. App; secs. 25, 29, 88 Stat. 

72, 76; Secretary of Labor’s Order No. 01– 

2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 24, 

2014); 28 U.S.C. 2461 Note (Federal Civil 

Penalties Inflation Adjustment Act of 1990); 

and Pub. L. 114–7, 129 Stat 584. 

■ 29. Amend § 579.1 by revising 

paragraphs (a)(1)(i)(A), (B), (2) and (b) to 

read as follows: 

§ 579.1 Purpose and scope. 

(a) * * * 

(1)(i) * * * 

(A) $12,080 for each employee who 

was the subject of such a violation; or 

(B) $54,910 with regard to each such 

violation that causes the death or 

serious injury of any employee under 

the age of 18 years, which penalty may 

be doubled where the violation is a 

repeated or willful violation. 

* * * * * 

(2) Any person who repeatedly or 

willfully violates section 206 or 207 of 

the FLSA, relating to wages, shall be 

subject to a civil penalty not to exceed 

$1,894 for each such violation. 

* * * * * 

(b) The Federal Civil Penalties 

Inflation Adjustment Act of 1990 (Pub. 

L. 101–410), as amended by the Debt 

Collection Improvement Act of 1996 

(Pub. L. 104–134, section 31001(s)) and 

the Federal Civil Penalties Inflation 

Adjustment Act Improvement Act of 

2015 (Pub. L. 114–74, section 701), 

requires that Federal agencies annually 

adjust their civil money penalties for 

inflation according to a specified costof-living formula. 

* * * * * 

■ 30. Amend § 579.5 by revising 

paragraph (a) to read as follows: 

§ 579.5 Determining the amount of the 

penalty and assessing the penalty. 

(a) The administrative determination 

of the amount of the civil penalty for 

each employee who was the subject of 

a violation of section 12 or section 13(c) 

of the Act relating to child labor or of 

any regulation under those sections will 

be based on the available evidence of 

the violation or violations and will take 

into consideration the size of the 

business of the person charged and the 

gravity of the violations as provided in 

paragraphs (b) through (d) of this 

section. 

* * * * * 


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PART 801—APPLICATION OF THE 

EMPLOYEE POLYGRAPH 

PROTECTION ACT OF 1988 

■ 31. The authority citation for part 801 

is revised to read as follows: 

Authority: Pub. L. 100–347, 102 Stat. 646, 

29 U.S.C. 2001–2009; 28 U.S.C. 2461 note 

(Federal Civil Penalties Inflation Adjustment 

Act of 1990); Pub. L. 114–74 at § 701, 129 

Stat 584. 

■ 32. Amend § 801.42 by revising 

paragraph (a) introductory text to read 

as follows: 

§ 801.42 Civil money penalties— 

assessment. 

(a) A civil money penalty in an 

amount not to exceed $19,787 for any 

violation may be assessed against any 

employer for: 

* * * * * 

PART 825—THE FAMILY AND 

MEDICAL LEAVE ACT OF 1993 

■ 33. The authority citation for part 825 

is revised to read as follows: 

Authority: 29 U.S.C. 2654; 28 U.S.C. 2461 

Note (Federal Civil Penalties Inflation 

Adjustment Act of 1990); and Pub. L. 114– 

74 at § 701. 

■ 34. Amend § 825.300 by revising the 

last sentence in paragraph (a)(1) to read 

as follows: 

§ 825.300 Employer notice requirements. 

(a) * * * 

(1) * * * An employer that willfully 

violates the posting requirement may be 

assessed a civil money penalty by the 

Wage and Hour Division not to exceed 

$163 for each separate offense. 

* * * * * 

Department of Labor 

Public Contracts 

For the reasons stated in the preamble 

41 CFR part 50–201 is amended as 

follows: 

Title 41—Public Contracts and 

Property Management 

PART 50–201—GENERAL 

REGULATIONS 

■ 35. The authority citation for part 50– 

201 is revised to read as follows: 

Authority: Sec. 4, 49 Stat. 2038; 41 U.S.C. 

38. Interpret or apply sec. 6, 49 Stat. 2038, 

as amended; 41 U.S.C. 40; 108 Stat. 7201; 28 

U.S.C. 2461 note (Federal Civil Penalties 

Inflation Adjustment Act of 1990); Pub. L. 

114–74 at § 701, 129 Stat 584. 

■ 36. Amend § 50–201.3 by revising the 

first sentence of paragraph (e) to read as 

follows: 

§ 50–201.3 Insertion of stipulations. 

* * * * * 

(e) Any breach or violation of any of 

the foregoing representations and 

stipulations shall render the party 

responsible therefor liable to the United 

States of America for liquidated 

damages, in addition to damages for any 

other breach of the contract, in the sum 

of $25 per day for each person under 16 

years of age, or each convict laborer 

knowingly employed in the 

performance of the contract, and a sum 

equal to the amount of any deductions, 

rebates, refunds, or underpayment of 

wages due to any employee engaged in 

the performance of the contract; and, in 

addition, the agency of the United States 

entering into the contract shall have the 

right to cancel same and to make openmarket purchases or enter into other 

contracts for the completion of the 

original contract, charging any 

additional cost to the original 

contractor. * * * 

* * * * * 

Department of Labor 

Occupational Safety and Health 

Administration 

For the reasons set out in the 

preamble, 29 CFR parts 1902 and 1903 

are amended as follows: 

Title 29—Labor 

PART 1902—STATE PLANS FOR THE 

DEVELOPMENT AND ENFORCEMENT 

OF STATE STANDARDS 

■ 37. The authority citation for part 

1902 is revised to read as follows: 

Authority: Secs. 8 and 18 of the 

Occupational Safety and Health Act of 1970 

(29 U.S.C. 657, 667); 28 U.S.C. 2461 note 

(Federal Civil Penalties Inflation Adjustment 

Act of 1990), as amended by Section 701, 

Pub. L. 114–74; Secretary of Labor’s Order 

No. 1–2012 (77 FR 3912, Jan. 25, 2012). 

Subpart B—Criteria for State Plans 

■ 38. Amend § 1902.4 by revising 

paragraph (c)(2)(xi) to read as follows: 

§ 1902.4 Indices of effectiveness. 

* * * * * 

(c) * * * 

(2) * * * 

(xi) Provides effective sanctions 

against employers who violate State 

standards and orders, such as those set 

forth in the Act, and in 29 CFR 

1903.15(d). 

* * * * * 

PART 1903—INSPECTIONS, 

CITATIONS, AND PROPOSED 

PENALTIES 

■ 39. The authority citation for part 

1903 is revised to read as follows: 

Authority: Secs. 8 and 9 of the 

Occupational Safety and Health Act of 1970 

(29 U.S.C. 657, 658); 5 U.S.C. 553; 28 U.S.C. 

2461 note (Federal Civil Penalties Inflation 

Adjustment Act of 1990), as amended by 

Section 701, Pub. L. 114–74; Secretary of 

Labor’s Order No. 1–2012 (77 FR 3912, Jan. 

25, 2012). 

■ 40. Amend § 1903.2 by revising 

paragraph (d) to read as follows: 

§ 1903.2 Posting of notice; availability of 

the Act, regulations and applicable 

standards. 

* * * * * 

(d) Any employer failing to comply 

with the provisions of this section shall 

be subject to citation and penalty in 

accordance with the provisions of 

§ 1903.15(d). 

■ 41. Amend § 1903.6 by revising 

paragraph (b) to read as follows: 

§ 1903.6 Advance notice of inspections. 

* * * * * 

(b) In the situations described in 

paragraph (a) of this section, advance 

notice of inspections may be given only 

if authorized by the Area Director, 

except that in cases of apparent 

imminent danger, advance notice may 

be given by the Compliance Safety and 

Health Officer without such 

authorization if the Area Director is not 

immediately available. When advance 

notice is given, it shall be the 

employer’s responsibility promptly to 

notify the authorized representative of 

employees of the inspection, if the 

identity of such representative is known 

to the employer. (See § 1903.8(b) as to 

situations where there is no authorized 

representative of employees.) Upon the 

request of the employer, the Compliance 

Safety and Health Officer will inform 

the authorized representative of 

employees of the inspection, provided 

that the employer furnishes the 

Compliance Safety and Health Officer 

with the identity of such representative 

and with such other information as is 

necessary to enable him promptly to 

inform such representative of the 

inspection. An employer who fails to 

comply with his obligation under this 

paragraph promptly to inform the 

authorized representative of employees 

of the inspection or to furnish such 

information as is necessary to enable the 

Compliance Safety and Health Officer 

promptly to inform such representative 

of the inspection, may be subject to 

citation and penalty in accordance with 


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§ 1903.15(d)(4). Advance notice in any 

of the situations described in paragraph 

(a) of this section shall not be given 

more than 24 hours before the 

inspection is scheduled to be 

conducted, except in apparent 

imminent danger situations and in other 

unusual circumstances. 

* * * * * 

■ 42. Amend § 1903.15 by revising 

paragraphs (a) and (b) and adding 

paragraph (d) to read as follows: 

§ 1903.15 Proposed penalties. 

(a) After, or concurrent with, the 

issuance of a citation, and within a 

reasonable time after the termination of 

the inspection, the Area Director shall 

notify the employer by certified mail or 

by personal service by the Compliance 

Safety and Health Officer of the 

proposed penalty in accordance with 

paragraph (d) of this section, or that no 

penalty is being proposed. Any notice of 

proposed penalty shall state that the 

proposed penalty shall be deemed to be 

the final order of the Review 

Commission and not subject to review 

by any court or agency unless, within 15 

working days from the date of receipt of 

such notice, the employer notifies the 

Area Director in writing that he intends 

to contest the citation or the notification 

of proposed penalty before the Review 

Commission. 

(b) The Area Director shall determine 

the amount of any proposed penalty, 

giving due consideration to the 

appropriateness of the penalty with 

respect to the size of the business of the 

employer being charged, the gravity of 

the violation, the good faith of the 

employer, and the history of previous 

violations, in accordance with the 

provisions of section 17 of the Act and 

paragraph (d) of this section. 

* * * * * 

(d) Adjusted civil monetary penalties. 

The adjusted civil penalties for 

penalties proposed on or after August 1, 

2016 are as follows: 

(1) Willful violation. The penalty per 

willful violation under section 17(a) of 

the Act, 29 U.S.C. 666(a), shall not be 

less than $8,908 and shall not exceed 

$124,709. 

(2) Repeated violation. The penalty 

per repeated violation under section 

17(a) of the Act, 29 U.S.C. 666(a), shall 

not exceed $124,709. 

(3) Serious violation. The penalty for 

a serious violation under section 17(b) 

of the Act, 29 U.S.C. 666(b), shall not 

exceed $12,471. 

(4) Other-than-serious violation. The 

penalty for an other-than-serious 

violation under section 17(c) of the Act, 

29 U.S.C. 666(c), shall not exceed 

$12,471. 

(5) Failure to correct violation. The 

penalty for a failure to correct a 

violation under section 17(d) of the Act, 

29 U.S.C. 666(d), shall not exceed 

$12,471 per day. 

(6) Posting requirement violation. The 

penalty for a posting requirement 

violation under section 17(i) of the Act, 

29 U.S.C. 666(i), shall not exceed 

$12,471. 

■ 43. Amend § 1903.16 by revising 

paragraph (d) to read as follows: 

§ 1903.16 Posting of citations. 

* * * * * 

(d) Any employer failing to comply 

with the provisions of paragraphs (a) 

and (b) of this section shall be subject 

to citation and penalty in accordance 

with § 1903.15(d). 

■ 44. Amend § 1903.18 by revising 

paragraph (a) to read as follows: 

§ 1903.18 Failure to correct a violation for 

which a citation has been issued. 

(a) If an inspection discloses that an 

employer has failed to correct an alleged 

violation for which a citation has been 

issued within the period permitted for 

its correction, the Area Director shall, if 

appropriate, consult with the Regional 

Solicitor, and he shall notify the 

employer by certified mail or by 

personal service by the Compliance 

Safety and Health Officer of such failure 

and of the additional penalty proposed 

under § 1903.15(d)(5) by reason of such 

failure. The period for the correction of 

a violation for which a citation has been 

issued shall not begin to run until the 

entry of a final order of the Review 

Commission in the case of any review 

proceedings initiated by the employer in 

good faith and not solely for delay or 

avoidance of penalties. 

* * * * * 

Department of Labor 

Employee Benefits Security 

Administration 

For the reasons stated in the 

preamble, 29 CFR parts 2560, 2575, 

2590 are amended as follows: 

Title 29—Labor 

PART 2560—RULES AND 

REGULATIONS FOR ADMINISTRATION 

AND ENFORCEMENT 

■ 45. The authority citation for part 

2560 is revised to read as follows: 

Authority: 29 U.S.C. 1002, 1132, 1133, 

1134, 1135, and Secretary of Labor’s Order 1– 

2011, 77 FR 1088 (January 9, 2012). Pub. L. 

101–410, 104 Stat. 890 (28 U.S.C. 2461 note), 

as amended by section 31001(s) of Pub. L. 

104–134, 110 Stat. 1321–373, and section 701 

of Pub. L. 114–74, 129 Stat. 584. 

§ 2560.502c–2 [Amended] 

■ 46. Amend § 2560.502c–2(b)(1) by 

removing the parenthetical phrase ‘‘(or 

such other maximum amount as may be 

established by regulation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended)’’ 

and adding in its place ‘‘(adjusted for 

inflation pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended).’’ 

§ 2560–502c–4 [Amended] 

■ 47. Amend § 2560.502c–4(b)(1) by 

removing the parenthetical phrase ‘‘(or 

such other maximum amount as may be 

established by regulation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended)’’ 

and adding in its place ‘‘(adjusted for 

inflation pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended).’’ 

■ 48. Amend § 2560.502c–5 by revising 

the second sentence of paragraph (b)(1) 

to read as follows: 

§ 2560.502c–5 Civil penalties under 

section 502c–5. 

* * * * * 

(b) * * * 

(1) * * * However, the amount 

assessed under section 502(c)(5) or the 

Act shall not exceed $1,000 a day 

(adjusted for inflation pursuant to the 

Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended), 

computed from the date of the 

administrator’s failure or refusal to file 

the report and, except as provided in 

paragraph (b)(2) of this section, 

continuing up to the date on which a 

report meeting the requirements of 

section 101(g) of the Act and 29 CFR 

2520.101–2, as determined by the 

Secretary, is filed. 

* * * * * 

§ 2560.502c–6 [Amended] 

■ 49. Amend § 2560.502c–6(b)(1) by 

removing the parenthetical phrase ‘‘(or 

such other maximum amounts as may 

be established by regulation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended)’’ 

and adding in its place ‘‘(such amounts 

to be adjusted for inflation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended).’’ 

§ 2560.502c–7 [Amended] 

■ 50. Amend § 2560.502c–7(b)(1) by 

removing the parenthetical phrase ‘‘(or 

such other maximum amount as may be 

established by regulation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended)’’ 

and adding in its place ‘‘(adjusted for 


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inflation pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended).’’ 

§ 2560.502c–8 [Amended] 

■ 51. Amend § 2560.502c–8(b)(1) by 

removing the parenthetical phrase ‘‘(or 

such other maximum amount as may be 

established by regulation pursuant to 

the Federal Civil Penalties Inflation 

Adjustment Act of 1990, as amended)’’ 

and adding in its place ‘‘(adjusted for 

inflation pursuant to the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended).’’ 

PART 2575—ADJUSTMENT OF CIVIL 

PENALTIES UNDER ERISA TITLE I 

■ 52. The authority citation for subpart 

A of 29 CFR part 2575 is revised to read 

as follows: 

Authority: Pub. L. 101–410, 104 Stat. 890 

(28 U.S.C. 2461 note), as amended by section 

31001(s) of Pub. L. 104–134, 110 Stat. 1321– 

373, and section 701 of Pub. L. 114–74, 129 

Stat. 584; 29 U.S.C 1059(b), 1132(c), 1135 and 

1185d; and Secretary of Labor’s Order 1– 

2011, 77 FR 1088 (January 9, 2012). 

■ 53. Add §§ 2575.1, 2575.2 and 2575.3 

to read as follows: 

§ 2575.1 In general. 

In accordance with the requirements 

of the Federal Civil Penalties Inflation 

Adjustment Act of 1990, Pub. L. 104– 

410, 104 Stat. 890, as amended by the 

section 31001(s) of the Debt Collection 

Improvement Act of 1996, Pub. L. 104– 

34, 110 Stat. 1321–373, and section 701 

of the Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015, Pub. L. 114–74, 129 Stat. 584, 

(collectively the Inflation Adjustment 

Act), the applicable civil monetary 

penalties of title I of the Employee 

Retirement Income Security Act of 1974, 

as amended (ERISA), under the 

jurisdiction of the U.S. Department of 

Labor (Department) and listed in 29 CFR 

2575.2 are adjusted as set forth in this 

subpart, effective as of the relevant dates 

specified in § 2575.2. 

§ 2575.2 Catch-up adjustments to civil 

monetary penalties. 

The civil monetary penalties set forth 

in paragraphs (a) through (m) of this 

section are adjusted for inflation as 

required by section 4(b)(1) of the 

Inflation Adjustment Act and 29 CFR 

2575.1 as follows: 

(a) The civil monetary penalty of $10 

for each employee established by 

section 209(b) of ERISA, is adjusted to 

$11 for violations occurring after July 

29, 1997, for which a penalty is assessed 

before August 1, 2016 and to $28 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(b) The civil monetary penalty of up 

to $1,000 established by Section 

502(c)(2) of ERISA is adjusted to $1,100 

for violations occurring after July 29, 

1997, for which a penalty is assessed 

before August 1, 2016, and to $2,063 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(c) The civil monetary penalty of up 

to $1,000 established by section 

502(c)(4) of ERISA is adjusted to $1,632 

for penalties assessed after August 1, 

2016, and before the effective date of the 

next adjustment for inflation made by 

the Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(d) The civil monetary penalty of up 

to $1,000 established by Section 

502(c)(5) of ERISA is adjusted to $1,100 

for violations occurring after March 24, 

2003, for which a penalty is assessed 

before August 1, 2016, and to $1,502 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(e) The civil monetary penalty of up 

to $100 not to exceed $1,000 per 

request, established by section 502(c)(6) 

of ERISA, is adjusted to $110 not to 

exceed $1,100 per request for violations 

occurring after March 24, 2003, for 

which a penalty is assessed before 

August 1, 2016, and to $147 not to 

exceed $1,472 per request for penalties 

assessed after August 1, 2016, and 

before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(f) The civil monetary penalty of up 

to $100 established by section 502(c)(7) 

of ERISA is adjusted to $131 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(g) The civil monetary penalty of up 

to $1,100 established by section 

502(c)(8) of ERISA is adjusted to $1,296 

for penalties assessed after August 1, 

2016, and before the effective date of the 

next adjustment for inflation made by 

the Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(h) The civil monetary penalty of up 

to $100 established by section 

502(c)(9)(A) of ERISA is adjusted to 

$110 for penalties assessed after August 

1, 2016, and before the effective date of 

the next adjustment for inflation made 

by the Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(i) The civil monetary penalty of up 

to $100 established by section 

502(c)(9)(B) of ERISA is adjusted to 

$110 for penalties assessed after August 

1, 2016, and before the effective date of 

the next adjustment for inflation made 

by the Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(j) The civil monetary penalties 

established by section 502(c)(10) of 

ERISA are adjusted in accordance with 

paragraphs (j)(1) through (4) of this 

section: 

(1) The $100 civil monetary penalty of 

section 502(c)(10)(B)(i) of ERISA is 

adjusted to $110 to for penalties 

assessed after August 1, 2016, and 

before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3; 

(2) The $2,500 minimum civil 

monetary penalty of section 

502(c)(10)(C)(i) of ERISA for de minimis 

uncorrected violations is adjusted to 

$2,745 for penalties assessed after 

August 1, 2016, and before the effective 

date of the next adjustment for inflation 

made by the Secretary in accordance 

with the Inflation Adjustment Act and 

§ 2575.3; 

(3) The $15,000 minimum civil 

monetary penalty of section 

502(c)(10)(C)(ii) of ERISA for 

uncorrected violations that are not de 

minimis is adjusted to $16,473 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3; 

and 

(4) The $500,000 maximum civil 

monetary penalty for unintentional 

failures set in Section 502 

(c)(10)(D)(iii)(II) of ERISA is adjusted to 

$549,095, for penalties assessed after 

August 1, 2016, and before the effective 

date of the next adjustment for inflation 

made by the Secretary in accordance 

with the Inflation Adjustment Act and 

§ 2575.3. 

(k) The civil monetary penalty of up 

to $100 established by section 502(c)(12) 

of ERISA remains at $100 for penalties 

assessed after August 1, 2016, and 

before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

(l) The maximum civil monetary 

penalty of $10,000 established by 

section 502(m) of ERISA is adjusted to 

$15,909 for penalties assessed after 

August 1, 2016, and before the effective 

date of the next adjustment for inflation 


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made by the Secretary in accordance 

with the Inflation Adjustment Act and 

§ 2575.3. 

(m) The civil monetary penalty of not 

more than $1,000, established by Public 

Health Services Act section 2715(f) and 

incorporated into ERISA by section 715 

of ERISA, is adjusted to $1,087 for 

penalties assessed after August 1, 2016, 

and before the effective date of the next 

adjustment for inflation made by the 

Secretary in accordance with the 

Inflation Adjustment Act and § 2575.3. 

§ 2575.3 Subsequent adjustments to civil 

monetary penalties. 

No later than January 15, starting in 

2017, and each subsequent year, the 

Secretary shall adjust for inflation the 

civil monetary penalties described in 

§ 2575.2 and any future civil monetary 

penalties enforceable by the Secretary 

under title I of ERISA and publish such 

annual adjustments in the Federal 

Register notwithstanding section 553 of 

the Administrative Procedures Act. 

Future penalties or adjustments to the 

amount of the penalty that are enacted 

by statute or regulation will not be 

adjusted for inflation in the first year 

those penalty levels take effect. Annual 

inflation adjustments shall apply to 

penalties assessed after the later of 

January 15 or the date notice of the 

annual inflation adjustment is 

published in the Federal Register. 

* * * * * 

§§ 2575.100, 2575.209b–1, 2575.502c–2, 

2575.502c–5, and 2575.502c–6 [Removed] 

■ 54. Remove §§ 2575.100, 2575.209b–1, 

2575.502c–2, 2575.502c–5, and 

2575.502c–6. 

PART 2590—RULES AND 

REGULATIONS FOR GROUP HEALTH 

PLANS 

■ 55. The authority citation for part 

2590 is revised to read as follows: 

Authority: Secs. 29 U.S.C. 1027, 1059, 

1135, 1161–1168, 1169, 1181–1183, 1181 

note, 1185, 1185a, 1185b, 1191, 1191a, 

1191b, and 1191c; sec. 101(g), Pub. L. 104– 

191, 110 Stat. 1936; sec. 401(b), Pub. L. 105– 

200, 112 Stat. 645 (42 U.S.C. 651 note); sec. 

512(d), Pub. L. 110–343, 122 Stat. 3881; sec. 

1001, 1201, and 1562(e), Pub. L. 111–148, 

124 Stat. 119, as amended by Pub. L. 111– 

152, 124 Stat. 1029; Pub. L. 101–410, 104 

Stat. 890 (28 U.S.C. 2461 note), as amended 

by section 31001(s) of Pub. L. 104–134, 110 

Stat. 1321–373, and section 701 of Pub. L. 

114–74, 129 Stat. 584; Secretary of Labor’s 

Order 1–2011, 77 FR 1088 (January 9, 2012). 

■ 56. Amend § 2590.715–2715 by 

revising the first sentence of paragraph 

(e) to read as follows: 

§ 2590.715–2715 Summary of benefits and 

coverage and uniform glossary. 

* * * * * 

(e) Failure to provide. A group health 

plan that willfully fails to provide 

information under this section to a 

participant or beneficiary is subject to a 

fine of not more than $1,000 (adjusted 

for inflation pursuant to the Federal 

Civil Penalties Inflation Adjustment Act 

of 1990, as amended) for each such 

failure. * * * 

Department of Labor 

Mine Safety and Health Administration 

For the reasons stated in the 

preamble, 30 CFR part 100 is amended 

as follows: 

Title 30—Mineral Resources 

PART 100—CIVIL PENALTIES FOR 

VIOLATIONS OF THE FEDERAL MINE 

SAFETY AND HEALTH ACT OF 1977 

■ 57. The authority citation for part 100 

is revised to read as follows: 

Authority: 5 U.S.C. 301; 30 U.S.C. 815, 

820, 957; 28 U.S.C. 2461 note (Federal Civil 

Penalties Inflation Adjustment Act of 1990); 

Pub. L. 114–74 at § 701; 

■ 58. Amend § 100.3 by: 

■ a. Revising the first sentence of 

paragraph (a)(1); and 

■ b. Revising Table XIV in paragraph (g). 

The revisions read as follows: 

§ 100.3 Determination of penalty amount; 

regular assessment. 

(a) * * * 

(1) Except as provided in § 100.5(e), 

the operator of any mine in which a 

violation occurs of a mandatory health 

or safety standard or who violates any 

other provision of the Mine Act, as 

amended, shall be assessed a civil 

penalty of not more than $68,300. * * * 

* * * * * 

(g) * * * 

TABLE XIV—PENALTY CONVERSION

TABLE

Points Penalty 

($) 

60 or fewer ........................... 127 

61 .......................................... 138 

62 .......................................... 149 

63 .......................................... 162 

64 .......................................... 175 

65 .......................................... 190 

66 .......................................... 206 

67 .......................................... 223 

68 .......................................... 241 

69 .......................................... 262 

70 .......................................... 283 

71 .......................................... 307 

72 .......................................... 334 

73 .......................................... 361 

74 .......................................... 390 

TABLE XIV—PENALTY CONVERSION

TABLE—Continued 

Points Penalty 

($) 

75 .......................................... 423 

76 .......................................... 459 

77 .......................................... 496 

78 .......................................... 538 

79 .......................................... 583 

80 .......................................... 632 

81 .......................................... 684 

82 .......................................... 741 

83 .......................................... 803 

84 .......................................... 870 

85 .......................................... 943 

86 .......................................... 1,021 

87 .......................................... 1,105 

88 .......................................... 1,198 

89 .......................................... 1,298 

90 .......................................... 1,406 

91 .......................................... 1,522 

92 .......................................... 1,649 

93 .......................................... 1,786 

94 .......................................... 1,935 

95 .......................................... 2,097 

96 .......................................... 2,271 

97 .......................................... 2,460 

98 .......................................... 2,665 

99 .......................................... 2,887 

100 ........................................ 3,128 

101 ........................................ 3,388 

102 ........................................ 3,670 

103 ........................................ 3,976 

104 ........................................ 4,307 

105 ........................................ 4,666 

106 ........................................ 5,054 

107 ........................................ 5,475 

108 ........................................ 5,932 

109 ........................................ 6,426 

110 ........................................ 6,961 

111 ........................................ 7,540 

112 ........................................ 8,169 

113 ........................................ 8,849 

114 ........................................ 9,586 

115 ........................................ 10,384 

116 ........................................ 11,249 

117 ........................................ 12,186 

118 ........................................ 13,201 

119 ........................................ 14,301 

120 ........................................ 15,492 

121 ........................................ 16,782 

122 ........................................ 18,180 

123 ........................................ 19,694 

124 ........................................ 21,335 

125 ........................................ 23,110 

126 ........................................ 25,035 

127 ........................................ 27,121 

128 ........................................ 29,380 

129 ........................................ 31,827 

130 ........................................ 34,478 

131 ........................................ 37,349 

132 ........................................ 40,460 

133 ........................................ 43,829 

134 ........................................ 47,325 

135 ........................................ 50,821 

136 ........................................ 54,317 

137 ........................................ 57,812 

138 ........................................ 61,308 

139 ........................................ 64,804 

140 or more .......................... 68,300 

* * * * * 

■ 59. Amend § 100.4 by: 


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■ a. Revising paragraphs (a) and (b); and 

■ b. Revising introductory paragraph (c). 

The revisions read as follows: 

§ 100.4 Unwarrantable failure and 

immediate notification. 

(a) The minimum penalty for any 

citation or order issued under section 

104(d)(1) of the Mine Act shall be 

$2,277. 

(b) The minimum penalty for any 

order issued under section 104(d)(2) of 

the Mine Act shall be $4,553. 

(c) The penalty for failure to provide 

timely notification to the Secretary 

under section 103(j) of the Mine Act 

will be not less than $5,692 and not 

more than $68,300 for the following 

accidents: 

* * * * * 

■ 60. Amend § 100.5 by revising 

paragraphs (c), (d), and (e) to read as 

follows: 

§ 100.5 Determination of penalty amount; 

special assessment. 

* * * * * 

(c) Any operator who fails to correct 

a violation for which a citation has been 

issued under Section 104(a) of the Mine 

Act within the period permitted for its 

correction may be assessed a civil 

penalty of not more than $7,399 for each 

day during which such failure or 

violation continues. 

(d) Any miner who willfully violates 

the mandatory safety standards relating 

to smoking or the carrying of smoking 

materials, matches, or lighters shall be 

subject to a civil penalty of not more 

than $313 for each occurrence of such 

violation. 

(e) Violations that are deemed to be 

flagrant under section 110(b)(2) of the 

Mine Act may be assessed a civil 

penalty of not more than $250,433. For 

purposes of this section, a flagrant 

violation means ‘‘a reckless or repeated 

failure to make reasonable efforts to 

eliminate a known violation of a 

mandatory health or safety standard that 

substantially and proximately caused, or 

reasonably could have been expected to 

cause, death or serious bodily injury.’’ 

Note: The following Appendix will 

not appear in the Code of Federal 

Regulations. 


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APPENDIX 1—INFLATION

ADJUSTMENT

ACT—PENALTY

ADJUSTMENTS

Agency Law Name/ Description CFR Citation Last year adjusted (non IAA) Authority for last adjustment (non IAA) Min penalty (non IAA) ($) Max penalty (non IAA) ($) 11/15 Min ($) 11/15 Max ($) New min (rounded to nearest dollar) New max (rounded to nearest dollar) 

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

Health Act of 1977.

Regular Assessment ........ 30 CFR 100.3(A) .............. 2007 72 FR 13592 ..................... ................ 60,000 ...................... ................ 70,000 ...................... ................ 68,300. 

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

Health Act of 1977.

Penalty Conversion Table 30 CFR 100.3(G) .............. 2007 72 FR 13592 ..................... 112 60,000 ...................... 112 70,000 ...................... 127 68,300. 

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) ............... 2007 72 FR 13592 ..................... 2,000 .................................. 2,000 .................................. 2,277 

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) ............... 2007 72 FR 13592 ..................... 4,000 .................................. 4,000 .................................. 4,553 

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) ............... 2007 72 FR 13592 ..................... 5,000 60,000 ...................... 5,000 65,000 ...................... 5,692 68,300. 

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) .............. 2007 72 FR 13592 ..................... ................ 6,500 ........................ ................ 7,500 ........................ ................ 7,399. 

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

Health Act of 1977.

Violation of mandatory 

safety standards related to smoking standards.

30 CFR 100.5(D) .............. 2007 72 FR 13592 ..................... ................ 275 ........................... ................ 375 ........................... ................ 313. 

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

Health Act of 1977.

Flagrant violations under 

110(b)(2) of the Mine Act.

30 CFR 100.5(e) ............... 2007 72 FR 13592 ..................... ................ 220,000 .................... ................ 242,000 .................... ................ 250,433. 

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) ............. 1974 Pub. L. 93–406 ................. ................ 10 ............................. ................ 11 ............................. ................ 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) ............. 1987 Pub. L. 100–203 ............... ................ 1,000 ........................ ................ 1,100 ........................ ................ 2,063. 

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) ............. 1993 Pub. L. 103–66 ................. ................ 1,000 ........................ ................ 1,000 ........................ ................ 1,632. 

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) ............. 1996 Pub. L. 104–91 ................. ................ 1,000 ........................ ................ 1,100 ........................ ................ 1,502. 

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) ............. 1997 Pub. L. 105–34 ................. ................ 100 per day, not to 

exceed 1,000 per request.

................ 110 per day, not to 

exceed 1,100 per request.

................ 147 per day, not to 

exceed 1,472 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) .............. 2002 Pub. L. 107–204 ............... ................ 100 ........................... ................ 100 ........................... ................ 131. 


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APPENDIX 1—INFLATION

ADJUSTMENT

ACT—PENALTY

ADJUSTMENTS—Continued 

Agency Law Name/ Description CFR Citation Last year adjusted (non IAA) Authority for last adjustment (non IAA) Min penalty (non IAA) ($) Max penalty (non IAA) ($) 11/15 Min ($) 11/15 Max ($) New min (rounded to nearest dollar) New max (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) ............. 2006 Pub. L. 109–280 ............... ................ 1,100 ........................ ................ 1,100 ........................ ................ 1,296. 

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) ............. 2009 Pub. L. 111–3 ................... ................ 100 ........................... ................ 100 ........................... ................ 110. 

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) .............. 2009 Pub. L. 111–3 ................... ................ 100 ........................... ................ 100 ........................... ................ 110. 

EBSA ............ Employee Retirement Income Security Act. Section 502(c)(10)—Fail- ure 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) ......... 2008 Pub. L. 110–233 ............... ................ 100 ........................... ................ 100 ........................... ................ 110. 

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

violation.

29 CFR 2575.2(j)(2) ......... 2008 Pub. L. 110–233 ............... 2,500 .................................. 2,500 .................................. 2,745 

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

are not de minimis.

29 CFR 2575.2(j)(3) ......... 2008 Pub. L. 110–233 ............... 15,000 .................................. 15,000 .................................. 16,473 

EBSA ............ Employee Retirement Income Security Act. Section 502(c)(10)—unin- tentional failure maximum cap. 29 CFR 2575.2(j)(4) ......... 2008 Pub. L. 110–233 ............... ................ 500,000 .................... ................ 500,000 .................... ................ 549,095. 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.

29 CFR 2575.2(k) ............. 2014 Pub. L. 113–97 ................. ................ 100 ........................... ................ 100 ........................... ................ 100. 


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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) .............. 1994 Pub. L. 103–465 ............... ................ 10,000 ...................... ................ 10,000 ...................... ................ 15,909. 

EBSA ............ Employee Retirement Income Security Act. Failure to provide Sum- mary 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) ............ 2010 Pub. L. 111–148 ............... ................ 1,000 ........................ ................ 1,000 ........................ ................ 1,087. 

OSHA ........... Occupational Safety and 

Health Act.

Serious Violation ............... 29 CFR 1903.15(d)(3) ...... 1990 Pub. L. 101–508 ............... ................ 7,000 ........................ ................ 7,000 ........................ ................ 12,471. 

OSHA ........... Occupational Safety and 

Health Act.

Other-Than-Serious .......... 29 CFR 1903.15(d)(4) ...... 1990 Pub. L. 101–508 ............... ................ 7,000 ........................ ................ 7,000 ........................ ................ 12,471. 

OSHA ........... Occupational Safety and 

Health Act.

Willful or Repeated ........... 29 CFR 1903.15(d)(1) and 

29 CFR 1903.15(d)(2).

1990 Pub. L. 101–508 ............... 5,000 70,000 ...................... 5,000 70,000 ...................... 8,908 124,709. 

OSHA ........... Occupational Safety and 

Health Act.

Posting Requirement ........ 29 CFR 1903.15(d)(6) ...... 1990 Pub. L. 101–508 ............... ................ 7,000 ........................ ................ 7,000 ........................ ................ 12,471. 

OSHA ........... Occupational Safety and 

Health Act.

Failure to Abate ................ 29 CFR 1903.15(d)(5) ...... 1990 Pub. L. 101–508 ............... ................ 7,000 ........................ ................ 7,000 ........................ ................ 12,471. 

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

Act.

FMLA ................................ 29 CFR 825.300(a)(1) ...... 1993 Pub. L. 103–3 ................... ................ 100 ........................... ................ 110 ........................... ................ 163. 

WHD ............. Fair Labor Standards Act FLSA ................................. 29 CFR 578.3(a) ............... 1989 Pub. L. 101–157 ............... ................ 1,000 ........................ ................ 1,100 ........................ ................ 1,894. WHD ............. Fair Labor Standards Act Child Labor ....................... 29 CFR 579.1(a)(1)(i)(A) .. 2008 Pub. L. 110–233 ............... ................ 11,000 ...................... ................ 11,000 ...................... ................ 12,080. WHD ............. Fair Labor Standards Act Child Labor resulting in 

serious injury or death.

29 CFR 579.1(a)(1)(i)(B) .. 2008 Pub. L. 110–233 ............... ................ 50,000 ...................... ................ 50,000 ...................... ................ 54,910. 

WHD ............. Fair Labor Standards Act CL willful or repeated resulting in serious injury 

or death.

29 CFR 579.1(a)(1)(i)(B) .. 2008 Pub. L. 110–233 ............... ................ 100,000 .................... ................ 100,000 .................... ................ 109,820. 

WHD ............. Migrant and Seasonal Agricultural Worker Protection Act. MSPA ................................ 29 CFR 500.1(e) ............... 1983 Pub. L. 97–470 ................. ................ 1,000 ........................ ................ 1,000 ........................ ................ 2,355. WHD ............. Immigration & Nationality 

Act.

H1B ................................... 20 CFR 655.810(b)(1) ...... 1990 Pub. L. 101–649 ............... ................ 1,000 ........................ ................ 1,000 ........................ ................ 1,782. 

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

Act.

H1B willful or discrimination. 20 CFR 655.810(b)(2) ...... 1998 Pub. L. 105–277 ............... ................ 5,000 ........................ ................ 5,000 ........................ ................ 7,251. 

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

Act.

H1B willful that resulted in 

displacement of a US worker.

20 CFR 655.810(b)(3) ...... 1998 Pub. L. 105–277 ............... ................ 35,000 ...................... ................ 35,000 ...................... ................ 50,758. 

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

Act.

H2B17 ............................... 29 CFR 503.23 ................. 2005 Pub. L. 109–13 ................. ................ 10,000 ...................... ................ 10,000 ...................... ................ 11,940. 

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

Act.

D–1 ................................... 20 CFR 655.620 ............... 1990 Pub. L. 101–649 ............... ................ 5,000 ........................ ................ 5,000 ........................ ................ 8,908. 

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

Safety Standards Act.

CWHSSA .......................... 29 CFR 5.8(a) ................... 1962 Pub. L. 87–581 ................. ................ 10 ............................. ................ 10 ............................. ................ 25. 

WHD ............. Walsh-Healey Public Contracts Act. Walsh-Healey ................... 41 CFR 50–201.3(e) ......... 1936 49 Stat. 2036 .................... ................ 10 ............................. ................ 10 ............................. ................ 25. WHD ............. Employee Polygraph Protection Act. EPPA ................................ 29 CFR 801.42(a) ............. 1988 Pub. L. 100–347 ............... ................ 10,000 ...................... ................ 10,000 ...................... ................ 19,787. WHD ............. Immigration & Nationality 

Act.

H2A ................................... 29 CFR 501.19(c) ............. 2010 75 FR 6884 ....................... ................ 1,500 ........................ ................ 1,500 ........................ ................ 1,631. 

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

Act.

H2A willful or discrimination. 29 CFR 501.19(c)(1) ........ 2008 73 FR 77110 ..................... ................ 5,000 ........................ ................ 5,000 ........................ ................ 5,491. 

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

Act.

H2A Safety or health resulting in serious injury 

or death.

29 CFR 501.19(c)(2) ........ 2010 75 FR 6,884 ...................... ................ 50,000 ...................... ................ 50,000 ...................... ................ 54,373. 

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

Act.

H2A willful or repeated 

safety or health resulting in serious injury or death.

29 CFR 501.19(c)(4) ........ 2010 75 FR 6884 ....................... ................ 100,000 .................... ................ 100,000 .................... ................ 108,745. 

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

Act.

H2A failing to cooperate in 

an investigation.

29 CFR 501.19(d) ............. 2008 73 FR 77110 ..................... ................ 5,000 ........................ ................ 5,000 ........................ ................ 5,491. 

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

Act.

H2A displacing a US 

worker.

29 CFR 501.19(e) ............. 2010 75 FR 6,884 ...................... ................ 15,000 ...................... ................ 15,000 ...................... ................ 16,312. 

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

Act.

H2A improperly rejecting a 

US worker.

29 CFR 501.19(f) .............. 2010 75 FR 6,884 ...................... ................ 15,000 ...................... ................ 15,000 ...................... ................ 16,312. 

WHD ............. Fair Labor Standards Act Home Worker ................... 29 CFR 530.302 ............... 1988 53 FR 45706 ..................... 10 500 ........................... 10 500 ........................... 20 989. 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 ............... 1984 Pub. L. 98–426 ................. ................ 10,000 ...................... ................ 11,000 ...................... ................ 22,587. 


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APPENDIX 1—INFLATION

ADJUSTMENT

ACT—PENALTY

ADJUSTMENTS—Continued 

Agency Law Name/ Description CFR Citation Last year adjusted (non IAA) Authority for last adjustment (non IAA) Min penalty (non IAA) ($) Max penalty (non IAA) ($) 11/15 Min ($) 11/15 Max ($) New min (rounded to nearest dollar) New max (rounded to nearest dollar) 

OWCP .......... Longshore and Harbor 

Workers’ Compensation Act.

Failure to report termination of payments. 20 CFR 702.236 ............... 1927 44 Stat. 1432 .................... ................ 100 ........................... ................ 110 ........................... ................ 275. 

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) ...... 1984 Pub. L. 98–426 ................. 1,000 5,000 ........................ 1,100 5,500 ........................ 2,259 11,293. 

OWCP .......... Black Lung Benefits Act ... Failure to report termination of payments. 20 CFR 725.621(b), (d) .... 1978 Pub. L. 95–239 ................. ................ 500 ........................... ................ 550 ........................... ................ 1,375. OWCP .......... Black Lung Benefits Act ... Failure to file required reports. 20 CFR 725.621(d) ........... 1978 Pub. L. 95–239 ................. ................ 500 ........................... ................ 550 ........................... ................ 1,375. OWCP .......... Black Lung Benefits Act ... Failure to secure payment 

of benefits.

20 CFR 726.300 ............... 1978 Pub. L. 95–239 ................. ................ 1,000 ........................ ................ 1,000 ........................ ................ 2,500. 

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) ... 2001 65 FR 79920 ..................... 100 .................................. 100 .................................. 134 

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

of benefits for mines with 25–50 employees.

20 CFR 726.302(c)(2)(i) ... 2001 65 FR 79920 ..................... 200 .................................. 200 .................................. 268 

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

of benefits for mines with 51–100 employees.

20 CFR 726.302(c)(2)(i) ... 2001 65 FR 79920 ..................... 300 .................................. 300 .................................. 402 

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) ... 2001 65 FR 79920 ..................... 400 .................................. 400 .................................. 535 

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

of benefits after 10th day of notice.

20 CFR 726.302(c)(4) ...... 2001 65 FR 79920 ..................... 100 .................................. 100 .................................. 134 

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

of benefits for repeat offenders.

20 CFR 726.302(c)(5) ...... 2001 65 FR 79920 ..................... 300 .................................. 300 .................................. 402 

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

of benefits.

20 CFR 726.302(c)(5) ...... 1978 Pub. L. 95–239 ................. ................ 1,100 ........................ ................ 1,100 ........................ ................ 2,750. 

17See supra note 6. 


asabaliauskas on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 81, No. 127 / Friday, July 1, 2016 / Rules and Regulations 43461 

Signed at Washington, DC, this 24th day of 

June, 2016. 

Thomas E. Perez, 

Secretary, U.S. Department of Labor. 

[FR Doc. 2016–15378 Filed 6–30–16; 8:45 am] 

BILLING CODE 4510–HL–P 


asabaliauskas on DSK3SPTVN1PROD with RULES