U. S. Department of Labor Office of Workers’ Compensation Programs

Division of Longshore and 

Harbor Workers’ Compensation

Washington, DC 20210

January 28, 2019

INDUSTRY NOTICE No. 171

TO: EMPLOYERS AND INSURANCE CARRIERS UNDER THE LONGSHORE AND HARBOR 

WORKERS’ COMPENSATION ACT (LHWCA), AND OTHER INTERESTED PERSONS

SUBJECT: 2019 increase of civil monetary penalties in accordance with the Federal Civil Penalties 

Inflation Adjustment Act Improvements Act of 2015

BACKGROUND: The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 

requires agencies to adjust the levels of existing civil monetary penalties annually based on inflation.

Industry Notice 158, issued on October 14, 2016, provides background on this required annual 

adjustment. On January 23, 2019, DOL published a final rule adjusting penalties for 2019. The rule 

makes small upward adjustments to the penalties assessed by the Office of Workers’ Compensation 

Programs (OWCP) under the Longshore and Harbor Workers’ Compensation Act. 

PURPOSE: The purpose of this Notice is to outline the increased civil monetary penalties as of January 

23, 2019. 

Section 14(g) of the LHWCA: Failure to Report Termination of Payments

The penalty amount has increased from $285 to $292. 20 C.F.R. § 702.236 now states:

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 $292 for 

any violation for which penalties are assessed after January 23, 2019. The district director has the 

authority and responsibility for assessing a civil penalty under this section.

Section 30(e) of the LHWCA: Penalty for Late Report of Injury or Death 

The maximum penalty amount has increased from $23,426 to $24,017. 20 C.F.R. § 702.204 now states:

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 

$24,017 for each such failure, refusal, false statement, or misrepresentation for which penalties 

are assessed after January 23, 2019. The district director has the authority and responsibility for 

assessing a civil penalty under this section.

When assessing this penalty, the District Director considers how many penalties, if any, have been 

assessed against the employer in the previous two years. A graduated penalty schedule is then consulted 

as outlined below. However, the District Director has broad discretion to increase or decrease the 

amount of the penalty assessed based on aggravating or mitigating factors. The District Director also 

considers whether the employer is considered to be a small business as defined by the Small Business 

Regulatory Enforcement Fairness Act when determining the penalty amount. 

Graduated penalty schedule as of January 23, 2019:

• 1st late report: $500

• 2nd late report: $1,000

• 3rd late report: $2,000

• 4th late report: $4,000

• 5th late report: $8,000
• 6th late report: $16,000

• 7th late report (& above): $24,017 (statutory maximum)

Section 49 of the LHWCA: Discrimination Against Employees Who Bring Proceedings

The penalty amount has increased from a $2,343 minimum and a $11,712 maximum to a $2,402

minimum and $12,007 maximum. 20 C.F.R. § 702.271(a)(2) now states:

Any employer who violates this section, and has penalties assessed for such violation after 

January 23, 2019, shall be liable for a penalty of not less than $2,402 or more than $12,007 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.

Upon notice of an assessed penalty, do not submit the check to the local District Office. Submit the check 

to the OWCP/DLHWC National Office in Washington, DC. The check should be made out to the U.S. 

Department of Labor and must be submitted within 30 days from the date the penalty was assessed. 

Please include the claimant’s full name and case number on the check or include a copy of the penalty 

assessment letter.

U.S. Department of Labor

OWCP/DLHWC

200 Constitution Ave., N.W.

Room C-4319

Washington, DC 20210

All questions concerning the assessment of penalties should be directed to the local District Office.

Douglas C. Fitzgerald

Director, Division of Longshore and 

Harbor Workers’ Compensation