The U.S. Department of Labor (DOL) announced it has increased the civil monetary penalties for violating federal minimum wage, overtime, posting and safety requirements. These increases come as a result of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, in which federal agencies must issue regulations annually to adjust for inflation of the maximum civil penalties that they can impose.
Employers that stand to be penalized the most are those that have violation related to the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA) and the Occupational Safety and Health Act (OSHA).
Adjusted Penalties
The new violation amounts only apply to civil penalties assessed after January 15, 2020, whose associated violations occurred after November 2, 2015. Check out the adjusted penalty amounts below:
FLSA
- Willful violations of the minimum wage and overtime provisions increased to $2,050 from $2,014.
- Child labor violations increased from $12,845 to $13,072.
- Penalties for child labor violations resulting in serious injury or death increased from $58,383 to $59,413.
- Penalties for child labor violations that are willful and result in serious injury or death increased from $116,766 to $118,826.
FMLA
- Failing to comply with the posting requirement has an increased penalty of $176, up from $173.
OSHA
- The penalty for posting, other-than-serious, serious and daily failure-to-abate violations increased from $13,260 to $13,494.
- Willful violations increased from $9,472 to $9,639, while the penalty for willful and repeat violations increases from $132,598 to $134,937.
To minimize potential liability, employers should review their pay practices, postings and safety protocols to ensure compliance.
Source: Department of Labor
