DOL Increases Civil Money Penalties, Effective August 1

By: Larry Grudzien Attorney-At-Law

On June 30, 2016, the Department of Labor (DOL) issued an interim final regulations to adjust the amounts of civil penalties assessed in its regulations, as required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The Inflation Adjustment Act significantly revises the method of calculating inflation adjustments for penalty increases, including by providing an initial “catch-up” adjustment that may result in a more substantial initial penalty increase.

 This interim final regulations increases penalties imposed under the Employee Retirement Income Security Act of 1974 (ERISA), Occupational Safety and Health Act (OSHA), Fair Labor Standards Act (FLSA), and the Family and Medical Leave Act (FMLA), among other laws.

 The adjusted civil penalty amounts apply to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015. Therefore, violations occurring on or before November 2, 2015, as well as assessments made before August 1, 2016 whose associated violations occurred after November 2, 2015, continue to be subject to the civil penalty amounts set out in the DOL’s prior regulations (or under the applicable statute, if the amount has not yet been adjusted by regulation).

For a Table of the new civil penalty amounts, please clink on the link below:

 https://www.dol.gov/ebsa/pdf/fs-interim-final-rule-adjusting-erisa-civil-monetary-penalties-for-inflation.pdf

 For a copy of the new regulations, please click on the link below:

 https://www.gpo.gov/fdsys/pkg/FR-2016-07-01/pdf/2016-15378.pdf

If you have any comments or questions regarding any of the above information, please do not hesitate to call me at (708) 717-9638 or e-mail me at larry@larrygrudzien.com

Thank-You,

Larry Grudzien
Attorney-At-Law

You may also contact Sue Justice at Emery Benefit Solutions: 248-853-6535 or sue@emerybenefitsolutions.com

 

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