DOL Releases Annual Civil Monetary Penalty Adjustments, Effective 1/15/2024

On January 11th, 2024, the U.S. Department of Labor (DOL) made civil monetary penalty adjustments for 2024. In brief, these penalties are assessed annually and enforced by the DOL. Altogether, the adjustments are pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The final rule was effective January 15th, 2024. Earlier, the DOL adjusted child labor penalties. Background of the Inflation Adjustment Act In summary, the Inflation Adjustment Act made civil monetary penalties (CMPs) more effective by ensuring they remain a deterrent over time. Indeed, outdated penalties lose effectiveness and require regular adjustments to keep pace with the cost of living. With this intention, the Inflation Adjustment Act amended the original Federal Civil Penalties Inflation Adjustment Act of 1990. Specifically, the Inflation Adjustment Act allows yearly evaluation of CMPs. Additionally, it grants the DOL the authority to impose penalties on employers who violate the various employment laws the DOL enforces. Furthermore, the Inflation Adjustment Act provides a cost-of-living formula for the annual adjustments to CMPs. These annual monetary penalty adjustments are usually effective mid-January and apply to penalties assessed after a specific date. 2024 Civil Monetary Penalty Adjustments Specifically, the DOL’s final rule for the 2024 civil monetary penalty adjustments was published in the federal register on January 11. Accordingly, the final rule went into effect on January 15. Specifically, the 2024 adjustments affect penalties for violations in regards to the:

• Employee Polygraph Protection Act (EPPA),
• Fair Labor Standards Act (FLSA),
• Family & Medical Leave Act (FMLA),
• Immigration & Nationality Act (INA),
• Migrant and Seasonal Agricultural Worker Protection Act (MSPA),
• Occupational Safety and Health Act (OSH Act),
• United States-Mexico-Canada Agreement (USMCA),
• Walsh-Healey Public Contracts Act (PCA), and
• Other contracted work.

In general, the adjustments cover several penalties for violations of labor laws that apply to a wide range of employers. Markedly, the following violations and subsequent adjustments to civil monetary penalties may be of interest:

• Penalties for violations of the EPPA have increased from $24,793 to $25,597.
• Violations of child labor standards under the FLSA increased from $15,138 to $15,629.
• Willful violations of FMLA posting requirements carry a penalty of $211, up from $204.
• Meanwhile, penalties for violating Section 5(a)(1) of the OSH Act, also known as the General Duty Clause and associated posting requirements, increased from $15,625 to $16,132 per day.

Space Saver-1 (SS1) All-On-One State and Federal Labor Law Poster Indeed, some increases in civil monetary penalties deal with violations regarding various federal posting requirements. Therefore, employers must ensure compliance with the associated posting requirements and the labor laws they outline. Personnel Concepts pioneered the Space Saver-1 (SS1) All-On-One State and Federal Labor Law Poster in 1989 to help employers achieve that goal. The state-specific SS1 posters are attorney-reviewed and updated throughout the year by the compliance research team. Furthermore, each SS1 poster comes with a “We Pay the Fine” Guarantee of up to $40,000.