EEOC Increases Penalty for Notice Violations

The U.S. Equal Employment Opportunity Commission (EEOC) recently increased the civil monetary penalty for failing to post required notices. The posting requirements apply to various equal employment opportunity laws that the EEOC implements. The penalty increase is effective immediately. Furthermore, employers should be aware that employee charges of workplace discrimination have increased in recent years. Earlier this month, the EEOC reported on the latest litigation statistics in its 2022 Annual Performance Report.

Background of the Inflation Adjustment Act

The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the Act) made civil monetary penalties (CMPs) more effective by ensuring they remain a deterrent over time. Indeed, outdated penalties lose effectiveness over time and require regular inflation adjustments to keep pace with the cost of living. With this intention, Section 5(b) of the Act amended the original Federal Civil Penalties Inflation Adjustment Act of 1990. The Inflation Adjustment Act allows yearly evaluation of CMPs. Federal agencies have the authority to impose those penalties on employers that violate various employment laws, as well as obligations to post required notices. Furthermore, the Act provides a cost-of-living formula for any annual adjustments to CMPs.

Penalty for Not Posting Required Notices

The penalty increases apply to requirements under Title VII of the Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act (ADA), and the Genetic Information Nondiscrimination Act (GINA). The EEOC implements and enforces these laws and the posting requirements set forth within them. Specifically, Title VII, the ADA, and GINA cover employers with 15 or more employees on payroll. Under these laws, covered employees must:

• post required notices describing the important provisions in these laws, and
• ensure these notices are in prominent and accessible places where employees and applicants customarily view workplace notices.

The EEOC’s final rule, effective March 23rd, 2023, increases the civil monetary penalty for failing to post required notices from $612 to $659 per violation.

Space Saver-1 (SS1) All-On-One State and Federal Labor Law Poster

Employers should take note of the increased penalties for failures to post required notices and ensure they are in compliance. Required labor law posters must be displayed conspicuously in the workplace where they can be easily accessed by employees. 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. In fact, its introduction created the entire labor law compliance poster industry! The state-specific SS1 posters are attorney-reviewed and updated throughout the year by the compliance research team.