[Federal Register Volume 81, Number 127 (Friday, July 1, 2016)]
[Rules and Regulations]
[Pages 43429-43461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15378]



[[Page 43429]]

Vol. 81

Friday,

No. 127

July 1, 2016

Part IV





Department of Labor





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29 CFR Part 5

41 CFR Part 50-201





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Employment and Training Administration





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20 CFR Part 655





 Office of Workers' Compensation Programs





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20 CFR Parts 702, 725, 726





 Wage and Hour Division





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29 CFR Parts 500, 501, 530, et al.





 Occupational Safety and Health Administration





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29 CFR Parts 1902, 1903





 Employee Benefits Security Administration





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29 CFR Parts 2560, 2575, 2590





 Mine Safety and Health Administration





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30 CFR Part 100





 Department of Labor Federal Civil Penalties Inflation Adjustment Act 
Catch-Up Adjustments; Final Rule

Federal Register / Vol. 81 , No. 127 / Friday, July 1, 2016 / Rules 
and Regulations

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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 655

Office of Workers' Compensation Programs

20 CFR Parts 702, 725, 726

Office of the Secretary

29 CFR Part 5

41 CFR Part 50-201

Wage and Hour Division

29 CFR Parts 500, 501, 530, 570, 578, 579, 801, 825

Occupational Safety and Health Administration

29 CFR Parts 1902, 1903

Employee Benefits Security Administration

29 CFR Part 2560, 2575, 2590

Mine Safety and Health Administration

30 CFR Part 100

RIN 1290-AA31


Department of Labor Federal Civil Penalties Inflation Adjustment 
Act Catch-Up Adjustments

AGENCY: Employment and Training Administration, Office of Workers' 
Compensation Programs, Office of the Secretary, Wage and Hour Division, 
Occupational Safety and Health Administration, Employee Benefits 
Security Administration, and Mine Safety and Health Administration, 
Department of Labor.

ACTION: Interim final rule; request for comments.

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SUMMARY: The U.S. Department of Labor is issuing this interim final 
rule to adjust the amounts of civil penalties assessed or enforced in 
its regulations. 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) requires 
agencies to adjust the levels of civil monetary penalties with an 
initial catch-up adjustment, followed by annual adjustments for 
inflation. The Department is required to calculate the catch-up and 
subsequent annual adjustments based on the Consumer Price Index for all 
Urban Consumers. The Department must publish the interim final rule by 
July 1, 2016, and the new penalty levels are effective no later than 
August 1, 2016.

DATES: This interim final rule is effective August 1, 2016. See 
SUPPLEMENTARY INFORMATION for applicability dates. Interested persons 
are invited to submit written comments on this interim final rule on or 
before August 15, 2016.

ADDRESSES: You may submit comments, identified by Regulatory 
Information Number (RIN) 1290-AA31, by either of the following methods:
    Electronic Comments: Comments may be sent via http://www.regulations.gov, a Federal E-Government Web site that allows the 
public to find, review, and submit comments on documents that agencies 
have published in the Federal Register and that are open for comment. 
Simply type in ``Department of Labor Federal Civil Penalties Inflation 
Adjustment Act Catch-Up Adjustments'' (in quotes) in the Comment or 
Submission search box, click Go, and follow the instructions for 
submitting comments.
    Mail: Address written submissions to Tiffany Jones, U.S. Department 
of Labor, Room S-2312, 200 Constitution Avenue NW., Washington, DC 
20210.
    Instructions: Please submit only one copy of your comments by only 
one method. All submissions must include the agency name and RIN, 
identified above, for this rulemaking. Please be advised that comments 
received will become a matter of public record and will be posted 
without change to http://www.regulations.gov, including any personal 
information provided. Comments that are mailed must be received by the 
date indicated for consideration.
    Docket: For access to the docket to read background documents or 
comments, go to the Federal e-Rulemaking Portal at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Pamela Peters, Program Analyst, U.S. 
Department of Labor, Room S-2312, 200 Constitution Avenue NW., 
Washington, DC 20210; telephone: (202) 693-5959 (this is not a toll-
free number). Copies of this proposed rule may be obtained in 
alternative formats (large print, Braille, audio tape or disc), upon 
request, by calling (202) 693-5959 (this is not a toll-free number). 
TTY/TDD callers may dial toll-free 1-877-889-5627 to obtain information 
or request materials in alternative formats.

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents

I. Regulatory Information
II. Background
III. Section-by-Section Analysis
    A. Employment and Training Administration
    B. Office of Workers' Compensation Programs
    C. Office of the Secretary
    D. Wage and Hour Division
    E. Occupational Safety and Health Administration
    F. Employee Benefits Security Administration
    G. Mine Safety and Health Administration
IV. Paperwork Reduction Act
V. Executive Order 12866: Regulatory Planning and Review, and 
Executive Order 13563: Improving Regulation and Regulatory Review
VI. Regulatory Flexibility Act and Small Business Regulatory 
Enforcement Fairness Act
VII. Other Regulatory Considerations
    a. The Unfunded Mandates Reform Act of 1995
    b. Executive Order 13132: Federalism
    c. Executive Order 13175: Indian Tribal Governments
    d. The Treasury and General Government Appropriations Act of 
1999: Assessment of Federal Regulations and Policies on Families
    e. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    f. Environmental Impact Assessment
    g. Executive Order 13211: Energy Supply
    h. Executive Order 12630: Constitutionally Protected Property 
Rights
    i. Executive Order 12988: Civil Justice Reform Analysis

I. Regulatory Information

    The U.S. Department of Labor (Department) is publishing this 
interim final rule (IFR) to adjust its civil monetary penalties for 
inflation pursuant to 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). 
This law requires the Department to publish an initial ``catch-up 
adjustment'' through an interim final rule.
    Pursuant to the Inflation Adjustment Act and 5 U.S.C. 553(b)(3)(B), 
the Department finds that good cause exists for issuing this IFR 
without prior notice and comment. By operation of the Inflation 
Adjustment Act, the Department must publish the catch-up adjustment by 
July 1, 2016, and the rule must be effective no later than August 1, 
2016. The Inflation Adjustment Act further provides that the increased 
penalty levels apply to any penalties assessed after the effective date 
of the increase. Additionally, the Inflation Adjustment Act provides a 
clear

[[Page 43431]]

formula for adjustment of the civil penalties, leaving little room for 
discretion. For these reasons, the Department finds that notice and 
comment would be impracticable and unnecessary in this situation and 
contrary to the language of the Inflation Adjustment Act.

II. Background

    On November 2, 2015, the President signed into law the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Pub. 
L. 114-74, 701 (Inflation Adjustment Act), which further amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990 as previously 
amended by the 1996 Debt Collection Improvement Act (collectively, the 
``Prior Inflation Adjustment Act''), to improve the effectiveness of 
civil monetary penalties and to maintain their deterrent effect. The 
Inflation Adjustment Act requires agencies to: (1) Adjust the level of 
civil monetary penalties with an initial ``catch-up'' adjustment 
through an interim final rulemaking (IFR); and (2) make subsequent 
annual adjustments for inflation.
    The Inflation Adjustment Act amends the Prior Inflation Adjustment 
Act in two key respects. First, the Inflation Adjustment Act rescinds 
an exemption that previously disallowed inflationary adjustments for 
violations of the Occupational Safety and Health Act (OSH Act). As a 
result, the Department is updating the penalties under the OSH Act for 
the first time since 1990.
    Second, the Inflation Adjustment Act substantially revises the 
method of calculating inflation adjustments. The Prior Inflation 
Adjustment Act required adjustments to civil penalties to be rounded 
significantly. For example, a penalty increase that was greater than 
$1,000, but less than or equal to $10,000, would be rounded to the 
nearest multiple of $1,000. As a result, penalties were increased 
infrequently, and when they were finally increased, the amounts of the 
increases were sometimes substantial. Over time, this formula caused 
most of the Department's penalties to lose value relative to total 
inflation for long periods of time, thereby undermining the Prior 
Inflation Adjustment Act's purposes of maintaining the deterrent effect 
of civil money penalties and promoting compliance with the law.
    The Inflation Adjustment Act has removed these rounding rules; now, 
penalties are simply rounded to the nearest dollar. This rounding 
ensures that penalties will be increased each year to more effectively 
keep up with inflation, and ensures that penalties are more evenly 
established.
    Furthermore, the Inflation Adjustment Act provides for an initial 
``catch-up'' adjustment that generally excludes prior inflationary 
adjustments under the Prior Inflation Adjustment Act. For this catch-up 
adjustment, the Inflation Adjustment Act requires agencies to identify, 
for each penalty, the year and corresponding amount(s) for which the 
penalty amount, the maximum penalty level, or range of minimum and 
maximum penalties was established (i.e., originally enacted by Congress 
or by regulation) or last adjusted other than pursuant to the Prior 
Inflation Adjustment Act. That amount becomes the basis of any such 
catch-up adjustment, subject to a cap on any penalty increase of 150 
percent of the current penalty amount as of November 2015--allowing for 
a total new penalty of no more than 250 percent of the November 2015 
penalty amount. The Inflation Adjustment Act also mandates that the 
catch-up adjustment apply to any civil monetary penalty assessed after 
August 1, 2016, ``including those whose associated violation predated 
such increase.'' Pub. L. 114-74 at Sec.  701. The adjusted civil 
penalty amounts are applicable only to civil penalties assessed after 
August 1, 2016, whose associated violations occurred after November 2, 
2015, the date of enactment of the Inflation Adjustment Act. Therefore, 
violations occurring on or before November 2, 2015, as well as 
assessments made prior to August 1, 2016 whose associated violations 
occurred after November 2, 2015, will continue to be subject to the 
civil monetary penalty amounts currently set forth in the the 
Department's prior regulations at 20 CFR parts 655, 702, 725, and 726; 
29 CFR parts 5, 500, 501, 530, 570, 578, 579, 801, 825, 1902, 1903, 
2560, 2575, and 2590; 30 CFR part 100; and 41 CFR part 50-201 (or as 
set forth by statute if the amount has not yet been adjusted by 
regulation)..
    The Department has undertaken a thorough review of civil penalties 
administered by its various components pursuant to the Inflation 
Adjustment Act and in accordance with guidance issued by the Office of 
Management and Budget.\1\ The Department first identified for each 
penalty the year and corresponding amount or amounts for which the 
maximum penalty level or range of minimum and maximum penalties was 
established or last adjusted, other than pursuant to the Prior 
Inflation Adjustment Act. Then the Department determined the applicable 
inflation adjustments based upon the percent change between the October 
Consumer Price Index for all Urban Consumers (CPI-U) for the preceding 
year versus the year of enactment or last adjustment.\2\ The Department 
compared the amount of the penalty adjustment against the 150 percent 
cap and added the lower of the two to the existing penalty to compute 
the new penalty. This IFR establishes the initial catch-up adjustment 
for civil penalties as described.\3\
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    \1\ OMB Mem. M-16-06 (Feb. 24, 2016), https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
    \2\ OMB has provided the relevant year-over-year multipliers, 
rounded to 5 decimal points. Id. at 6.
    \3\ Appendix 1 consists of a table that provides ready access to 
key information about each penalty.
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III. Section-by-Section Analysis

    The following section-by-section discussion of this IFR presents 
the contents of each section in more detail. The Department invites 
comments on any issues addressed in this IFR.

A. Employment and Training Administration (20 CFR Part 655)

1. General
    This section A of the preamble addresses civil monetary penalties 
authorized by the Immigration and Nationality Act's (INA) D-1 and H-1B 
visa programs and that are reflected in the Employment and Training 
Administration's regulations, but are enforced by the Department's Wage 
and Hour Division (WHD). Paragraph 2(a) involves violations of the D-1 
visa program, and paragraph 2(b) involves violations of the H-1B visa 
program.
2. Specific Penalty Increases
a. Section 655.620--Civil Money Penalties and Other Remedies
    Section 258(c)(4)(E)(i) of the INA, 8 U.S.C. 1288(c)(4)(E)(i), and 
existing 20 CFR 655.620(a), provide for the imposition of civil money 
penalties where the Secretary of Labor (Secretary) finds, after notice 
and an opportunity for hearing, that there has been a violation of, or 
misrepresentation in, the attestations by employers using alien 
crewmembers for longshore activities in U.S. ports, pursuant to the D-1 
visa program, or of the Secretary's regulations regarding the D-1 
program. These authorities provide that such civil money penalties are 
not to exceed $5,000 for each alien crewmember with respect to whom 
there has been a violation. The maximum penalty amount last established 
by statute or regulation, other than the Prior Inflation Adjustment 
Act, was set in 1990 and is the same as the existing maximum

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penalty amount. See Immigration Act of 1990, Pub. L. 101-649, 203(a)(1) 
(Nov. 29, 1990).
    To adjust the existing civil money penalty for this section, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1990 of 1.78156, which resulted in a maximum 
penalty of $8,908. The amount of the increase from $5,000 to $8,908 is 
$3,908, which is less than the statutory cap of 150 percent of the 
existing $5,000 penalty, which is $7,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
655.620(a) is revised to increase the maximum penalty for violations 
specified therein from $5,000 to $8,908 for each alien crewmember with 
respect to whom there has been a violation.
b. Section 655.810--What remedies may be ordered if violations are 
found?
    Section 212(n)(2)(C) of the INA, 8 U.S.C. 1182(n)(2)(C), and 
existing 20 CFR 655.810(b) provide for the imposition of civil money 
penalties for certain violations of the H-1B visa program. There are 
three levels of civil money penalties provided for by these 
authorities.
    First, existing Sec.  655.810(b)(1) provides for a civil money 
penalty, not to exceed $1,000 per violation, for certain specific 
violations of the H-1B program. See Sec.  655.810(b)(1)(i)-(vi). The 
maximum penalty amount last established by statute or regulation, other 
than the Prior Inflation Adjustment Act, was set in 1990 and is the 
same as the existing maximum penalty amount. See Immigration Act of 
1990, Pub. L. 101-649, 205(3) (Nov. 29, 1990). In 1998, Congress 
amended the INA by, in part, providing for additional civil money 
penalties in the H-1B program, as discussed below. See American 
Competitiveness and Workforce Improvement Act of 1998 (ACWIA), Div. C, 
Title IV, of Pub. L. 105-277, 413(a) (Oct. 21, 1998). The 1998 
amendments did not adjust the $1,000 civil money penalty reflected in 
existing Sec.  655.810(b)(1). Accordingly, we consider 1990 as the year 
in which this maximum penalty amount was last established by statute or 
regulation other than the Prior Inflation Adjustment Act.
    To adjust the existing civil money penalty for this section, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1990 of 1.78156, which resulted in a maximum 
penalty of $1,782. The amount of the increase from $1,000 to $1,782 is 
$782, which is less than the statutory cap of 150 percent of the 
existing $1,000 penalty, which is $1,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
655.810(b)(1) is revised to increase the maximum penalty for violations 
specified therein from $1,000 to $1,782 per violation.
    Second, existing Sec.  655.810(b)(2) provides for a civil money 
penalty, not to exceed $5,000 per violation for certain willful 
violations specified therein and for discrimination against an 
employee, as described in 20 CFR 655.801(a). The civil money penalty 
for discrimination against an employee is also referenced in Sec.  
655.801(b). The maximum penalty amount last established by statute or 
regulation other than the Prior Inflation Adjustment Act was set in 
1998 and is the same as the existing maximum penalty amount. See ACWIA 
Sec.  413(a).
    To adjust the existing civil money penalty for this section, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1998 of 1.45023, which resulted in a maximum 
penalty of $7,251. The amount of the increase from $5,000 to $7,251 is 
$2,251, which is less than the statutory cap of 150 percent of the 
existing $5,000 penalty, which is $7,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
655.810(b)(2) is revised to increase the maximum penalty for violations 
specified therein from $5,000 per violation to $7,251 per violation. 
Conforming changes to reflect the adjusted civil money penalty amount 
were also made to 20 CFR 655.801(b).
    Third, existing Sec.  655.810(b)(3) provides for a civil money 
penalty, not to exceed $35,000 per violation, where an employer 
displaced a U.S. worker employed by the employer in the period 
beginning 90 days before and ending 90 days after the filing of an H-1B 
petition in conjunction with certain willful violations specified 
therein. The maximum penalty amount last established by statute or 
regulation other than the Prior Inflation Adjustment Act was set in 
1998 and is the same as the existing maximum penalty amount. See ACWIA 
Sec.  413(a).
    To adjust the existing civil money penalty for this section, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1998 of 1.45023, which resulted in a maximum 
penalty of $50,758. The amount of the increase from $35,000 to $50,758 
is $15,758, which is less than the statutory cap of 150 percent of the 
existing $35,000 penalty, which is $52,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
655.810(b)(3) is revised to increase the maximum penalty for violations 
specified therein from $35,000 to $50,578 per violation.

B. Office of Workers' Compensation Programs (20 CFR Parts 702, 725, 
726)

1. General
    This section B of the preamble addresses the civil monetary 
penalties administered by Office of Workers' Compensation Programs 
(OWCP) to enforce provisions of the Longshore and Harbor Workers' 
Compensation Act (Longshore Act), and the Longshore Act extensions, the 
Defense Base Act, the District of Columbia Workmen's Compensation Act, 
the Outer Continental Shelf Lands Act, and the Black Lung Benefits Act 
(BLBA). Paragraphs 2(a) through (f) explain revisions to each of the 
civil penalties administered and enforced by OWCP.
2. Specific Penalty Increases
a. Section 702.204--Employer's Report; Penalty for Failure To Furnish 
and or Falsifying
    Existing Sec.  702.201 requires employers to furnish a report of an 
employee's injury (resulting in the loss of one or more shifts) or 
death within 10 days of the injury or death, or an employer's knowledge 
of the same, and to provide additional supplemental information upon 
request. Existing Sec.  702.204 provides that an employer who, on or 
after November 17, 1997, knowingly and willfully fails or refuses to 
file any report required by Sec.  702.201 or who knowingly or willfully 
makes a false statement or misrepresentation on any report shall be 
subject to a civil penalty not to exceed $11,000 for each failure, 
refusal, false statement, or misrepresentation. It provides that an 
employer who does so before November 17, 1997 shall be subject to a 
civil penalty not to exceed $10,000 for each instance. The maximum 
penalty amount last established by statute or regulation other than 
pursuant to the Inflation Adjustment Act was $10,000 in 1984. See 
Public Law 98-426.
    To adjust the existing civil penalty for this section, the 
Department multiplied the penalty amount last established by statute or 
regulation other than pursuant to the Inflation Adjustment Act, 
$10,000, by the inflation adjustment factor for 1984 of 2.25867, which 
resulted in a penalty of $22,587 (rounded to the nearest dollar). The 
amount of the increase from existing Sec.  702.204's $11,000 penalty to 
$22,587 is $11,587. $11,587 is less than the statutory cap of 150 
percent of the

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existing $11,000 penalty, which is $16,500. Accordingly, the amount of 
the increase is not limited by the statutory cap. For penalties 
assessed after August 1, 2016, whose associated violations occurred 
after November 2, 2015, final Sec.  702.204 therefore increases the 
maximum penalty for each failure to furnish or falsifying an employer's 
report from $11,000 to $22,587.
b. Section 702.236--Penalty for Failure To Report Termination of 
Payments
    Existing Sec.  702.235 requires employers to notify the district 
director within 16 days after making a final payment of compensation. 
Existing Sec.  702.236 provides that an employer who, on or after 
November 17, 1997, fails to notify the district director that a final 
payment of compensation has been made as required by Sec.  702.235, 
shall be assessed a civil penalty in the amount of $110. It provides 
that an employer who does so before November 17, 1997 shall be assessed 
a civil penalty in the amount of $100. The penalty amount last 
established by statute or regulation other than pursuant to the 
Inflation Adjustment Act was $100 in 1927. See 33 U.S.C. 914(g).
    To adjust the existing civil penalty for this section, the 
Department multiplied the penalty amount last established by statute or 
regulation other than pursuant to the Inflation Adjustment Act, $100, 
by the inflation adjustment factor for 1927 of 13.66885, which resulted 
in a penalty of $1,367 (rounded to the nearest dollar). The amount of 
the increase from existing Sec.  702.236's $110 penalty to $1,367 is 
$1,257, which would be more than the statutory cap of 150 percent of 
the existing $110 penalty, which is $165. Accordingly, the amount of 
the increase is limited by the statutory cap to a total of $165. For 
penalties assessed after August 1, 2016, whose associated violations 
occurred after November 2, 2015, final Sec.  702.236 therefore 
increases the penalty for failure to report termination of payments 
from $110 to $275 (the current $110 penalty amount plus the $165 
statutory cap).
c. Section 702.271--Discrimination; Against Employees Who Bring 
Proceedings, Prohibition and Penalty
    Existing Sec.  702.271(a)(1) provides that no employer or its agent 
may discharge or in any manner discriminate against an employee as to 
his or her employment because that employee has claimed or attempted to 
claim compensation under the Longshore and Harbor Workers' Compensation 
Act, or has testified or is about to testify in a proceeding under that 
Act. Existing Sec.  702.271(a)(2) provides that any employer who, on or 
after November 17, 1997, violates Sec.  702.271 shall be liable for a 
penalty of not less than $1,100 or more than $5,500. It provides that 
an employer who does so before November 17, 1997 shall be liable for a 
penalty of not less than $1,000 or more than $5,000. The penalty 
amounts last established by statute or regulation other than pursuant 
to the Inflation Adjustment Act were a minimum amount of $1,000 and a 
maximum amount of $5,000 in 1984. See Public Law 98-426.
    To adjust the civil penalties for this section, the Department 
multiplied the minimum and maximum penalty amounts last established by 
statute or regulation other than pursuant to the Inflation Adjustment 
Act, $1,000 and $5,000, respectively, by the inflation adjustment 
factor for 1984 of 2.25867, which resulted in a minimum penalty of 
$2,259 (rounded to the nearest dollar) and a maximum penalty of $11,293 
(rounded to the nearest dollar). The amount of the increase from 
existing Sec.  702.271(a)(2)'s $1,100 minimum penalty to $2,259 is 
$1,159, which is less than the statutory cap of 150 percent of the 
existing $1,100 minimum penalty, which is $1,650. The amount of the 
increase from existing Sec.  702.271(a)(2)'s $5,500 maximum penalty to 
$11,293 is $5,793. $5,793 is less than the statutory cap of 150 percent 
of the existing $5,500 maximum penalty, which is $8,250. Accordingly, 
neither the amount of the increased minimum nor the increased maximum 
penalty is limited by the statutory cap. For penalties assessed after 
August 1, 2016, whose associated violations occurred after November 2, 
2015, final Sec.  702.271 therefore increases the minimum penalty for 
discrimination against employees who claim compensation or bring 
proceedings under the Act from $1,100 to $2,259, and increases the 
maximum penalty from $5,500 to $11,293.
    The Department also changes the ``that'' in the first sentence of 
Sec.  702.271(a)(2) to ``than'' to correct a typo in the regulation and 
twice corrects the phrase ``liable to a penalty'' to ``liable for a 
penalty.'' No substantive change results from or is intended by these 
technical edits.
d. Section 725.621--Reports
    Existing Sec.  725.621(a) requires employers to notify the district 
director upon making a first payment of benefits and upon suspension, 
reduction, or increase of payments. Existing Sec.  725.621(b) requires 
employers to notify the district director, within 16 days after making 
a final payment of benefits. Existing Sec.  724.621(c) allows the 
Director to prescribe additional reporting by operators, other 
employers, or carriers. Existing Sec.  725.621(d) provides that an 
employer who does not file a report required by the section, after 
January 19, 2001, shall be subject to a civil penalty not to exceed 
$550 for each failure or refusal to file. It provides that an employer 
who does so on or before January 19, 2001, shall be subject to a civil 
penalty not to exceed $500 for each failure or refusal to file. The 
maximum penalty amount last established by statute or regulation other 
than pursuant to the Inflation Adjustment Act was $500 in 1978. See 
Public Law 95-239.
    To adjust the existing civil penalty for this section, the 
Department multiplied the penalty amount last established by statute or 
regulation other than pursuant to the Inflation Adjustment Act, $500, 
by the inflation adjustment factor for 1978 of 3.54453, which resulted 
in a penalty of $1,772 (rounded to the nearest dollar). The amount of 
the increase from existing Sec.  725.621(d)'s $550 penalty to $1,772 is 
$1,222, which is more than the statutory cap of 150 percent of the 
existing $550 penalty, which is $825. Accordingly, the amount of the 
increase is limited by the statutory cap to a total of $825. For 
penalties assessed after August 1, 2016, whose associated violations 
occurred after November 2, 2015, final Sec.  725.261 therefore 
increases the maximum penalty for each failure or refusal to furnish an 
employer's required report from $550 to $1,375 (the current $550 
penalty amount plus the $825 statutory cap).
e. Section 726.300--Purpose and Scope
    Section 423 of the Black Lung Benefits Act and existing Sec.  726.4 
require each coal mine operator to secure its liability for benefits 
either by qualifying as a self-insurer in accordance with regulations 
prescribed by the Secretary, or by insuring and keeping insured the 
payment of such benefits with a licensed workers' compensation insurer. 
30 U.S.C. 933(a); 20 CFR 726.4. Section 423 also provides that each 
coal mine operator failing to meet its insurance obligation shall be 
subject to a civil money penalty of up to $1,000 per day. 30 U.S.C. 
933(d)(1). Existing Sec.  726.300 identifies the purpose and scope of 
Subpart D of Part 726, which is to set forth definitions, criteria, and 
procedures for assessing this civil money penalty. In so doing, it 
references the Black Lung Benefits Act's maximum daily penalty of 
$1,000. This statutory maximum, however, is adjusted by the

[[Page 43434]]

Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. 
Thus, the existing regulation is amended to refer to the adjusted 
penalty amount authorized by the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended.
f. Section 726.302--Determination of Penalty
    Existing Sec.  726.302 provides the method for determining the 
amount of any penalty assessed against a coal mine operator for failure 
to secure the payment of benefits in violation of Section 423 of the 
Black Lung Benefits Act and existing Sec.  726.4. Existing Sec.  
726.302(b) provides that the penalty will be calculated by multiplying 
the daily base penalty amount or amounts by the number of days during 
which the operator was required to and failed to secure its 
obligations. Existing Sec.  726.302(c)(i) explains that the daily base 
penalty amount is $100 per day for operators employing fewer than 25 
employees, $200 per day for operators employing 25 to 50 employees, 
$300 per day for operators employing 51 to 100 employees, and $400 per 
day for operators employing more than 100 employees. Existing Sec.  
726.302(c)(4) provides that the daily base penalty amounts in Sec.  
726.302(c)(2)(i) will increase by $100 on the 11th day after the 
operator receives the Director's notice of violation. Existing Sec.  
726.302(c)(5) provides that if an operator or certain of its related 
entities has violated Sec.  726.4 and been assessed a penalty, the 
daily base penalty amount shall increase by $300. It also provides that 
an operator who violates Sec.  726.4 after January 19, 2001, shall be 
subject to a maximum daily base penalty of $1,100, and that an operator 
that violates it on or before January 19, 2001, shall be subject to a 
maximum daily base penalty amount of $1,000. The daily base penalty 
amounts and increases in paragraphs (c)(2)(i), (c)(4), and (c)(5) were 
established by regulation in 2001 and have not subsequently been 
increased by the Inflation Adjustment Act or otherwise. See 65 FR 
79920. The maximum daily base penalty amount last established by 
statute or regulation other than pursuant to the Inflation Adjustment 
Act was $1,000 in 1978. See Public Law 95-239.
    To adjust the existing daily base penalty for operators employing 
fewer than 25 employees, the Department multiplied the existing $100 
penalty by the inflation adjustment factor for 2001 of 1.33842, which 
resulted in a penalty of $134 (rounded to the nearest dollar). To 
adjust the existing daily base penalty for operators employing 25 to 50 
employees, the Department multiplied the existing $200 penalty by the 
inflation adjustment factor for 2001 of 1.33842, which resulted in a 
penalty of $268 (rounded to the nearest dollar). To adjust the existing 
daily base penalty for operators employing 51 to 100 employees, the 
Department multiplied the existing $300 penalty by the inflation 
adjustment factor for 2001 of 1.33842, which resulted in a penalty of 
$402 (rounded to the nearest dollar). To adjust the existing daily base 
penalty for operators employing more than 100 employees, the Department 
multiplied the existing $400 penalty by the inflation adjustment factor 
for 2001 of 1.33842, which resulted in a penalty of $535 (rounded to 
the nearest dollar). To adjust the existing daily base penalty increase 
for operators who fail to respond to the Director's notice of violation 
more than 10 days after receipt in paragraph (c)(4), the Department 
multiplied the existing $100 penalty increase by the inflation 
adjustment factor for 2001 of 1.33842, which resulted in a penalty 
increase of $134 (rounded to the nearest dollar). To adjust the 
existing daily base penalty increase for operators who have been 
subject to a previous penalty assessment in paragraph (c)(5), the 
Department multiplied the existing $300 penalty increase by the 
inflation adjustment factor for 2001 of 1.33842, which resulted in a 
penalty increase of $402 (rounded to the nearest dollar). The 
Department has not previously updated these penalty amounts pursuant to 
the Inflation Adjustment Act and the multiplier for each (1.33842) is 
less than 2.5, the penalty amount (100 percent) plus the statutory cap 
(150 percent). Thus, the amount of the increase for each is necessarily 
less than the statutory cap of 150 percent of the existing penalty 
amount. For penalties assessed after August 1, 2016, whose associated 
violations occurred after November 2, 2015, final Sec.  726.302 
therefore increases the daily base penalty for operators employing 
fewer than 25 employees from $100 to $134; increases the daily base 
penalty for operators employing 25 to 50 employees from $200 to $268; 
increases the daily base penalty for operators employing 51 to 100 
employees from $300 to $402; increases the daily base penalty for 
operators employing more than 100 employees from $400 to $535; 
increases the daily base penalty increase for operators who continue to 
be in violation more than 10 days after receiving the Director's notice 
of violation from $100 to $134; and increases the daily base penalty 
increase for operators who have been subject to a previous penalty 
assessment from $300 to $402.
    To adjust the existing maximum daily base penalty in paragraph 
(c)(5), the Department multiplied the penalty amount last established 
by statute or regulation other than pursuant to the Inflation 
Adjustment Act, $1,000, by the inflation adjustment factor for 1978 of 
3.54453, which resulted in a penalty of $3,545 (rounded to the nearest 
dollar). The amount of the increase from existing Sec.  726.302(c)(5)'s 
$1,100 maximum penalty to $3,545 is $2,445, which is more than the 
statutory cap of 150 percent of the existing $1,100 penalty, which is 
$1,650. Accordingly, the amount of the increase is limited by the 
statutory cap to a total of $1,650. For penalties assessed after August 
1, 2016, whose associated violations occurred after November 2, 2015, 
final Sec.  726.302 therefore increases the maximum daily base penalty 
for any violation of Sec.  726.4 from $1,100 to $2,750 (the current 
$1,100 penalty amount plus the $1,650 statutory cap).
    The Department also moves discussion of the maximum daily base 
penalty from subparagraph (c)(5) to new subparagraph (c)(6) for greater 
clarity. No substantive change results from or is intended by this 
technical edit.

C. Office of the Secretary (29 CFR Part 5 and 41 CFR Part 50-201)

1. General
    This section C of the preamble addresses the civil monetary 
penalties provisions of the Contract Work Hours and Safety Standards 
Act (CWHSSA) and the Walsh-Healey Public Contracts Act (PCA), as 
amended. These provisions are included in regulations established by 
the Office of the Secretary, which have been delegated to WHD for 
enforcement. Paragraphs 2(a) and (b) explain revisions to each of these 
civil money penalties.
2. Specific Penalty Increases
a. Section 5.8(a)--Liquidated Damages Under the Contract Work Hours and 
Safety Standards Act
    Section 3702(c) of title 40 of the United States Code and existing 
29 CFR 5.8(a) impose ``liquidated damages'' if a laborer or mechanic is 
not paid wages at a rate not less than one and one-half times the basic 
rate of pay for all hours worked in excess of forty hours in any 
workweek on contracts covered by CWHSSA, to be computed with respect to 
each laborer or mechanic employed

[[Page 43435]]

in violation of CWHSSA.\4\ The penalty amount of $10 for each calendar 
day in the workweek on which such individual was required or permitted 
to work in excess of forty hours without payment of required overtime 
wages was last established by statute or regulation other than the 
Prior Inflation Adjustment Act in 1962 and is the same as the existing 
penalty amount. See Contract Work Hours Standards Act, Title I of 
Public Law 87-581, Sec.  102(b)(2) (Aug. 13, 1962).
---------------------------------------------------------------------------

    \4\ Although the statute and regulation refer to the amount 
assessed as ``liquidated damages'' it is appropriate to treat the 
amount as a civil money penalty for purposes of the Inflation 
Adjustment Act because the amount due is paid to the government, not 
the laborer or mechanic. Indeed, the Department of Labor has long 
recognized that the CWHSSA damages provision ``operate[s] as [a] 
civil monetary penalt[y].'' Letter to Honorable Carl Levin, 
Chairman, Subcommittee on Oversight of Government Management, from 
Ann McLaughlin, Secretary of Labor, (Feb. 22, 1988).
---------------------------------------------------------------------------

    To adjust the existing penalty for this section, the Department 
multiplied that penalty amount of $10 by the inflation adjustment 
factor for 1962 of 7.82362, which would have resulted in a penalty of 
$78. The amount of the increase from $10 to $78 is $68, which exceeds 
the statutory cap of 150 percent of the existing $10, which is $15; 
accordingly, the amount of the increase is limited by the statutory cap 
to a total of $15. Consequently, Sec.  5.8(a) is revised to increase 
the penalty if a laborer or mechanic is not paid wages at least one and 
one-half times the basic rate of pay for all hours worked in excess of 
forty hours in any workweek from $10 to $25 for each calendar day in 
the workweek on which such individual was required or permitted to work 
in excess of forty hours without payment of required overtime wages. 
Conforming changes to reflect the adjusted penalty amount were also 
made to Sec.  5.5(b)(2).
b. Section 50-201.3--Public Contracts, Department of Labor; Insertion 
of Stipulations.
    Section 6503(b)(1) of title 41 of the United States Code and 
existing 41 CFR 50-201.3(e) impose ``liquidated damages'' \5\ of $10 
per day for each individual under 16 years of age and each incarcerated 
individual knowingly employed in the performance of a contract covered 
by the PCA, as amended. The penalty amount of $10 for each day and for 
each individual under 16 years of age and each incarcerated individual 
knowingly employed was last established by statute or regulation other 
than the Prior Inflation Adjustment Act in 1936 and is the same as the 
existing penalty amount. See Walsh-Healey Act of 1936, 49 Stat. 2036, 
Sec.  2 (June 30, 1936).
---------------------------------------------------------------------------

    \5\ Although the statute and regulation refer to the amount 
assessed as ``liquidated damages'' it is appropriate to treat the 
amount as a civil money penalty for purposes of the Inflation 
Adjustment Act because the amount due is paid to the government, not 
the worker. Indeed, the Department of Labor has long recognized that 
the Walsh-Healey Public Contracts Act damages provision ``operate[s] 
as [a] civil monetary penalt[y].'' Letter to Honorable Carl Levin, 
Chairman, Subcommittee on Oversight of Government Management, from 
Ann McLaughlin, Secretary of Labor, (Feb. 22, 1988).
---------------------------------------------------------------------------

    To adjust the existing civil money penalty for this section, the 
Department multiplied that penalty amount of $10 by the inflation 
adjustment factor for 1936 of 16.98843, which would have resulted in a 
penalty of $170. The amount of the increase from $10 to $170 is $160, 
which exceeds the statutory cap of 150 percent of the existing $10 
penalty, which is $15. Accordingly, the amount of the increase is 
limited by the statutory cap to a total of $15. Consequently, Sec.  50-
201.3(e) is revised to increase the penalty for the knowing employment 
on a covered contract of individuals under 16 or who are incarcerated 
from $10 to $25 per day.

D. Wage and Hour Division (29 CFR Parts 500, 501, 530, 570, 578, 579, 
801, 825)

1. General
    This section D of the preamble addresses the civil monetary 
penalties administered by WHD to enforce provisions of the Migrant and 
Seasonal Agricultural Worker Protection Act, the Immigration and 
Nationality Act,\6\ the Fair Labor Standards Act, the Employee 
Polygraph Protection Act, and the Family and Medical Leave Act. 
Paragraphs 2(a) through (g) explain revisions to each of these civil 
penalties administered and enforced by WHD.
---------------------------------------------------------------------------

    \6\ The Department and the Department of Homeland Security are 
jointly publishing a separate IFR to implement the Inflation 
Adjustment Act's requirements with respect to the civil money 
penalty provisions found at 29 CFR 503.23.
---------------------------------------------------------------------------

a. Section 500.1--Purpose and Scope
    Section 503(a)(1) of the Migrant and Seasonal Agricultural Worker 
Protection Act (MSPA), 29 U.S.C. 1853(a)(1), and existing 29 CFR 
500.1(e), authorize the Secretary to impose a civil money penalty of 
not more than $1,000 per violation on persons who violate MSPA or any 
regulation under MSPA. The maximum penalty amount last established by 
statute or regulation other than the Prior Inflation Adjustment Act was 
set in 1983 and is the same as the existing maximum penalty amount. See 
MSPA, Public Law 97-470 (Jan. 14, 1983).
    To adjust the existing civil money penalty for this paragraph, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1983 of 2.35483, which resulted in a maximum 
penalty of $2,355. The amount of the increase from $1,000 to $2,355 is 
$1,355, which is less than the statutory cap of 150 percent of the 
existing $1,000 penalty, which is $1,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
500.1(e) is revised to increase the maximum penalty for violations of 
MSPA or the MSPA regulations from $1,000 to $2,355 per violation.
b. Section 501.19--Civil Money Penalty Assessment
    Section 218(g)(2) of the INA, 8 U.S.C. 1188(g)(2), authorizes the 
Secretary of Labor to impose appropriate penalties in order to assure 
employer compliance with the terms and conditions of employment under 
the H-2A visa program. Pursuant to this and other authorities, the 
Secretary has promulgated regulations through notice and comment 
rulemaking regarding the assessment of civil money penalties. See, 
e.g., Final Rule, Temporary Agricultural Employment of H-2A Aliens in 
the United States, 75 FR 6884 (Feb. 12, 2010) (codified at 29 CFR part 
501 and 20 CFR part 655) (2010 H-2A Final Rule). 29 CFR 501.19(a) of 
these regulations provides for the imposition of civil money penalties 
for each violation of the work contract, or the obligations imposed by 
8 U.S.C. 1188, 20 CFR part 655, subpart B, or the regulations in 29 CFR 
part 501. Section 501.19(c) through (f) provides the maximum civil 
money penalty amounts for various violations as specified below.
    First, existing Sec.  501.19(c) provides that a civil money penalty 
for each violation of the work contract or of the H-2A visa program's 
statutory or regulatory requirements will not exceed $1,500 per 
violation, with exceptions as specified below. The maximum penalty 
amount last established by statute or regulation other than the Prior 
Inflation Adjustment Act was set in 2010 and is the same as the 
existing maximum penalty amount. See 2010 H-2A Final Rule.
    To adjust the existing civil money penalty for Sec.  501.19(c), the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2010 of 1.08745, which resulted in a maximum 
penalty of $1,631. The amount of the increase from $1,500 to $1,631 is 
$131, which is less than the statutory cap of 150 percent of

[[Page 43436]]

the existing $1,500 penalty, which is $2,250; accordingly, the amount 
of the increase is not limited by the statutory cap. Consequently, 
Sec.  501.19(c) is revised to increase the maximum penalty for 
violations specified therein from $1,500 to $1,631 per violation.
    Second, existing Sec.  501.19(c)(1) provides that a civil money 
penalty for each willful violation of the work contract, of the H-2A 
visa program's statutory or regulatory requirements, or for each act of 
discrimination prohibited by Sec.  501.4 shall not exceed $5,000. The 
maximum penalty amount last established by statute or regulation other 
than the Prior Inflation Adjustment Act was set in 2008 and is the same 
as the existing maximum penalty amount. See Final Rule, Temporary 
Agricultural Employment of H-2A Aliens in the United States; 
Modernizing the Labor Certification Process and Enforcement, 73 FR 
77,110 (Dec. 18, 2008) (2008 H-2A Final Rule). This penalty amount was 
not adjusted by the H-2A 2010 Final Rule. Accordingly, we consider 2008 
as the year in which this maximum penalty amount was last established 
by statute or regulation other than the Prior Inflation Adjustment Act.
    To adjust the existing civil money penalty for Sec.  501.19(c)(1), 
the Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2008 of 1.09819, which resulted in a maximum 
penalty of $5,491. The amount of the increase from $5,000 to $5,491 is 
$491, which is less than the statutory cap of 150 percent of the 
existing $5,000 penalty, which is $7,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
501.19(c)(1) is revised to increase the maximum penalty for violations 
specified therein from $5,000 to $5,491.
    Third, existing Sec.  501.19(c)(2) provides that a civil money 
penalty for a violation of a housing or transportation safety and 
health provision of the work contract or of the H-2A visa program's 
statutory or regulatory requirements that proximately causes the death 
or serious injury of any worker shall not exceed $50,000 per worker. 
The maximum penalty amount last established by statute or regulation 
other than the Prior Inflation Adjustment Act was set in 2010 and is 
the same as the existing maximum penalty amount. See 2010 H-2A Final 
Rule.
    To adjust the existing civil money penalty for Sec.  501.19(c)(2), 
the Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2010 of 1.08745, which resulted in a maximum 
penalty of $54,373. The amount of the increase from $50,000 to $54,373 
is $4,373, which is less than the statutory cap of 150 percent of the 
existing $50,000 penalty, which is $75,000; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
501.19(c)(2) is revised to increase the maximum penalty for violations 
specified therein from $50,000 to $54,373 per worker.
    Fourth, existing Sec.  501.19(c)(4) provides that a civil money 
penalty for a repeat or willful violation of a housing or 
transportation safety and health provision of the work contract or of 
the H-2A visa program's statutory or regulatory requirements that 
proximately causes the death or serious injury of any worker shall not 
exceed $100,000 per worker. The maximum penalty amount last established 
by statute or regulation other than the Prior Inflation Adjustment Act 
was set in 2010 and is the same as the existing maximum penalty amount. 
See 2010 H-2A Final Rule.
    To adjust the existing civil money penalty for Sec.  501.19(c)(4), 
the Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2010 of 1.08745, which resulted in a maximum 
penalty of $108,745. The amount of the increase from $100,000 to 
$108,745 is $8,745, which is less than the statutory cap of 150 percent 
of the existing $100,000 penalty, which is $150,000; accordingly, the 
amount of the increase is not limited by the statutory cap. 
Consequently, Sec.  501.19(c)(4) is revised to increase the maximum 
penalty for violations specified therein from $100,000 to $108,745 per 
worker.
    Fifth, existing Sec.  501.19(d) provides that a civil money penalty 
for failure to cooperate with a WHD investigation shall not exceed 
$5,000 per investigation. The maximum penalty amount last established 
by statute or regulation other than the Prior Inflation Adjustment Act 
was set in 2008 and is the same as the existing maximum penalty amount. 
See 2008 H-2A Final Rule. This penalty amount was not adjusted by the 
H-2A 2010 Final Rule. Accordingly, we consider 2008 as the year in 
which this maximum penalty amount was last established by statute or 
regulation other than the Prior Inflation Adjustment Act.
    To adjust the existing civil money penalty for Sec.  501.19(d), the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2008 of 1.09819, which resulted in a maximum 
penalty of $5,491. The amount of the increase from $5,000 to $5,491 is 
$491, which is less than the statutory cap of 150 percent of the 
existing $5,000 penalty, which is $7,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
501.19(d) is revised to increase the maximum penalty for failure to 
cooperate with a WHD investigation from $5,000 to $5,491 per 
investigation.
    Sixth, existing Sec.  501.19(e) provides that a civil money penalty 
for laying off or displacing any U.S. worker employed, under the 
circumstances specified therein, shall not exceed $15,000 per violation 
per worker. The maximum penalty amount last established by statute or 
regulation other than the Prior Inflation Adjustment Act was set in 
2010 and is the same as the existing maximum penalty amount. See 2010 
H-2A Final Rule.
    To adjust the existing civil money penalty for Sec.  501.19(e), the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2010 of 1.08745, which resulted in a maximum 
penalty of $16,312. The amount of the increase from $15,000 to $16,312 
is $1,312, which is less than the statutory cap of 150 percent of the 
existing $15,000 penalty, which is $22,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
501.19(e) is revised to increase the maximum penalty for violations 
specified therein from $15,000 to $16,312 per violation per worker.
    Finally, existing Sec.  501.19(f) provides that a civil money 
penalty for improperly rejecting a U.S. worker who is an applicant for 
employment, in violation of the H-2A visa program's statutory or 
regulatory requirements, shall not exceed $15,000 per violation per 
worker. The maximum penalty amount last established by statute or 
regulation other than the Prior Inflation Adjustment Act was set in 
2010 and is the same as the existing maximum penalty amount. See 2010 
H-2A Final Rule.
    To adjust the existing civil money penalty for Sec.  501.19(f), the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2010 of 1.08745, which resulted in a maximum 
penalty of $16,312. The amount of the increase from $15,000 to $16,312 
is $1,312, which is less than the statutory cap of 150 percent of the 
existing $15,000 penalty, which is $22,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
501.19(f) is revised to increase the maximum penalty for violations

[[Page 43437]]

specified therein from $15,000 to $16,312 per violation per worker.
c. Section 530.302--Amounts of Civil Money Penalties
    Section 11(d) of the Fair Labor Standards Act (FLSA), 29 U.S.C. 
211(d), authorizes the Administrator of the WHD to issue such 
regulations and orders as necessary to assure compliance with the 
FLSA's requirements with respect to industrial homework. Pursuant to 
this and other authorities, the Administrator has promulgated 
regulations through notice and comment rulemaking. See Final Rule, 
Employment of Homeworkers in Certain Industries; Records To Be Kept by 
Employers, 53 FR 45706 (Nov. 10, 1988) (codified at 29 CFR parts 516 
and 530). Section 530.302 of these regulations provides for the 
imposition of civil money penalties. Existing Sec.  530.302(a) imposes 
a civil money penalty of not more than $500 per affected homeworker for 
any violation of the FLSA related to homework \7\, or of part 530, or 
of the assurances given in connection with the issuance of a homeworker 
certificate. Existing Sec.  530.302(b) states that the amount of civil 
money penalties shall be determined per affected homeworker within the 
limits set forth in a following table, except that no penalty shall be 
assessed in the case of violations which are deemed to be de minimis in 
nature. The table appears in the existing regulation as follows in 
Table A:
---------------------------------------------------------------------------

    \7\ Except for child labor violations, which are covered under 
29 CFR part 579.

                                      Table A--Existing Homework Penalties
----------------------------------------------------------------------------------------------------------------
                                                                          Penalty per affected homeworker
                                                                 -----------------------------------------------
                       Nature of violation                                                           Repeated,
                                                                       Minor        Substantial   intentional or
                                                                                                      knowing
----------------------------------------------------------------------------------------------------------------
Recordkeeping...................................................         $10-100        $100-200        $200-500
Monetary violations.............................................         $10-100        $100-200  ..............
Employment of homeworkers without a certificate.................  ..............        $100-200        $200-500
Other violations of statutes, regulations or employer assurances         $10-100        $100-200        $200-500
----------------------------------------------------------------------------------------------------------------

The maximum penalty amount last established by statute or regulation 
other than the Prior Inflation Adjustment Act was $500 in 1988 and is 
the same as the existing maximum penalty amount. See 53 FR 45706, 
45724.
    To adjust the existing civil money penalty for this section, the 
Department multiplied the maximum penalty amount of $500 by the 
inflation adjustment factor for 1988 of 1.97869, which resulted in a 
maximum penalty of $989. The amount of the increase from $500 to $989 
is $489, which is less than the statutory cap of 150 percent of the 
existing $500 penalty, which is $750; accordingly, the amount of the 
increase is not limited by the statutory cap. Consequently, Sec.  
530.302(a) and (b) are revised to increase the maximum penalty from 
$500 to $989 and the percentage of that maximum penalty amount for 
minor (2 percent to 20 percent); substantial (20 percent to 40 
percent); or repeated, intentional, or knowing (40 percent to 100 
percent) violations by the same percentages of the adjusted maximum 
penalty amount as under the existing section. As a result, the revised 
penalty amounts are $20-198 for a minor violation; $198-396 for a 
substantial violation; and $396-989 for a repeated, intentional, or 
knowing violation.
d. Section 578.3--What types of violations may result in a penalty 
being assessed?
    Section 16(e)(2) of the FLSA, 29 U.S.C. 216(e)(2), and existing 29 
CFR 578.3(a), provide for the assessment of civil money penalties for 
any person who repeatedly or willfully violates section 6 (minimum 
wage) or section 7 (overtime) of the FLSA. Existing Sec.  578.3(a) 
provides for a civil money penalty of up to $1,100 per violation, and 
that level is the result of an inflation adjustment in 2001. See Final 
Rule, Adjustment of Civil Money Penalties for Inflation, 66 FR 63501 
(Dec. 7, 2001). The maximum penalty amount last established by statute 
or regulation other than the Prior Inflation Adjustment Act was $1,000 
in 1989. See Fair Labor Standards Amendments of 1989, Pub. L. 101-157, 
Sec.  9 (Nov. 17, 1989).
    To adjust the existing civil money penalty for this paragraph, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1989 of 1.89361, which resulted in a maximum 
penalty of $1,894. The amount of the increase from $1,100 to $1,894 is 
$794, which is less than the statutory cap of 150 percent of the 
existing $1,100 penalty, which is $1,650; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
578.3(a) is revised to increase the maximum penalty for a repeated or 
willful violation of section 6 (minimum wage) or section 7 (overtime) 
of the FLSA from $1,100 to $1,894 per violation.
    Conforming changes to reflect the adjusted maximum civil money 
penalty amount were also made to Sec.  579.1(a)(2). In addition, 
historical information concerning penalties for repeated or willful 
violations of Sections 6 or 7 of the FLSA contained in 29 CFR 578.1 is 
revised to reflect the passage of the Federal Civil Penalties Inflation 
Adjustment Act Improvement Act of 2015 (Pub. L. 114-74) and its 
requirement to make civil money penalty adjustments annually.
e. Section 579.1--Purpose and Scope
    Section 16(e)(1)(A) of the FLSA and existing 29 CFR 579.1(a)(1)(i) 
provide for the imposition of civil money penalties for any violations 
of the provisions of sections 12 or 13(c) of the FLSA, relating to 
child labor, or any regulation issued pursuant to such sections. There 
are three levels of civil money penalties provided for by these 
authorities.
    First, existing Sec.  579.1(a)(1)(i)(A) provides for a civil money 
penalty, not to exceed $11,000, for each employee who was the subject 
of a child labor violation. This penalty corresponds to the statutory 
provision at 29 U.S.C. 216(e)(1)(A)(i). The penalty amount last 
established by statute or regulation for this provision other than the 
Prior

[[Page 43438]]

Inflation Adjustment Act was $11,000 in 2008. See Genetic Information 
Nondiscrimination Act of 2008 (GINA), Pub. L. 110-233, Sec.  302(a) 
(May 21, 2008).
    To adjust the existing civil money penalty for this paragraph, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2008 of 1.09819, which resulted in a maximum 
penalty of $12,080. The amount of the increase from $11,000 to $12,080 
is $1,080, which is less than the statutory cap of 150 percent of the 
existing $11,000 penalty, which is $16,500; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
579.1(a)(1)(i)(A) is revised to increase the maximum penalty for 
violations of the provisions of sections 12 or 13(c) of the FLSA, 
relating to child labor, or any regulation issued pursuant to such 
sections, from $11,000 to $12,080 for each employee who was the subject 
of such a violation.
    Conforming changes to reflect the adjusted maximum civil money 
penalty amount were also made to 29 CFR 570.140(b)(1).
    Second, existing Sec.  579.1(a)(1)(i)(B) provides for a civil money 
penalty, not to exceed $50,000, for each violation of section 12 or 
13(c) of the FLSA, relating to child labor, or any regulation issued 
pursuant to those sections that causes the death or serious injury of 
any employee under the age of 18 years. This penalty corresponds to the 
statutory provision at 29 U.S.C. 216(e)(1)(A)(ii). That maximum amount 
was last established by statute or regulation other than the Prior 
Inflation Adjustment Act in 2008 and is the same as the existing 
maximum penalty amount. See GINA Sec.  302(a).
    To adjust the existing civil money penalty for this paragraph, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 2008 of 1.09819, which resulted in a maximum 
penalty of $54,910. The amount of the increase from $50,000 to $54,910 
is $4,910, which is less than the statutory cap of 150 percent of the 
existing $50,000 penalty, which is $75,000; accordingly, the amount of 
the increase is not limited by the statutory cap. Consequently, Sec.  
579.1(a)(1)(i)(B) is revised to increase the maximum penalty for 
violations of that provision, from $50,000 to $54,910 for each such 
violation.
    Section 579.5(a) has also been revised to remove superfluous 
language regarding the effective date of this civil money penalty. 
Conforming changes to reflect the adjusted maximum civil money penalty 
amount were also made to 29 CFR 570.140(b)(2).
    Third, existing Sec.  579.1(a)(1)(i)(B) also provides that the 
maximum penalty for a violation of section 12 or 13(c) of the FLSA, 
relating to child labor, or any regulation issued pursuant to those 
sections that causes the death or serious injury of any employee under 
the age of 18 years may be doubled if the violation is repeated or 
willful. Therefore, under revised Sec.  579.1(a)(1)(i)(B), the maximum 
penalty amount for such a willful or repeated violation is calculated 
by doubling the adjusted penalty of $54,910 for a child labor violation 
resulting in serious injury or death (i.e., $109,820). No change to 
regulatory text is needed to make this adjustment.
    In addition, existing Sec.  579.1(a) and (b) are revised to reflect 
the passage of the Federal Civil Penalties Inflation Adjustment Act 
Improvement Act of 2015 (Pub. L. 114-74) and its requirement to make 
civil money penalty adjustments annually, and to remove superseded 
information regarding the effective date of increased civil money 
penalties.
f. Section 801.42--Civil Money Penalties--Assessment
    Section 6(a)(1) of the Employee Polygraph Protection Act of 1988 
(EPPA), 29 U.S.C. 2005(a)(1) and existing 29 CFR 801.42(a) impose a 
civil money penalty of not more than $10,000 for any violation of the 
EPPA or of part 801. The maximum penalty amount last established by 
statute or regulation other than the Prior Inflation Adjustment Act was 
$10,000 in 1988 and is the same as the existing maximum penalty amount. 
See EPPA, Pub. L. 100-347 (June 27, 1988).
    To adjust the existing civil money penalty for this section, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1988 of 1.97869, which resulted in a penalty of 
$19,787. The amount of the increase from $10,000 to $19,787 is $9,787, 
which is less than the statutory cap of 150 percent of the existing 
$10,000 penalty, which is $15,000; accordingly, the amount of the 
increase is not limited by the statutory cap. Consequently, Sec.  
801.42(a) is revised to increase the maximum penalty for a violation of 
the EPPA from $10,000 to $19,787.
g. Section 825.300--Employer Notice Requirements
    Section 109(b) of the Family and Medical Leave Act (FMLA), as 
amended, 29 U.S.C. 2619(b), and existing 29 CFR 825.300(a)(1) provide 
for the assessment of a civil money penalty for each willful violation 
of the posting requirement of the FMLA. Existing Sec.  825.300(a)(1) 
provides for a civil money penalty of up to $110 for each separate 
offense, and that level is the result of an inflation adjustment in 
2008. See Final Rule, The Family and Medical Leave Act of 1993, 73 FR 
67934 (Nov. 17, 2008). The penalty amount last established by statute 
or regulation other than the Prior Inflation Adjustment Act was $100 in 
1993. See FMLA of 1993, Pub. L. 103-3, Sec.  109(b) (Feb. 5, 1993).
    To adjust the existing civil money penalty for this paragraph, the 
Department multiplied that maximum penalty amount by the inflation 
adjustment factor for 1993 of 1.63238, which resulted in a maximum 
penalty of $163. The amount of the increase from $110 to $163 is $53, 
which is less than the statutory cap of 150 percent of the existing 
$110 penalty, which is $165; accordingly, the amount of the increase is 
not limited by the statutory cap. Consequently, Sec.  578.300(a)(1) is 
revised to increase the penalty for violations of the posting 
requirement of the FMLA from $110 to $163 for each separate offense.

E. Occupational Safety and Health Administration (29 CFR Parts 1902, 
1903)

1. General
    This section E of the preamble addresses the civil monetary 
penalties administered by the Occupational Safety and Health 
Administration (OSHA) to enforce provisions of the Occupational Safety 
& Health Act of 1970 (OSH Act), as amended. Paragraph 2(a) explains 
conforming edits to the agency's State Plan regulations. Paragraph 2(b) 
explains revisions to each of the civil penalties administered and 
enforced by OSHA.
2. Specific Penalty Increases
a. Section 1902.4(c)(2)(xi)--Indices of Effectiveness
    Section 18(c)(2) of the OSH Act provides that a State may assume 
responsibility for development and enforcement of its own occupational 
safety and health standards by submitting a State Plan. State Plan 
regulations at 29 CFR 1902.3(c)(1) and (d)(1) provide that State Plans 
must develop or adopt occupational safety and health standards and an 
enforcement program for those standards that are at least as effective 
as federal OSHA's standards and enforcement program. Existing Sec.  
1902.4(c)(2)(xi) provides that in order to satisfy this requirement of

[[Page 43439]]

effectiveness, State Plans must have effective sanctions, such as those 
prescribed in the OSH Act. This IFR amends Sec.  1902.4(c)(2)(xi) to 
clarify that State Plans must provide sanctions as effective as those 
set forth in the OSH Act and in Sec.  1903.15(d), against private-
sector employers who violate State standards and orders.
b. Section 1903.15--OSH Act Penalties
    The penalty amounts set forth in section 17(a) to (d) and (i) of 
the OSH Act (29 U.S.C. 666(a) to (d) and (i)) were last updated by the 
Omnibus Budget Reconciliation Act of 1990 on November 5, 1990. Pub. L. 
101-508. To adjust the civil penalties for Section 17(a) to (d) and 
(i), the Department multiplied the penalty amounts by the inflation 
adjustment factor for 1990 of 1.78156. None of the resulting penalty 
amounts exceeded the 150 percent statutory cap. Other references to 
penalty amounts in Part 1903 are also amended by the new penalty 
amounts set out in Sec.  1903.15(d).
i. Willful or Repeated Violation of the OSH Act, 29 U.S.C 666(a)
    Section 17(a) of the OSH Act, 29 U.S.C 666(a), provides that 
employers who willfully or repeatedly violate the requirements of 
section 5 of the OSH Act, any standards, rules or orders promulgated 
under section 6 of the OSH Act, or applicable regulations may be 
assessed a civil penalty of not more than $70,000 for each violation, 
but not less than $5,000 for each willful violation. No minimum penalty 
is set forth in the OSH Act for repeated violations. To adjust the 
existing civil money penalty for this paragraph, the Department 
multiplied the penalty amounts by the inflation adjustment factor for 
1990 of 1.78156, which resulted in a maximum penalty of $124,709 for 
willful and repeated violations, and a minimum penalty of $8,908 for 
willful violations. The updated civil monetary penalties for willful 
and repeated violations are set out in Sec.  1903.15(d)(1) and (2).
ii. Serious Violation of the OSH Act of 1970, 29 U.S.C 666(b)
    Section 17(b) of the OSH Act, 29 U.S.C 666(b), provides that 
employers who have received a citation for a serious violation of the 
requirements of section 5 of the OSH Act, of any standard, rule, or 
order promulgated under section 6 of the OSH Act, or applicable 
regulations may be assessed a civil penalty up to $7,000 for each 
violation. After applying the inflation adjustment factor, the penalty 
amounts were rounded to the nearest dollar, which resulted in a maximum 
penalty of $12,471. The updated maximum civil monetary penalty for 
serious violations is set out in Sec.  1903.15(d)(3).
iii. Other-Than-Serious Violation of the OSH Act of 1970, 29 U.S.C 
666(c)
    Section 17(c) of the OSH Act, 29 U.S.C 666(c), provides that 
employers who have received a citation for a violation of the 
requirements of section 5 of the OSH Act, any standard, rule or order 
promulgated under section 6 of the OSH Act, or applicable regulations, 
and such violation is determined not to be of a serious nature, may be 
assessed a civil penalty of up to $7,000 for each violation. After 
applying the inflation adjustment factor, the penalty amounts were 
rounded to the nearest dollar, which resulted in a maximum penalty of 
$12,471 for each day during which such failure or violation continues. 
The updated maximum civil monetary penalty for other-than-serious 
violations is set out in Sec.  1903.15(d)(4).
iv. Failure To Correct a Violation of the OSH Act of 1970, 29 U.S.C 
666(d)
    Section 17(d), 29 U.S.C 666(d), provides that any employer who 
fails to correct a violation for which a citation has been issued under 
section 9(a) of the OSH Act within the period permitted for the 
correction may be assessed a civil penalty of not more than $7,000 for 
each day during which such failure or violation continues. After 
applying the inflation adjustment factor, the penalty amounts are 
rounded to the nearest dollar, which resulted in a maximum penalty of 
$12,471. The updated maximum civil monetary penalty for failing to 
correct a violation is set out in Sec.  1903.15(d)(5).
v. Violation of a Posting Requirement of the OSH Act of 1970, 29 U.S.C 
666(i)
    Section 17(i) of the OSH Act, 29 U.S.C. 666(i), provides that 
employers who violate any of the posting requirements, as prescribed 
under provisions of the OSH Act, shall be assessed a civil penalty of 
up to $7,000 for each violation. After applying the inflation 
adjustment factor, the penalty amounts are rounded to the nearest 
dollar, which resulted in a maximum penalty of $12,471. The updated 
maximum civil monetary penalty for violations of the posting 
requirements is set out in Sec.  1903.15(d)(6).

F. Employee Benefits Security Administration (29 CFR Part 2560, 2575, 
2590)

1. General
    This section F of the preamble addresses the civil monetary 
penalties administered by EBSA to enforce title I of the Employee 
Retirement Income Security Act of 1974, as amended, (ERISA). Paragraph 
2(a) explains how the Department determined the date each civil 
monetary penalty was last adjusted by law or regulation (other than the 
Prior Inflation Adjustment Act, as amended), and Paragraph 2(b) 
describes the calculation of the catch-up adjustment for each ERISA 
civil monetary penalty through the use of a table. Paragraph 2(c) 
addresses the restructuring of 29 CFR part 2575 and other technical 
changes to the Department's regulations needed to reflect the 
amendments made to the Prior Inflation Adjustment Act by the Inflation 
Adjustment Act.
2. Specific Penalty Increases
a. Determination of Date Civil Monetary Penalty was Last Adjusted by 
Law or Regulation (Other Than the Prior Inflation Adjustment Act)
    Section 5(b)(2)(B) of the Inflation Adjustment Act states that the 
initial cost-of-living adjustment (i.e., catch-up adjustment) shall be 
applied to the ``amount of the civil monetary penalty as it was most 
recently established or adjusted under a provision of law other than 
the [Prior Inflation Adjustment Act].'' OMB guidance clarifies that the 
definition of the term ``law'' includes regulations where the statute 
grants the agency authority to establish a penalty or the dollar amount 
of the penalty by regulation. The Department has determined that no 
ERISA penalty amount has been adjusted by regulation or statute (other 
than the Prior Inflation Adjustment Act) subsequent to the enactment of 
the statute that established the initial amount of the penalty.
    Certain ERISA civil monetary penalties apply to violations of more 
than one ERISA provision. For example, new violations of ERISA were 
subsequently added to the civil penalty provisions of sections 
502(c)(4), and 502(c)(7).\8\ The addition of a violation to an existing 
penalty statute neither establishes nor adjusts the ``amount of the 
civil monetary penalty'' within the meaning of section 5(b)(2)(B) of 
the Inflation Adjustment Act. Because no ERISA civil monetary penalty 
amount has been adjusted by law (other than the Prior Inflation 
Adjustment Act) subsequent to its establishment, the enactment date of 
an ERISA penalty statute rather than the date a violation first becomes 
subject to the penalty

[[Page 43440]]

determines both the amount of and the date from which the penalty is 
adjusted. For example, a failure to furnish certain multiemployer plan 
financial and actuarial information upon request under section 101(k) 
of ERISA will be subject to a penalty under ERISA section 502(c)(4) 
adjusted for inflation from 1993 (the year of enactment of section 
502(c)(4), even though section 101(k) violations did not become subject 
to section 502(c)(4) until 2008.\9\ This interpretation tracks the 
language of the statute and ensures that ERISA violations subject to 
the same penalty are adjusted for inflation in a consistent manner. The 
Department is of the view that this consistency will in turn reduce 
both confusion and, ultimately, the burden upon the regulated 
community.
---------------------------------------------------------------------------

    \8\ Section 502(c)(4) was enacted in 1993 by Pub. L. 103-66, 107 
Stat.312. A new violation was added to section 502(c)(4) in 2006 by 
Pub. L. 109-280, 120 Stat. 780. Section 502(c)(7) was enacted in 
2002 by Pub. L. 107-204, 116 Stat. 745. Section 502(c)(7) also was 
amended in 2006 by Pub. L. 109-208, 120 Stat. 780, to add a new 
violation.
    \9\ Pub. L. 109-280, August 17, 2006, effective for failures 
occurring in plan years beginning after 2007.
---------------------------------------------------------------------------

    The enactment dates of the ERISA statutes establishing the amount 
of the civil monetary penalties follow in Table B:

                                            Table B--Enactment Dates
----------------------------------------------------------------------------------------------------------------
                                        Law (other than prior Inflation Adjustment Act)
  Penalty statute: U.S.C. and ERISA    most recently establishing amount of ERISA civil       Enactment date
              citations                               monetary penalties
----------------------------------------------------------------------------------------------------------------
29 U.S.C. Sec.   1059(b)/ERISA Sec.    Section 209(b) of the Employee Retirement Income  September 2, 1974.
 209(b).                                Security Act of 1974, Pub. L. 93-406, 88 Stat.
                                        829.
29 U.S.C. Sec.   1132(c)(2)/ERISA      Section 9342(c)(2) of the Omnibus Reconciliation  December 22, 1987.
 Sec.   502(c)(2).                      Act of 1987, Pub. L. 100-203, 101 Stat. 1330.
29 U.S.C. Sec.   1132(c)(4)/ERISA      Section 4301(c)(2) of the Omnibus Budget          August 10, 1993.\10\
 Sec.   502(c)(4).                      Reconciliation Act of 1993, Pub. L. 103-66, 107
                                        Stat. 312.
29 U.S.C. Sec.   1132(c)(5)/ERISA      Section 101(e)(2) of the Health Insurance and     August 21, 1996.
 Sec.   502(c)(5).                      Portability and Accountability Act of 1996,
                                        Pub. L. 104-91, 110 Stat. 1936.
29 U.S.C. Sec.   1132(c)(6)/ERISA      Section 1503(c)(2)(B) of the Taxpayer Relief Act  August 5, 1997.
 Sec.   502(c)(6).                      of 1997, Pub. L. 105-34, 111 Stat. 788.
29 U.S.C. Sec.   1132(c)(7)/ERISA      Section 306(b)(3) of the Sarbanes-Oxley Act of    July 30, 2002.
 Sec.   502(c)(7).                      2002, Pub. L. 107-204, 116 Stat. 745.
29 U.S.C. Sec.   1132(c)(8)/ERISA      Section 202(b)(3) of the Pension Protection Act   August 17, 2006.
 Sec.   502(c)(8).                      of 2006 (PPA), Pub. L. 109-280, 120 Stat. 780.
29 U.S.C. Sec.   1132(c)(9)(A)/ERISA   Section 311(b)(1)(E) of the Children's Health     February 4, 2009.
 Sec.   502(c)(9)(A).                   Insurance Program Reauthorization Act of 2009,
                                        Pub .L. 111-3, 123 Stat. 8.
29 U.S.C. Sec.   1132(c)(9)(B)/ERISA   Section 311(b)(1)(E) of the Children's Health     February 4, 2009.
 Sec.   502(c)(9)(B).                   Insurance Program Reauthorization Act of 2009,
                                        Pub. L. 111-3, 123 Stat. 8.
29 U.S.C. Sec.   1132(c)(10)/ERISA     Section 101(e) of the Genetic Information         May 21, 2008.
 Sec.  Sec.   502(c)(10)(B)(i),         Nondiscrimination Act of 2008, Pub. L. 110-233,
 (C)(i), (C) (ii), and (D)(iii)(II).    122 Stat. 881.
29 U.S.C. Sec.   1132(c)(12)/ERISA     Section 102(b)(6)(B) of the Cooperative and       April 7, 2014.
 Sec.   502(c)(12).                     Small Employer Charity Pension Flexibility Act,
                                        Pub. L. 113-97, 128 Stat. 1101.
29 U.S.C. Sec.   1132(m)/ERISA Sec.    Section 761(a)(9)(B)(ii) of the Uruguay Round     December 8, 1994.
 502(m).                                Agreements Act, Pub. L. 103-465, 108 Stat. 4809.
29 U.S.C. Sec.   1185d and 42 U.S.C.   Sections 1001(5) and 1562(e) of the Patient       March 23, 2010.
 Sec.   300gg-15/ERISA Sec.   715.      Protection and Affordable Care Act, Pub. L. 111-
                                        148, 124 Stat. 119.
----------------------------------------------------------------------------------------------------------------

b. Calculation of Catch-Up Inflation Adjustment
    Table C shows the calculation of the catch-up adjustment. Column 
(1) contains the United States Code and ERISA citations for the penalty 
statute. Column (2) contains the dollar amount most recently 
established by law (other than the Prior Inflation Adjustment Act) for 
each ERISA civil monetary penalty along with a description of the 
violations subject to the penalty. Column (3) sets out the year the 
amount of the civil monetary penalty was most recently established by 
law (other than the Prior Inflation Adjustment Act) based on the date 
of enactment found in Table B. Column (4) sets out the factor 
determined by OMB to adjust for inflation from October of the 
corresponding year in column (3) to October 2015. Column (5) sets out 
the adjusted civil monetary penalty resulting from the product of the 
dollar amount of the civil monetary penalty set out in Column (2) 
multiplied by the inflation factor in column (4). Column (6) sets out 
the actual civil monetary penalty in effect on November 2, 2015. Column 
(7) sets out the maximum catch-up penalty, which is the sum of the 
penalty amount in Column (6) plus the maximum penalty increase of 150 
percent for a total of 250 percent of the 2015 penalty.\11\ Column (8) 
reflects the actual catch-up penalty, effective August 1, 2016, which 
is the lesser of the adjusted civil monetary penalty in Column (5) or 
the maximum civil monetary penalty in Column (7).
---------------------------------------------------------------------------

    \10\ Initially, section 502(c)(4) applied to a failure of a 
group health plan administrator to furnish information to the 
Medicare Medicaid Coverage Data Bank under former section 101(f) of 
ERISA. This requirement was repealed effective October 2, 1996, by 
the Child Support Incentive Act of 1998, Pub. L. 105-200. The 
reference to section 101(f) in section 502(c)(4) was deleted and 
replaced with a reference to violation of the notice requirements of 
section 302(b)(7)(F)(vi) of ERISA by section 104(a)(2) of the 
Pension Funding Equity Act of 2004, Pub. L. 108-218. Sections 
103(b)(2), 502(a)(2), 502(b)(2) and 902(f)(2) of the PPA deleted the 
reference to section 302(b)(7)(F)(vi) and replaced it with 
references to violations of sections 101(j), 101(k), 101(l) and 
section 514(e)(3) of ERISA.
    \11\ Section 5(2)(b)(C) of the Inflation Adjustment Act states 
that increase in the penalty resulting from the initial or catch-up 
adjustment may not be greater than 150 percent of the penalty amount 
on November 2, 2015. Mathematically, a maximum increase of 150 
percent equals 250 percent of the penalty. See Bipartisan Budget Act 
of 2015 Section by Section Summary at p. 6 available at http://docs.house.gov/meetings/RU/RU00/CPRT-114-RU00-D001.pdf.

[[Page 43441]]



                                                                           Table C--Calculation of Catch-Up Adjustment
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                (1)                          (2)               (3)          (4)                  (5)                        (6)                        (7)                        (8)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Year CMP
                                        Civil monetary     amount last
                                     penalty (CMP) amount   set by law   Inflation
                                     last established by    other than   factor for  Adjusted CMP-- $ amount in                                                         Catch-Up CMP--lesser of
       ERISA penalty statute         law and description      prior       year in      column (2) x factor in      CMP Amount 11/02/2015    CMP Cap--2.5 x column (6)      column (5) or (7)
                                     of ERISA violations    Inflation    column (3)          column (4)
                                      subject to the CMP    Adjustment
                                                               Act
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
29 U.S.C. 1059(b)/ERISA Sec.        $10 per employee for          1974      4.65436  $47.......................  $11......................  $28......................  $28.
 209(b).                             failure to furnish
                                     reports (e.g.,
                                     pension benefit
                                     statements) to
                                     certain former
                                     participants and
                                     beneficiaries or
                                     maintain records.
29 U.S.C. 1132(c)(2)/ERISA Sec.     Up to $1,000 per day          1987      2.06278  2,063.....................  1,100....................  2,750....................  2,063.
 502(c)(2).                          for each:
                                     Failure or
                                     refusal to file
                                     annual report (Form
                                     5500) required by
                                     ERISA Sec.   104;
                                     and.
                                     Failure of a
                                     multiemployer plan
                                     to certify
                                     endangered or
                                     critical status
                                     under Sec.
                                     305(b)(3)(C) treated
                                     as failure to file
                                     annual report.
29 U.S.C. 1132(c)(4)/ERISA Sec.     Up to a $1000 per day         1993      1.63238  1,632.....................  1,000....................  2,500....................  1,632.
 502(c)(4).                          for each:
                                     Failure to
                                     notify participants
                                     under ERISA Sec.
                                     101(j) of certain
                                     benefit restrictions
                                     and/or limitations
                                     arising under
                                     Internal Revenue
                                     Code section 436;.
                                     Failure to
                                     furnish certain
                                     multiemployer plan
                                     financial and
                                     actuarial reports
                                     upon request under
                                     ERISASec.   101(k).
                                     Failure to
                                     furnish estimate of
                                     withdrawal liability
                                     upon request under
                                     ERISA Sec.   101(l);
                                     and
                                     Failure to
                                     furnish automatic
                                     contribution
                                     arrangement notice
                                     under ERISA Sec.
                                     514(e)(3).
29 U.S.C. 1132(c)(5)/ERISA Sec.     Up to $1,000 per day          1996      1.50245  1,502.....................  1,100....................  2,750....................  1,502.
 502(c)(5).                          for each failure of
                                     a multiple employer
                                     welfare arrangement
                                     to file report
                                     required by
                                     regulations issued
                                     under ERISA Sec.
                                     101(g).
29 U.S.C. 1132(c)(6)/ERISA Sec.     Up to $100 per day            1997      1.47177  147 not to exceed 1,472...  110 not to exceed 1,100..  275 not to exceed 2,750..  147 not to exceed 1,472.
 502(c)(6).                          for failure to
                                     furnish information
                                     requested by
                                     Secretary of Labor
                                     under ERISA Sec.
                                     104(a)(6) but not
                                     greater than $1,000
                                     per request.
29 U.S.C. 1132(c)(7)/ERISA Sec.     Up to $100 per day            2002      1.31185  131.......................  100......................  250......................  131.
 502(c)(7).                          for each failure to
                                     furnish a required
                                     blackout notice
                                     under section 101(i)
                                     of ERISA and of
                                     right to divest
                                     employer securities
                                     under section
                                     101(m)-- each
                                     statutory recipient
                                     a separate
                                     violation.

[[Page 43442]]

 
29 U.S.C. 1132(c)(8)/ERISA Sec.     Up to $1,100 per day          2006      1.17858  1,296.....................  1,100....................  2,750....................  1,296.
 502(c)(8).                          for failure by a
                                     plan sponsor of a
                                     multiemployer plan
                                     in endangered status
                                     to adopt a funding
                                     improvement plan or
                                     a multiemployer plan
                                     in critical status
                                     to adopt a
                                     rehabilitation plan.
                                     Penalty also applies
                                     to a plan sponsor of
                                     an endangered status
                                     plan (other than a
                                     seriously endangered
                                     plan) that fails to
                                     meet its benchmark
                                     by the end of the
                                     funding improvement
                                     period.
29 U.S.C. 1132(c)(9)(A)/ERISA Sec.  Up to $100 per day            2009      1.10020  110.......................  100......................  250......................  110.
   502(c)(9)(A).                     for each failure by
                                     an employer to
                                     inform employees of
                                     CHIP coverage
                                     opportunities under
                                     ERISA Sec.
                                     701(f)(3)(B)(i)(l)--
                                     each employee a
                                     separate violation.
29 U.S.C. 1132(c) (9)(B)/ERISA      Up to $100 per day            2009      1.10020  110.......................  100......................  250......................  110.
 Sec.   502(c)(9) (B).               for each failure by
                                     a plan administrator
                                     to timely provide to
                                     any State
                                     information required
                                     to be disclosed
                                     under ERISA Sec.
                                     701(f)(3)(B)(ii),
                                     regarding coverage
                                     coordination--each
                                     participant/
                                     beneficiary a
                                     separate violation.
29 U.S.C. 1132(c)(10)/ERISA Sec.    $100 per participant          2008      1.09819  110.......................  100......................  250......................  110.
 502(c)(10).                         or beneficiary per
                                     day during
                                     noncompliance period
                                     for failure by any
                                     plan sponsor of
                                     group health plan,
                                     or any health
                                     insurance issuer
                                     offering health
                                     insurance coverage
                                     in connection with
                                     the plan, to meet
                                     the requirements of
                                     ERISA Sec.  Sec.
                                     702(a)(1)(F),
                                     (b)(3), (c) or (d);
                                     or Sec.   701; or
                                     Sec.   702(b)(1)
                                     with respect to
                                     genetic information.
                                     See ERISA Sec.
                                     502(c)(10)(B)(i).
                                    Minimum penalty of            2008      1.09819  2,745.....................  2,500....................  6,250....................  2,745.
                                     $2,500 per
                                     participant or
                                     beneficiary for de
                                     minimis failures not
                                     corrected prior to
                                     notice from
                                     Secretary of Labor.
                                     See ERISA Sec.
                                     502(c)(10)(C)(i).
                                    Minimum penalty of            2008      1.09819  16,473....................  15,000...................  37,500...................  16,473.
                                     $15,000 per
                                     participant or
                                     beneficiary for
                                     failures which are
                                     not corrected prior
                                     to notice from
                                     Secretary of Labor
                                     and are not de
                                     minimis. See ERISA
                                     Sec.
                                     502(c)(10)(C)(ii).
                                    $500,000 cap on               2008      1.09819  549,095...................  500,000..................  1.25 million.............  549,095.
                                     unintentional
                                     failures. See ERISA
                                     Sec.
                                     502(c)(10)(D)(iii)(I
                                     I).

[[Page 43443]]

 
29 U.S.C. 1132(c)(12)/ERISA Sec.    Up to $100 per day            2014      1.00171  100.......................  100......................  250......................  100.
 502(c)(12).                         for failure of CSEC
                                     plan sponsor to
                                     establish or update
                                     a funding
                                     restoration plan.
29 U.S.C. 1132(m)/ERISA Sec.        Up to $10,000 per             1994      1.59089  15,909....................  10,000...................  25,000...................  15,909.
 502(m).                             distribution
                                     prohibited by ERISA
                                     Sec.   206(e).
29 U.S.C. 1185d and 42 U.S.C.       Up to $1000 per               2010      1.08745  1,087.....................  1,000....................  2,500....................  1,087.
 300gg-15/ERISA Sec.   715.          failure to provide
                                     Summary of Benefits
                                     Coverage under
                                     Public Health
                                     Services Act section
                                     2715(f), as
                                     incorporated in
                                     ERISA section Sec.
                                     715 and 29 CFR
                                     2590.715-2715(e).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

c. Structure
    Currently, subpart A of part 2575 (Adjustment of Civil Penalties 
under ERISA Title I) of title 29 of the Code of Federal Regulations 
contains 7 sections (one general section and a separate section for the 
six previously adjusted penalties). Due to the large number of title I 
penalties adjusted for inflation by this IFR, the Department has 
decided to simplify the structure of subpart A of part 2575. This IFR 
replaces Sec. Sec.  2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5, 
and 2575.502c-6 with new Sec. Sec.  2575.1, 2575.2, and 2575.3. Section 
2575.1 In general contains the implementing language. Section 2575.2 
Catch-up adjustments to civil monetary penalties sets out the inflation 
adjustments for each ERISA penalty from establishment of the penalty 
amount through August 1, 2016. Section 2575.3 Subsequent adjustments to 
civil monetary penalties addresses post-2016 non-regulatory inflation 
adjustments.
    Also, as a result of the amendments made to the Prior Inflation 
Adjustment Act by the Inflation Adjustment Act, the IFR also makes 
minor technical changes to Sec. Sec.  2560.502c-2, 2560.502c-4, 
2560.502c-5, 2560.502c-6, 2560.502c-7, and 2560.502c-8 of 29 CFR part 
2560 and Sec.  2590.715-2715(e) of 29 CFR part 2950.

G. Mine Safety and Health Administration (30 CFR Part 100)

1. General
    This section G of the preamble addresses the civil monetary 
penalties administered by Mine Safety and Health Administration (MSHA) 
to enforce provisions of the Federal Mine Safety & Health Act of 1977 
(Mine Act) (Pub. L. 91-173), as amended. Paragraphs 2(a) through (c) 
explain revisions to each of the civil penalties administered and 
enforced by MSHA.
2. Specific Penalty Adjustments
    In accordance with the Inflation Adjustment Act, MSHA is adjusting 
its penalty amounts in Sec. Sec.  100.3, 100.4, and 100.5 by 
calculating the catch-up adjustments for these penalties from the date 
of the last statute or regulation (other than the Prior Inflation 
Adjustment Act) that set these penalties. All MSHA penalties were last 
set in 2007. See 72 FR 13592 (Mar. 22, 2007). Subsequently (after 
2007), some but not all of MSHA's penalties also were adjusted for 
inflation. This rule uses the 2007 final rule as the base year in 
calculating all of MSHA's penalty inflation adjustments, rounded to the 
nearest dollar. While this has resulted in different relative impacts 
on particular penalty amounts depending on whether any inflation 
adjustments occurred for that penalty since 2007, the net effect of 
these adjustments is to increase MSHA's penalties.
a. Section 100.3--Determination of Penalty Amount; Regular Assessment
    Regularly assessed penalties are established by a penalty 
conversion table in part 100 that sets penalties based on the number of 
points a citation has been assigned. MSHA assigns points using a number 
of factors described in part 100, including the negligence of the 
operator and the gravity of the violation, among other criteria. 
Currently, a range of points--from 60 or fewer to 144 or more--is 
available; more points result in higher penalties. Penalties can range 
anywhere at or between the minimum penalty and the maximum penalty, 
based on the number of points assigned. Thus, the effect of MSHA's 
penalty conversion table as a whole is a function of both the amount of 
the minimum and maximum penalties and the rate of the progression 
between those two outer points. In order to fully assess how to adjust 
for inflation as prescribed by the statute, it is necessary to look at 
the interaction of all three of these factors--minimum penalty, maximum 
penalty, and the rate of progression between the two. As described 
below, we have adjusted all three elements. The result is an upward 
adjustment for inflation equal to 13.6% for penalties assessed overall 
pursuant to the penalty table (calculated using MSHA's 2015 penalty 
data).
    Existing Sec.  100.3(a)(1) provides that an operator of any mine in 
which a violation of a mandatory health or safety standard occurs or 
who violates any other provisions of the Mine Act shall be regularly 
assessed a civil penalty of not more than $70,000. To calculate the 
adjustment of this penalty under the Inflation Adjustment Act, MSHA 
multiplied $60,000, the maximum civil penalty last established by 
regulation (other than the Prior Inflation Adjustment Act) in 2007 (72 
FR 13592), by the inflation adjustment factor for 2007 of 1.13833, 
which results in a penalty amount of $68,300. The inflation-adjusted 
amount of $8,300 is less than the statutory catch-up adjustment cap of 
a 150 percent increase of the $70,000 penalty in effect as of November 
2, 2015, which is $105,000. Therefore, the maximum regular

[[Page 43444]]

assessment for an operator of any mine in which a violation of a 
mandatory health or safety standard occurs or who violates any other 
provisions of the Mine Act is $68,300, a decrease of $1,700 from the 
existing penalty amount of $70,000. The new maximum penalty of $68,300 
is also the maximum amount available under MSHA's penalty conversion 
table in Sec.  100.3(g).
    Section 100.3(g) provides the penalty conversion table used to 
convert total penalty points to a dollar amount. As discussed above, 
the points are assigned to a violation based on the criteria listed in 
30 CFR part 100. The existing penalty conversion table assigns dollar 
amounts to penalty points that range from 60 or fewer to 144 or more. 
For this final rule, MSHA is using the penalty point conversion table 
last established by regulation (other than the Prior Inflation 
Adjustment Act) in 2007 (72 FR 13592)--both for purposes of determining 
minimum and maximum penalties and the point range between those two 
points. The penalty point range in the 2007 regulation used a penalty 
point range from 60 points or fewer to 140 points or more. For this 
reason, MSHA is changing the existing penalty point maximum of 144 
points or more back to the maximum of 140 points or more. As described 
below, the result is an upward adjustment for inflation equal to 13.6 
percent for penalties assessed overall (using 2015 penalty data) 
pursuant to the penalty conversion table.
    To adjust the existing minimum penalty for inflation, MSHA 
multiplied $112, the minimum civil penalty last established by 
regulation (other than under the Prior Inflation Adjustment Act) in 
2007 (72 FR 13592), by the inflation adjustment factor for 2007 of 
1.13833, which resulted in a penalty of $127. The $15 penalty increase 
is less than the statutory catch-up adjustment cap of a 150 percent 
increase of the $112 penalty in effect as of November 2, 2015, which is 
$168. Therefore, the minimum penalty in the penalty conversion table is 
$127.
    The inflation adjusted penalty conversion table in Sec.  100.3(g) 
maintains the minimum penalty for 60 points or fewer at the new 
inflation-adjusted amount of $127. For each additional point above 60 
up to 140, the existing penalty conversion table increased the dollar 
penalty by the same 2007 inflation adjustment factor of 1.13833 for 
each point. After calculating all values, MSHA rounded all values to 
the nearest dollar. Although the maximum penalty decreased from $70,000 
to $68,3000, applying the new table to MSHA's 2015 assessment data 
results in a 13.6 percent increase (just slightly less than the 13.8 
percent inflation adjustment for 2007).
b. Section 100.4--Unwarrantable Failure and Immediate Notification
    Section 100.4(a) provides the minimum penalty for citations or 
orders issued under Sec.  104(d)(1) of the Mine Act at $2,000. To 
adjust the existing minimum penalty for inflation, MSHA multiplied 
$2,000, the minimum penalty last established by regulation (other than 
under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the 
inflation adjustment factor for 2007 of 1.13833, which resulted in a 
penalty of $2,277. The penalty increase of $277 is less than the 
statutory catch-up adjustment cap of a 150 percent increase of the 
$2,000 penalty in effect as of November 2, 2015, which is $3,000. 
Therefore, the minimum penalty for any citation or order issued under 
section 104(d)(1) of the Mine Act is $2,277.
    Section 100.4(b) states that the minimum penalty for any order 
issued under section 104(d)(2) of the Mine Act is $4,000. To adjust the 
existing minimum penalty for inflation, MSHA multiplied $4,000, the 
minimum penalty last established by regulation (other than under the 
Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the inflation 
adjustment factor for 2007 of 1.13833, which resulted in a penalty of 
$4,553. The penalty increase of $553 is less than the statutory catch-
up adjustment cap of a 150 percent increase of the $4,000 penalty in 
effect as of November 2, 2015, which is $6,000. Therefore, the minimum 
penalty for any citation or order issued under section 104(d)(2) of the 
Mine Act is $4,553.
    Section 100.4(c) states that the penalty for failure to provide 
timely notification of a death or entrapment of a miner or miners at a 
mine to the Secretary of Labor under section 103(j) of the Mine Act, as 
amended, will not be less than a penalty of $5,000 and not more than a 
penalty of $65,000. To adjust the existing minimum penalty, MSHA 
multiplied $5,000, the minimum civil penalty last established by 
regulation (other than under the Prior Inflation Adjustment Act) in 
2007 (72 FR 13592), by the inflation adjustment factor for 2007 of 
1.13833, which resulted in a penalty of $5,692. The penalty increase of 
$692 is less than the statutory catch-up adjustment cap of a 150 
percent increase of the $5,000 penalty in effect as of November 2, 
2015, which is $7,500. Therefore, the minimum penalty for failure to 
provide timely notification to the Secretary under section 103(j) of 
the Mine Act is $5,692. To adjust the existing maximum penalty, MSHA 
multiplied $60,000, the maximum penalty last established by regulation 
(other than under the Prior Inflation Adjustment Act) in 2007 (72 FR 
13592), by the inflation adjustment factor for 2007 of 1.13833, which 
resulted in a penalty of $68,300. The penalty increase of $8,300 is 
less than the statutory catch-up adjustment cap of a 150 percent 
increase of the $65,000 penalty in effect as of November 2, 2015, which 
is $97,500. Therefore, the maximum penalty for failure to provide 
timely notification to the Secretary under section 103(j) of the Mine 
Act is $68,300.
c. Section 100.5--Determination of Penalty Amount; Special Assessment
    Section 100.5(c) addresses penalties that may be assessed daily to 
an operator who fails to correct a violation for which a citation or 
order has been issued under Section 104(a) of the Mine Act. The 
existing maximum daily penalty assessment is $7,500.
    To adjust the penalty for inflation, MSHA multiplied $6,500, the 
penalty amount last established by regulation (other than under the 
Prior Inflation Adjustment Act) in 2007 (72 FR 13592), by the inflation 
adjustment factor for 2007 of 1.13833, which resulted in a penalty of 
$7,399. The inflation-adjusted amount of $899 is less than the 
statutory catch-up adjustment cap of a 150 percent increase of the 
$7,500 penalty in effect as of November 2, 2015, which is $11,250. 
Therefore, the daily penalty assessed an operator who fails to correct 
a violation for which a citation or order has been issued under Section 
sec. 104(a) of the Mine Act is $7,399, a decrease of $101 from the 
existing penalty amount of $7,500.
    Section 100.5(d) addresses penalties for miners who violate 
mandatory safety standards relating to smoking and smoking materials 
underground. The existing maximum smoking penalty is $375. To adjust 
the penalty for inflation, MSHA multiplied the penalty $275, the 
maximum smoking penalty amount last established by regulation (other 
than under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592), 
by the inflation adjustment factor for 2007 of 1.13833, which resulted 
in a penalty of $313. The inflation-adjusted amount of $38 is less than 
the statutory catch-up adjustment cap of a 150 percent increase of the 
$375 penalty in effect as of November 2, 2015, which is $563. 
Therefore, the penalty assessed for a miner who violates mandatory 
safety standards relating to smoking and smoking materials underground 
is $313,

[[Page 43445]]

a decrease of $62 from the existing penalty amount of $375.
    Section 100.5(e) provides a maximum penalty for violations that are 
deemed to be flagrant under 110(b)(2) of the Mine Act. The existing 
maximum penalty is $242,000. To adjust the penalty for inflation, MSHA 
multiplied $220,000, the penalty last established by regulation (other 
than under the Prior Inflation Adjustment Act) in 2007 (72 FR 13592), 
by the inflation adjustment factor for 2007 of 1.13833, which resulted 
in a penalty of $250,433. The penalty increase of $8,433 is less than 
the statutory catch-up adjustment increase cap of a 150 percent 
increase of the $242,000 penalty in effect as of November 2, 2015, 
which is $363,000. Therefore, the maximum penalty for violations that 
are deemed flagrant under sec. 110(b) of the Mine Act is $250,433.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires 
that the Department consider the impact of paperwork and other 
information collection burdens imposed on the public. The Department 
has determined that this final rule does not require any collection of 
information.

V. Executive Order 12866: Regulatory Planning and Review, and Executive 
Order 13563: Improving Regulation and Regulatory Review

    Executive Order 12866 requires that regulatory agencies assess both 
the costs and benefits of significant regulatory actions. Under the 
Executive Order, a ``significant regulatory action'' is one meeting any 
of a number of specified conditions, including the following: Having an 
annual effect on the economy of $100 million or more; creating a 
serious inconsistency or interfering with an action of another agency; 
materially altering the budgetary impact of entitlements or the rights 
of entitlement recipients, or raising novel legal or policy issues. The 
IFR's increases in the maximum civil money penalties that agencies are 
authorized to assess for violations of laws they administer are 
required by the statutorily-mandated provisions of the Inflation 
Adjustment Act, which was enacted by Congress as part of the Bipartisan 
Budget Act of 2015. This IFR is a ``significant'' regulatory action 
because the Department's analysis shows that it could potentially have 
an annual effect on the economy of more than $100 million.
    The Department considered two potential effects of the increased 
penalties mandated by the Inflation Adjustment Act: (1) Increased 
transfers from employers and others who violate the law (and therefore 
pay penalties) to the government; and (2) the benefits to workers, 
retirees, and responsible employers and others of increased penalties 
that will encourage greater compliance with the laws that the 
Department enforces. Each of these effects is discussed in turn.

Transfers to Government

    The Department estimated the increased transfers from employers and 
others who violate the law to the government by conducting a provision-
by-provision analysis of each of the penalties affected by the 
Inflation Adjustment Act. The Department considered the total dollar 
amount of penalties collected under each affected penalty over the 
immediately preceding three complete fiscal years (2013, 2014, and 
2015) to calculate the average total penalties collected under each 
statute.\12\ Then the Department projected how the amount collected 
under each statute would increase if it did so in proportion to the 
percentage increase of the maximum penalty for that statute.\13\ The 
result--approximately $140 million in additional transfers from the 
regulated community to the government each year--is enumerated by 
agency in Table D.
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    \12\ The total penalties collected in fiscal years 2013 and 2014 
were adjusted for inflation using the CPI-U to put them into fiscal 
year 2015 dollars previous to the calculation of three-year 
collection averages.
    \13\ Exceptions were made to this method with respect to three 
provisions of the Mine Act. To calculate projected total penalty 
collections under sections 104(d)(1) and 104(d)(2), the three-year 
averages of penalties collected under each provision between fiscal 
years 2013 and 2015 were multiplied by the percentage increases in 
the minimum required penalties for each statute. To calculate 
projected total penalties collected using MSHA's penalty conversion 
table, MSHA used the detailed assessment data from fiscal years 
2013, 2014, and 2015 to estimate total assessed dollar values for 
each year using both the existing and new conversion tables. The 
total dollar values produced using the new inflation-adjusted 
conversion table were then compared to the dollar values produced 
using the existing conversion table. The resulting annual percent 
changes for fiscal years 2013, 2014, and 2015 were 13.5 percent, 
13.5 percent, and 13.6 percent respectively. These annual 
percentages were then multiplied by the annual dollar collection 
totals for each fiscal year to obtain projected collections by 
fiscal year, and a three-year average was then taken to produce a 
single projected collection total.

                                          Table D--Projected Penalties
                [Inflation Adjustment Act: Total penalties by agency, 3-year average (2013-2015)]
----------------------------------------------------------------------------------------------------------------
                                                                        Dollar Amount Collected  ($FY2015)
                                                                 -----------------------------------------------
                             Agency                                                    Total
                                                                  Total (current    (projected    Numeric change
                                                                    penalties)      penalties)
----------------------------------------------------------------------------------------------------------------
EBSA............................................................     $17,667,363     $33,134,336     $15,466,973
MSHA............................................................      73,112,904      82,812,155       9,699,251
OSHA (federal)..................................................     141,969,042     252,927,499     110,958,457
OWCP............................................................          19,674          45,470          25,797
WHD/ETA/OSEC....................................................       6,894,835      10,541,217       3,646,383
                                                                 -----------------------------------------------
    Total.......................................................     239,663,817     379,460,677     139,796,860
----------------------------------------------------------------------------------------------------------------

    The Department notes that this amount could be an overestimate of 
transfers given that its collections are likely to be lower than 
projected under the new penalties established by the Inflation 
Adjustment Act. First, it does not account for a key factor 
underpinning long-established deterrence principles: That rational 
actors are less likely to commit violations when faced with higher 
penalties.\14\ It is therefore conceivable

[[Page 43446]]

that the increase in penalties collected would not be proportional to 
the increase in penalties that might be assessed by an agency, but 
would instead be less.\15\ In addition, this estimate also assumes that 
the Department's collections will continue at approximately the same 
rate each year despite increased penalties. Together, these factors 
suggest that the amount of the transfers from the regulated community 
to the government is likely to be lower than the $140 million projected 
above.
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    \14\ See generally Gary S. Becker, Essays in the Economics of 
Crime and Punishment, Ch. 1 (1974), available at http://www.nber.org/chapters/c3625.pdf. These concepts are also reflected 
in the Inflation Adjustment Act. 28 U.S.C. 2461 Note, Sec. 2(a)(1) 
(``[T]he power of Federal agencies to impose civil monetary 
penalties for violations of Federal law and regulations plays an 
important role in deterring violations and furthering the policy 
goals embodied in such laws and regulations[.]''); 2(b)(2) (``The 
purpose of this Act is to establish a mechanism that shall . . . 
maintain the deterrent effect of civil monetary penalties and 
promote compliance with the law.''); S. 535: Hearing before Subcomm. 
Legis & Nat'l Sec. of the H. Comm. Gov't Ops., 101st Cong. 3 (1990) 
(hereinafter 1990 Hearing) (statement of Rep. Conyers) (``At the 
heart . . . of regulatory statutes . . . are the monetary fines 
intended to both penalize and deter practices prohibited by these 
laws.''); Id. at 70 (statement of HHS Inspector Gen. Kusserow) (``We 
have found that civil monetary penalties are a very effective 
enforcement tool [and] have also seen them become a very good 
deterrent against fraud.''). Research suggests that the same 
concepts apply in labor law violations as well. See, e.g., Orley 
Ashenfelter & Robert S. Smith, Compliance with the Minimum Wage Law, 
87 Journal of Political Economy 333 (1979), available at http://www.jstor.org/stable/1832090?seq=1#page_scan_tab_contents.
    \15\ In addition, it is important to note that the IFR does not 
revoke existing provisions of the laws above that provide the 
Department with discretion in determining the appropriate civil 
penalty amounts below any particular maximum penalty. Nor does the 
IFR amend any requirements in these laws that the Department 
consider mitigating factors in making such determinations, such as 
the severity of the violation, the number of workers affected by the 
violation, the entity's compliance history, or the size of the 
entity.
---------------------------------------------------------------------------

    OSHA's penalty increases under the Inflation Adjustment Act will 
necessitate an increase to the maximum and minimum penalty amounts 
required by states that administer their own occupational safety and 
health programs as well. Section 18 of the OSH Act (29 U.S.C. 667) 
requires states with OSHA-approved State Plans covering private-sector 
and state and local government employees to have standards and an 
enforcement program that are at least as effective as Federal OSHA's 
standards and enforcement program. Twenty-two (22) States and U.S. 
territories have State Plans that cover private sector employees and 
state and local government employees: Alaska, Arizona, California, 
Hawaii, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Nevada, 
New Mexico, North Carolina, Oregon, Puerto Rico, South Carolina, 
Tennessee, Utah, Vermont, Virginia, Washington, and Wyoming. The 
existing regulation at 29 CFR 1902.4(c)(2)(xi) provides that in order 
to satisfy this requirement of effectiveness, State Plans must have 
effective sanctions, such as those prescribed in the OSH Act. 
Similarly, 29 CFR 1902.37(b)(12) requires State Plans with final 
approval to propose penalties in a manner at least as effective as 
under the federal program. This IFR amends 29 CFR 1902.4(c)(2)(xi) to 
clarify that State Plans must provide sanctions as effective as those 
set forth in the OSH Act and in 29 CFR 1903.15(d).
    OSHA will require State Plans to increase their penalties to 
reflect the federal penalties increases at the state levels in order to 
maintain this ``at least as effective'' status. If every State Plan 
state increases its own penalties in line with the federal increases, 
using the same methodology outlined above, the additional transfer from 
employers to OSHA State Plans would be $57.1 million, as enumerated in 
Table E.

                                          Table E--Projected Penalties
                    [Inflation Adjustment Act: OSHA state plans, 3-Year average (2013-2015)]
----------------------------------------------------------------------------------------------------------------
                                                                       Dollar amount collected ($FY2015)
                                                              --------------------------------------------------
                                                                                     Total
                                                                Total (current     (projected     Numeric change
                                                                  penalties)       penalties)
----------------------------------------------------------------------------------------------------------------
OSHA State Plans.............................................     $73,121,821     $130,271,603      $57,149,782
----------------------------------------------------------------------------------------------------------------

Benefits to Workers, Retirees, and Responsible Employers

    Meanwhile, the Inflation Adjustment Act's penalty increase will 
have significant benefits for workers, retirees, and responsible 
employers and others in the regulated community. While most employers 
play by the rules, there are too many cases where workers are cheated 
out of their hard-earned wages or retirement benefits or forced to 
endure an unsafe workplace. By deterring violations and promoting 
compliance, more workers and retirees will benefit from the core 
employment law protections that the Department administers and 
enforces. Furthermore, responsible employers and others who remain in 
compliance with the Department's laws will face less competition from 
the minority of employers who make a calculated decision to save money 
by eschewing compliance with these laws.\16\ Those who follow the law 
will essentially benefit from a more level playing field when competing 
with those who do not. The Department has been unable to quantify these 
significant benefits.
---------------------------------------------------------------------------

    \16\ Entities that violate the basic labor protections described 
above such that they are subject to civil penalties have often 
benefitted from their non-compliance with such requirements over a 
length of time before being investigated, assessed and required to 
pay penalties for their illegal activities. As noted above, the rule 
only adjusts the authorized levels of civil money penalties to 
account for inflation over time. Of course, to the extent that civil 
penalties increase, there will be increased revenues to the 
government from entities that have been found to have violated the 
law. See 1990 Hearing at 15 (discussing the importance of the 
government fully understanding how many civil monetary penalties are 
assessed and collected and discussing the benefit to taxpayers of 
increased revenue for government).
---------------------------------------------------------------------------

VI. Regulatory Flexibility Act and Small Business Regulatory 
Enforcement Fairness Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes 
certain requirements on Federal agency rules that are subject to the 
notice and comment requirements of the Administrative Procedure Act 
(APA), 5 U.S.C. 553(b), and that are likely to have a significant 
economic impact on a substantial number of small entities. This IFR is 
exempt from the requirements of the APA because the Inflation 
Adjustment Act directed the Department to issue an interim final rule. 
Therefore, the requirements of the RFA applicable to notices of 
proposed rulemaking, 5 U.S.C. 603, do not apply to this IFR. 
Accordingly, the Department is not required to either certify that the 
IFR would not have a significant economic impact on a substantial 
number of small entities or conduct a regulatory flexibility analysis.

[[Page 43447]]

VII. Other Regulatory Considerations

A. The Unfunded Mandates Reform Act of 1995

    The Department estimates that the IFR may result in transfers of up 
to $140 million per year, and acknowledges that this IFR may yield 
effects that make it subject to UMRA requirements. Therefore, the 
Department carried out the requisite cost-benefit analysis in the 
section discussing Executive Orders 12866 and 13563 above.

B. Executive Order 13132: Federalism

    As described above, Section 18 of the OSH Act (29 U.S.C. 667) 
requires OSHA-approved State Plans to have standards and an enforcement 
program that are at least as effective as federal OSHA's standards and 
enforcement program. The existing regulation at 29 CFR 1902.4(c)(2)(xi) 
provides that in order to satisfy this requirement of effectiveness, 
State Plans must have effective sanctions, such as those prescribed in 
the OSH Act. Similarly, 29 CFR 1902.37(b)(12) requires State Plans with 
final approval to propose penalties in a manner at least as effective 
as under the federal program. This IFR amends 29 CFR 1902.4(c)(2)(xi) 
to clarify that State Plans must provide sanctions as effective as 
those set forth in the OSH Act and in 29 CFR 1903.15(d).
    In accordance with Part 1953, State Plans are required to adopt 
penalty changes that are at least as effective as federal OSHA, within 
six months after publication of the Department's IFR amending OSHA's 
penalties. Thereafter, OSHA penalties will be increased by the cost-of-
living adjustment for every subsequent year by January 15th. State 
Plans will also be required to increase their penalties regularly in 
the future to maintain at least as effective penalty levels.
    State Plans are not required to impose monetary penalties on state 
and local government employers. See Sec.  1956.11(c)(2)(x). Five (5) 
states and one territory have State Plans that cover only state and 
local government employees: Connecticut, Illinois, New Jersey, New 
York, Maine, and the Virgin Islands. Therefore, the requirements to 
increase the penalty levels do not apply to these State Plans. Twenty-
one (21) states and one U.S. territory have State Plans that cover both 
private sector employees and state and local government employees: 
Alaska, Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland, 
Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto 
Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, 
and Wyoming. These states must increase their penalties for private-
sector employers.
    Other than as listed above, this IFR does not have federalism 
implications because it does not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government. Accordingly, Executive Order 13132, 
Federalism, requires no further agency action or analysis.

C. Executive Order 13175: Indian Tribal Governments

    This IFR does not have ``tribal implications'' because it does not 
have substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
government and Indian tribes. Accordingly, Executive Order 13175, 
Consultation and Coordination with Indian Tribal Governments, requires 
no further agency action or analysis.

D. The Treasury and General Government Appropriations Act of 1999: 
Assessment of Federal Regulations and Policies on Families

    This IFR will have no effect on family well-being or stability, 
marital commitment, parental rights or authority, or income or poverty 
of families and children. Accordingly, section 654 of the Treasury and 
General Government Appropriations Act of 1999 (5 U.S.C. 601 note) 
requires no further agency action, analysis, or assessment.

E. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This IFR will have no adverse impact on children. Accordingly, 
Executive Order 13045, Protection of Children from Environmental Health 
Risks and Safety Risks, as amended by Executive Orders 13229 and 13296, 
requires no further agency action or analysis.

F. Environmental Impact Assessment

    A review of this Final Rule in accordance with the requirements of 
the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et 
seq.; the regulations of the Council on Environmental Quality, 40 CFR 
1500 et seq.; and the Departmental NEPA procedures, 29 CFR part 11, 
indicates that the Final Rule will not have a significant impact on the 
quality of the human environment. As a result, there is no 
corresponding environmental assessment or an environmental impact 
statement.

G. Executive Order 13211: Energy Supply

    This IFR has been reviewed for its impact on the supply, 
distribution, and use of energy because it applies, in part, to the 
coal mining and uranium industries. MSHA has concluded that the 
adjustment of civil monetary penalties to keep pace with inflation and 
thus maintain the incentive for operators to maintain safe and 
healthful workplaces is not a significant energy action because it is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.
    This IFR has not been identified to have other impacts on energy 
supply. Accordingly, Executive Order 13211 requires no further Agency 
action or analysis.

H. Executive Order 12630: Constitutionally Protected Property Rights

    This IFR will not implement a policy with takings implications. 
Accordingly, Executive Order 12630, Governmental Actions and 
Interference with Constitutionally Protected Property Rights, requires 
no further agency action or analysis.

I. Executive Order 12988: Civil Justice Reform Analysis

    This IFR was drafted and reviewed in accordance with Executive 
Order 12988, Civil Justice Reform. This IFR was written to provide a 
clear legal standard for affected conduct and was carefully reviewed to 
eliminate drafting errors and ambiguities, so as to minimize litigation 
and undue burden on the Federal court system. The Department has 
determined that this IFR meets the applicable standards provided in 
section 3 of Executive Order 12988.

List of Subjects

20 CFR Part 655

    Immigration, Penalties, Labor.

20 CFR Part 702

    Administrative practice and procedure, Longshore and harbor 
workers, Penalties, Reporting and recordkeeping requirements, Workers' 
compensation.

20 CFR Part 725

    Administrative practice and procedure, Black lung benefits, Coal 
miners, Penalties, Reporting and recordkeeping requirements.

[[Page 43448]]

20 CFR Part 726

    Administrative practice and procedure, Black lung benefits, Coal 
miners, Mines, Penalties.

29 CFR Part 5

    Administrative practice and procedure, Construction industry, 
Employee benefit plans, Government contracts, Law enforcement, Minimum 
wages, Penalties, Reporting and recordkeeping requirements.

29 CFR Part 500

    Administrative practice and procedure, Aliens, Housing, Insurance, 
Intergovernmental relations, Investigations, Migrant labor, Motor 
vehicle safety, Occupational safety and health, Penalties, Reporting 
and recordkeeping requirements, Wages, Whistleblowing.

29 CFR Part 501

    Administrative practice and procedure, Agriculture, Aliens, 
Employment, Housing, Housing standards, Immigration, Labor, Migrant 
labor, Penalties, Transportation, Wages.

29 CFR Part 530

    Administrative practice and procedure, Clothing, Homeworkers, 
Indians--arts and crafts, Penalties, Reporting and recordkeeping 
requirements, Surety bonds, Watches and jewelry.

29 CFR Part 570

    Administrative practice and procedure, Agriculture, Child labor, 
Intergovernmental relations, Occupational safety and health, Reporting 
and recordkeeping requirements.

29 CFR Part 578

    Penalties, Wages.

29 CFR Part 579

    Child labor, Penalties.

29 CFR Part 801

    Administrative practice and procedure, Employment, Lie detector 
tests, Penalties, Reporting and recordkeeping requirements.

29 CFR Part 825

    Administrative practice and procedure, Airmen, Employee benefit 
plans, Health, Health insurance, Labor management relations, Maternal 
and child health, Penalties, Reporting and recordkeeping requirements, 
Teachers.

29 CFR Parts 1902 and 1903

    Intergovernmental relations, Law enforcement, Occupational Safety 
and Health, Penalties.

29 CFR Part 2560

    Employee benefit plans, Employee Retirement Income Security Act, 
Law enforcement, Penalties, Pensions, Reporting and recordkeeping

29 CFR Part 2575

    Administrative practice and procedure, Employee benefit plans, 
Employee Retirement Income Security Act, Health care, Penalties, 
Pensions

29 CFR Part 2590

    Employee benefit plans, Employee Retirement Income Security Act, 
Health care, Health insurance, Penalties, Pensions, Reporting and 
recordkeeping

30 CFR Part 100

    Mine safety and health, Penalties.

41 CFR Part 50-201

    Child labor, Government procurement, Minimum wages, Occupational 
safety and health, Reporting and recordkeeping requirements.

Department of Labor

Employment and Training Administration

    For the reasons stated in the preamble, 20 CFR part 655 is amended 
as follows:

Title 20--Employees' Benefits

PART 655--TEMPORARY EMPLOYMENT OF FOREIGN WORKERS IN THE UNITED 
STATES

0
1. Revise the general authority citation for part 655 to read as 
follows:

    Authority:  Section 655.0 issued under 8 U.S.C. 
1101(a)(15)(H)(i) and (ii), 1182(m), (n), and (t), 1184, 1188, and 
1288(c) and (d); 29 U.S.C. 49 et seq.; sec. 3(c)(1), Pub. L. 101-
238, 103 Stat. 2099, 2102 (8 U.S.C. 1182 note); sec. 221(a), Pub. L. 
101-649, 104 Stat. 4978, 5027 (8 U.S.C. 1184 note); sec. 323, Pub. 
L. 103-206, 107 Stat. 2149; Title IV, Pub. L. 105-277, 112 Stat. 
2681; Pub. L. 106-95, 113 Stat. 1312 (8 U.S.C. 1182 note); and 8 CFR 
213.2(h)(4)(i). Section 655.00 issued under 8 U.S.C. 
1101(a)(15)(H)(ii), 1184, and 1188; 29 U.S.C. 49 et seq.; and 8 CFR 
214.2(h)(4)(i). Subparts A and C issued under 8 U.S.C. 
1101(a)(15)(H)(ii)(b) and 1184; 29 U.S.C. 49 et seq.; and 8 CFR 
214.2(h)(4)(i) ; and 28 U.S.C. 2461 note (Federal Civil Penalties 
Inflation Adjustment Act of 1990), Pub. L. 114-74 at Sec.  701. 
Subpart B issued under 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184, and 
1188; and 29 U.S.C. 49 et seq; and 28 U.S.C. 2461 note, Pub. L. 114-
74 at Sec.  701. Subparts D and E issued under 8 U.S.C. 
1101(a)(15)(H)(i)(a), 1182(m), and 1184; 29 U.S.C. 49 et seq.; and 
sec. 3(c)(1), Pub. L. 101-238, 103 Stat. 2099, 2103 (8 U.S.C. 1182 
note). Subparts F and G issued under 8 U.S.C. 1184 and 1288(c); and 
29 U.S.C. 49 et seq; and 28 U.S.C. 2461 note, Pub. L. 114-74 at 
Sec.  701. Subparts H and I issued under 8 U.S.C. 
1101(a)(15)(H)(i)(b) and (b1), 1182(n), 1182(t), and 1184; 29 U.S.C. 
49 et seq.; sec 303(a)(8), Pub. L. 102-232, 105 Stat. 1733, 1748 (8 
U.S.C. 1182 note); and Title IV, Pub. L. 105-277, 112 Stat. 2681; 
and 28 U.S.C. 2461 note, Pub. L. 114-74 at Sec.  701. Subparts J and 
K issued under 29 U.S.C. 49 et seq.; and sec. 221(a), Pub. L. 101-
649, 104 Stat. 4978, 5027 (8 U.S.C. 1184 note). Subparts L and M 
issued under 8 U.S.C. 1101(a)(15)(H)(i)(c), 1182(m), and 1184; and 
29 U.S.C. 49 et seq.


0
2. Amend Sec.  655.620 by revising paragraph (a) to read as follows:


Sec.  655.620  Civil money penalties and other remedies.

    (a) The Administrator may assess a civil money penalty not to 
exceed $8,908 for each alien crewmember with respect to whom there has 
been a violation of the attestation or subpart F or G of this part. The 
Administrator may also impose appropriate remedy(ies).
* * * * *

0
3. Amend Sec.  655.801 by revising paragraph (b) to read as follows:


Sec.  655.801  What protection do employees have from retaliation?

* * * * *
    (b) It shall be a violation of this section for any employer to 
engage in the conduct described in paragraph (a) of this section. Such 
conduct shall be subject to the penalties prescribed by sections 
212(n)(2)(C)(ii) or (t)(3)(C)(ii) of the INA and Sec.  655.810(b)(2), 
i.e., a fine of up to $7,251, disqualification from filing petitions 
under section 204 or section 214(c) of the INA for at least two years, 
and such further administrative remedies as the Administrator considers 
appropriate.
* * * * *

0
4. Amend Sec.  655.810 by revising paragraphs (b)(1), (2) and (3) 
introductory text, to read as follows:


Sec.  655.810  What remedies may be ordered if violations are found?

* * * * *
    (b) * * *
    (1) An amount not to exceed $1,782 per violation for:
* * * * *
    (2) An amount not to exceed $7,251 per violation for:
* * * * *
    (3) An amount not to exceed $50,758 per violation where an employer 
(whether or not the employer is an H-1B-dependent employer or willful 
violator) displaced a U.S. worker employed by the employer in the 
period beginning 90 days before and ending 90 days after the filing of 
an H-1B petition

[[Page 43449]]

in conjunction with any of the following violations:
* * * * *

Department of Labor

Office of Workers' Compensation Programs

    For the reasons stated in the preamble, 20 CFR parts 702, 725, and 
726 are amended as follows:

Title 20--Employees' Benefits

PART 702--ADMINISTRATION AND PROCEDURE

0
5. The authority citation for part 702 is revised to read as follows:

    Authority: 5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et 
seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 
114-74 at sec.701; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 
Stat. 1263; Secretary's Order 10-2009, 74 FR 58834.


0
6. Revise Sec.  702.204 to read as follows:


Sec.  702.204  Employer's report; penalty for failure to furnish and or 
falsifying.

    Any employer, insurance carrier, or self-insured employer who 
knowingly and willfully fails or refuses to send any report required by 
Sec.  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 $22,587 for each such failure, refusal, false statement, 
or misrepresentation for which penalties are assessed after August 1, 
2016. The district director has the authority and responsibility for 
assessing a civil penalty under this section.

0
7. Revise Sec.  702.236 to read as follows:


Sec.  702.236  Penalty for failure to report termination of payments.

    Any employer failing to notify the district director that the final 
payment of compensation has been made as required by Sec.  702.235 
shall be assessed a civil penalty in the amount of $275 for any 
violation for which penalties are assessed after August 1, 2016. The 
district director has the authority and responsibility for assessing a 
civil penalty under this section.

0
8. In Sec.  702.271, revise paragraph (a)(2) to read as follows:


Sec.  702.271  Discrimination; against employees who bring proceedings, 
prohibition and penalty.

    (a)(1) * * *
    (2) Any employer who violates this section, and has penalties 
assessed for such violation after August 1, 2016, shall be liable for a 
penalty of not less than $2,259 or more than $11,293 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.
* * * * *

PART 725--CLAIMS FOR BENEFITS UNDER PART C OF TITLE IV OF THE 
FEDERAL MINE SAFETY AND HEALTH ACT, AS AMENDED

0
9. The authority citation for part 725 is revised to read as follows:

    Authority: 5 U.S.C. 301; 28 U.S.C. 2461 note (Federal Civil 
Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at sec. 
701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 30 U.S.C. 901 et 
seq., 902(f), 921, 932, 936; 33 U.S.C. 901 et seq.; 42 U.S.C. 405; 
Secretary's Order 10-2009, 74 FR 58834.


0
10. In Sec.  725.621, revise paragraph (d) to read as follows:


Sec.  725.621  Reports.

* * * * *
    (d) Any employer who fails or refuses to file any report required 
of such employer under this section, and has penalties assessed for 
such failure or refusal after August 1, 2016, shall be subject to a 
civil penalty not to exceed $1,375 for each failure or refusal, which 
penalty shall be determined in accordance with the procedures set forth 
in subpart D of part 726 of this subchapter, as appropriate.
* * * * *

PART 726--BLACK LUNG BENEFITS; REQUIREMENTS FOR COAL MINE 
OPERATOR'S INSURANCE

0
11. The authority citation for part 726 is revised to read as follows:

    Authority:  5 U.S.C. 301; 33 U.S.C. 901 et seq., 902(f), 925, 
932, 933, 934, 936; 33 U.S.C. 901 et seq.; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 
114-74 at sec. 701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 
Secretary's Order 10-2009, 74 FR 58834.


0
12. Revise Sec.  726.300 to read as follows.


Sec.  726.300  Purpose and scope.

    Any operator which is required to secure the payment of benefits 
under section 423 of the Act and Sec.  726.4 and which fails to secure 
such benefits, shall be subject to a civil penalty of not more than 
$1,000, as adjusted by the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended, for each day during which such failure occurs. 
If the operator is a corporation, the president, secretary, and 
treasurer of the operator shall also be severally liable for the 
penalty based on the operator's failure to secure the payment of 
benefits. This subpart defines those terms necessary for administration 
of the civil money penalty provisions, describes the criteria for 
determining the amount of penalty to be assessed, and sets forth 
applicable procedures for the assessment and contest of penalties.

0
13. In Sec.  726.302, revise paragraphs (c)(2)(i), (4), and (5) and add 
(c)(6) to read as follows:


Sec.  726.302  Determination of penalty.

* * * * *
    (c)(1) * * *
    (2)(i) The daily base penalty amount shall be determined based on 
the number of persons employed in coal mine employment by the operator, 
or engaged in coal mine employment on behalf of the operator, on each 
day of the period defined by this section.
    For penalties assessed after August 1, 2016, the daily base penalty 
amount shall be computed as follows:

------------------------------------------------------------------------
                                                           Penalty (per
                        Employees                              day)
------------------------------------------------------------------------
Less than 25............................................            $134
25-50...................................................             268
51-100..................................................             402
More than 100...........................................             535
------------------------------------------------------------------------

* * * * *
    (4) Commencing with the 11th day after the operator's receipt of 
the notification sent by the Director pursuant to Sec.  726.303, for 
penalties assessed after August 1, 2016, the daily base penalty amounts 
set forth in paragraph (c)(2)(i) shall be increased by $134.
    (5) In any case in which the operator, or any of its principals, or 
an entity in which the operator's president, secretary, or treasurer 
were employed, has been the subject of a previous penalty assessment 
under this part, for penalties assessed after August 1, 2016, the daily 
base penalty amounts shall be increased by $402.
    (6) The maximum daily base penalty amount applicable to any 
violation of Sec.  726.4 for which penalties are assessed after August 
1, 2016, shall be $2,750.
* * * * *

Department of Labor

Office of the Secretary of Labor

    For the reasons stated in the preamble, 29 CFR part 5 is amended as 
follows:

[[Page 43450]]

Title 29--Labor

PART 5--LABOR STANDARDS PROVISIONS APPLICABLE TO CONTRACTS COVERING 
FEDERALLY FINANCED AND ASSISTED CONSTRUCTION (ALSO LABOR STANDARDS 
PROVISIONS APPLICABLE TO NONCONSTRUCTION CONTRACTS SUBJECT TO THE 
CONTRACT WORK HOURS AND SAFETY STANDARDS ACT)

0
14. The authority citation for part 5 is revised to read as follows:

    Authority: 5 U.S.C. 301; R.S. 161, 64 Stat. 1267; Reorganization 
Plan No. 14 of 1950, 5 U.S.C. appendix; 40 U.S.C. 3141 et seq.; 40 
U.S.C. 3145; 40 U.S.C. 3148; 40 U.S.C. 3701 et seq.; and the laws 
listed in 5.1(a) of this part; Secretary's Order No. 01-2014 (Dec. 
19, 2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 note (Federal 
Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at 
Sec.  701, 129 Stat 584.


0
15. Amend Sec.  5.5 by revising the last sentence of paragraph (b)(2) 
to read as follows:


Sec.  5.5  Contract provisions and related matters.

* * * * *
    (b) * * *
    (2) * * * Such liquidated damages shall be computed with respect to 
each individual laborer or mechanic, including watchmen and guards, 
employed in violation of the clause set forth in paragraph (b)(1) of 
this section, in the sum of $25 for each calendar day on which such 
individual was required or permitted to work in excess of the standard 
workweek of forty hours without payment of the overtime wages required 
by the clause set forth in paragraph (b)(1) of this section.
* * * * *

0
16. Amend Sec.  5.8 by revising the second sentence in paragraph (a) to 
read as follows:


Sec.  5.8  Liquidated damages under the Contract Work Hours and Safety 
Standards Act.

    (a) * * * In the event of violation of this provision, the 
contractor and any subcontractor shall be liable for the unpaid wages 
and in addition for liquidated damages, computed with respect to each 
laborer or mechanic employed in violation of the Act in the amount of 
$25 for each calendar day in the workweek on which such individual was 
required or permitted to work in excess of forty hours without payment 
of required overtime wages.
* * * * *

Department of Labor

Wage and Hour Division

    For the reasons stated in the preamble, 29 CFR parts 500, 501, 530, 
570, 578, 579, 801, and 825 are amended as follows:

Title 29--Labor

PART 500--MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION

0
17. The authority citation for part 500 is revised to read as follows:

    Authority: Pub. L. 97-470, 96 Stat. 2583 (29 U.S.C. 1801-1872); 
Secretary's Order No. 01-2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 24, 
2014); 28 U.S.C. 2461 Note (Federal Civil Penalties Inflation 
Adjustment Act of 1990); and Pub. L. 114-74, 129 Stat 584.


0
18. Amend Sec.  500.1 by revising the second sentence in paragraph (e) 
to read as follows:


Sec.  500.1  Purpose and scope.

* * * * *
    (e) * * * As provided in the Act, the Secretary is empowered, among 
other things, to impose an assessment and to collect a civil money 
penalty of not more than $2,355 for each violation, to seek a temporary 
or permanent restraining order in a U.S. District Court, and to seek 
the imposition of criminal penalties on persons who willfully and 
knowingly violate the Act or any regulation under the Act.* * *
* * * * *

PART 501--ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY 
ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE 
IMMIGRATION AND NATIONALITY ACT

0
19. Revise the authority citation for part 501 to read as follows:

    Authority:  8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184(c), and 1188; 
28 U.S.C. 2461 Note (Federal Civil Penalties Inflation Adjustment 
Act of 1990); and Pub. L. 114-74 at Sec.  701.


0
20. Amend Sec.  501.19 by revising paragraphs (c) introductory text, 
(c)(1), (2), (4), (d), (e), and (f) to read as follows:


Sec.  501.19  Civil money penalty assessment.

* * * * *
    (c) A civil money penalty for each violation of the work contract 
or a requirement of 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the 
regulations in this part will not exceed $1,631 per violation, with the 
following exceptions:
    (1) A civil money penalty for each willful violation of the work 
contract, or of 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the 
regulations in this part, or for each act of discrimination prohibited 
by Sec.  501.4 shall not exceed $5,491;
    (2) A civil money penalty for a violation of a housing or 
transportation safety and health provision of the work contract, or any 
obligation under 8 U.S.C. 1188, 20 CFR part 655, subpart B, or the 
regulations in this part, that proximately causes the death or serious 
injury of any worker shall not exceed $54,373 per worker;
* * * * *
    (4) A civil money penalty for a repeat or willful violation of a 
housing or transportation safety and health provision of the work 
contract, or any obligation under 8 U.S.C. 1188, 20 CFR part 655, 
subpart B, or the regulations in this part, that proximately causes the 
death or serious injury of any worker, shall not exceed $108,745 per 
worker.
    (d) A civil money penalty for failure to cooperate with a WHD 
investigation shall not exceed $5,491 per investigation.
    (e) A civil money penalty for laying off or displacing any U.S. 
worker employed in work or activities that are encompassed by the 
approved Application for Temporary Employment Certification for H-2A 
workers in the area of intended employment either within 60 days 
preceding the date of need or during the validity period of the job 
order, including any approved extension thereof, other than for a 
lawful, job-related reason, shall not exceed $16,312 per violation per 
worker.
    (f) A civil money penalty for improperly rejecting a U.S. worker 
who is an applicant for employment, in violation of 8 U.S.C. 1188, 20 
CFR part 655, subpart B, or the regulations in this part, shall not 
exceed $16,312 per violation per worker.

PART 530--EMPLOYMENT OF HOMEWORKERS IN CERTAIN INDUSTRIES

0
21. The authority citation for part 503 is revised to read as follows:

    Authority: Sec. 11, 52 Stat. 1066 (29 U.S.C. 211) as amended by 
sec. 9, 63 Stat. 910 (29 U.S.C. 211(d)); Secretary's Order No. 01-
2014 (Dec. 19, 2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 
note (Federal Civil Penalties Inflation Adjustment Act of 1990); 
Pub. L. 114-74 at Sec.  701, 129 Stat 584.


0
22. Revise Sec.  530.302 to read as follows:

[[Page 43451]]

Sec.  530.302  Amounts of civil money penalties.

    (a) A civil money penalty, not to exceed $989 per affected 
homeworker for any one violation, may be assessed for any violation of 
the Act or of this part or of the assurances given in connection with 
the issuance of a certificate.
    (b) The amount of civil money penalties shall be determined per 
affected homeworker within the limits set forth in the following 
schedule, except that no penalty shall be assessed in the case of 
violations which are deemed to be de minimis in nature:

----------------------------------------------------------------------------------------------------------------
                                                                          Penalty per affected homeworker
                                                                 -----------------------------------------------
                       Nature of violation                                                           Repeated,
                                                                       Minor        Substantial   intentional or
                                                                                                      knowing
----------------------------------------------------------------------------------------------------------------
Recordkeeping...................................................         $20-198        $198-396        $396-989
Monetary violations.............................................          20-198         198-396
Employment of homeworkers without a certificate.................  ..............         198-396         396-989
Other violations of statutes, regulations or employer assurances          20-198         198-396         396-989
----------------------------------------------------------------------------------------------------------------

PART 570--CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF 
INTERPRETATION

0
23. The authority citation for Subpart G of part 570 is revised to read 
as follows:

    Authority: 52 Stat. 1060-1069, as amended; 29 U.S.C. 201-219; 28 
U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act 
of 1990); Pub. L. 114-74 at Sec.  701.


0
24. Amend Sec.  570.140 by revising paragraphs (b)(1) and (2) to read 
as follows:


Sec.  570.140  General.

* * * * *
    (b) * * *
    (1) $12,080 for each employee who was the subject of such a 
violation; or
    (2) $54,910 with regard to each such violation that causes the 
death or serious injury of any employee under the age of 18 years, 
which penalty may be doubled where the violation is repeated or 
willful.
* * * * *

PART 578--MINIMUM WAGE AND OVERTIME VIOLATIONS--CIVIL MONEY 
PENALTIES

0
25. The authority citation for part 578 is revised to read as follows:

    Authority: Sec. 9, Pub. L. 101-157, 103 Stat. 938, sec. 3103, 
Pub. L. 101-508, 104 Stat. 1388-29 (29 U.S.C. 216(e)), Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by Pub. L. 104-
134, section 31001(s), 110 Stat. 1321-358, 1321-373, and Pub. L. 
114-74, 129 Stat 584.


0
26. Amend Sec.  578.1 by revising the first two sentences to read as 
follows:


Sec.  578.1  What does this part cover?

    Section 9 of the Fair Labor Standards Amendments of 1989 amended 
section 16(e) of the Act to provide that any person who repeatedly or 
willfully violates the minimum wage (section 6) or overtime provisions 
(section 7) of the Act shall be subject to a civil money penalty not to 
exceed $1,000 for each such violation. The Federal Civil Penalties 
Inflation Adjustment Act of 1990 (Pub. L. 101-410), as amended by the 
Debt Collection Improvement Act of 1996 (Pub. L. 104-134, section 
31001(s)) and the Federal Civil Penalties Inflation Adjustment Act 
Improvement Act of 2015 (Pub. L. 114-74, section 701), requires that 
inflationary adjustments be annually made in these civil money 
penalties according to a specified cost-of-living formula. * * *
0
27. Amend Sec.  578.3 by revising paragraph (a) to read as follows:


Sec.  578.3  What types of violations may result in a penalty being 
assessed?

    (a) A penalty of up to $1,894 per violation may be assessed against 
any person who repeatedly or willfully violates section 6 (minimum 
wage) or section 7 (overtime) of the Act. The amount of the penalty 
will be determined by applying the criteria in Sec.  578.4.
* * * * *

PART 579--CHILD LABOR VIOLATIONS--CIVIL MONEY PENALTIES

0
28. The authority citation for part 579 is revised to read as follows:

    Authority: 29 U.S.C. 203(l), 211, 212, 213(c), 216; Reorg. Plan 
No. 6 of 1950, 64 Stat. 1263, 5 U.S.C. App; secs. 25, 29, 88 Stat. 
72, 76; Secretary of Labor's Order No. 01-2014 (Dec. 19, 2014), 79 
FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 Note (Federal Civil 
Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-7, 129 
Stat 584.


0
29. Amend Sec.  579.1 by revising paragraphs (a)(1)(i)(A), (B), (2) and 
(b) to read as follows:


Sec.  579.1  Purpose and scope.

    (a) * * *
    (1)(i) * * *
    (A) $12,080 for each employee who was the subject of such a 
violation; or
    (B) $54,910 with regard to each such violation that causes the 
death or serious injury of any employee under the age of 18 years, 
which penalty may be doubled where the violation is a repeated or 
willful violation.
* * * * *
    (2) Any person who repeatedly or willfully violates section 206 or 
207 of the FLSA, relating to wages, shall be subject to a civil penalty 
not to exceed $1,894 for each such violation.
* * * * *
    (b) The Federal Civil Penalties Inflation Adjustment Act of 1990 
(Pub. L. 101-410), as amended by the Debt Collection Improvement Act of 
1996 (Pub. L. 104-134, section 31001(s)) and the Federal Civil 
Penalties Inflation Adjustment Act Improvement Act of 2015 (Pub. L. 
114-74, section 701), requires that Federal agencies annually adjust 
their civil money penalties for inflation according to a specified 
cost-of-living formula.
* * * * *

0
30. Amend Sec.  579.5 by revising paragraph (a) to read as follows:


Sec.  579.5  Determining the amount of the penalty and assessing the 
penalty.

    (a) The administrative determination of the amount of the civil 
penalty for each employee who was the subject of a violation of section 
12 or section 13(c) of the Act relating to child labor or of any 
regulation under those sections will be based on the available evidence 
of the violation or violations and will take into consideration the 
size of the business of the person charged and the gravity of the 
violations as provided in paragraphs (b) through (d) of this section.
* * * * *

[[Page 43452]]

PART 801--APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF 
1988

0
31. The authority citation for part 801 is revised to read as follows:

    Authority: Pub. L. 100-347, 102 Stat. 646, 29 U.S.C. 2001-2009; 
28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment 
Act of 1990); Pub. L. 114-74 at Sec.  701, 129 Stat 584.

0
32. Amend Sec.  801.42 by revising paragraph (a) introductory text to 
read as follows:


Sec.  801.42  Civil money penalties--assessment.

    (a) A civil money penalty in an amount not to exceed $19,787 for 
any violation may be assessed against any employer for:
* * * * *

PART 825--THE FAMILY AND MEDICAL LEAVE ACT OF 1993

0
33. The authority citation for part 825 is revised to read as follows:

    Authority: 29 U.S.C. 2654; 28 U.S.C. 2461 Note (Federal Civil 
Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-74 at 
Sec.  701.


0
34. Amend Sec.  825.300 by revising the last sentence in paragraph 
(a)(1) to read as follows:


Sec.  825.300  Employer notice requirements.

    (a) * * *
    (1) * * * An employer that willfully violates the posting 
requirement may be assessed a civil money penalty by the Wage and Hour 
Division not to exceed $163 for each separate offense.
* * * * *

Department of Labor

Public Contracts

    For the reasons stated in the preamble 41 CFR part 50-201 is 
amended as follows:

Title 41--Public Contracts and Property Management

PART 50-201--GENERAL REGULATIONS

0
35. The authority citation for part 50-201 is revised to read as 
follows:

    Authority: Sec. 4, 49 Stat. 2038; 41 U.S.C. 38. Interpret or 
apply sec. 6, 49 Stat. 2038, as amended; 41 U.S.C. 40; 108 Stat. 
7201; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation 
Adjustment Act of 1990); Pub. L. 114-74 at Sec.  701, 129 Stat 584.

0
36. Amend Sec.  50-201.3 by revising the first sentence of paragraph 
(e) to read as follows:


Sec.  50-201.3  Insertion of stipulations.

* * * * *
    (e) Any breach or violation of any of the foregoing representations 
and stipulations shall render the party responsible therefor liable to 
the United States of America for liquidated damages, in addition to 
damages for any other breach of the contract, in the sum of $25 per day 
for each person under 16 years of age, or each convict laborer 
knowingly employed in the performance of the contract, and a sum equal 
to the amount of any deductions, rebates, refunds, or underpayment of 
wages due to any employee engaged in the performance of the contract; 
and, in addition, the agency of the United States entering into the 
contract shall have the right to cancel same and to make open-market 
purchases or enter into other contracts for the completion of the 
original contract, charging any additional cost to the original 
contractor. * * *
* * * * *

Department of Labor

Occupational Safety and Health Administration

    For the reasons set out in the preamble, 29 CFR parts 1902 and 1903 
are amended as follows:

Title 29--Labor

PART 1902--STATE PLANS FOR THE DEVELOPMENT AND ENFORCEMENT OF STATE 
STANDARDS

0
37. The authority citation for part 1902 is revised to read as follows:

    Authority: Secs. 8 and 18 of the Occupational Safety and Health 
Act of 1970 (29 U.S.C. 657, 667); 28 U.S.C. 2461 note (Federal Civil 
Penalties Inflation Adjustment Act of 1990), as amended by Section 
701, Pub. L. 114-74; Secretary of Labor's Order No. 1-2012 (77 FR 
3912, Jan. 25, 2012).

Subpart B--Criteria for State Plans

0
38. Amend Sec.  1902.4 by revising paragraph (c)(2)(xi) to read as 
follows:


Sec.  1902.4  Indices of effectiveness.

* * * * *
    (c) * * *
    (2) * * *
    (xi) Provides effective sanctions against employers who violate 
State standards and orders, such as those set forth in the Act, and in 
29 CFR 1903.15(d).
* * * * *

PART 1903--INSPECTIONS, CITATIONS, AND PROPOSED PENALTIES

0
39. The authority citation for part 1903 is revised to read as follows:

    Authority: Secs. 8 and 9 of the Occupational Safety and Health 
Act of 1970 (29 U.S.C. 657, 658); 5 U.S.C. 553; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990), as 
amended by Section 701, Pub. L. 114-74; Secretary of Labor's Order 
No. 1-2012 (77 FR 3912, Jan. 25, 2012).


0
40. Amend Sec.  1903.2 by revising paragraph (d) to read as follows:


Sec.  1903.2  Posting of notice; availability of the Act, regulations 
and applicable standards.

* * * * *
    (d) Any employer failing to comply with the provisions of this 
section shall be subject to citation and penalty in accordance with the 
provisions of Sec.  1903.15(d).

0
41. Amend Sec.  1903.6 by revising paragraph (b) to read as follows:


Sec.  1903.6  Advance notice of inspections.

* * * * *
    (b) In the situations described in paragraph (a) of this section, 
advance notice of inspections may be given only if authorized by the 
Area Director, except that in cases of apparent imminent danger, 
advance notice may be given by the Compliance Safety and Health Officer 
without such authorization if the Area Director is not immediately 
available. When advance notice is given, it shall be the employer's 
responsibility promptly to notify the authorized representative of 
employees of the inspection, if the identity of such representative is 
known to the employer. (See Sec.  1903.8(b) as to situations where 
there is no authorized representative of employees.) Upon the request 
of the employer, the Compliance Safety and Health Officer will inform 
the authorized representative of employees of the inspection, provided 
that the employer furnishes the Compliance Safety and Health Officer 
with the identity of such representative and with such other 
information as is necessary to enable him promptly to inform such 
representative of the inspection. An employer who fails to comply with 
his obligation under this paragraph promptly to inform the authorized 
representative of employees of the inspection or to furnish such 
information as is necessary to enable the Compliance Safety and Health 
Officer promptly to inform such representative of the inspection, may 
be subject to citation and penalty in accordance with

[[Page 43453]]

Sec.  1903.15(d)(4). Advance notice in any of the situations described 
in paragraph (a) of this section shall not be given more than 24 hours 
before the inspection is scheduled to be conducted, except in apparent 
imminent danger situations and in other unusual circumstances.
* * * * *

0
42. Amend Sec.  1903.15 by revising paragraphs (a) and (b) and adding 
paragraph (d) to read as follows:


Sec.  1903.15  Proposed penalties.

    (a) After, or concurrent with, the issuance of a citation, and 
within a reasonable time after the termination of the inspection, the 
Area Director shall notify the employer by certified mail or by 
personal service by the Compliance Safety and Health Officer of the 
proposed penalty in accordance with paragraph (d) of this section, or 
that no penalty is being proposed. Any notice of proposed penalty shall 
state that the proposed penalty shall be deemed to be the final order 
of the Review Commission and not subject to review by any court or 
agency unless, within 15 working days from the date of receipt of such 
notice, the employer notifies the Area Director in writing that he 
intends to contest the citation or the notification of proposed penalty 
before the Review Commission.
    (b) The Area Director shall determine the amount of any proposed 
penalty, giving due consideration to the appropriateness of the penalty 
with respect to the size of the business of the employer being charged, 
the gravity of the violation, the good faith of the employer, and the 
history of previous violations, in accordance with the provisions of 
section 17 of the Act and paragraph (d) of this section.
* * * * *
    (d) Adjusted civil monetary penalties. The adjusted civil penalties 
for penalties proposed on or after August 1, 2016 are as follows:
    (1) Willful violation. The penalty per willful violation under 
section 17(a) of the Act, 29 U.S.C. 666(a), shall not be less than 
$8,908 and shall not exceed $124,709.
    (2) Repeated violation. The penalty per repeated violation under 
section 17(a) of the Act, 29 U.S.C. 666(a), shall not exceed $124,709.
    (3) Serious violation. The penalty for a serious violation under 
section 17(b) of the Act, 29 U.S.C. 666(b), shall not exceed $12,471.
    (4) Other-than-serious violation. The penalty for an other-than-
serious violation under section 17(c) of the Act, 29 U.S.C. 666(c), 
shall not exceed $12,471.
    (5) Failure to correct violation. The penalty for a failure to 
correct a violation under section 17(d) of the Act, 29 U.S.C. 666(d), 
shall not exceed $12,471 per day.
    (6) Posting requirement violation. The penalty for a posting 
requirement violation under section 17(i) of the Act, 29 U.S.C. 666(i), 
shall not exceed $12,471.

0
43. Amend Sec.  1903.16 by revising paragraph (d) to read as follows:


Sec.  1903.16  Posting of citations.

* * * * *
    (d) Any employer failing to comply with the provisions of 
paragraphs (a) and (b) of this section shall be subject to citation and 
penalty in accordance with Sec.  1903.15(d).

0
44. Amend Sec.  1903.18 by revising paragraph (a) to read as follows:


Sec.  1903.18  Failure to correct a violation for which a citation has 
been issued.

    (a) If an inspection discloses that an employer has failed to 
correct an alleged violation for which a citation has been issued 
within the period permitted for its correction, the Area Director 
shall, if appropriate, consult with the Regional Solicitor, and he 
shall notify the employer by certified mail or by personal service by 
the Compliance Safety and Health Officer of such failure and of the 
additional penalty proposed under Sec.  1903.15(d)(5) by reason of such 
failure. The period for the correction of a violation for which a 
citation has been issued shall not begin to run until the entry of a 
final order of the Review Commission in the case of any review 
proceedings initiated by the employer in good faith and not solely for 
delay or avoidance of penalties.
* * * * *

Department of Labor

Employee Benefits Security Administration

    For the reasons stated in the preamble, 29 CFR parts 2560, 2575, 
2590 are amended as follows:

Title 29--Labor

PART 2560--RULES AND REGULATIONS FOR ADMINISTRATION AND ENFORCEMENT

0
45. The authority citation for part 2560 is revised to read as follows:

    Authority: 29 U.S.C. 1002, 1132, 1133, 1134, 1135, and Secretary 
of Labor's Order 1-2011, 77 FR 1088 (January 9, 2012). Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by section 
31001(s) of Pub. L. 104-134, 110 Stat. 1321-373, and section 701 of 
Pub. L. 114-74, 129 Stat. 584.


Sec.  2560.502c-2  [Amended]

0
46. Amend Sec.  2560.502c-2(b)(1) by removing the parenthetical phrase 
``(or such other maximum amount as may be established by regulation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended)'' and adding in its place ``(adjusted for inflation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended).''


Sec.  2560-502c-4  [Amended]

0
47. Amend Sec.  2560.502c-4(b)(1) by removing the parenthetical phrase 
``(or such other maximum amount as may be established by regulation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended)'' and adding in its place ``(adjusted for inflation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended).''

0
48. Amend Sec.  2560.502c-5 by revising the second sentence of 
paragraph (b)(1) to read as follows:


Sec.  2560.502c-5  Civil penalties under section 502c-5.

* * * * *
    (b) * * *
    (1) * * * However, the amount assessed under section 502(c)(5) or 
the Act shall not exceed $1,000 a day (adjusted for inflation pursuant 
to the Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended), computed from the date of the administrator's failure or 
refusal to file the report and, except as provided in paragraph (b)(2) 
of this section, continuing up to the date on which a report meeting 
the requirements of section 101(g) of the Act and 29 CFR 2520.101-2, as 
determined by the Secretary, is filed.
* * * * *


Sec.  2560.502c-6  [Amended]

0
49. Amend Sec.  2560.502c-6(b)(1) by removing the parenthetical phrase 
``(or such other maximum amounts as may be established by regulation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended)'' and adding in its place ``(such amounts to be 
adjusted for inflation pursuant to the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended).''


Sec.  2560.502c-7  [Amended]

0
50. Amend Sec.  2560.502c-7(b)(1) by removing the parenthetical phrase 
``(or such other maximum amount as may be established by regulation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended)'' and adding in its place ``(adjusted for

[[Page 43454]]

inflation pursuant to the Federal Civil Penalties Inflation Adjustment 
Act of 1990, as amended).''


Sec.  2560.502c-8  [Amended]

0
51. Amend Sec.  2560.502c-8(b)(1) by removing the parenthetical phrase 
``(or such other maximum amount as may be established by regulation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended)'' and adding in its place ``(adjusted for inflation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended).''

PART 2575--ADJUSTMENT OF CIVIL PENALTIES UNDER ERISA TITLE I

0
52. The authority citation for subpart A of 29 CFR part 2575 is revised 
to read as follows:

    Authority: Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note), 
as amended by section 31001(s) of Pub. L. 104-134, 110 Stat. 1321-
373, and section 701 of Pub. L. 114-74, 129 Stat. 584; 29 U.S.C 
1059(b), 1132(c), 1135 and 1185d; and Secretary of Labor's Order 1-
2011, 77 FR 1088 (January 9, 2012).


0
53. Add Sec. Sec.  2575.1, 2575.2 and 2575.3 to read as follows:


Sec.  2575.1  In general.

    In accordance with the requirements of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, Pub. L. 104-410, 104 Stat. 890, as 
amended by the section 31001(s) of the Debt Collection Improvement Act 
of 1996, Pub. L. 104-34, 110 Stat. 1321-373, and section 701 of the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015, Pub. L. 114-74, 129 Stat. 584, (collectively the Inflation 
Adjustment Act), the applicable civil monetary penalties of title I of 
the Employee Retirement Income Security Act of 1974, as amended 
(ERISA), under the jurisdiction of the U.S. Department of Labor 
(Department) and listed in 29 CFR 2575.2 are adjusted as set forth in 
this subpart, effective as of the relevant dates specified in Sec.  
2575.2.


Sec.  2575.2  Catch-up adjustments to civil monetary penalties.

    The civil monetary penalties set forth in paragraphs (a) through 
(m) of this section are adjusted for inflation as required by section 
4(b)(1) of the Inflation Adjustment Act and 29 CFR 2575.1 as follows:
    (a) The civil monetary penalty of $10 for each employee established 
by section 209(b) of ERISA, is adjusted to $11 for violations occurring 
after July 29, 1997, for which a penalty is assessed before August 1, 
2016 and to $28 for penalties assessed after August 1, 2016, and before 
the effective date of the next adjustment for inflation made by the 
Secretary in accordance with the Inflation Adjustment Act and Sec.  
2575.3.
    (b) The civil monetary penalty of up to $1,000 established by 
Section 502(c)(2) of ERISA is adjusted to $1,100 for violations 
occurring after July 29, 1997, for which a penalty is assessed before 
August 1, 2016, and to $2,063 for penalties assessed after August 1, 
2016, and before the effective date of the next adjustment for 
inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (c) The civil monetary penalty of up to $1,000 established by 
section 502(c)(4) of ERISA is adjusted to $1,632 for penalties assessed 
after August 1, 2016, and before the effective date of the next 
adjustment for inflation made by the Secretary in accordance with the 
Inflation Adjustment Act and Sec.  2575.3.
    (d) The civil monetary penalty of up to $1,000 established by 
Section 502(c)(5) of ERISA is adjusted to $1,100 for violations 
occurring after March 24, 2003, for which a penalty is assessed before 
August 1, 2016, and to $1,502 for penalties assessed after August 1, 
2016, and before the effective date of the next adjustment for 
inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (e) The civil monetary penalty of up to $100 not to exceed $1,000 
per request, established by section 502(c)(6) of ERISA, is adjusted to 
$110 not to exceed $1,100 per request for violations occurring after 
March 24, 2003, for which a penalty is assessed before August 1, 2016, 
and to $147 not to exceed $1,472 per request for penalties assessed 
after August 1, 2016, and before the effective date of the next 
adjustment for inflation made by the Secretary in accordance with the 
Inflation Adjustment Act and Sec.  2575.3.
    (f) The civil monetary penalty of up to $100 established by section 
502(c)(7) of ERISA is adjusted to $131 for penalties assessed after 
August 1, 2016, and before the effective date of the next adjustment 
for inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (g) The civil monetary penalty of up to $1,100 established by 
section 502(c)(8) of ERISA is adjusted to $1,296 for penalties assessed 
after August 1, 2016, and before the effective date of the next 
adjustment for inflation made by the Secretary in accordance with the 
Inflation Adjustment Act and Sec.  2575.3.
    (h) The civil monetary penalty of up to $100 established by section 
502(c)(9)(A) of ERISA is adjusted to $110 for penalties assessed after 
August 1, 2016, and before the effective date of the next adjustment 
for inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (i) The civil monetary penalty of up to $100 established by section 
502(c)(9)(B) of ERISA is adjusted to $110 for penalties assessed after 
August 1, 2016, and before the effective date of the next adjustment 
for inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (j) The civil monetary penalties established by section 502(c)(10) 
of ERISA are adjusted in accordance with paragraphs (j)(1) through (4) 
of this section:
    (1) The $100 civil monetary penalty of section 502(c)(10)(B)(i) of 
ERISA is adjusted to $110 to for penalties assessed after August 1, 
2016, and before the effective date of the next adjustment for 
inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3;
    (2) The $2,500 minimum civil monetary penalty of section 
502(c)(10)(C)(i) of ERISA for de minimis uncorrected violations is 
adjusted to $2,745 for penalties assessed after August 1, 2016, and 
before the effective date of the next adjustment for inflation made by 
the Secretary in accordance with the Inflation Adjustment Act and Sec.  
2575.3;
    (3) The $15,000 minimum civil monetary penalty of section 
502(c)(10)(C)(ii) of ERISA for uncorrected violations that are not de 
minimis is adjusted to $16,473 for penalties assessed after August 1, 
2016, and before the effective date of the next adjustment for 
inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3; and
    (4) The $500,000 maximum civil monetary penalty for unintentional 
failures set in Section 502 (c)(10)(D)(iii)(II) of ERISA is adjusted to 
$549,095, for penalties assessed after August 1, 2016, and before the 
effective date of the next adjustment for inflation made by the 
Secretary in accordance with the Inflation Adjustment Act and Sec.  
2575.3.
    (k) The civil monetary penalty of up to $100 established by section 
502(c)(12) of ERISA remains at $100 for penalties assessed after August 
1, 2016, and before the effective date of the next adjustment for 
inflation made by the Secretary in accordance with the Inflation 
Adjustment Act and Sec.  2575.3.
    (l) The maximum civil monetary penalty of $10,000 established by 
section 502(m) of ERISA is adjusted to $15,909 for penalties assessed 
after August 1, 2016, and before the effective date of the next 
adjustment for inflation

[[Page 43455]]

made by the Secretary in accordance with the Inflation Adjustment Act 
and Sec.  2575.3.
    (m) The civil monetary penalty of not more than $1,000, established 
by Public Health Services Act section 2715(f) and incorporated into 
ERISA by section 715 of ERISA, is adjusted to $1,087 for penalties 
assessed after August 1, 2016, and before the effective date of the 
next adjustment for inflation made by the Secretary in accordance with 
the Inflation Adjustment Act and Sec.  2575.3.


Sec.  2575.3  Subsequent adjustments to civil monetary penalties.

    No later than January 15, starting in 2017, and each subsequent 
year, the Secretary shall adjust for inflation the civil monetary 
penalties described in Sec.  2575.2 and any future civil monetary 
penalties enforceable by the Secretary under title I of ERISA and 
publish such annual adjustments in the Federal Register notwithstanding 
section 553 of the Administrative Procedures Act. Future penalties or 
adjustments to the amount of the penalty that are enacted by statute or 
regulation will not be adjusted for inflation in the first year those 
penalty levels take effect. Annual inflation adjustments shall apply to 
penalties assessed after the later of January 15 or the date notice of 
the annual inflation adjustment is published in the Federal Register.
* * * * *


Sec. Sec.  2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5, and 
2575.502c-6  [Removed]

0
54. Remove Sec. Sec.  2575.100, 2575.209b-1, 2575.502c-2, 2575.502c-5, 
and 2575.502c-6.

PART 2590--RULES AND REGULATIONS FOR GROUP HEALTH PLANS

0
55. The authority citation for part 2590 is revised to read as follows:

    Authority: Secs. 29 U.S.C. 1027, 1059, 1135, 1161-1168, 1169, 
1181-1183, 1181 note, 1185, 1185a, 1185b, 1191, 1191a, 1191b, and 
1191c; sec. 101(g), Pub. L. 104-191, 110 Stat. 1936; sec. 401(b), 
Pub. L. 105-200, 112 Stat. 645 (42 U.S.C. 651 note); sec. 512(d), 
Pub. L. 110-343, 122 Stat. 3881; sec. 1001, 1201, and 1562(e), Pub. 
L. 111-148, 124 Stat. 119, as amended by Pub. L. 111-152, 124 Stat. 
1029; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note), as 
amended by section 31001(s) of Pub. L. 104-134, 110 Stat. 1321-373, 
and section 701 of Pub. L. 114-74, 129 Stat. 584; Secretary of 
Labor's Order 1-2011, 77 FR 1088 (January 9, 2012).

0
56. Amend Sec.  2590.715-2715 by revising the first sentence of 
paragraph (e) to read as follows:


Sec.  2590.715-2715  Summary of benefits and coverage and uniform 
glossary.

* * * * *
    (e) Failure to provide. A group health plan that willfully fails to 
provide information under this section to a participant or beneficiary 
is subject to a fine of not more than $1,000 (adjusted for inflation 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended) for each such failure. * * *

Department of Labor

Mine Safety and Health Administration

    For the reasons stated in the preamble, 30 CFR part 100 is amended 
as follows:

Title 30--Mineral Resources

PART 100--CIVIL PENALTIES FOR VIOLATIONS OF THE FEDERAL MINE SAFETY 
AND HEALTH ACT OF 1977

0
57. The authority citation for part 100 is revised to read as follows:

    Authority: 5 U.S.C. 301; 30 U.S.C. 815, 820, 957; 28 U.S.C. 2461 
note (Federal Civil Penalties Inflation Adjustment Act of 1990); 
Pub. L. 114-74 at Sec.  701;


0
58. Amend Sec.  100.3 by:
0
a. Revising the first sentence of paragraph (a)(1); and
0
b. Revising Table XIV in paragraph (g).
    The revisions read as follows:


Sec.  100.3  Determination of penalty amount; regular assessment.

    (a) * * *
    (1) Except as provided in Sec.  100.5(e), the operator of any mine 
in which a violation occurs of a mandatory health or safety standard or 
who violates any other provision of the Mine Act, as amended, shall be 
assessed a civil penalty of not more than $68,300. * * *
* * * * *
    (g) * * *

                   Table XIV--Penalty Conversion Table
------------------------------------------------------------------------
                         Points                             Penalty ($)
------------------------------------------------------------------------
60 or fewer.............................................             127
61......................................................             138
62......................................................             149
63......................................................             162
64......................................................             175
65......................................................             190
66......................................................             206
67......................................................             223
68......................................................             241
69......................................................             262
70......................................................             283
71......................................................             307
72......................................................             334
73......................................................             361
74......................................................             390
75......................................................             423
76......................................................             459
77......................................................             496
78......................................................             538
79......................................................             583
80......................................................             632
81......................................................             684
82......................................................             741
83......................................................             803
84......................................................             870
85......................................................             943
86......................................................           1,021
87......................................................           1,105
88......................................................           1,198
89......................................................           1,298
90......................................................           1,406
91......................................................           1,522
92......................................................           1,649
93......................................................           1,786
94......................................................           1,935
95......................................................           2,097
96......................................................           2,271
97......................................................           2,460
98......................................................           2,665
99......................................................           2,887
100.....................................................           3,128
101.....................................................           3,388
102.....................................................           3,670
103.....................................................           3,976
104.....................................................           4,307
105.....................................................           4,666
106.....................................................           5,054
107.....................................................           5,475
108.....................................................           5,932
109.....................................................           6,426
110.....................................................           6,961
111.....................................................           7,540
112.....................................................           8,169
113.....................................................           8,849
114.....................................................           9,586
115.....................................................          10,384
116.....................................................          11,249
117.....................................................          12,186
118.....................................................          13,201
119.....................................................          14,301
120.....................................................          15,492
121.....................................................          16,782
122.....................................................          18,180
123.....................................................          19,694
124.....................................................          21,335
125.....................................................          23,110
126.....................................................          25,035
127.....................................................          27,121
128.....................................................          29,380
129.....................................................          31,827
130.....................................................          34,478
131.....................................................          37,349
132.....................................................          40,460
133.....................................................          43,829
134.....................................................          47,325
135.....................................................          50,821
136.....................................................          54,317
137.....................................................          57,812
138.....................................................          61,308
139.....................................................          64,804
140 or more.............................................          68,300
------------------------------------------------------------------------

* * * * *

0
59. Amend Sec.  100.4 by:

[[Page 43456]]

0
a. Revising paragraphs (a) and (b); and
0
b. Revising introductory paragraph (c).
    The revisions read as follows:


Sec.  100.4  Unwarrantable failure and immediate notification.

    (a) The minimum penalty for any citation or order issued under 
section 104(d)(1) of the Mine Act shall be $2,277.
    (b) The minimum penalty for any order issued under section 
104(d)(2) of the Mine Act shall be $4,553.
    (c) The penalty for failure to provide timely notification to the 
Secretary under section 103(j) of the Mine Act will be not less than 
$5,692 and not more than $68,300 for the following accidents:
* * * * *

0
60. Amend Sec.  100.5 by revising paragraphs (c), (d), and (e) to read 
as follows:


Sec.  100.5  Determination of penalty amount; special assessment.

* * * * *
    (c) Any operator who fails to correct a violation for which a 
citation has been issued under Section 104(a) of the Mine Act within 
the period permitted for its correction may be assessed a civil penalty 
of not more than $7,399 for each day during which such failure or 
violation continues.
    (d) Any miner who willfully violates the mandatory safety standards 
relating to smoking or the carrying of smoking materials, matches, or 
lighters shall be subject to a civil penalty of not more than $313 for 
each occurrence of such violation.
    (e) Violations that are deemed to be flagrant under section 
110(b)(2) of the Mine Act may be assessed a civil penalty of not more 
than $250,433. For purposes of this section, a flagrant violation means 
``a reckless or repeated failure to make reasonable efforts to 
eliminate a known violation of a mandatory health or safety standard 
that substantially and proximately caused, or reasonably could have 
been expected to cause, death or serious bodily injury.''
    Note: The following Appendix will not appear in the Code of Federal 
Regulations.

[[Page 43457]]



                                                                    Appendix 1--Inflation Adjustment Act--Penalty Adjustments
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     New min
                                                                          Last year    Authority for       Min                                                       (rounded   New max (rounded
     Agency             Law         Name/ Description     CFR Citation     adjusted   last adjustment    penalty    Max penalty (non  11/15 Min    11/15 Max ($)        to         to nearest
                                                                          (non IAA)      (non IAA)      (non IAA)       IAA) ($)         ($)                         nearest        dollar)
                                                                                                           ($)                                                       dollar)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
MSHA...........  Federal Mine       Regular            30 CFR 100.3(A)..       2007  72 FR 13592......  .........  60,000...........  .........  70,000...........  .........  68,300.
                  Safety & Health    Assessment.
                  Act of 1977.
MSHA...........  Federal Mine       Penalty            30 CFR 100.3(G)..       2007  72 FR 13592......        112  60,000...........        112  70,000...........        127  68,300.
                  Safety & Health    Conversion Table.
                  Act of 1977.
MSHA...........  Federal Mine       Minimum Penalty    30 CFR 100.4(a)..       2007  72 FR 13592......      2,000  .................      2,000  .................      2,277  .................
                  Safety & Health    for any order
                  Act of 1977.       issued under
                                     104(d)(1) of the
                                     Mine Act.
MSHA...........  Federal Mine       Minimum penalty    30 CFR 100.4(b)..       2007  72 FR 13592......      4,000  .................      4,000  .................      4,553  .................
                  Safety & Health    for any order
                  Act of 1977.       issued under
                                     104(d)(2) of the
                                     Mine Act.
MSHA...........  Federal Mine       Penalty for        39 CFR 100.4(c)..       2007  72 FR 13592......      5,000  60,000...........      5,000  65,000...........      5,692  68,300.
                  Safety & Health    failure to
                  Act of 1977.       provide timely
                                     notification
                                     under 103(j) of
                                     the Mine Act.
MSHA...........  Federal Mine       Any operator who   30 CFR 100.5(C)..       2007  72 FR 13592......  .........  6,500............  .........  7,500............  .........  7,399.
                  Safety & Health    fails to correct
                  Act of 1977.       a violation for
                                     which a citation
                                     or order was
                                     issued under
                                     104(a) of the
                                     Mine Act.
MSHA...........  Federal Mine       Violation of       30 CFR 100.5(D)..       2007  72 FR 13592......  .........  275..............  .........  375..............  .........  313.
                  Safety & Health    mandatory safety
                  Act of 1977.       standards
                                     related to
                                     smoking
                                     standards.
MSHA...........  Federal Mine       Flagrant           30 CFR 100.5(e)..       2007  72 FR 13592......  .........  220,000..........  .........  242,000..........  .........  250,433.
                  Safety & Health    violations under
                  Act of 1977.       110(b)(2) of the
                                     Mine Act.
EBSA...........  Employee           Section 209(b):    29 CFR 2575.2(a).       1974  Pub. L. 93-406...  .........  10...............  .........  11...............  .........  28.
                  Retirement         Failure to
                  Income Security    furnish reports
                  Act.               (e.g., pension
                                     benefit
                                     statements) to
                                     certain former
                                     participants and
                                     beneficiaries or
                                     maintain records.
EBSA...........  Employee           Section            29 CFR 2575.2(b).       1987  Pub. L. 100-203..  .........  1,000............  .........  1,100............  .........  2,063.
                  Retirement         502(c)(2)--Per
                  Income Security    day for failure/
                  Act.               refusal to
                                     properly file
                                     plan annual
                                     report.
EBSA...........  Employee           Section            29 CFR 2575.2(c).       1993  Pub. L. 103-66...  .........  1,000............  .........  1,000............  .........  1,632.
                  Retirement         502(c)(4)--Per
                  Income Security    day for failure
                  Act.               to disclose
                                     certain
                                     documents upon
                                     request under
                                     ERISA 101(k) and
                                     (l); failure to
                                     furnish notices
                                     under 101(j) and
                                     514(e)(3)--each
                                     statutory
                                     recipient a
                                     separate
                                     violation.
EBSA...........  Employee           Section            29 CFR 2575.2(d).       1996  Pub. L. 104-91...  .........  1,000............  .........  1,100............  .........  1,502.
                  Retirement         502(c)(5)--Per
                  Income Security    day for each
                  Act.               failure to file
                                     annual report
                                     for Multiple
                                     Employer Welfare
                                     Arrangements
                                     (MEWAs).
EBSA...........  Employee           Section            29 CFR 2575.2(e).       1997  Pub. L. 105-34...  .........  100 per day, not   .........  110 per day, not   .........  147 per day, not
                  Retirement         502(c)(6)--Per                                                                 to exceed 1,000               to exceed 1,100               to exceed 1,472
                  Income Security    day for each                                                                   per request.                  per request.                  per request.
                  Act.               failure to
                                     provide
                                     Secretary of
                                     Labor requested
                                     documentation
                                     not to exceed a
                                     per-request
                                     maximum.
EBSA...........  Employee           Section            29 CFR 2575.2(f).       2002  Pub. L. 107-204..  .........  100..............  .........  100..............  .........  131.
                  Retirement         502(c)(7)--Per
                  Income Security    day for each
                  Act.               failure to
                                     provide notices
                                     of blackout
                                     periods and of
                                     right to divest
                                     employer
                                     securities--each
                                     statutory
                                     recipient a
                                     separate
                                     violation.

[[Page 43458]]

 
EBSA...........  Employee           Section            29 CFR 2575.2(g).       2006  Pub. L. 109-280..  .........  1,100............  .........  1,100............  .........  1,296.
                  Retirement         502(c)(8)--Per
                  Income Security    each failure by
                  Act.               an endangered
                                     status
                                     multiemployer
                                     plan to adopt a
                                     funding
                                     improvement plan
                                     or meet
                                     benchmarks;
                                     failure of a
                                     critical status
                                     multiemployer
                                     plan to adopt a
                                     rehabilitation
                                     plan.
EBSA...........  Employee           Section            29 CFR 2575.2(h).       2009  Pub. L. 111-3....  .........  100..............  .........  100..............  .........  110.
                  Retirement         502(c)(9)(A)--Pe
                  Income Security    r day for each
                  Act.               failure by an
                                     employer to
                                     inform employees
                                     of CHIP coverage
                                     opportunities
                                     under Section
                                     701(f)(3)(B)(i)(
                                     l)--each
                                     employee a
                                     separate
                                     violation.
EBSA...........  Employee           Section            29 CFR 2575.2(i).       2009  Pub. L. 111-3....  .........  100..............  .........  100..............  .........  110.
                  Retirement         502(c)(9)(B)--Pe
                  Income Security    r day for each
                  Act.               failure by a
                                     plan to timely
                                     provide to any
                                     State
                                     information
                                     required to be
                                     disclosed under
                                     Section
                                     701(f)(3)(B)(ii)
                                     , as added by
                                     CHIP regarding
                                     coverage
                                     coordination--ea
                                     ch participant/
                                     beneficiary a
                                     separate
                                     violation.
EBSA...........  Employee           Section            29 CFR                  2008  Pub. L. 110-233..  .........  100..............  .........  100..............  .........  110.
                  Retirement         502(c)(10)--Fail   2575.2(j)(1).
                  Income Security    ure by any plan
                  Act.               sponsor of group
                                     health plan, or
                                     any health
                                     insurance issuer
                                     offering health
                                     insurance
                                     coverage in
                                     connection with
                                     the plan, to
                                     meet the
                                     requirements of
                                     Sections
                                     702(a)(1)(F),
                                     (b)(3), (c) or
                                     (d); or Section
                                     701; or Section
                                     702(b)(1) with
                                     respect to
                                     genetic
                                     information--dai
                                     ly per
                                     participant and
                                     beneficiary non-
                                     compliance
                                     period.
EBSA...........  Employee           Section            29 CFR                  2008  Pub. L. 110-233..      2,500  .................      2,500  .................      2,745  .................
                  Retirement         502(c)(10)--unco   2575.2(j)(2).
                  Income Security    rrected de
                  Act.               minimis
                                     violation.
EBSA...........  Employee           Section            29 CFR                  2008  Pub. L. 110-233..     15,000  .................     15,000  .................     16,473  .................
                  Retirement         502(c)(10)--unco   2575.2(j)(3).
                  Income Security    rrected
                  Act.               violations that
                                     are not de
                                     minimis.
EBSA...........  Employee           Section            29 CFR                  2008  Pub. L. 110-233..  .........  500,000..........  .........  500,000..........  .........  549,095.
                  Retirement         502(c)(10)--unin   2575.2(j)(4).
                  Income Security    tentional
                  Act.               failure maximum
                                     cap.
EBSA...........  Employee           Section            29 CFR 2575.2(k).       2014  Pub. L. 113-97...  .........  100..............  .........  100..............  .........  100.
                  Retirement         502(c)(12)--Per
                  Income Security    day for each
                  Act.               failure of a
                                     CSEC plan in
                                     restoration
                                     status to adopt
                                     a restoration
                                     plan.

[[Page 43459]]

 
EBSA...........  Employee           Section 502(m)--   29 CFR 2575.2(l).       1994  Pub. L. 103-465..  .........  10,000...........  .........  10,000...........  .........  15,909.
                  Retirement         Failure of
                  Income Security    fiduciary to
                  Act.               make a proper
                                     distribution
                                     from a defined
                                     benefit plan
                                     under section
                                     206(e) of ERISA.
EBSA...........  Employee           Failure to         29 CFR 2575.2(m).       2010  Pub. L. 111-148..  .........  1,000............  .........  1,000............  .........  1,087.
                  Retirement         provide Summary
                  Income Security    of Benefits
                  Act.               Coverage under
                                     PHS Act section
                                     2715(f), as
                                     incorporated in
                                     ERISA section
                                     715 and 29 CFR
                                     2590.715-2715(e).
OSHA...........  Occupational       Serious Violation  29 CFR                  1990  Pub. L. 101-508..  .........  7,000............  .........  7,000............  .........  12,471.
                  Safety and                            1903.15(d)(3).
                  Health Act.
OSHA...........  Occupational       Other-Than-        29 CFR                  1990  Pub. L. 101-508..  .........  7,000............  .........  7,000............  .........  12,471.
                  Safety and         Serious.           1903.15(d)(4).
                  Health Act.
OSHA...........  Occupational       Willful or         29 CFR                  1990  Pub. L. 101-508..      5,000  70,000...........      5,000  70,000...........      8,908  124,709.
                  Safety and         Repeated.          1903.15(d)(1)
                  Health Act.                           and 29 CFR
                                                        1903.15(d)(2).
OSHA...........  Occupational       Posting            29 CFR                  1990  Pub. L. 101-508..  .........  7,000............  .........  7,000............  .........  12,471.
                  Safety and         Requirement.       1903.15(d)(6).
                  Health Act.
OSHA...........  Occupational       Failure to Abate.  29 CFR                  1990  Pub. L. 101-508..  .........  7,000............  .........  7,000............  .........  12,471.
                  Safety and                            1903.15(d)(5).
                  Health Act.
WHD............  Family and         FMLA.............  29 CFR                  1993  Pub. L. 103-3....  .........  100..............  .........  110..............  .........  163.
                  Medical Leave                         825.300(a)(1).
                  Act.
WHD............  Fair Labor         FLSA.............  29 CFR 578.3(a)..       1989  Pub. L. 101-157..  .........  1,000............  .........  1,100............  .........  1,894.
                  Standards Act.
WHD............  Fair Labor         Child Labor......  29 CFR                  2008  Pub. L. 110-233..  .........  11,000...........  .........  11,000...........  .........  12,080.
                  Standards Act.                        579.1(a)(1)(i)(A
                                                        ).
WHD............  Fair Labor         Child Labor        29 CFR                  2008  Pub. L. 110-233..  .........  50,000...........  .........  50,000...........  .........  54,910.
                  Standards Act.     resulting in       579.1(a)(1)(i)(B
                                     serious injury     ).
                                     or death.
WHD............  Fair Labor         CL willful or      29 CFR                  2008  Pub. L. 110-233..  .........  100,000..........  .........  100,000..........  .........  109,820.
                  Standards Act.     repeated           579.1(a)(1)(i)(B
                                     resulting in       ).
                                     serious injury
                                     or death.
WHD............  Migrant and        MSPA.............  29 CFR 500.1(e)..       1983  Pub. L. 97-470...  .........  1,000............  .........  1,000............  .........  2,355.
                  Seasonal
                  Agricultural
                  Worker
                  Protection Act.
WHD............  Immigration &      H1B..............  20 CFR                  1990  Pub. L. 101-649..  .........  1,000............  .........  1,000............  .........  1,782.
                  Nationality Act.                      655.810(b)(1).
WHD............  Immigration &      H1B willful or     20 CFR                  1998  Pub. L. 105-277..  .........  5,000............  .........  5,000............  .........  7,251.
                  Nationality Act.   discrimination.    655.810(b)(2).
WHD............  Immigration &      H1B willful that   20 CFR                  1998  Pub. L. 105-277..  .........  35,000...........  .........  35,000...........  .........  50,758.
                  Nationality Act.   resulted in        655.810(b)(3).
                                     displacement of
                                     a US worker.
WHD............  Immigration &      H2B \17\.........  29 CFR 503.23....       2005  Pub. L. 109-13...  .........  10,000...........  .........  10,000...........  .........  11,940.
                  Nationality Act.
WHD............  Immigration &      D-1..............  20 CFR 655.620...       1990  Pub. L. 101-649..  .........  5,000............  .........  5,000............  .........  8,908.
                  Nationality Act.
WHD............  Contract Work      CWHSSA...........  29 CFR 5.8(a)....       1962  Pub. L. 87-581...  .........  10...............  .........  10...............  .........  25.
                  Hours and Safety
                  Standards Act.
WHD............  Walsh-Healey       Walsh-Healey.....  41 CFR 50-              1936  49 Stat. 2036....  .........  10...............  .........  10...............  .........  25.
                  Public Contracts                      201.3(e).
                  Act.
WHD............  Employee           EPPA.............  29 CFR 801.42(a).       1988  Pub. L. 100-347..  .........  10,000...........  .........  10,000...........  .........  19,787.
                  Polygraph
                  Protection Act.
WHD............  Immigration &      H2A..............  29 CFR 501.19(c).       2010  75 FR 6884.......  .........  1,500............  .........  1,500............  .........  1,631.
                  Nationality Act.
WHD............  Immigration &      H2A willful or     29 CFR                  2008  73 FR 77110......  .........  5,000............  .........  5,000............  .........  5,491.
                  Nationality Act.   discrimination.    501.19(c)(1).
WHD............  Immigration &      H2A Safety or      29 CFR                  2010  75 FR 6,884......  .........  50,000...........  .........  50,000...........  .........  54,373.
                  Nationality Act.   health resulting   501.19(c)(2).
                                     in serious
                                     injury or death.
WHD............  Immigration &      H2A willful or     29 CFR                  2010  75 FR 6884.......  .........  100,000..........  .........  100,000..........  .........  108,745.
                  Nationality Act.   repeated safety    501.19(c)(4).
                                     or health
                                     resulting in
                                     serious injury
                                     or death.
WHD............  Immigration &      H2A failing to     29 CFR 501.19(d).       2008  73 FR 77110......  .........  5,000............  .........  5,000............  .........  5,491.
                  Nationality Act.   cooperate in an
                                     investigation.
WHD............  Immigration &      H2A displacing a   29 CFR 501.19(e).       2010  75 FR 6,884......  .........  15,000...........  .........  15,000...........  .........  16,312.
                  Nationality Act.   US worker.
WHD............  Immigration &      H2A improperly     29 CFR 501.19(f).       2010  75 FR 6,884......  .........  15,000...........  .........  15,000...........  .........  16,312.
                  Nationality Act.   rejecting a US
                                     worker.
WHD............  Fair Labor         Home Worker......  29 CFR 530.302...       1988  53 FR 45706......         10  500..............         10  500..............         20  989.
                  Standards Act.
OWCP...........  Longshore and      Failure to file    20 CFR 702.204...       1984  Pub. L. 98-426...  .........  10,000...........  .........  11,000...........  .........  22,587.
                  Harbor Workers'    first report of
                  Compensation Act.  injury or filing
                                     a false
                                     statement or
                                     misrepresentatio
                                     n in first
                                     report.

[[Page 43460]]

 
OWCP...........  Longshore and      Failure to report  20 CFR 702.236...       1927  44 Stat. 1432....  .........  100..............  .........  110..............  .........  275.
                  Harbor Workers'    termination of
                  Compensation Act.  payments.
OWCP...........  Longshore and      Discrimination     20 CFR                  1984  Pub. L. 98-426...      1,000  5,000............      1,100  5,500............      2,259  11,293.
                  Harbor Workers'    against            702.271(a)(2).
                  Compensation Act.  employees who
                                     claim
                                     compensation or
                                     testify in a
                                     LHWCA proceeding.
OWCP...........  Black Lung         Failure to report  20 CFR                  1978  Pub. L. 95-239...  .........  500..............  .........  550..............  .........  1,375.
                  Benefits Act.      termination of     725.621(b), (d).
                                     payments.
OWCP...........  Black Lung         Failure to file    20 CFR 725.621(d)       1978  Pub. L. 95-239...  .........  500..............  .........  550..............  .........  1,375.
                  Benefits Act.      required reports.
OWCP...........  Black Lung         Failure to secure  20 CFR 726.300...       1978  Pub. L. 95-239...  .........  1,000............  .........  1,000............  .........  2,500.
                  Benefits Act.      payment of
                                     benefits.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        100  .................        100  .................        134  .................
                  Benefits Act.      payment of         726.302(c)(2)(i).
                                     benefits for
                                     mines with fewer
                                     than 25
                                     employees.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        200  .................        200  .................        268  .................
                  Benefits Act.      payment of         726.302(c)(2)(i).
                                     benefits for
                                     mines with 25-50
                                     employees.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        300  .................        300  .................        402  .................
                  Benefits Act.      payment of         726.302(c)(2)(i).
                                     benefits for
                                     mines with 51-
                                     100 employees.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        400  .................        400  .................        535  .................
                  Benefits Act.      payment of         726.302(c)(2)(i).
                                     benefits for
                                     mines with more
                                     than 100
                                     employees.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        100  .................        100  .................        134  .................
                  Benefits Act.      payment of         726.302(c)(4).
                                     benefits after
                                     10th day of
                                     notice.
OWCP...........  Black Lung         Failure to secure  20 CFR                  2001  65 FR 79920......        300  .................        300  .................        402  .................
                  Benefits Act.      payment of         726.302(c)(5).
                                     benefits for
                                     repeat offenders.
OWCP...........  Black Lung         Failure to secure  20 CFR                  1978  Pub. L. 95-239...  .........  1,100............  .........  1,100............  .........  2,750.
                  Benefits Act.      payment of         726.302(c)(5).
                                     benefits.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\17\ See supra note 6.



[[Page 43461]]

    Signed at Washington, DC, this 24th day of June, 2016.
Thomas E. Perez,
Secretary, U.S. Department of Labor.
[FR Doc. 2016-15378 Filed 6-30-16; 8:45 am]
 BILLING CODE 4510-HL-P