EEOC to Increase Civil Monetary Fines for Posting Requirement Violations

Author: Marta Moakley, XpertHR Legal Editor

March 21, 2014

The EEOC has joined a number of other federal agencies in increasing the civil monetary fines that may be assessed for violations of the statutes it enforces. These increases, upping the maximum penalty from $110 to $210, are part of a legally-required periodic review on possible adjustments for inflation.

Under the Debt Collection Improvement Act of 1996 (DCIA), which amended the Federal Civil Monetary Penalty Inflation Adjustment Act of 1990, a federal agency must review the civil monetary penalties under the statutes it administers every four years and to adjust the penalties as necessary using a DCIA formula. The aim for these increases is two-fold:

  • To maintain the penalties' deterrent effects; and
  • To further agency policy goals.

The EEOC last raised the maximum penalty in May 1997.

This week, the EEOC issued regulations that will increase the current maximum penalty for violations of posting requirements. The $100 penalty increase was determined by comparing the Consumer Price Index for all urban consumers (as published by the Department of Labor) in June 1997 with that for June 2013. The EEOC requires private employers, state and local governments and educational institutions employing 15 or more individuals, in addition to federal contractors and subcontractors, to post notices including information under the following laws:

  • Title VII of the Civil Rights Act of 1964;
  • Americans with Disabilities Act of 1990; and
  • Genetic Information Non-Discrimination Act.

These notices must be prominently displayed in workplace areas accessible to employees and/or labor representatives.

The increases will take effect April 18, 2014. The increased civil penalty will apply only to those violations that occur after the rule's effective date.

Last December, the Environmental Protection Agency's final Civil Monetary Penalty Inflation Adjustment Rule became effective, resulting in 20 out of 88 statutory penalty provisions being adjusted for inflation. Employers can expect similar adjustments to continue as part of federal agencies' regularly scheduled reviews.