DOL and OSHA Announce Strict Penalties for Employment Law Violations

Business owners looking to remain updated with the latest employment laws may want to read up on the new regulations released by the DOL and OSHA released on January 13, 2017. The organizations have declared upgraded fines for the second time in the last 6 months. These penalties will be applicable on employment law violations. They are imposed in accordance with the the Federal Civil Penalties Inflation Adjustment Act Improvements Act that came into force in November 2015.

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Raises in the Civil Penalties Against Employment Law Violations

The Department of Labor (DOL) and the Occupational Health and Safety Administration (OSHA) have imposed these upgrades:

  • Should business owners neglect to inform their employees about the benefits of the Children’s Health Insurance Program (CHIP), they stand to incur increased penalties from $110 to $112.
  • Employers are expected to inform participants of the Employee Retirement Income Security Act (ERISA) retirement plan that entitles them to automatic contributions. Omission of this information can incur increased fines from $1,632 to $1,659.
  • Companies must provide an overview of the ERISA benefits and coverage that employees are due to receive. Not providing this information can earn raised fines from $1,087 to $1,105.
  • OSHA has levied a maximum penalty raise from $12,471 to $12,675 for serious violations. Repeated or intentional violations can incur an increase in penalties from $124,709 to 126,749. Both these fines previously stood at $7,000 each.
  • Companies may be found responsible for violating the minimum wage and overtime rules of the Fair Labor Standards Act (FLSA) passed by the DOL. These companies will be required to pay an increased fine $1,894 to $1,925.
  • Each fresh violation of the Family Medical Leave Act (FMLA) posting regulations will earn an increased fine from $163 to $166.

The raised fines are applicable on all violations and omissions that took place after November 2, 2015 according to employment law . Companies will be liable to pay these civil monetary penalties even if they are assessed after January 13, 2017.

The Department of Labor has listed additional information on the employment law violations penalties and fines according to the Inflation Adjustment Act in a chart that business owners can study and understand.

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