FIND A CONTRACTOR BUYER'S GUIDE
BECOME AN INDUSTRY PARTNER
MCAA Logo
MEMBER LOGIN JOIN
NEWS
Join Us For The 75th Anniversary Midyear Meeting Sep 7-11 ↗

US Department of Labor announces new rules to adjust civil penalty amounts

Words: Amy Adams kowalskiIn 2015, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act to advance the effectiveness of civil monetary penalties and to maintain their deterrent effect. The new law directs agencies to adjust their penalties for inflation each year using a much more straightforward method than previously available, and requires agencies to publish “catch up” rules this summer to make up for lost time since the last adjustments.

As a result, the U.S. Department of Labor announced two interim final rules to adjust its penalties for inflation based on the last time each penalty was increased.

“Civil penalties should be a credible deterrent that influences behavior far and wide,” said U.S. Secretary of Labor Thomas E. Perez. “Adjusting our penalties to keep pace with the cost of living can lead to significant benefits for workers and can level the playing field responsible employers who should not have to compete with those who don’t follow the law.”

The first rule will cover the vast majority of penalties assessed by the department’s Employee Benefits Security Administration, Mine Safety and Health Administration, Occupational Safety and Health Administration, Office of Workers’ Compensation Programs, and Wage and Hour Division. The second rule will be issued jointly with the Department of Homeland Security to adjust penalties associated with the H-2B temporary guest worker program.

Under the 2015 law, agencies are directed to publish interim final rules by July 1, 2016. The department will accept public comments for 45 days to inform the publication of any final rule.

The new method will adjust penalties for inflation, though the amount of the increase is capped at 150 percent of the existing penalty amount. The baseline is the last increase other than for inflation. The new civil penalty amounts are applicable only to civil penalties assessed after Aug. 1, 2016, whose associated violations occurred after Nov. 2, 2015.

The rules published under the 2015 law will modernize some penalties that have long lost ground to inflation:
  • OSHA’s maximum penalties, which have not been raised since 1990, will increase by 78 percent. The top penalty for serious violations will rise from $7,000 to $12,471. The maximum penalty for willful or repeated violations will increase from $70,000 to $124,709.

  • OWCP’s penalty for failure to report termination of payments made under the Longshore and Harbor Workers’ Compensation Act, has only increased $10 since 1927, and will rise from $110 to $275.

  • WHD’s penalty for willful violations of the minimum wage and overtime provisions of the Fair Labor Standards Act will increase from $1,100 to $1,894.
A Fact Sheet on the Labor Department’s interim rule is available here. A list of each agency’s individual penalty adjustments is available here.
 0
Government Affairs: Dignity Act Is Back and So Are Our Marching Orders!
September 2025

The Dignity Act is back! Congresswoman Maria Salazar (R-FL) and Congresswoman Veronica Escobar (D-TX) have re-introduced the Dignity Act, their comprehensive border security and immigration law reform legislation and we need to hit the ground running to

Stephen Borg
Legislative
Read More
Marvelous Masonry: Inveraray Castle
September 2025

Inveraray Castle, one of Scotland’s most iconic Gothic Revival structures, rises from the banks of Loch Fyne like a monument to stonework itself. For masonry contractors and material suppliers, the castle serves as a working model of 18th-century craftsma

Cass Stern
Marvelous Masonry
Read More
Westlake Royal Building Products™ Expands Distribution Partnership with Lumberman’s Wholesale Inc.
September 2025

Westlake Royal Building Products™, one of North America’s largest manufacturers and distributors of exterior and interior building products, today announced an expanded distribution partnership with Lumberman’s Wholesale Inc. (LWI), a wholesale building

Kriss Swint
MAP Partner
Read More
MASONRY STRONG Podcast, Episode 27 Recap: Rob McKay, Chief Operating Officer at Instone
September 2025

On this episode of the MASONRY STRONG Podcast, Rob McKay from Instone joins the show to talk about his story as well as the processes and procedures of manufacturing natural stone. Getting Started in Masonry: Rob’s Story Rob entered the masonry field by

Justin Stengel
The MASONRY STRONG Podcast
Read More