2022 Adjustment of the Penalty for Violation of Notice Posting Requirements

CourtEqual Employment Opportunity Commission
Citation87 FR 10072
Record Number2022-03697
Published date23 February 2022
Federal Register, Volume 87 Issue 36 (Wednesday, February 23, 2022)
[Federal Register Volume 87, Number 36 (Wednesday, February 23, 2022)]
                [Rules and Regulations]
                [Pages 10072-10073]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2022-03697]
                =======================================================================
                -----------------------------------------------------------------------
                EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
                29 CFR Part 1601
                RIN 3046-AB17
                2022 Adjustment of the Penalty for Violation of Notice Posting
                Requirements
                AGENCY: Equal Employment Opportunity Commission.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: In accordance with the Federal Civil Penalties Inflation
                Adjustment Act Improvements Act of 2015, which further amended the
                Federal Civil Penalties Inflation Adjustment Act of 1990, this final
                rule adjusts for inflation the civil monetary penalty for violation of
                the notice-posting requirements in Title VII of the Civil Rights Act of
                1964, the Americans with Disabilities Act, and the Genetic Information
                Non-Discrimination Act.
                DATES: This final rule is effective February 23, 2022.
                FOR FURTHER INFORMATION CONTACT: Kathleen Oram, Assistant Legal
                Counsel, (202) 921-2665 or [email protected], or Savannah Marion
                Felton, Senior Attorney, (202) 921-2671 or [email protected],
                Office of Legal Counsel, Equal Employment Opportunity Commission, 131 M
                St. NE, Washington, DC 20507. Requests for this notice in an
                alternative format should be made to the Office of Communications and
                Legislative Affairs at (202) 921-3191 (voice) or 1-800-669-6820 (TTY),
                or 1-844-234-5122 (ASL video phone).
                SUPPLEMENTARY INFORMATION:
                I. Background
                 Under section 711 of the Civil Rights Act of 1964 (Title VII),
                which is adopted by reference in section 105 of the Americans with
                Disabilities Act (ADA) and section 207(a)(1) of the Genetic Information
                Non-Discrimination Act (GINA), and implemented in 29 CFR 1601.30(a),
                every employer, employment agency, labor organization, and joint labor-
                management committee controlling an apprenticeship or other training
                program covered by Title VII, ADA, or GINA must post notices describing
                the pertinent provisions of these laws. Such notices must be posted in
                prominent and accessible places where notices to employees, applicants,
                and members are customarily maintained. 29 CFR 1601.30(a). Failure to
                comply with this posting requirement is subject to penalty pursuant to
                the Federal Civil Penalties Adjustment Act, as amended. 29 CFR
                1601.30(b). In fiscal year (FY) 2021, the Equal Employment Opportunity
                Commission (EEOC) had 10 posting violation charge resolutions.
                 The EEOC first adjusted the civil monetary penalty for violations
                of the notice posting requirements in 1997 pursuant to the Federal
                Civil Penalties Inflation Adjustment Act of 1990 (FCPIA Act), 28 U.S.C.
                2461 note, as amended by the Debt Collection Improvement Act of 1996
                (DCIA), Public Law 104-134, Sec. 31001(s)(1), 110 Stat. 1373. A final
                rule was published in the Federal Register on May 16, 1997, at 62 FR
                26934, which raised the maximum penalty per violation from $100 to
                $110. The EEOC's second adjustment, made pursuant to the FCPIA Act, as
                amended by the DCIA, was published in the Federal Register on March 19,
                2014, at 79 FR 15220 and raised the maximum penalty per violation from
                $110 to $210.
                 The Federal Civil Penalties Inflation Adjustment Act Improvements
                Act of 2015 (2015 Act), Public Law 114-74, Sec. 701(b), 129 Stat. 599,
                further amended the FCPIA Act, to require each federal agency, not
                later than July 1, 2016, and not later than January 15 of every year
                thereafter, to issue regulations adjusting for inflation the maximum
                civil penalty that may be imposed pursuant to each agency's statutes.
                The purpose of the annual adjustment for inflation was to maintain the
                remedial impact of civil monetary penalties and promote compliance with
                the law. The EEOC's initial adjustment made pursuant to the 2015 Act
                was published in the Federal Register on June 2, 2016, at 81 FR 35269
                and raised the maximum penalty per violation from $210 to $525. The
                EEOC has subsequently made annual adjustments pursuant to the 2015 Act
                each year. Most recently, in 2021, the maximum
                [[Page 10073]]
                penalty per violation was increased to $576.
                 These annual adjustments to the penalty are calculated pursuant to
                the inflation adjustment formula provided in section 5(b) of the 2015
                Act. In accordance with section 6 of the 2015 Act, the adjusted penalty
                will apply only to penalties assessed after the effective date of the
                adjustment. Generally, the periodic inflation adjustment to a civil
                monetary penalty under the 2015 Act will be based on the percentage
                change between the Consumer Price Index for all Urban Consumers (CPI-U)
                for the month of October preceding the date of adjustment and the prior
                year's October CPI-U.
                II. Calculation
                 The adjustment set forth in this final rule was calculated by
                comparing the CPI-U for October 2020 with the CPI-U for October 2021,
                resulting in an inflation adjustment factor of 1.06222. The first step
                of the calculation is to multiply the inflation adjustment factor
                (1.06222) by the most recent civil penalty amount ($576) to calculate
                the inflation-adjusted penalty level ($611.83872). The second step is
                to round this inflation-adjusted penalty to the nearest dollar ($612).
                Accordingly, the Commission is now adjusting the maximum penalty per
                violation specified in 29 CFR 1601.30(a) from $576 to $612.
                III. Regulatory Procedures
                Administrative Procedure Act
                 The Administrative Procedure Act (APA) provides an exception to the
                notice and comment procedures where an agency finds good cause for
                dispensing with such procedures, on the basis that they are
                impracticable, unnecessary, or contrary to the public interest. The
                Commission finds that under 5 U.S.C. 553(b)(3)(B) good cause exists to
                not utilize notice of proposed rulemaking and public comment procedures
                for this rule because this adjustment of the civil monetary penalty is
                required by the 2015 Act, the formula for calculating the adjustment to
                the penalty is prescribed by statute, and the Commission has no
                discretion in determining the amount of the published adjustment.
                Accordingly, the Commission is issuing this revised regulation as a
                final rule without notice and comment.
                Executive Order 12866
                 Pursuant to Executive Order 12866, the EEOC has coordinated with
                the Office of Management and Budget (OMB). Under section 3(f) of
                Executive Order 12866, the EEOC and OMB have determined that this final
                rule will not have an annual effect on the economy of $100 million or
                more, or adversely affect in a material way the economy, a sector of
                the economy, productivity, competition, jobs, the environment, public
                health or safety, or state, local, or tribal governments or
                communities. In FY 2021, the Commission had 10 posting notice charge
                resolutions. The great majority of employers and entities covered by
                these regulations comply with the posting requirement, and, as a
                result, the aggregate economic impact of these revised regulations will
                be minimal, affecting only those limited few who fail to post required
                notices in violation of the regulation and statue.
                Paperwork Reduction Act
                 The Paperwork Reduction Act (44 U.S.C. chapter 35) (PRA) applies to
                rulemakings in which an agency creates a new paperwork burden on
                regulated entities or modifies an existing burden. This final rule
                contains no new information collection requirements, and therefore,
                will create no new paperwork burdens or modifications to existing
                burdens that are subject to review by the Office of Management and
                Budget under the PRA.
                Regulatory Flexibility Act
                 The Regulatory Flexibility Act (5 U.S.C. 601-612) only requires a
                regulatory flexibility analysis when notice and comment is required by
                the Administrative Procedure Act or some other statute. As stated
                above, notice and comment is not required for this rule. For that
                reason, the requirements of the Regulatory Flexibility Act do not
                apply.
                Unfunded Mandates Reform Act of 1995
                 This final rule will not result in the expenditure by State, local,
                or tribal governments, in the aggregate, or by the private sector, of
                $100 million or more in any one year, and it will not significantly or
                uniquely affect small governments. Therefore, no actions were deemed
                necessary under the provisions of the Unfunded Mandates Reform Act of
                1995.
                Congressional Review Act
                 The Congressional Review Act (CRA) requires that before a rule may
                take effect, the agency promulgating the rule must submit a rule
                report, which includes a copy of the rule, to each House of the
                Congress and to the Comptroller General of the United States. EEOC will
                submit a report containing this rule and other required information to
                the U.S. Senate, the U.S. House of Representatives, and the Comptroller
                General of the United States prior to the effective date of the rule.
                Under the CRA, a major rule cannot take effect until 60 days after it
                is published in the Federal Register. This action is not a ``major
                rule'' as defined by the CRA at 5 U.S.C. 804(2).
                List of Subjects in 29 CFR Part 1601
                 Administrative practice and procedure.
                Charlotte A. Burrows,
                Chair, Equal Employment Opportunity Commission.
                 Accordingly, the Equal Employment Opportunity Commission amends 29
                CFR part 1601 as follows:
                PART 1601--PROCEDURAL REGULATIONS
                0
                1. The authority citation for part 1601 continues to read as follows:
                 Authority: 42 U.S.C. 2000e to 2000e-17; 42 U.S.C. 12111 to
                12117; 42 U.S.C. 2000ff to 2000ff-11; 28 U.S.C. 2461 note, as
                amended; Pub. L. 104-134, Sec. 31001(s)(1), 110 Stat. 1373.
                0
                2. Section 1601.30 is amended by revising paragraph (b) to read as
                follows:
                Sec. 1601.30 Notices to be posted.
                * * * * *
                 (b) Section 711(b) of Title VII and the Federal Civil Penalties
                Inflation Adjustment Act, as amended, make failure to comply with this
                section punishable by a fine of not more than $612 for each separate
                offense.
                [FR Doc. 2022-03697 Filed 2-22-22; 8:45 am]
                BILLING CODE 6570-01-P
                

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT