Authorizing Electronic Payments of Civil Money Penalties
| Published date | 07 November 2019 |
| Citation | 84 FR 59928 |
| Record Number | 2019-23849 |
| Section | Rules and Regulations |
| Court | Wage And Hour Division |
Federal Register, Volume 84 Issue 216 (Thursday, November 7, 2019)
[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Rules and Regulations]
[Pages 59928-59931]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23849]
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DEPARTMENT OF LABOR
Wage and Hour Division
29 CFR Parts 500, 501, 580 and 801
RIN 1235-AA28
Authorizing Electronic Payments of Civil Money Penalties
AGENCY: Wage and Hour Division, Department of Labor.
ACTION: Final rule.
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SUMMARY: In this final rule, the Department of Labor (Department)
revises its regulations issued pursuant to the Migrant and Seasonal
Agricultural Worker Protection Act (MSPA), the H-2A provisions of the
Immigration and Nationality Act (H-2A), the Fair Labor Standards Act
(FLSA), and the Employee Polygraph Protection Act (EPPA) governing the
payment of civil money penalties (CMPs) assessed by the Wage and Hour
Division (WHD). The regulatory revisions expand the CMP payment methods
beyond the options specified in the current text by allowing for the
payment of CMPs through an electronic payment alternative, and
otherwise amend the regulations to ensure uniform payment instructions.
The existing MSPA, H-2A, FLSA, and EPPA regulations require persons
assessed a CMP under those statutory schemes to remit payment in person
or by mail using a certified check or money order. In recognition of
modern payment methods, the Department is amending these regulations to
allow for payment of the CMPs via an electronic payment alternative,
any successor system, or by any additional payment method that the
Department may deem acceptable in the future. This action revises the
regulatory text in the appropriate regulations
[[Page 59929]]
administered by WHD. This action is intended to simplify payment
methods for persons assessed a CMP, and does not impose any new
regulatory requirements.
DATES: This rule is effective November 7, 2019.
FOR FURTHER INFORMATION CONTACT: Robert Waterman, Division of
Regulations, Legislation, and Interpretation, Wage and Hour Division,
U.S. Department of Labor, Room S-3502, 200 Constitution Avenue NW,
Washington, DC 20210, telephone: (202) 693-0406 (this is not a toll-
free number) or email: [email protected].
SUPPLEMENTARY INFORMATION: Publication of this document constitutes
final action on these changes under the Administrative Procedure Act (5
U.S.C. 553). Publication of a Notice of Proposed Rulemaking is
unnecessary since the agency is merely updating its regulations to add
alternatives for payment of CMPs and to improve consistency among its
regulations. The rulemaking does not mandate payment via electronic
payment method.
This final rule is not a regulatory action under Executive Order
13771 because it is not a significant action under Executive Order
12866.
I. Background
The Department's regulations at 29 CFR 500.144, 501.22, 580.18, and
801.43 provide instructions for the payment of CMPs assessed by WHD
under MSPA, H-2A, the FLSA, and the EPPA. The instructions currently
require that payment be remitted by certified check or money order, to
be mailed or delivered to WHD. Many members of the public may find
these payment methods sufficient. However, the Department of the
Treasury's Bureau of the Fiscal Service (Fiscal Service) analyzed WHD's
CMP payment process and recommended that Pay.gov be used as an
electronic payment option to improve its cash management practices and
reduce paper-based collections. WHD accepted Fiscal Service's
recommendation and has fully implemented Pay.gov as an additional
method for paying CMPs. Pay.gov is a web transaction portal for public
access to federal agency services, sponsored by the United States
Department of the Treasury's Fiscal Service.\1\ WHD believes that an
electronic payment option provides members of the public with a faster
and less costly payment method than the current options of delivering
or mailing certified checks or money orders. Many members of the public
may find it in their interest to remit CMP payments electronically,
thereby avoiding the costs associated with money orders, certified
checks, certified mail, or courier service, as well as the cost of
personnel time required to mail or deliver the CMP payments to WHD. The
Department also recognizes that commonly accepted and preferred payment
methods may continue to evolve. Accordingly, in this final rule, the
Department adds an option for electronic payment of CMPs on www.pay.gov
(or any successor system), permits payment via additional means that
the Department may deem acceptable, and directs persons who wish to
remit payment to WHD by certified check or money order to do so
pursuant to WHD instructions that are provided during the resolution of
a WHD investigation.\2\
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\1\ See https://www.pay.gov/public/home/notices.
\2\ The regulation at 29 CFR 503.26 similarly provides
instructions for the payment of CMPs assessed by WHD under the H-2B
provisions of the Immigration and Nationality Act. This final rule
does not amend 29 CFR 503.26. Any revisions to that regulation will
be issued separately.
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II. Summary of Changes to the Regulations
In 29 CFR 500.144, 501.22, 580.18, and 801.43, the regulatory text
currently provides that a person assessed a CMP shall remit promptly by
mail or in person the amount to the Secretary by certified check or
money order, made payable to the order of WHD. The Department has added
a payment alternative to all these provisions to allow persons the
option of submitting payment of CMPs electronically through Pay.gov (or
any successor system). Recognizing that commonly accepted and preferred
payment methods may continue to evolve, the Department has further
revised these regulations to permit payment via any additional payment
method that the Department may deem acceptable in the future.
Instructions for any such additional payment method would be provided
during the resolution of a WHD investigation. Additionally, the current
text of these regulations lack consistency in their instructions for
mailing or delivering CMP payment to WHD when payment is made by
certified check or money order. In this final rule, the Department has
revised these regulations to eliminate those inconsistencies.
III. Administrative Procedure Act
Section 553(b)(3) of the Administrative Procedure Act (APA)
provides that an agency is not required to publish a notice of proposed
rulemaking in the Federal Register and solicit public comments when the
agency has good cause to find that doing so would be ``impracticable,
unnecessary, or contrary to the public interest.'' 5 U.S.C. 553(b)(3).
The Department finds that good cause exists to dispense with the notice
and public comment procedures for these minor amendments to its
regulations based on the conclusion that such procedures are
unnecessary. This rule adds an electronic payment option for persons
assessed a CMP to submit their CMP payments to the Department and makes
other minor changes to ensure consistent payment instructions. This
rule does not impose any new regulatory obligations. Therefore, the
Department is issuing these regulatory revisions in a final rule.
Section 553(d) of the APA provides that substantive rules should
take effect not less than thirty (30) days after the date they are
published in the Federal Register unless ``otherwise provided by the
agency for good cause found[.]'' 5 U.S.C. 553(d)(3). Since this rule
merely provides alternative payment mechanisms and does not impose any
additional regulatory requirements, the Department finds it is
unnecessary to delay the effective date of the rule. Accordingly, the
Department finds that good cause exists to make this rule effective on
the date of publication.
IV. Executive Orders 12866, 13563; Small Business Regulatory
Enforcement Fairness Act; Regulatory Flexibility
This rule has been drafted and reviewed in accordance with
Executive Order 12866, section 1(b), Principles of Regulations, as
affirmed by Executive Order 13563. Section 6(a)(3) of Executive Order
12866 requires that agencies assess both the costs and benefits of
significant regulatory actions. Under Executive Order 12866, section
3(f), a ``significant regulatory action'' is one that meets any of
several 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 Office of Information and Regulatory Affairs (OIRA) in the
Office of Management and Budget (OMB) has determined that this rule is
not a ``significant regulatory action'' under Executive Order 12866,
section 3(f) and waived review. This rule simply provides persons with
alternative options for providing CMP payments to WHD and removes
detailed, somewhat
[[Page 59930]]
inconsistent instructions for mailing or delivering checks or money
orders for CMP payments. It does not impose any costs on employers or
other persons, and does not meet any of the criteria for an
economically significant rule specified by the Executive Order.
Accordingly, there is no requirement for an assessment of potential
costs and benefits under section 6(a)(3) of the order.
Because no notice of proposed rulemaking is required for this rule
under section 553(b) of the APA, the requirements of the Regulatory
Flexibility Act (5 U.S.C. 601) pertaining to regulatory flexibility do
not apply to this rule. See 5 U.S.C. 601(2). Accordingly, the
Department is not required to either certify that the final rule would
not have a significant economic impact on a substantial number of small
entities or conduct a regulatory flexibility analysis.
V. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA)
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 is not subject to the PRA because
any information collected under this rule is collected during the
conduct of Department investigations, civil actions to which the agency
is a party, or administrative proceedings, and therefore is exempt from
the PRA's requirements. See 44 U.S.C. 3518; 5 CFR 1320.4(a)(2).
VI. Unfunded Mandates Reform Act
This Final Rule has been reviewed in accordance with the Unfunded
Mandates Reform Act of 1995 (UMRA). 2 U.S.C. 1501 et seq. For the
purposes of the UMRA, this rule does not impose any Federal mandate
that may result in increased expenditures by State, local or Tribal
governments, or increased expenditures by the private sector, of more
than $100 million in any year.
VII. Executive Order 13132 (Federalism)
The Department has reviewed this rule in accordance with the
Executive Order on Federalism (Executive Order 13132, 64 FR 43255,
August 10, 1999). This rule does not have federalism implications as
outlined in Executive Order 13132. The rule 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.
VIII. Executive Order 13175, Indian Tribal Governments
The Department has reviewed this rule under the terms of Executive
Order 13175 and determined it did not have ``tribal implications.'' The
rule 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.'' As a result, no Tribal
summary impact statement has been prepared.
List of Subjects
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, Investigations,
Labor, Migrant labor, Penalties, Transportation, Wages.
29 CFR Part 580
Administrative practice and procedure, Child labor, Penalties,
Wages.
29 CFR Part 801
Administrative practice and procedure, Employment, Lie detector
tests, Penalties, Reporting and recordkeeping requirements.
Dated: October 25, 2019.
Cheryl M. Stanton,
Administrator.
For the reasons set forth above, the Department of Labor amends
Title 29, Parts 500, 501, 580, and 801 of the Code of Federal
Regulations as follows:
PART 500--MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION
0
1. The authority citation for part 500 continues 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
2. Revise Sec. 500.144 to read as follows:
Sec. 500.144 Civil money penalties--payment and collection.
Where the assessment is directed in a final order by the Secretary
or in a final judgment issued by a United States District Court, the
amount of the penalty is immediately due and payable to the United
States Department of Labor. The person assessed such penalty shall
remit promptly the amount thereof, as finally determined, to the
Secretary. Payment shall be made by certified check or money order made
payable and delivered or mailed according to the instructions provided
by the Department; through the electronic pay portal located at
www.pay.gov or any successor system; or by any additional payment
method deemed acceptable by the Department.
PART 501--ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY
ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE
IMMIGRATION AND NATIONALITY ACT
0
3. The authority citation for part 501 continues 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
4. Revise Sec. 501.22 to read as follows:
Sec. 501.22 Civil money penalties--payment and collection.
Where a civil money penalty is assessed in a final order by the WHD
Administrator, by an ALJ, or by the Administrative Review Board (ARB),
the amount of the penalty must be received by the WHD Administrator
within 30 days of the date of the final order. The person assessed such
penalty shall remit the amount thereof, as finally determined, to the
Secretary. Payment shall be made by certified check or money order made
payable and delivered or mailed according to the instructions provided
by the Department; through the electronic pay portal located at
www.pay.gov or any successor system; or by any additional payment
method deemed acceptable by the Department.
PART 580--CIVIL MONEY PENALTIES--PROCEDURES FOR ASSESSING AND
CONTESTING PENALTIES
0
5. The authority citation for part 580 continues to read as follows:
Authority: 29 U.S.C. 9a, 203, 209, 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's Order 01-2014 (Dec. 19,
[[Page 59931]]
2014), 79 FR 77527 (Dec. 24, 2014); 5 U.S.C. 500, 503, 551, 559; 103
Stat. 938.
0
6. Revise Sec. 580.18(a) to read as follows:
Sec. 580.18 Collection and recovery of penalty.
(a) When the determination of the amount of any civil money penalty
provided for in this part becomes final under Sec. 580.5 in accordance
with the administrative assessment thereof, or pursuant to the decision
and order of an Administrative Law Judge in an administrative
proceeding as provided in Sec. 580.12, or the decision of the Board
pursuant to Sec. 580.16, the amount of the penalty as thus determined
is immediately due and payable to the U.S. Department of Labor. The
person assessed such penalty shall remit promptly the amount thereof,
as finally determined, to the Secretary. Payment shall be made by
certified check or money order made payable and delivered or mailed
according to the instructions provided by the Department; through the
electronic pay portal located at www.pay.gov or any successor system;
or by any additional payment method deemed acceptable by the
Department.
* * * * *
PART 801--APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF
1988
0
7. The authority citation for part 801 continues 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
8. Revise Sec. 801.43 to read as follows:
Sec. 801.43 Civil money penalties--payment and collection.
Where the assessment is directed in a final order of the
Department, the amount of the penalty is immediately due and payable to
the United States Department of Labor.
The person assessed such penalty shall remit promptly the amount
thereof, as finally determined, to the Secretary. Payment shall be made
by certified check or money order made payable and delivered or mailed
according to the instructions provided by the Department; through the
electronic pay portal located at www.pay.gov or any successor system;
or by any additional payment method deemed acceptable by the
Department.
[FR Doc. 2019-23849 Filed 11-6-19; 8:45 am]
BILLING CODE 4510-27-P
