82 FR 8812 - The 2017 Adjustment of the Penalty for Violation of Notice Posting Requirements

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Federal Register Volume 82, Issue 19 (January 31, 2017)

Page Range		8812-8813
FR Document		2017-01277

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.

Federal Register, Volume 82 Issue 19 (Tuesday, January 31, 2017)

[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Rules and Regulations]
[Pages 8812-8813]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01277]


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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1601

RIN 3046-AB06


The 2017 Adjustment of the Penalty for Violation of Notice 
Posting Requirements

AGENCY: Equal Employment Opportunity Commission.

ACTION: Final rule.

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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 March 2, 2017.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal 
Counsel, (202) 663-4668, or Ashley M. Martin, General Attorney, (202) 
663-4695, Office of Legal Counsel, 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) 663-4191 
(voice) or (202) 663-4494 (TTY), or to the Publications Information 
Center at 1-800-669-3362 (toll free).

SUPPLEMENTARY INFORMATION: 

I. Background

    Under section 711 of the Civil Rights Act of 1964 (Title VII), 
which is incorporated by reference in section 105 of the Americans with 
Disabilities Act (ADA) and section 207 of the Genetic Information Non-
Discrimination Act (GINA), and 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 Title VII, ADA, or GINA. Such notices must be 
posted in prominent and accessible places where notices to employees, 
applicants, and members are customarily maintained.
    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 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 purpose 
of the annual adjustment for inflation is to maintain the remedial 
impact of civil monetary penalties and promote compliance with the law. 
These periodic adjustments to the penalty are to be calculated pursuant 
to the inflation adjustment formula provided in section 5(b) of the 
2015 Act and, 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. Mathematical Calculation

    The adjustment set forth in this final rule was calculated by 
comparing the CPI-U for October 2016 with the CPI-U for October 2015, 
resulting in an inflation adjustment factor of 1.01636. The first step 
of the calculation is to multiply the inflation adjustment factor 
(1.01636) by the most recent civil penalty amount ($525) to calculate 
the inflation-adjusted penalty level ($533.589). The second step is to 
round this inflation-adjusted penalty to the nearest dollar ($534). 
Accordingly, we are adjusting the maximum penalty per violation 
specified in 29 CFR 1601.30(a) from $525 to $534.

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. EEOC 
finds that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing 
with the 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, we are issuing this revised regulation as a final rule 
without notice and comment.

[[Page 8813]]

Executive Order 13563 and 12866

    In promulgating this final rule, EEOC has adhered to the regulatory 
philosophy and applicable principles set forth in Executive Order 
13563. 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. 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 statute. The rule only 
increases the penalty by $9 for each separate offense, nowhere near the 
$100 million figure that would amount to a significant regulatory 
action.\1\
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    \1\ In the last ten years, the highest number of charges 
alleging notice posting violations occurred in 2010. In that year, 
only 114 charges of the 90,837 Title VII, ADA, and GINA charges 
(.13%) contained a notice posting violation.
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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.

    For the Commission.

    Dated: January 13, 2017.
Jenny R. Yang,
Chair.

    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.


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 $534 for each separate 
offense.

[FR Doc. 2017-01277 Filed 1-30-17; 8:45 am]
 BILLING CODE 6570-01-P

8812 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations

controlled corporation without the DATES: This final rule is effective March made pursuant to the 2015 Act was
recognition of income, gain, or loss. 2, 2017. published in the Federal Register on
DATES: This correction is effective FOR FURTHER INFORMATION CONTACT: June 2, 2016, at 81 FR 35269 and raised
January 31, 2017 and applicable Thomas J. Schlageter, Assistant Legal the maximum penalty per violation
December 19, 2016. Counsel, (202) 663–4668, or Ashley M. from $210 to $525. The purpose of the
FOR FURTHER INFORMATION CONTACT: Martin, General Attorney, (202) 663– annual adjustment for inflation is to
Richard K. Passales at (202) 317–5024 or 4695, Office of Legal Counsel, 131 M St. maintain the remedial impact of civil
Marie C. Milnes-Vasquez, (202) 317– NE., Washington, DC 20507. Requests monetary penalties and promote
7700 (not a toll-free number). for this notice in an alternative format compliance with the law. These
should be made to the Office of periodic adjustments to the penalty are
SUPPLEMENTARY INFORMATION:
Communications and Legislative Affairs to be calculated pursuant to the
Background at (202) 663–4191 (voice) or (202) 663– inflation adjustment formula provided
4494 (TTY), or to the Publications in section 5(b) of the 2015 Act and, in
The final regulation (TD 9805) that is
Information Center at 1–800–669–3362 accordance with section 6 of the 2015
the subject of this correction is under
(toll free). Act, the adjusted penalty will apply
section 355 of the Internal Revenue
SUPPLEMENTARY INFORMATION: only to penalties assessed after the
Code.
effective date of the adjustment.
Need for Correction I. Background Generally, the periodic inflation
As published, the final regulation (TD Under section 711 of the Civil Rights adjustment to a civil monetary penalty
9805) contains errors that may prove to Act of 1964 (Title VII), which is under the 2015 Act will be based on the
be misleading and are in need of incorporated by reference in section 105 percentage change between the
clarification. of the Americans with Disabilities Act Consumer Price Index for all Urban
(ADA) and section 207 of the Genetic Consumers (CPI–U) for the month of
Correction of Publication Information Non-Discrimination Act October preceding the date of
Accordingly, the final regulation (TD (GINA), and 29 CFR 1601.30(a), every adjustment and the prior year’s October
9805), that are the subject of FR Doc. employer, employment agency, labor CPI–U.
2016–30160, are corrected as follows: organization, and joint labor- II. Mathematical Calculation
1. On page 91745, in the preamble, management committee controlling an
apprenticeship or other training The adjustment set forth in this final
third column, the last line from the
program covered by Title VII, ADA, or rule was calculated by comparing the
bottom of the last full paragraph, the
GINA must post notices describing the CPI–U for October 2016 with the CPI–
language ‘‘Controlled stock its
pertinent provisions of Title VII, ADA, U for October 2015, resulting in an
distributes.’’ is corrected to read
or GINA. Such notices must be posted inflation adjustment factor of 1.01636.
‘‘Controlled stock it distributes’’.
in prominent and accessible places The first step of the calculation is to
Martin V. Franks,
where notices to employees, applicants, multiply the inflation adjustment factor
Chief, Publications and Regulations Branch, and members are customarily (1.01636) by the most recent civil
Legal Processing Division, Associate Chief
maintained. penalty amount ($525) to calculate the
Counsel, (Procedure and Administration). inflation-adjusted penalty level
The EEOC first adjusted the civil
[FR Doc. 2017–01055 Filed 1–30–17; 8:45 am]
monetary penalty for violations of the ($533.589). The second step is to round
BILLING CODE 4830–01–P
notice posting requirements in 1997 this inflation-adjusted penalty to the
pursuant to the Federal Civil Penalties nearest dollar ($534). Accordingly, we
Inflation Adjustment Act of 1990 are adjusting the maximum penalty per
(FCPIA Act), 28 U.S.C. 2461 note, as violation specified in 29 CFR 1601.30(a)
EQUAL EMPLOYMENT OPPORTUNITY
amended by the Debt Collection from $525 to $534.
COMMISSION
Improvement Act of 1996 (DCIA), Public III. Regulatory Procedures
29 CFR Part 1601 Law 104–134, Sec. 31001(s)(1), 110 Stat.
1373. A final rule was published in the Administrative Procedure Act
RIN 3046–AB06 Federal Register on May 16, 1997, at 62 The Administrative Procedure Act
FR 26934, which raised the maximum (APA) provides an exception to the
The 2017 Adjustment of the Penalty for
penalty per violation from $100 to $110. notice and comment procedures where
Violation of Notice Posting
The EEOC’s second adjustment, made an agency finds good cause for
Requirements
pursuant to the FCPIA Act, as amended dispensing with such procedures, on the
AGENCY: Equal Employment by the DCIA, was published in the basis that they are impracticable,
Opportunity Commission. Federal Register on March 19, 2014, at unnecessary, or contrary to the public
ACTION: Final rule. 79 FR 15220 and raised the maximum interest. EEOC finds that under 5 U.S.C.
penalty per violation from $110 to $210. 553(b)(3)(B) good cause exists for
SUMMARY: In accordance with the The Federal Civil Penalties Inflation dispensing with the notice of proposed
Federal Civil Penalties Inflation Adjustment Act Improvements Act of rulemaking and public comment
Adjustment Act Improvements Act of 2015 (2015 Act), Public Law 114–74, procedures for this rule because this
2015, which further amended the Sec. 701(b), 129 Stat. 599, further adjustment of the civil monetary penalty
asabaliauskas on DSK3SPTVN1PROD with RULES

Federal Civil Penalties Inflation amended the FCPIA Act, to require each is required by the 2015 Act, the formula
Adjustment Act of 1990, this final rule federal agency, not later than July 1, for calculating the adjustment to the
adjusts for inflation the civil monetary 2016, and not later than January 15 of penalty is prescribed by statute, and the
penalty for violation of the notice- every year thereafter, to issue Commission has no discretion in
posting requirements in Title VII of the regulations adjusting for inflation the determining the amount of the
Civil Rights Act of 1964, the Americans maximum civil penalty that may be published adjustment. Accordingly, we
with Disabilities Act, and the Genetic imposed pursuant to each agency’s are issuing this revised regulation as a
Information Non-Discrimination Act. statutes. The EEOC’s initial adjustment final rule without notice and comment.

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Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations 8813

Executive Order 13563 and 12866 in any one year, and it will not PENSION BENEFIT GUARANTY
In promulgating this final rule, EEOC significantly or uniquely affect small CORPORATION
has adhered to the regulatory governments. Therefore, no actions were
deemed necessary under the provisions 29 CFR Parts 4071 and 4302
philosophy and applicable principles
set forth in Executive Order 13563. of the Unfunded Mandates Reform Act RIN 1212–AB33
Pursuant to Executive Order 12866, the of 1995.
EEOC has coordinated with the Office of Adjustment of Civil Penalties
Congressional Review Act
Management and Budget (OMB). Under AGENCY: Pension Benefit Guaranty
section 3(f) of Executive Order 12866, The Congressional Review Act (CRA) Corporation.
the EEOC and OMB have determined requires that before a rule may take ACTION: Final rule.
that this final rule will not have an effect, the agency promulgating the rule
annual effect on the economy of $100 must submit a rule report, which SUMMARY: The Pension Benefit Guaranty
million or more, or adversely affect in includes a copy of the rule, to each Corporation is required to amend its
a material way the economy, a sector of House of the Congress and to the regulations annually to adjust the
the economy, productivity, competition, Comptroller General of the United penalties provided for in sections 4071
jobs, the environment, public health or States. EEOC will submit a report and 4302 of the Employee Retirement
safety, or state, local, or tribal containing this rule and other required Income Security Act of 1974. This
governments or communities. The great action is being taken in accordance with
information to the U.S. Senate, the U.S.
majority of employers and entities the Federal Civil Penalties Inflation
House of Representatives, and the
covered by these regulations comply Adjustment Act Improvements Act of
Comptroller General of the United
with the posting requirement, and, as a 2015 and Office of Management and
result, the aggregate economic impact of States prior to the effective date of the
Budget memorandum M–17–11. The
these revised regulations will be rule. Under the CRA, a major rule
regulations being amended are those on
minimal, affecting only those limited cannot take effect until 60 days after it Penalties for Failure to Provide Certain
few who fail to post required notices in is published in the Federal Register. Notices or Other Material Information
violation of the regulation and statute. This action is not a ‘‘major rule’’ as and Penalties for Failure to Provide
The rule only increases the penalty by defined by the CRA at 5 U.S.C. 804(2). Certain Multiemployer Plan Notices.
$9 for each separate offense, nowhere List of Subjects in 29 CFR Part 1601 DATES: Effective date: This rule is
near the $100 million figure that would effective on January 31, 2017.
amount to a significant regulatory Administrative practice and Applicability date: The increases in
action.1 procedure. the civil monetary penalties under
Paperwork Reduction Act For the Commission. sections 4071 and 4302 provided for in
this rule apply to such penalties
The Paperwork Reduction Act (44 Dated: January 13, 2017.
assessed after January 31, 2017.
U.S.C. chapter 35) (PRA) applies to Jenny R. Yang,
FOR FURTHER INFORMATION CONTACT:
rulemakings in which an agency creates Chair. Stephanie Cibinic, Deputy Assistant
a new paperwork burden on regulated General Counsel for Regulatory Affairs
entities or modifies an existing burden. Accordingly, the Equal Employment
(cibinic.stephanie@pbgc.gov), Office of
This final rule contains no new Opportunity Commission amends 29
the General Counsel, Pension Benefit
information collection requirements, CFR part 1601 as follows:
Guaranty Corporation, 1200 K Street
and therefore, will create no new NW., Washington, DC 20005–4026; 202–
paperwork burdens or modifications to PART 1601—PROCEDURAL
REGULATIONS 326–4400 extension 6352. (TTY and
existing burdens that are subject to TDD users may call the Federal relay
review by the Office of Management and service toll-free at 800–877–8339 and
Budget under the PRA. ■ 1. The authority citation for part 1601
ask to be connected to 202–326–4400
continues to read as follows: extension 6352.)
Regulatory Flexibility Act
Authority: 42 U.S.C. 2000e to 2000e–17; SUPPLEMENTARY INFORMATION:
The Regulatory Flexibility Act (5
42 U.S.C. 12111 to 12117; 42 U.S.C. 2000ff
U.S.C. 601–612) only requires a Executive Summary
to 2000ff–11.
regulatory flexibility analysis when
notice and comment is required by the Purpose of the Regulatory Action
■ 2. Section 1601.30 is amended by
Administrative Procedure Act or some revising paragraph (b) to read as follows: This rule is needed to carry out the
other statute. As stated above, notice requirements of the Federal Civil
and comment is not required for this § 1601.30 Notices to be posted. Penalties Inflation Adjustment Act
rule. For that reason, the requirements * * * * * Improvements Act of 2015. The rule
of the Regulatory Flexibility Act do not finalizes the 2016 interim final
(b) Section 711(b) of Title VII and the
apply. regulations required under the 2015 act
Federal Civil Penalties Inflation
Unfunded Mandates Reform Act of 1995 and further adjusts, as required for 2017,
Adjustment Act, as amended, make
the maximum civil penalties that PBGC
This final rule will not result in the failure to comply with this section may assess for failure to provide certain
asabaliauskas on DSK3SPTVN1PROD with RULES

expenditure by State, local, or tribal punishable by a fine of not more than notices or other material information.
governments, in the aggregate, or by the $534 for each separate offense. PBGC’s legal authority for this action
private sector, of $100 million or more [FR Doc. 2017–01277 Filed 1–30–17; 8:45 am] comes from the Federal Civil Penalties
BILLING CODE 6570–01–P Inflation Adjustment Act of 1990 as
1 In the last ten years, the highest number of amended by the Federal Civil Penalties
charges alleging notice posting violations occurred
in 2010. In that year, only 114 charges of the 90,837
Inflation Adjustment Act Improvements
Title VII, ADA, and GINA charges (.13%) contained Act of 2015 and from sections
a notice posting violation. 4002(b)(3), 4071, and 4302 of the

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Document Created: 2017-01-31 00:20:05
Document Modified: 2017-01-31 00:20:05

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This final rule is effective March 2, 2017.
Contact		Thomas J. Schlageter, Assistant Legal Counsel, (202) 663-4668, or Ashley M. Martin, General Attorney, (202) 663-4695, Office of Legal Counsel, 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) 663-4191 (voice) or (202) 663-4494 (TTY), or to the Publications Information Center at 1-800-669-3362 (toll free).
FR Citation		82 FR 8812
RIN Number		3046-AB06