83 FR 2536 - The 2018 Adjustment of the Penalty for Violation of Notice Posting Requirements

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

Federal Register Volume 83, Issue 12 (January 18, 2018)

Page Range		2536-2537
FR Document		2018-00815

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 83 Issue 12 (Thursday, January 18, 2018)

[Federal Register Volume 83, Number 12 (Thursday, January 18, 2018)]
[Rules and Regulations]
[Pages 2536-2537]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00815]


=======================================================================
-----------------------------------------------------------------------

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1601

RIN 3046-AB12


The 2018 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 20, 2018.

FOR FURTHER INFORMATION CONTACT: Kathleen Oram, Acting Assistant Legal 
Counsel, (202) 663-4681, 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 EEOC's 
second adjustment made pursuant to the 2015 Act was published in the 
Federal Register on January 31, 2017, at 82 FR 8812 and raised the 
maximum penalty per violation from $525 to $534. The purpose of the 
annual adjustment for inflation is to maintain the remedial

[[Page 2537]]

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 2017 with the CPI-U for October 2016, 
resulting in an inflation adjustment factor of 1.02041. The first step 
of the calculation is to multiply the inflation adjustment factor 
(1.02041) by the most recent civil penalty amount ($534) to calculate 
the inflation-adjusted penalty level ($544.89894). The second step is 
to round this inflation-adjusted penalty to the nearest dollar ($545). 
Accordingly, we are adjusting the maximum penalty per violation 
specified in 29 CFR 1601.30(a) from $534 to $545.

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.

Executive Orders 13563, 12866, and 13771

    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 statue. The rule only 
increases the penalty by $11 for each separate offense, nowhere near 
the $100 million figure that would amount to a significant regulatory 
action.\1\ This rule is not an Executive Order 13771 regulatory action 
because the rule is not significant under Executive Order 12866.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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 11, 2018.
Victoria A. Lipnic,
Acting 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 $545 for each separate 
offense.

[FR Doc. 2018-00815 Filed 1-17-18; 8:45 am]
 BILLING CODE 6570-01-P

2536 Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations

coincide with the FAA’s aeronautical Authority: 49 U.S.C. 106(f), 106(g); 40103, at (202) 663–4191 (voice) or (202) 663–
database. 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 4494 (TTY), or to the Publications
1959–1963 Comp., p. 389. Information Center at 1–800–669–3362
Airspace reconfiguration is necessary
due to cancellation of the instrument § 71.1 [Amended] (toll free).
approach procedures associated with SUPPLEMENTARY INFORMATION:
■ 2. The incorporation by reference in
the decommissioned Charles City NDB, I. Background
14 CFR 71.1 of FAA Order 7400.11B,
and to bring the airspace in compliance
Airspace Designations and Reporting Under section 711 of the Civil Rights
with FAA Order 7400.2L, Procedures for
Points, dated August 3, 2017, and Act of 1964 (Title VII), which is
Handling Airspace Matters. Controlled
effective September 15, 2017, is incorporated by reference in section 105
airspace is necessary for the safety and
amended as follows: of the Americans with Disabilities Act
management of IFR operations at this
airport. Paragraph 6005 Class E Airspace Areas (ADA) and section 207 of the Genetic
Extending Upward From 700 Feet or More Information Non-Discrimination Act
Regulatory Notices and Analyses Above the Surface of the Earth. (GINA), and 29 CFR 1601.30(a), every
The FAA has determined that this * * * * * employer, employment agency, labor
regulation only involves an established organization, and joint labor-
ACE IA E5 Charles City, IA [Amended] management committee controlling an
body of technical regulations for which Northeast Iowa Regional Airport, IA
frequent and routine amendments are apprenticeship or other training
(Lat. 43°04′21″ N, long. 92°36′39″ W) program covered by Title VII, ADA, or
necessary to keep them operationally That airspace extending upward from 700 GINA must post notices describing the
current, is non-controversial and feet above the surface within a 6.4-mile pertinent provisions of Title VII, ADA,
unlikely to result in adverse or negative radius of Northeast Iowa Regional Airport. or GINA. Such notices must be posted
comments. It, therefore: (1) Is not a
Issued in Fort Worth, Texas, on January 10, in prominent and accessible places
‘‘significant regulatory action’’ under 2018. where notices to employees, applicants,
Executive Order 12866; (2) is not a
Christopher L. Southerland, and members are customarily
‘‘significant rule’’ under DOT
Acting Manager, Operations Support Group, maintained.
Regulatory Policies and Procedures (44 The EEOC first adjusted the civil
ATO Central Service Center.
FR 11034; February 26, 1979); and (3) monetary penalty for violations of the
[FR Doc. 2018–00713 Filed 1–17–18; 8:45 am]
does not warrant preparation of a notice posting requirements in 1997
BILLING CODE 4910–13–P
regulatory evaluation as the anticipated pursuant to the Federal Civil Penalties
impact is so minimal. Since this is a Inflation Adjustment Act of 1990
routine matter that only affects air traffic (FCPIA Act), 28 U.S.C. 2461 note, as
procedures and air navigation, it is EQUAL EMPLOYMENT OPPORTUNITY
amended by the Debt Collection
certified that this rule, when COMMISSION Improvement Act of 1996 (DCIA), Public
promulgated, does not have a significant Law 104–134, Sec. 31001(s)(1), 110 Stat.
economic impact on a substantial 29 CFR Part 1601
1373. A final rule was published in the
number of small entities under the RIN 3046–AB12 Federal Register on May 16, 1997, at 62
criteria of the Regulatory Flexibility Act. FR 26934, which raised the maximum
The 2018 Adjustment of the Penalty for penalty per violation from $100 to $110.
Environmental Review
Violation of Notice Posting The EEOC’s second adjustment, made
The FAA has determined that this Requirements pursuant to the FCPIA Act, as amended
action qualifies for categorical exclusion by the DCIA, was published in the
under the National Environmental AGENCY: Equal Employment
Opportunity Commission. Federal Register on March 19, 2014, at
Policy Act in accordance with FAA 79 FR 15220 and raised the maximum
Order 1050.1F, ‘‘Environmental ACTION: Final rule.
penalty per violation from $110 to $210.
Impacts: Policies and Procedures,’’ The Federal Civil Penalties Inflation
SUMMARY: In accordance with the
paragraph 5–6.5.a. This airspace action Adjustment Act Improvements Act of
Federal Civil Penalties Inflation
is not expected to cause any potentially 2015 (2015 Act), Public Law 114–74,
Adjustment Act Improvements Act of
significant environmental impacts, and Sec. 701(b), 129 Stat. 599, further
2015, which further amended the
no extraordinary circumstances exist amended the FCPIA Act, to require each
Federal Civil Penalties Inflation
that warrant preparation of an federal agency, not later than July 1,
Adjustment Act of 1990, this final rule
environmental assessment. 2016, and not later than January 15 of
adjusts for inflation the civil monetary
every year thereafter, to issue
Lists of Subjects in 14 CFR Part 71 penalty for violation of the notice-
regulations adjusting for inflation the
posting requirements in Title VII of the
Airspace, Incorporation by reference, maximum civil penalty that may be
Civil Rights act of 1964, the Americans
Navigation (air). imposed pursuant to each agency’s
with Disabilities Act, and the Genetic
statutes. The EEOC’s initial adjustment
Adoption of the Amendment Information Non-Discrimination Act.
made pursuant to the 2015 Act was
DATES: This final rule is effective published in the Federal Register on
In consideration of the foregoing, the
Federal Aviation Administration February 20, 2018. June 2, 2016, at 81 FR 35269 and raised
amends 14 CFR part 71 as follows: FOR FURTHER INFORMATION CONTACT: the maximum penalty per violation
Kathleen Oram, Acting Assistant Legal from $210 to $525. The EEOC’s second
sradovich on DSK3GMQ082PROD with RULES

PART 71 —DESIGNATION OF CLASS Counsel, (202) 663–4681, or Ashley M. adjustment made pursuant to the 2015
A, B, C, D, AND E AIRSPACE AREAS; Martin, General Attorney, (202) 663– Act was published in the Federal
AIR TRAFFIC SERVICE ROUTES; AND 4695, Office of Legal Counsel, 131 M St. Register on January 31, 2017, at 82 FR
REPORTING POINTS NE, Washington, DC 20507. Requests for 8812 and raised the maximum penalty
this notice in an alternative format per violation from $525 to $534. The
■ 1. The authority citation for part 71 should be made to the Office of purpose of the annual adjustment for
continues to read as follows: Communications and Legislative Affairs inflation is to maintain the remedial

VerDate Sep<11>2014 15:51 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1

Federal Register / Vol. 83, No. 12 / Thursday, January 18, 2018 / Rules and Regulations 2537

impact of civil monetary penalties and Pursuant to Executive Order 12866, the deemed necessary under the provisions
promote compliance with the law. EEOC has coordinated with the Office of of the Unfunded Mandates Reform Act
These periodic adjustments to the Management and Budget (OMB). Under of 1995.
penalty are to be calculated pursuant to section 3(f) of Executive Order 12866,
the inflation adjustment formula the EEOC and OMB have determined Congressional Review Act
provided in section 5(b) of the 2015 Act that this final rule will not have an The Congressional Review Act (CRA)
and, in accordance with section 6 of the annual effect on the economy of $100
requires that before a rule may take
2015 Act, the adjusted penalty will million or more, or adversely affect in
effect, the agency promulgating the rule
apply only to penalties assessed after a material way the economy, a sector of
the economy, productivity, competition, must submit a rule report, which
the effective date of the adjustment.
jobs, the environment, public health or includes a copy of the rule, to each
Generally, the periodic inflation
adjustment to a civil monetary penalty safety, or state, local, or tribal House of the Congress and to the
under the 2015 Act will be based on the governments or communities. The great Comptroller General of the United
percentage change between the majority of employers and entities States. EEOC will submit a report
Consumer Price Index for all Urban covered by these regulations comply containing this rule and other required
Consumers (CPI–U) for the month of with the posting requirement, and, as a information to the U.S. Senate, the U.S.
October preceding the date of result, the aggregate economic impact of House of Representatives, and the
adjustment and the prior year’s October these revised regulations will be Comptroller General of the United
CPI–U. minimal, affecting only those limited States prior to the effective date of the
few who fail to post required notices in rule. Under the CRA, a major rule
II. Mathematical Calculation violation of the regulation and statue. cannot take effect until 60 days after it
The adjustment set forth in this final The rule only increases the penalty by is published in the Federal Register.
rule was calculated by comparing the $11 for each separate offense, nowhere This action is not a ‘‘major rule’’ as
CPI–U for October 2017 with the CPI– near the $100 million figure that would defined by the CRA at 5 U.S.C. 804(2).
U for October 2016, resulting in an amount to a significant regulatory
inflation adjustment factor of 1.02041. action.1 This rule is not an Executive List of Subjects in 29 CFR Part 1601
The first step of the calculation is to Order 13771 regulatory action because
the rule is not significant under Administrative practice and
multiply the inflation adjustment factor
Executive Order 12866. procedure.
(1.02041) by the most recent civil
penalty amount ($534) to calculate the For the Commission.
Paperwork Reduction Act
inflation-adjusted penalty level Dated: January 11, 2018.
($544.89894). The second step is to The Paperwork Reduction Act (44
U.S.C. chapter 35) (PRA) applies to Victoria A. Lipnic,
round this inflation-adjusted penalty to Acting Chair.
the nearest dollar ($545). Accordingly, rulemakings in which an agency creates
we are adjusting the maximum penalty a new paperwork burden on regulated Accordingly, the Equal Employment
per violation specified in 29 CFR entities or modifies an existing burden. Opportunity Commission amends 29
1601.30(a) from $534 to $545. This final rule contains no new CFR part 1601 as follows:
information collection requirements,
III. Regulatory Procedures and therefore, will create no new PART 1601—PROCEDURAL
Administrative Procedure Act paperwork burdens or modifications to REGULATIONS
existing burdens that are subject to
The Administrative Procedure Act review by the Office of Management and
(APA) provides an exception to the ■ 1. The authority citation for part 1601
Budget under the PRA. continues to read as follows:
notice and comment procedures where
an agency finds good cause for Regulatory Flexibility Act Authority: 42 U.S.C. 2000e to 2000e–17; 42
dispensing with such procedures, on the The Regulatory Flexibility Act (5 U.S.C. 12111 to 12117; 42 U.S.C. 2000ff to
basis that they are impracticable, U.S.C. 601–612) only requires a 2000ff–11.
unnecessary, or contrary to the public regulatory flexibility analysis when
interest. EEOC finds that under 5 U.S.C. notice and comment is required by the ■ 2. Section 1601.30 is amended by
553(b)(3)(B) good cause exists for Administrative Procedure Act or some revising paragraph (b) to read as follows:
dispensing with the notice of proposed other statute. As stated above, notice § 1601.30 Notices to be posted.
rulemaking and public comment and comment is not required for this
procedures for this rule because this rule. For that reason, the requirements * * * * *
adjustment of the civil monetary penalty of the Regulatory Flexibility Act do not (b) Section 711(b) of Title VII and the
is required by the 2015 Act, the formula apply. Federal Civil Penalties Inflation
for calculating the adjustment to the Unfunded Mandates Reform Act of 1995 Adjustment Act, as amended, make
penalty is prescribed by statute, and the failure to comply with this section
Commission has no discretion in This final rule will not result in the punishable by a fine of not more than
determining the amount of the expenditure by State, local, or tribal $545 for each separate offense.
published adjustment. Accordingly, we governments, in the aggregate, or by the
[FR Doc. 2018–00815 Filed 1–17–18; 8:45 am]
are issuing this revised regulation as a private sector, of $100 million or more
final rule without notice and comment. in any one year, and it will not BILLING CODE 6570–01–P
sradovich on DSK3GMQ082PROD with RULES

significantly or uniquely affect small
Executive Orders 13563, 12866, and governments. Therefore, no actions were
13771
1 In the last ten years, the highest number of
In promulgating this final rule, EEOC
charges alleging notice posting violations occurred
has adhered to the regulatory in 2010. In that year, only 114 charges of the 90,837
philosophy and applicable principles Title VII, ADA, and GINA charges (.13%) contained
set forth in Executive Order 13563. a notice posting violation.

VerDate Sep<11>2014 15:51 Jan 17, 2018 Jkt 244001 PO 00000 Frm 00013 Fmt 4700 Sfmt 9990 E:\FR\FM\18JAR1.SGM 18JAR1

Document Created: 2018-01-18 00:42:43
Document Modified: 2018-01-18 00:42:43

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 February 20, 2018.
Contact		Kathleen Oram, Acting Assistant Legal Counsel, (202) 663-4681, 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		83 FR 2536
RIN Number		3046-AB12