Non-Compliance Penalties on the Rise in 2017

Employers will now pay higher penalties for non-compliance in 2017.  The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which directs agencies to adjust their civil monetary penalties for inflation every year.  These are effective January 13, 2017.

For 2017, a number of increases for non-compliance violations have been announced:

  • OSHA and the Labor Department have announced that they are increasing penalties again. (See table below) 
  • Violations of the Fair Labor Standards Act (FLSA) minimum wage and overtime rules will be raised per each separate violation.  Violations will be raised from $1,894 to $1,925.
  • Penalties for violating the posting of the Family Medical Leave Act (FMLA) will increase from $163 to $166.
  • The Employee Retirement Income Security Act (Erisa) penalty for not providing a summary of benefits and coverage to individuals will be increased from $1,087 to $1,105.
  • ERISA penalty for failing to provide notices to retirement plan participants informing them of automatic contribution arrangements will increase from $1,632 to $1,659.
  • Failure to inform employees of Children's Health Insurance Program (CHIP) opportunities increases from $110 to $112.

OSHA Increases