Adjusting the Penalty for Violation of Notice Posting Requirements, 15220-15221 [2014-06006]

Agencies

• Equal Employment Opportunity Commission

[Federal Register Volume 79, Number 53 (Wednesday, March 19, 2014)]
[Rules and Regulations]
[Pages 15220-15221]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06006]


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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1601

RIN 3046-AA95


Adjusting 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 Monetary Penalty 
Inflation Adjustment Act of 1990, as amended by the Debt Collection 
Improvement Act of 1996, 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: Effective Date: April 18, 2014.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal 
Counsel, (202) 663-4668, or Danielle J. Hayot, Senior 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: 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, the 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.
    Pursuant to section 4 of the Federal Civil Penalties Inflation 
Adjustment Act of 1990, 28 U.S.C. 2461 note, as amended by the Debt 
Collection Improvement Act of 1996 (``DCIA''), Pub. L. 104-134, Sec. 
31001(s)(1), 110 Stat. 1373, each federal agency is required to issue 
regulations adjusting for inflation the maximum civil penalty that may 
be imposed pursuant to each agency's statutes. The purpose of the 
adjustment is to maintain the remedial impact of civil monetary 
penalties and promote compliance with the law. The EEOC's initial 
adjustment was published in the Federal Register on May 16, 1997, at 62 
FR 26934, and raised the maximum penalty per violation of the notice 
posting requirements from $100 to $110.
    Section 5 of the Federal Civil Penalties Inflation Adjustment Act 
of 1990, as amended, requires that the adjustment to a civil monetary 
penalty reflect the percentage increase in the Consumer Price Index 
(CPI) between June of the calendar year in which the penalty was last 
adjusted (1997) and June of the calendar year preceding the revised 
adjustment (2013). The DCIA defines the CPI as the CPI for all urban 
consumers published by the Department of Labor (CPI-U), available at 
ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt. As the last 
adjustment was made and published on May 16, 1997, the inflation 
adjustment set forth in this final rule was calculated by comparing the 
CPI-U for June 1997 (160.3) with the CPI-U for June 2013 (233.504), 
resulting in an inflation adjustment factor of 45.67% (233.504-160.3)/
160.3=.45667).\1\
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    \1\ Penalty increases are determined by the specific rounding 
formula prescribed by the Debt Collection Improvement Act of 1996. 
Because of the small size of the penalty, the rounding rules 
required an inflation increase of 45 percent or more before an 
increase could be effectuated, which did not occur until the June 
2013 CPI was announced in July 2013.
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    Once the inflation adjustment factor is determined, the second step 
is to multiply the inflation adjustment factor (45.67%) by the current 
civil penalty amount ($110) to calculate the raw inflation increase 
($50.24). The third step is to round this raw inflation increase to the 
nearest multiple of a hundred (here $100 because $50.24 is closer to 
$100 than to $0).The fourth step is to add the rounded inflation 
increase ($100) to the current civil penalty amount ($110) to obtain 
the new, inflation-adjusted civil penalty amount ($210). Accordingly, 
we are adjusting the maximum penalty per violation specified in 29 CFR 
1601.30(a) from $110 to $210.

[[Page 15221]]

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 fine is required by the 
Debt Collection Improvement Act of 1996, the formula for increasing 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 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. This final rule was not reviewed by Office of Management and 
Budget (OMB) under Executive Order 12866 because it is not a 
``significant regulatory action'' as defined by section 3(f) of 
Executive Order 12866. 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.\2\ The 
rule only increases the penalty by $100 for each separate offense, 
nowhere near the $100 million figure that would require OMB review.
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    \2\ 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

    This final rule contains no new information collection requirements 
subject to review by the Office of Management and Budget under the 
Paperwork Reduction Act (44 U.S.C. chapter 35).

Regulatory Flexibility Act

    A regulatory flexibility analysis is only required by the 
Regulatory Flexibility Act (5 U.S.C. 601-612) 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: March 12, 2014.
Jacqueline A. Berrien,
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 $210 for each separate 
offense.

[FR Doc. 2014-06006 Filed 3-18-14; 8:45 am]
BILLING CODE 6570-01-P