Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2017, 5373-5387 [2017-00614]

Download as PDF Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 5373 TABLE I TO 201.1001—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS FOR VIOLATIONS FROM DECEMBER 10, 1996, THROUGH NOVEMBER 2, 2015—Continued Date of violation and corresponding penalty U.S. Code citation Civil monetary penalty description 15 U.S.C. 7215(c)(4)(D)(ii) (Sarbanes-Oxley Act Sec. 105(c)(4)(D)(ii)). For natural person ..................... For any other person ................ Dec. 10, 1996– Feb. 2, 2001 i N/A N/A Feb. 3, 2001– Feb. 14, 2005 ii vii 750,000 vii 15,000,000 Feb. 15, 2005– Mar. 3, 2009 iii 800,000 15,825,000 Mar. 4, 2009– Mar. 5, 2013 iv 900,000 17,800,000 Mar. 6, 2013– Nov. 2, 2015 v 950,000 18,925,000 i Release Nos. 33–7361, 34–37912, IA–1596, IC–22310, dated November 1, 1996 (effective December 9, 1996), previously found at 17 CFR 201.1001 and Table I to Subpart E of Part 201. ii Release Nos. 33–7946, 34–43897, IA–1921, IC–24846, dated January 31, 2001 (effective February 2, 2001), previously found at 17 CFR 201.1002 and Table II to Subpart E of Part 201. iii Release Nos. 33–8530, 34–51136, IA–2348, IC–26748, dated February 9, 2005 (effective February 14, 2005), previously found at 17 CFR 201.1003 and Table III to Subpart E of Part 201. iv Release Nos. 33–9009, 34–59449, IA–2845, IC–28635, dated February 25, 2009 (effective March 3, 2009), previously found at 17 CFR 201.1004 and Table IV to Subpart E of Part 201. v Release Nos. 33–9387, 34–68994, IA–3557, IC–30408, dated February 27, 2013 (effective March 5, 2013), previously found at 17 CFR 201.1005 and Table V to Subpart E of Part 201. vi Effective from July 21, 2010 (enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. 111–203), through March 5, 2013. vii Effective from July 30, 2002 (enactment of the Sarbanes-Oxley Act of 2002, Pub. L. 107–204), through February 14, 2005. By the Commission. January 6, 2017. Brent J. Fields, Secretary. Occupational Safety and Health Administration, Employee Benefits Security Administration, and Mine Safety and Health Administration, Department of Labor. ACTION: Final rule. [FR Doc. 2017–00421 Filed 1–13–17; 8:45 am] BILLING CODE 8011–01–P calling (202) 693–5959 (this is not a tollfree number). TTY/TDD callers may dial toll-free 1–877–889–5627 to obtain information or request materials in alternative formats. SUPPLEMENTARY INFORMATION: The U.S. Department of Labor (Department) is publishing this final rule to adjust for inflation the civil monetary penalties assessed or enforced in its regulations, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The Inflation Adjustment Act requires the Department to annually adjust its civil money penalty levels for inflation no later than January 15 of each year. The Inflation Adjustment Act provides that agencies shall adjust civil monetary penalties notwithstanding Section 553 of the Administrative Procedure Act (APA). Additionally, the Inflation Adjustment Act provides a cost-of-living formula for adjustment of the civil penalties. Accordingly, this final rule sets forth the Department’s 2017 annual adjustments for inflation to its civil monetary penalties, effective January 13, 2017. DATES: This final rule is effective on January 13, 2017. As provided by the Inflation Adjustment Act, the increased penalty levels apply to any penalties assessed after the effective date of this rule. FOR FURTHER INFORMATION CONTACT: Pamela Peters, Program Analyst, U.S. Department of Labor, Room S–2312, 200 Constitution Avenue, NW., Washington, DC 20210; telephone: (202) 693–5959 (this is not a toll-free number). Copies of this final rule may be obtained in alternative formats (large print, Braille, audio tape or disc), upon request, by Preamble Table of Contents SUMMARY: DEPARTMENT OF LABOR Employment and Training Administration 20 CFR Part 655 Office of Workers’ Compensation Programs 20 CFR Parts 702, 725, and 726 Wage and Hour Division 29 CFR Parts 500, 501, 530, 570, 578, 579, 801, and 825 Occupational Safety and Health Administration 29 CFR Part 1903 Employee Benefits Security Administration 29 CFR Part 2560, 2575, and 2590 Mine Safety and Health Administration 30 CFR Part 100 mstockstill on DSK3G9T082PROD with RULES RIN 1290–AA31 Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2017 Employment and Training Administration, Office of Workers’ Compensation Programs, Office of the Secretary, Wage and Hour Division, AGENCY: VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 I. Background II. Adjustment for 2017 III. Discussion of Public Comments IV. Paperwork Reduction Act V. Administrative Procedure Act VI. Executive Order 12866: Regulatory Planning and Review, and Executive Order 13563: Improving Regulation and Regulatory Review VII. Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act VIII. Other Regulatory Considerations A. The Unfunded Mandates Reform Act of 1995 B. Executive Order 13132: Federalism C. Executive Order 13175: Indian Tribal Governments D. The Treasury and General Government Appropriations Act of 1999: Assessment of Federal Regulations and Policies on Families E. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks F. Environmental Impact Assessment G. Executive Order 13211: Energy Supply H. Executive Order 12630: Constitutionally Protected Property Rights I. Executive Order 12988: Civil Justice Reform Analysis I. Background On November 2, 2015, Congress enacted the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114–74, 701 (Inflation Adjustment Act), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 as previously amended by the 1996 Debt Collection Improvement Act (collectively, the ‘‘Prior Inflation Adjustment Act’’), to improve the E:\FR\FM\18JAR1.SGM 18JAR1 5374 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations effectiveness of civil monetary penalties and to maintain their deterrent effect. The Inflation Adjustment Act required agencies to: (1) Adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rule (IFR); and (2) make subsequent annual adjustments for inflation. The Department is required to publish an annual inflation adjustment no later than January 15, 2017, and by January 15 of each subsequent year. On July 1, 2016, the Department published an IFR that established the initial catch-up adjustment for civil penalties that the Department administers and requested comments. See 81 FR 43430 (DOL IFR). Nine comments were received on the Employment and Training Administration, Wage and Hour Division, Occupational Safety and Health Administration, and Employee Benefit Security Administration sections of the IFR, and are discussed below. This rule implements the annual inflation adjustment that the Department is required by the Inflation Adjustment Act to publish by January 15, 2017 for civil monetary penalties assessed or enforced in the Department’s regulations.1 The Inflation Adjustment Act provides that the increased penalty levels apply to any penalties assessed after the effective date of the increase. Pursuant to the Inflation Adjustment Act, this final rule is published notwithstanding Section 553 of the APA. II. Adjustment for 2017 The Department has undertaken a thorough review of civil penalties administered by its various components pursuant to the Inflation Adjustment Act and in accordance with guidance issued by the Office of Management and Budget.2 The Department first identified the most recent penalty amount, which was the amount established by the catch-up adjustment as set forth in the IFR published on July 1, 2016. The Department is required to calculate the annual adjustment based on the Consumer Price Index for all Urban Consumers (CPI–U). Annual inflation adjustments are based on the percent change between the October CPI–U preceding the date of the adjustment, and the prior year’s October CPI–U; in this case, the percent change between the October 2016 CPI–U and the October 2015 CPI–U. The cost-ofliving adjustment multiplier for 2017, based on the Consumer Price Index (CPI–U) for the month of October 2016, not seasonally adjusted, is 1.01636.3 In order to complete the 2017 annual adjustment, the Department multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.01636, and rounded to the nearest dollar. As provided by the Inflation Adjustment Act, the increased penalty levels apply to any penalties assessed after the effective date of this rule.4 Accordingly, for penalties assessed after January 13, 2017, whose associated violations occurred after November 2, 2015, the higher penalty amounts outlined in this rule will apply. The table below demonstrates the penalty amounts that apply: Violations occurring Penalty assessed On or before November 2, 2015 ................................. On or before November 2, 2015 ................................. After November 2, 2015 .............................................. On or before August 1, 2016 ...................................... After August 1, 2016 ................................................... After August 1, 2016, but on or before January 13, 2017. After January 13, 2017 ............................................... After November 2, 2015 .............................................. mstockstill on DSK3G9T082PROD with RULES III. Discussion of Public Comments Nine organizations filed responsive comments with the Department within the public comment period for the IFR. The Department received comments from the Center for Progressive Reform (CPR); Farmworker Justice; Contractors Risk Management, Inc.; the North Carolina Department of Labor; the National Association of Heath Underwriters (NAHU); the Kentucky Labor Cabinet; the National Guestworker Alliance (NGA); the New Mexico Environment Department; and the Occupational Safety and Health State Plan Association (OSHSPA). Comments were received on the Employment and Training Administration, Wage and Hour Division, Occupational Safety and Health Administration, and Employee Benefit Security Administration sections of the IFR. No comments were 1 Civil monetary penalties under the H–2B program are addressed separately. 2 M–17–11, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Dec 16, 2016). VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 Which penalty level applies Pre-August 1, 2016 levels. Pre-August 1, 2016 levels. August 1, 2016 levels. January 13, 2017 levels. In the IFR, the Department increased the civil monetary penalties enforced by Department’s Wage and Hour Division (WHD) under the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), the Immigration and Nationality Act (INA) (specifically, the H–2A, D–1, and H–1B visa programs), the Fair Labor Standards Act (FLSA) (including the child labor provisions), the Employee Polygraph Protection Act, and the Family and Medical Leave Act.5 The civil monetary penalties authorized by the INA’s D–1 and H–1B visa programs are reflected in the Employment and Training Administration’s regulations, title 20 of the Code of Federal Regulations (CFR), but are enforced by WHD. The Department increased these civil monetary penalties pursuant to the ‘‘catch-up’’ adjustment formula as specified in the Inflation Adjustment Act. The Department explained each increase in the preamble to the IFR. The Department received two comments addressing the increase of civil monetary penalties under programs administered by the WHD. Farmworker Justice, a national advocacy 3 OMB provided the year-over-year multiplier, rounded to 5 decimal points. Id. at 1. 4 Appendix 1 consists of a table that provides ready access to key information about each penalty. 5 The Department also increased civil monetary penalties provisions of the Contract Work Hours and Safety Standards Act (CWHSSA) and the Walsh-Healey Public Contracts Act (PCA), as amended. These provisions are included in regulations established by the Office of the Secretary, 29 CFR part 5 and 41 CFR part 50–201, which have been delegated to WHD for enforcement. received related to the Office of Workers’ Compensation Programs, Office of the Secretary, and Mine Safety and Health Administration sections. The following discussion addresses the comments and the Department’s responses. The Department has reviewed and considered these comments, but found none of them required a change in the penalty levels or regulatory text. A. Employment and Training Administration (20 CFR Part 655) and Wage and Hour Division (29 CFR Parts 500, 501, 530, 570, 578, 579, 801, 825) PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations mstockstill on DSK3G9T082PROD with RULES organization representing migrant and seasonal farmworkers, submitted a comment addressing civil monetary penalties under MSPA, H–2A, and FLSA.6 Farmworker Justice commented that while they were pleased that the civil monetary penalties under these programs had increased, the penalties remain ‘‘woefully inadequate to deter agricultural employers from violating labor laws and should be significantly increased.’’ Farmworker Justice recommended that all civil monetary penalties for these programs ‘‘be raised significantly in order to have an impact on the pervasive labor law violations in agriculture.’’ The National Guestworker Alliance (NGA), a membership organization representing contingent workers across labor sectors, submitted a comment addressing civil monetary penalties under the H–1B visa program.7 With respect to civil monetary penalties under the H–1B visa program, the NGA commented that while it supports the increases included in the IFR, ‘‘it believes that DOL should have increased the penalt[ies]’’ to the ‘‘150 [percent] maximum allowed under the [Inflation Adjustment Act] to help ensure employer compliance with the regulation.’’ The Department agrees that civil monetary penalties serve an important role in deterring violations of the programs administered by the Department. Indeed, the Inflation Adjustment Act is intended to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. See DOL IFR, 81 FR at 43431. However, the Department increased civil monetary penalties under the H– 1B, H–2A, FLSA, and MSPA programs in the IFR pursuant to the Inflation Adjustment Act’s mandatory ‘‘catch-up’’ adjustment formula, which is specified in the statute and is based on inflation. For this ‘‘catch-up’’ adjustment, the Inflation Adjustment Act required agencies to identify, for each penalty, the year and corresponding amount(s) for which the penalty amount, the maximum penalty level, or range of minimum and maximum penalties was established (i.e., originally enacted by Congress or by regulation) or last adjusted other than pursuant to the Prior Inflation Adjustment Act. That amount became the basis of the ‘‘catch6 This comment also addressed civil money penalties under the Occupational Safety and Health Act (OSH Act), which is administered by the Occupational Safety and Health Administration; that portion of Farmworker Justice’s comment is addressed below. 7 This comment also addressed civil money penalties under the OSH Act; that portion of NGA’s comment is addressed below. VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 up’’ adjustment, subject to a cap on any penalty increase of 150 percent of the current penalty amount as of November 2015—allowing for a total new penalty of no more than 250 percent of the November 2015 penalty amount. See Inflation Adjustment Act, Sec. 701. This cap is triggered only where the relevant calculation results in a higher penalty amount; the Inflation Adjustment Act does not permit agencies to increase civil monetary penalties up to this cap where the specified calculation results in an increase lower than 150 percent of the November 2015 penalty amount. Id. As explained in the preamble to the IFR, applying the ‘‘catch-up’’ formula required by the Inflation Adjustment Act, the civil monetary penalties under the FLSA, H–1B, H–2A, and MSPA were increased to the maximum amounts permissible under the Inflation Adjustment Act, none of which reached or exceeded the 150 percent cap. Accordingly, the Department may not further increase civil monetary penalties under these programs pursuant to the Inflation Adjustment Act, other than by making the subsequent annual adjustments for inflation. B. Occupational Safety and Health Administration (29 CFR Parts 1902, 1903) In the IFR, the Department increased the civil monetary penalties administered by the Occupational Safety and Health Administration (OSHA) to enforce provisions of the Occupational Safety & Health Act of 1970 (OSH Act), as amended, including conforming edits to the agency’s State Plan regulations. The Department increased these civil monetary penalties pursuant to the ‘‘catch-up’’ adjustment formula as specified in the Inflation Adjustment Act. The Department explained each increase in the preamble to the IFR. The Department received four comments related to State Plans, and four comments related to the civil penalty adjustments. Section 18(c)(2) of the OSH Act provides that a State may assume responsibility for development and enforcement of its own occupational safety and health standards by submitting a State Plan. There were four State Plan related comments submitted in response to the DOL IFR. One was from the Occupational Safety and Health State Plan Association (OSHSPA) and three from individual State Plans (North Carolina, Kentucky and New Mexico). Responses to these four comments are discussed below. Section 18(c)(2) of the OSH Act requires that a State Plan ‘‘provides for the development and enforcement of PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 5375 safety and health standards relating to one or more safety or health issues, which standards (and the enforcement of which standards) are or will be at least as effective in providing safe and healthful employment and places of employment as the standards promulgated under section 6 which relate to the same issues. . . .’’ Prior to the July 1, 2016 publication of the IFR, the State Plan Indices of Effectiveness for initial approval stated that State Plans must ‘‘[p]rovide[ ] effective sanctions against employers who violate State standards and orders, such as those prescribed in the Act.’’ See 29 CFR 1902.4(c)(2)(xi) (2015). In the factors for determination of final approval status, the regulations require that, ‘‘[t]he State proposes penalties in a manner at least as effective as under the Federal program, including the proposing of penalties for first instance violations and the consideration of factors comparable to those required to be considered under the Federal program.’’ See 29 CFR 1902.37(b)(12). Thus, OSHA-approved State Plans must have maximum and minimum 8 penalty levels that are at least as effective as federal OSHA’s per Section 18 (c)(2) of the OSH Act; See 29 CFR 1902.4(c)(2)(xi); 1902.37(b)(12). It is OSHA’s long-standing position that ‘‘at least as effective,’’ in this context, means that State Plans must have maximum and minimum penalty levels that are at least as high as OSHA’s maximum and minimum penalty levels. Therefore, all State Plans must increase their maximum and minimum penalty levels to be at least as high as OSHA’s initial catch-up maximum and minimum penalty levels in 29 CFR 1903.15(d), and must thereafter increase these maximums and minimums based on inflation. With the publication of the IFR, the location of OSHA’s maximum and minimum penalties was moved from Section 17 of the OSH Act to 29 CFR 1903.15(d). To make it clear where the OSHA penalty levels are located, OSHA amended 29 CFR 1902.4(c)(2)(xi) to now read that State Plans must ‘‘[p]rovide[] effective sanctions against employers who violated State standards and orders, such as those prescribed in the Act and 29 CFR 1903.15(d)’’(emphasis added). This change was simply to add a reference to the new location of OSHA penalty levels, in 29 CFR 1903.15(d). OSHSPA submitted a letter requesting that OSHA make clear that the amendment to 29 CFR 1902.4(c)(2)(xi) is 8 The penalties increased include the range of penalties for willful citations, which includes both a minimum and a maximum. E:\FR\FM\18JAR1.SGM 18JAR1 mstockstill on DSK3G9T082PROD with RULES 5376 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations not intended to require State Plans to have an identical penalty structure for assessed penalties. As explained above, State Plans have long been required to have effective sanctions as prescribed in the OSH Act. The penalty levels in the OSH Act (Section 17) have historically been OSHA’s maximum and minimum penalties, while OSHA’s structure or practice for assessing penalties has been developed through policy and is currently contained in OSHA’s Field Operations Manual. OSHA confirms that the amendment to § 1902.4(c)(2)(xi) refers only to the location of the new maximum and minimum penalty levels in 29 CFR 1903.15(d). The change to § 1902.4(c)(2)(xi) does not expand OSHA’s scope of authority or control over State Plans’ penalties, nor does it alter OSHA’s obligation to analyze both State Plan maximum penalties and State Plan penalty assessment structures under the ‘‘at least as effective’’ lens. The North Carolina Department of Labor submitted a comment that took issue with OSHA’s amendment of 29 CFR 1902.4(c)(2)(xi), and was joined by Kentucky Labor Cabinet and the New Mexico Environment Department. The North Carolina State Plan contended that OSHA’s amendment to 29 CFR 1902.4(c)(2)(xi) was in excess of the authority granted by the Bipartisan Budget Act of 2015’s amendment to the Inflation Adjustment Act; not in conformance with the APA, 5 U.S.C. 553; and arbitrary, capricious, and an abuse of discretion. The Inflation Adjustment Act directed OSHA to increase maximum and minimum penalties through an IFR issuing without prior notice and comment rather than a change to the OSH Act. OSHA has the inherent authority to make technical amendments to its regulations to conform to Congress’s direction to increase its penalty levels. With the change to the location of penalty levels to 29 CFR 1903.15(d), OSHA needed to update the reference in 29 CFR 1902.4(c)(2)(xi) to point to both the Act and the new regulation. This change was merely the addition of a reference, or pointer, to increase clarity and transparency in the State Plan Indices of effectiveness. The North Carolina, Kentucky and New Mexico State Plans argue that the change to 29 CFR 1902.4(c)(2)(xi) violated the APA because it was not issued through notice-and-comment rulemaking, and the good cause exception to notice-and-comment rulemaking is not applicable. As noted by the North Carolina State Plan, the APA exception from notice and comment applies to regulations that VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 make minor technical amendments and non-substantive corrections. See p. 3. That comports with the APA language that notice and comment is not required where they are ‘‘impractical, unnecessary, or contrary to the public interest.’’ 5 U.S.C. 553(b)(3)(B). The amendment to 29 CFR 1902.4(c)(2)(xi) fits within that exception because it is a minor, technical amendment that updated the reference to the location of OSHA maximum and minimum penalty levels. It is the ‘‘at least as effective’’ standard in OSH Act § 18 that requires State Plans to increase their maximum and minimum penalty levels, and the amendment to 29 CFR 1902.4(c)(2)(xi) only made clear to State Plans and all other stakeholders that the maximum and minimum penalty levels that State Plans are required to be at least as effective as, are now listed under 29 CFR 1903.15(d), and are no longer in OSH Act § 17. There is no need for notice and comment on that type of ‘‘pointer’’ reference. See, e.g., Corrections and Technical Amendments to 16 OSHA Standards, 76 FR 80735 (Dec. 27, 2011) (updating crossreference from ‘‘Section 101(14)’’ of the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) to ‘‘Section 103(14)’’ after Congress amended CERCLA). Nonetheless, DOL did accept comments on the IFR, and several State Plans took advantage of that opportunity to file comments, Further, the State Plan comments argue that the change to 29 CFR 1902.4(c)(2)(xi) was arbitrary, capricious, and an abuse of discretion under the APA because it is not based on reasoned analysis. The North Carolina State Plan comment argues that OSHA should present current data to support the requirement that State Plans increase penalties to the level assessed by OSHA effective August 1, 2016 in order to be deemed ‘‘at least as effective.’’ Further, the North Carolina State Plan comment emphasizes that the ‘‘at least as effective’’ standard does not require State Plans to have programs identical to OSHA’s. New Mexico joined in arguing that assessed penalty levels and injury rates are not correlated and thus penalty levels should not be part of the ‘‘at least as effective’’ analysis. In the Inflation Adjustment Act, Congress found that ‘‘(1) the power of Federal agencies to impose civil monetary penalties for violations of Federal law and regulations plays an important role in deterring violations and furthering the policy goals embodied in such laws and regulations; (2) the impact of many civil monetary penalties has been and is diminished PO 00000 Frm 00042 Fmt 4700 Sfmt 4700 due to the effect of inflation.’’ See 28 U.S.C. 2461 note, § 2(a). This finding is as applicable to State Plan penalties as it is to federal penalties. The regulations that OSHA adopted (29 CFR 1903.15(d)) address only the maximum and minimum penalty levels—they do not address penalties finally assessed or the methodology involved in calculating assessed penalties. The latter are matters to be determined under the ‘‘at least as effective’’ standard, on a case-by-case basis with each State Plan. OSHA has an obligation to ensure that State Plans continue to maintain maximum and minimum penalty levels that are at least as effective as OSHA’s. OSHA agrees that the ‘‘at least as effective’’ standard does not require State Plans to be identical to OSHA. However, as acknowledged by the OSHSPA comment, historically, State Plans have matched OSHA’s maximum and minimum penalties identically. In 1990, when Congress last increased OSHA’s maximum and minimum penalty levels, all State Plans adopted identical penalty levels, resulting in the $7,000/$70,000 penalty levels in effect for 25 years for both OSHA and the State Plans. OSHA recognizes that the August 1, 2016 increase in OSHA’s maximum and minimum penalty levels is complicated by the requirement that the penalties levels increase annually, based on the cost-of-living adjustment, but that does not mean that State Plans do not have to increase their maximum and minimum penalty levels. OSHA will assist the State Plans to make these necessary changes occur. OSHA’s position has been and continues to be that State Plans must have maximum and minimum penalties that are at least as effective as OSHA’s. The IFR updated § 1903.15 to read in part, ‘‘After, or concurrent with, the issuance of a citation, and within a reasonable time after the termination of the inspection, the Area Director shall notify the employer by certified mail or by personal service by the Compliance Safety and Health Officer of the proposed penalty in accordance with paragraph (d) of this section, or that no penalty is being proposed.’’ In its comments, Contractors Risk Management asked whether this means that the employer will be notified if there are no penalties proposed or no citations issued. At the closing of the inspection process, OSHA conducts a closing conference with the employer and the employee representatives to discuss the findings of the inspection. The compliance officer discusses possible courses of action an employer may take following an inspection, E:\FR\FM\18JAR1.SGM 18JAR1 mstockstill on DSK3G9T082PROD with RULES Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations which could include an informal conference with OSHA or contesting citations and proposed penalties where citations and penalties are proposed. The compliance officer also discusses consultation services and employee rights. This closing conference is held regardless of whether citations and penalties are proposed. The IFR added § 1903.15(d) to provide the adjusted civil penalties for penalties proposed on or after August 1, 2016. Contractors Risk Management expressed concern about a case being opened before August 1, but higher penalty levied because the time OSHA takes to complete the case goes beyond August 1. The Inflation Adjustment Act mandates that the catch-up adjustment apply to any civil monetary penalty assessed after August 1, 2016, ‘‘including those whose associated violation predated such increase’’ See Public Law 114–74 at § 701. OSHA attempted to complete open cases prior to the August 1 conversion date. However, in some cases, citations for inspections opened prior to August 1st were not issued until after August 1, and enhanced penalties were proposed under the new rules. OSHA made every effort to inform employers, through outreach, use of our Web site, and notices to affected employers, of the changes to our penalties and the potential impact on the inspection. The NGA commented that it supports the increases in penalties for employer violations of the OSH Act, but believes that the Department should have increased the penalties to the 150% maximum allowed under Inflation Adjustment Act to help ensure employer compliance with the law. Farmworker Justice similarly commented that civil monetary penalties under the OSH Act should be increased. The Department agrees that civil monetary penalties serve an important role in deterring violations of the programs administered by the Department. However, the Department increased civil monetary penalties under the OSH Act in the IFR pursuant to the Inflation Adjustment Act’s mandatory ‘‘catch-up’’ adjustment formula, which is specified in the statute and is based on inflation. For this ‘‘catch-up’’ adjustment, the Inflation Adjustment Act required agencies to identify, for each penalty, the year and corresponding amount(s) for which the penalty amount, the maximum penalty level, or range of minimum and maximum penalties was established (i.e., originally enacted by Congress or by regulation) or last adjusted other than pursuant to the Prior Inflation Adjustment Act. That VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 5377 penalties would be made by notice in the Federal Register without amending the code of federal regulations each year to reflect an increase in the penalty amount. The Department received one comment letter regarding the adjustment of the ERISA civil monetary penalties under the IFR. The commenter, the National Association of Health Underwriters (NAHU), stated that ‘‘the formula used to increase penalties was fairly applied in the IFR.’’ NAHU, however, questioned the ‘‘decision to impose increased penalties on employers at this time’’ due to the increased cost of compliance and reporting responsibilities placed on group health plans by the Patient Protection and Affordable Care Act (ACA). NAHU expressed concern ‘‘that increasing the potential penalties could have a detrimental impact on an employer’s potential willingness to offer group benefits, particularly for smaller employers that have not previously offered coverage.’’ Most ERISA civil monetary penalties affecting group health plans are expressed in terms of ‘‘up to’’ or ‘‘not more than’’ a maximum penalty. The Department did not automatically impose the maximum penalty in the past and has no plans at this time to change its enforcement policy to maximize penalty collections following the catch-up adjustment. It is the view of the Department that neither the catch-up adjustment nor any subsequent adjustment will have the detrimental impact on group health plans suggested by NAHU. Accordingly, the unverifiable social cost of the catchup adjustment postulated by NAHU’s comment does not outweigh the benefits of increasing the ERISA civil monetary penalties by the otherwise required amount. Section 4(a) of the Inflation Adjustment Act states that ‘‘[n]ot later than July 1, 2016, and not later than January 15 of every year thereafter,’’ the head of each agency shall adjust civil C. Employee Benefits Security monetary penalties in accordance with Administration (29 CFR Part 2560, 2575, section 4(b). Section 4(b)(1) states that 2590) ‘‘for purposes of the first adjustment’’ In the IFR, the Department increased (i.e., the catch-up adjustment) the ‘‘head the civil monetary penalties of each agency shall adjust the civil administered by the Employee Benefits monetary penalties by IFR’’ that ‘‘shall Security Administration to enforce take effect no later than August 1, provisions of the Employee Retirement 2016.’’ Since the operative word of the Income Security Act of 1974, as statute is ‘‘shall,’’ the Department did amended, (ERISA). The Department not have the discretion to delay increased these civil monetary penalties adjustment of the ERISA civil monetary as required by the ‘‘catch-up’’ penalties beyond August 1, 2016, except adjustment formula specified in the as otherwise provided by section 4(c) of Inflation Adjustment Act. Minor the Inflation Adjustment Act. Under section 4(c), an agency could modifications were made to 29 CFR not delay or otherwise reduce the catch2575.3 to clarify that future inflation up adjustment unless: (1) After adjustments to ERISA civil monetary amount became the basis of the ‘‘catchup’’ adjustment, subject to a cap on any penalty increase of 150 percent of the current penalty amount as of November 2015—allowing for a total new penalty of no more than 250 percent of the November 2015 penalty amount. See Inflation Adjustment, Sec. 701. This cap is triggered only where the relevant calculation results in a higher penalty amount; the Inflation Adjustment Act does not permit agencies to increase civil monetary penalties up to this cap where the specified calculation results in an increase lower than 150 percent of the November 2015 penalty amount. Id. By applying the ‘‘catch-up’’ formula required by the Inflation Adjustment Act, the civil monetary penalties under the OSH Act were increased to the maximum amounts permissible under the Inflation Adjustment Act, none of which reached or exceeded the 150 percent cap. The Center for Progressive Reform commented that it applauds the agency for adjusting the penalties to the maximum amount permitted by the Inflation Adjustment Act, but it encourages OSHA to revise its informal settlement policies. In response to the penalty adjustments mandated by Congress, OSHA revised Chapter 6 of its Field Operations Manual. In revising the guidance, OSHA wanted to be consistent with current procedures and ensure that penalties were impactful. However, we were also mindful of the impact that these changes may have had on small businesses. To offset any undue impact, OSHA created an additional size category for businesses with 1–10 employees, and now offers a reduction of 70 percent for those smallest businesses. The informal settlement policy remains the same, but OSHA is closely monitoring the influence that the new penalties have on our contest rates, etc. to see where adjustments, if needed, may be appropriate. PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 5378 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations publishing a notice of proposed rulemaking in the Federal Register, the agency determines that the increase in the penalty or penalty range would have a negative economic impact, or that the social costs of increasing the penalty would outweigh the benefits, and (2) OMB concurred with that determination. OMB advised that an agency seeking OMB’s concurrence to a reduction of the required catch-up adjustment must submit the associated notice of proposed rulemaking to the Office of Information and Regulatory Affairs (OIRA) of OMB for review by May 2, 2016.9 OMB also advised that its concurrence to a reduction of the catchup adjustment would be ‘‘rare.’’ 10 The Department decided not to pursue a reduction in the increase of any of the ERISA penalties, because, in the Department’s view, there was no negative economic impact or a verifiable social cost resulting from the catch-up adjustment. Since the Department did not submit the requisite notice of proposed rulemaking to OIRA by May 2, 2016, the Department arguably does not have the authority to reduce a required catch-up adjustment to an ERISA penalty under section 4(c). Even if the Department currently has the authority to reduce a catch-up adjustment under section 4(c), the one comment received by the Department regarding ERISA penalties did not provide sufficient evidence of negative economic impact or social cost for the Department to seek a reduction of the increased ERISA penalties resulting from the catch-up adjustment. IV. Paperwork Reduction Act The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) 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 does not require any collection of information. mstockstill on DSK3G9T082PROD with RULES V. Administrative Procedure Act The Inflation Adjustment Act provides that agencies shall annually adjust civil monetary penalties for inflation notwithstanding Section 553 of the APA. Additionally, the Inflation Adjustment Act provides a nondiscretionary cost-of-living formula for annual adjustment of the civil monetary penalties. For these reasons, the requirements in sections 553(b), (c), and (d) of the APA, relating to notice 9 See, OMB Mem. M–16–06 (Feb. 24, 2016), available at https://www.whitehouse.gov/sites/ default/files/omb/memoranda/2016/m-16-06.pdf. 10 Id. VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 and comment and requiring that a rule be effective 30 days after publication in the Federal Register, are inapplicable. VI. Executive Order 12866: Regulatory Planning and Review, and Executive Order 13563: Improving Regulation and Regulatory Review Executive Order 12866 requires that regulatory agencies assess both the costs and benefits of significant regulatory actions. Under the Executive Order, a ‘‘significant regulatory action’’ is one meeting any of a number of 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 Department has determined that this final rule is not a ‘‘significant’’ regulatory action and a cost-benefit and economic analysis is not required. This regulation merely adjusts civil monetary penalties in accordance with inflation as required by the Inflation Adjustment Act, and has no impact on disclosure or compliance costs. The benefit provided by the inflationary adjustment to the maximum civil monetary penalties is that of maintaining the incentive for the regulated community to comply with the laws enforced by the Department, and not allowing the incentive to be diminished by inflation. Executive Order 13563 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility to minimize burden. This final rule is exempt from the requirements of the APA because the Inflation Adjustment Act directed the Department to issue the annual adjustments without regard to Section 553 of the APA. In that context, Congress has already determined that any possible increase in costs is justified by the overall benefits of such adjustments. This final rule makes only the statutory changes outlined herein; thus there are no alternatives or further analysis required by E.O. 13563. PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 VII. Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes certain requirements on Federal agency rules that are subject to the notice and comment requirements of the APA, 5 U.S.C. 553(b). This final rule is exempt from the requirements of the APA because the Inflation Adjustment Act directed the Department to issue the annual adjustments without regard to Section 553 of the APA. Therefore, the requirements of the RFA applicable to notices of proposed rulemaking, 5 U.S.C. 603, do not apply to this rule. 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. VIII. Other Regulatory Considerations A. The Unfunded Mandates Reform Act of 1995 Because the rule simply adjusts for inflation, it does not include any Federal mandate that may result in increased expenditures by State, local, or tribal governments; nor does it increase private sector expenditures by more than $100 million annually; nor does it significantly or uniquely affect small governments. Accordingly, the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) requires no further agency action or analysis. B. Executive Order 13132: Federalism Section 18 of the OSH Act (29 U.S.C. 667) requires OSHA-approved State Plans to have standards and an enforcement program that are at least as effective as federal OSHA’s standards and enforcement program. OSHAapproved State Plans must have maximum and minimum penalty levels that are at least as effective as federal OSHA’s per Section 18 (c)(2) of the OSH Act; 29 CFR 1902.4(c)(2)(xi); 1902.37(b)(12). State Plans are required to increase their penalties in alignment with OSHA’s penalty increases to maintain at least as effective penalty levels. State Plans are not required to impose monetary penalties on state and local government employers. See § 1956.11(c)(2)(x). Five (5) states and one territory have State Plans that cover only state and local government employees: Connecticut, Illinois, New Jersey, New York, Maine, and the Virgin Islands. Therefore, the requirements to increase the penalty levels do not apply to these State Plans. Twenty-one (21) E:\FR\FM\18JAR1.SGM 18JAR1 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations states and one U.S. territory have State Plans that cover both private sector employees and state and local government employees: Alaska, Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, and Wyoming. These states must increase their penalties for private-sector employers. Other than as listed above, this final rule does not have federalism implications because it 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. Accordingly, Executive Order 13132, Federalism, requires no further agency action or analysis. C. Executive Order 13175: Indian Tribal Governments This final rule does not have ‘‘tribal implications’’ because it 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. Accordingly, Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, requires no further agency action or analysis. mstockstill on DSK3G9T082PROD with RULES D. The Treasury and General Government Appropriations Act of 1999: Assessment of Federal Regulations and Policies on Families This final rule will have no effect on family well-being or stability, marital commitment, parental rights or authority, or income or poverty of families and children. Accordingly, section 654 of the Treasury and General Government Appropriations Act of 1999 (5 U.S.C. 601 note) requires no further agency action, analysis, or assessment. E. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks This final rule will have no adverse impact on children. Accordingly, Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks, as amended by Executive Orders 13229 and 13296, requires no further agency action or analysis. F. Environmental Impact Assessment A review of this final rule in accordance with the requirements of the VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et seq.; the regulations of the Council on Environmental Quality, 40 CFR 1500 et seq.; and the Departmental NEPA procedures, 29 CFR part 11, indicates that the final rule will not have a significant impact on the quality of the human environment. As a result, there is no corresponding environmental assessment or an environmental impact statement. G. Executive Order 13211: Energy Supply This final rule has been reviewed for its impact on the supply, distribution, and use of energy because it applies, in part, to the coal mining and uranium industries. MSHA has concluded that the adjustment of civil monetary penalties to keep pace with inflation and thus maintain the incentive for operators to maintain safe and healthful workplaces is not a significant energy action because it is not likely to have a significant adverse effect on the supply, distribution, or use of energy. This final rule has not been identified to have other impacts on energy supply. Accordingly, Executive Order 13211 requires no further Agency action or analysis. H. Executive Order 12630: Constitutionally Protected Property Rights This final rule will not implement a policy with takings implications. Accordingly, Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights, requires no further agency action or analysis. I. Executive Order 12988: Civil Justice Reform Analysis This final rule was drafted and reviewed in accordance with Executive Order 12988, Civil Justice Reform. This final rule was written to provide a clear legal standard for affected conduct and was carefully reviewed to eliminate drafting errors and ambiguities, so as to minimize litigation and undue burden on the Federal court system. The Department has determined that this IFR meets the applicable standards provided in section 3 of Executive Order 12988. List of Subjects 20 CFR Part 655 Immigration, Penalties, Labor. 20 CFR Part 702 Administrative practice and procedure, Longshore and harbor workers, Penalties, Reporting and PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 5379 recordkeeping requirements, Workers’ compensation. 20 CFR Part 725 Administrative practice and procedure, Black lung benefits, Coal miners, Penalties, Reporting and recordkeeping requirements. 20 CFR Part 726 Administrative practice and procedure, Black lung benefits, Coal miners, Mines, Penalties. 29 CFR Part 5 Administrative practice and procedure, Construction industry, Employee benefit plans, Government contracts, Law enforcement, Minimum wages, Penalties, Reporting and recordkeeping requirements. 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, Labor, Migrant labor, Penalties, Transportation, Wages. 29 CFR Part 530 Administrative practice and procedure, Clothing, Homeworkers, Indians-arts and crafts, Penalties, Reporting and recordkeeping requirements, Surety bonds, Watches and jewelry. 29 CFR Part 570 Child labor, Law enforcement, Penalties. 29 CFR Part 578 Penalties, Wages. 29 CFR Part 579 Child labor, Penalties. 29 CFR Part 801 Administrative practice and procedure, Employment, Lie detector tests, Penalties, Reporting and recordkeeping requirements. 29 CFR Part 825 Administrative practice and procedure, Airmen, Employee benefit plans, Health, Health insurance, Labor management relations, Maternal and child health, Penalties, Reporting and recordkeeping requirements, Teachers. E:\FR\FM\18JAR1.SGM 18JAR1 5380 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 29 CFR Part 1903 Intergovernmental relations, Law enforcement, Occupational Safety and Health, Penalties. 29 CFR Part 2560 Employee benefit plans, Employee Retirement Income Security Act, Law enforcement, Penalties, Pensions, Reporting and recordkeeping. Department of Labor Employment and Training Administration Title 20—Employees’ Benefits PART 655—TEMPORARY EMPLOYMENT OF FOREIGN WORKERS IN THE UNITED STATES 1. The authority citation for part 655 continues to read as follows: ■ 29 CFR Part 2575 Administrative practice and procedure, Employee benefit plans, Employee Retirement Income Security Act, Health care, Penalties, Pensions. 29 CFR Part 2590 Employee benefit plans, Employee Retirement Income Security Act, Health care, Health insurance, Penalties, Pensions, Reporting and recordkeeping. 30 CFR Part 100 Mine safety and health, Penalties. For the reasons set out in the preamble, 20 CFR chapters V and VI, 29 CFR chapters V, XVII, and XXV, and 30 CFR chapter I are amended as follows. Authority: Section 655.0 issued under 8 U.S.C. 1101(a)(15)(E)(iii), 1101(a)(15)(H)(i) and (ii), 8 U.S.C. 1103(a)(6), 1182(m), (n) and (t), 1184(c), (g), and (j), 1188, and 1288(c) and (d); sec. 3(c)(1), Pub. L. 101–238, 103 Stat. 2099, 2102 (8 U.S.C. 1182 note); sec. 221(a), Pub. L. 101–649, 104 Stat. 4978, 5027 (8 U.S.C. 1184 note); sec. 303(a)(8), Pub. L. 102– 232, 105 Stat. 1733, 1748 (8 U.S.C. 1101 note); sec. 323(c), Pub. L. 103–206, 107 Stat. 2428; sec. 412(e), Pub. L. 105–277, 112 Stat. 2681 (8 U.S.C. 1182 note); sec. 2(d), Pub. L. 106–95, 113 Stat. 1312, 1316 (8 U.S.C. 1182 note); 29 U.S.C. 49k; Pub. L. 107–296, 116 Stat. 2135, as amended; Pub. L. 109–423, 120 Stat. 2900; 8 CFR 214.2(h)(4)(i); and 8 CFR 214.2(h)(6)(iii). Subpart A issued under 8 CFR 214.2(h). Subpart B issued under 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184(c), and 1188; and 8 CFR 214.2(h). Subparts F and G issued under 8 U.S.C. 1288(c) and (d); sec. 323(c), Pub. L. 103–206, 107 Stat. 2428; and 28 U.S.C. 2461 note, Pub. L. 114–74 at section 701. Subparts H and I issued under 8 U.S.C. 1101(a)(15)(H)(i)(b) and (b)(1), 1182(n) and (t), and 1184(g) and (j); sec. 303(a)(8), Pub. L. 102–232, 105 Stat. 1733, 1748 (8 U.S.C. 1101 note); sec. 412(e), Pub. L. 105–277, 112 Stat. 2681; 8 CFR 214.2(h); and 28 U.S.C. 2461 note, Pub. L. 114–74 at section 701. Subparts L and M issued under 8 U.S.C. 1101(a)(15)(H)(i)(c) and 1182(m); sec. 2(d), Pub. L. 106–95, 113 Stat. 1312, 1316 (8 U.S.C. 1182 note); Pub. L. 109–423, 120 Stat. 2900; and 8 CFR 214.2(h). §§ 655.620, 655.801, and 655.810 [Amended] 2. In the table below, for each paragraph indicated in the left column, remove the dollar amount indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount indicated in the right column. ■ Paragraph Remove § 655.620(a) ............................................................................................................................. § 655.801(b) ............................................................................................................................. § 655.810(b)(1) introductory text .............................................................................................. § 655.810(b)(2) introductory text .............................................................................................. § 655.810(b)(3) introductory text .............................................................................................. Authority: 5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114–74 at sec.701; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 Stat. 1263; Secretary’s Order 10– 2009, 74 FR 58834. Department of Labor Office of Workers’ Compensation Programs PART 702—ADMINISTRATION AND PROCEDURE 3. The authority citation for part 702 continues to read as follows: ■ Add $8,908 7,251 1,782 7,251 50,758 §§ 702.204, 702.236, and 702.271 [Amended] 4. In the table below, for each paragraph indicated in the left column, remove the dollar amount or date indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount or date indicated in the right column. ■ Remove § 702.204 ......................................................................................................................................... § 702.204 ......................................................................................................................................... § 702.236 ......................................................................................................................................... § 702.236 ......................................................................................................................................... § 702.271(a)(2) ................................................................................................................................. § 702.271(a)(2) ................................................................................................................................. § 702.271(a)(2) ................................................................................................................................. mstockstill on DSK3G9T082PROD with RULES Paragraph $22,587 ..................... August 1, 2016 .......... $275 .......................... August 1, 2016 .......... August 1, 2016 .......... $2,259 ....................... $11,293 ..................... PART 725—CLAIMS FOR BENEFITS UNDER PART C OF TITLE IV OF THE FEDERAL MINE SAFETY AND HEALTH ACT, AS AMENDED Adjustment Act of 1990); Pub. L. 114–74 at sec. 701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 30 U.S.C. 901 et seq., 902(f), 921, 932, 936; 33 U.S.C. 901 et seq.; 42 U.S.C. 405; Secretary’s Order 10–2009, 74 FR 58834. 5. The authority citation for part 725 continues to read as follows: § 725.621 ■ Authority: 5 U.S.C. 301; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 [Amended] 6. In § 725.621, amend paragraph (d) by removing ‘‘August 1, 2016’’ and adding in its place ‘‘January 13, 2017’’ ■ PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 $9,054 7,370 1,811 7,370 51,588 Add $22,957. January 13, 2017. $279. January 13, 2017. January 13, 2017. $2,296. $11,478. and by removing ‘‘$1,375’’ and adding in its place ‘‘$1,397’’. PART 726—BLACK LUNG BENEFITS; REQUIREMENTS FOR COAL MINE OPERATOR’S INSURANCE 7. The authority citation for part 726 continues to read as follows: ■ E:\FR\FM\18JAR1.SGM 18JAR1 5381 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations Authority: 5 U.S.C. 301; 33 U.S.C. 901 et seq., 902(f), 925, 932, 933, 934, 936; 33 U.S.C. 901 et seq.; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114–74 at sec. 701; Reorganization Plan No. 6 of 1950, 15 FR 3174; Secretary’s Order 10–2009, 74 FR 58834. § 726.302 remove the dollar amount or date indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount or date indicated in the right column. [Amended] 8. In the table below, for each paragraph indicated in the left column, ■ Paragraph Remove § 726.302(c)(2)(i) .............................................................................................................................. § 726.302(c)(2)(i) .............................................................................................................................. § 726.302(c)(2)(i) .............................................................................................................................. § 726.302(c)(2)(i) .............................................................................................................................. § 726.302(c)(2)(i) .............................................................................................................................. § 726.302(c)(4) ................................................................................................................................. § 726.302(c)(4) ................................................................................................................................. § 726.302(c)(5) ................................................................................................................................. § 726.302(c)(5) ................................................................................................................................. § 726.302(c)(6) ................................................................................................................................. § 726.302(c)(6) ................................................................................................................................. August 1, 2016 .......... $134 .......................... 268 ............................ 402 ............................ 535 ............................ August 1, 2016 .......... $134 .......................... August 1, 2016 .......... $402 .......................... August 1, 2016 .......... $2,750 ....................... Department of Labor § 500.1 Wage and Hour Division ■ [Amended] 10. In § 500.1, amend paragraph (e) by removing ‘‘$2,355’’ and adding in its place ‘‘$2,394’’. Title 29—Labor PART 500—MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION 9. 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. § 501.19 13, 2017. 13, 2017. 13, 2017. 13, 2017. [Amended] 12. In the table below, for each paragraph indicated in the left column, remove the dollar amount indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount indicated in the right column. ■ PART 501—ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE IMMIGRATION AND NATIONALITY ACT 11. 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 Remove § 501.19(c) introductory text .................................................................................................... § 501.19(c)(1) ........................................................................................................................... § 501.19(c)(2) ........................................................................................................................... § 501.19(c)(4) ........................................................................................................................... § 501.19(d) ............................................................................................................................... § 501.19(e) ............................................................................................................................... § 501.19(f) ................................................................................................................................ PART 530—EMPLOYMENT OF HOMEWORKERS IN CERTAIN INDUSTRIES (Dec. 19, 2014), 79 FR 77527 (Dec. 24, 2014); 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114–74 at sec. 701, 129 Stat 584. 13. The authority citation for part 530 continues to read as follows: ■ Authority: Sec. 11, 52 Stat. 1066 (29 U.S.C. 211) as amended by sec. 9, 63 Stat. 910 (29 U.S.C. 211(d)); Secretary’s Order No. 01–2014 January $136. 272. 409. 544. January $136. January $409. January $2,795. (Federal Civil Penalties Inflation Adjustment Act of 1990); and Pub. L. 114–74 at § 701. Paragraph ■ Add 14. In § 530.302, amend paragraph (a) by removing ‘‘$989’’ and adding in its place ‘‘$1,005’’ and revise paragraph (b) to read as follows: Add $1,631 5,491 54,373 108,745 5,491 16,312 16,312 § 530.302 $1,658 5,581 55,263 110,524 5,581 16,579 16,579 Amounts of civil penalties. * * * * * (b) The amount of civil money penalties shall be determined per affected homeworker within the limits set forth in the following schedule, except that no penalty shall be assessed in the case of violations which are deemed to be de minimis in nature: Penalty per affected homeworker mstockstill on DSK3G9T082PROD with RULES Nature of violation Minor Recordkeeping ............................................................................................................................. Monetary violations ...................................................................................................................... Employment of homeworkers without a certificate ...................................................................... Other violations of statutes, regulations or employer assurances .............................................. VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 $20–201 20–201 ........................ 20–201 E:\FR\FM\18JAR1.SGM 18JAR1 Substantial $201–402 201–402 201–402 201–402 Repeated, intentional or knowing $402–1,005 402–1,005 402–1,005 5382 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations PART 570—CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF INTERPRETATION PART 578—MINIMUM WAGE AND OVERTIME VIOLATIONS—CIVIL MONEY PENALTIES PART 579—CHILD LABOR VIOLATIONS—CIVIL MONEY PENALTIES ■ 15. The authority citation for Subpart G of part 570 continues to read as follows: ■ 17. The authority citation for part 578 continues to read as follows: ■ Authority: 52 Stat. 1060–1069, as amended; 29 U.S.C. 201–219; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114–74 at § 701. Authority: Sec. 9, Pub. L. 101–157, 103 Stat. 938, sec. 3103, Pub. L. 101–508, 104 Stat. 1388–29 (29 U.S.C. 216(e)), Pub. L. 101– 410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by Pub. L. 104–134, section 31001(s), 110 Stat. 1321–358, 1321–373, and Pub. L. 114–74, 129 Stat 584. Authority: 29 U.S.C. 203(l), 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 of Labor’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. 114–7, 129 Stat 584. § 578.3 § 579.1 § 570.140 [Amended] 16. In § 570.140, amend paragraph (b)(1) by removing ‘‘$12,080’’ and adding in its place ‘‘$12,278’’ and paragraph (b)(2) by removing ‘‘$54,910’’ and adding in its place ‘‘$55,808’’. [Amended] ■ 18. In § 578.3, amend paragraph (a) by removing ‘‘$1,894’’ and adding in its place ‘‘$1,925’’. ■ 19. The authority citation for part 579 continues to read as follows: [Amended] 20. In the table below, for each paragraph indicated in the left column, remove the dollar amount indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount indicated in the right column. ■ Paragraph Remove § 579.1(a)(1)(i)(A) ..................................................................................................................... § 579.1(a)(1)(i)(B) ..................................................................................................................... § 579.1(a)(2) ............................................................................................................................. PART 801—APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF 1988 Authority: 29 U.S.C. 2654; 28 U.S.C. 2461 Note (Federal Civil Penalties Inflation Adjustment Act of 1990); and Pub. L. 114– 74 at sec. 701. 21. The authority citation for part 801 continues to read as follows: § 825.300 ■ 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. § 801.42 24. In § 825.300 amend paragraph (a)(1) by removing ‘‘$163’’ and adding in its place ‘‘$166’’. ■ Department of Labor Occupational Safety and Health Administration [Amended] 22. In § 801.42, amend paragraph (a) by removing ‘‘$19,787’’ and adding in its place ‘‘$20,111’’. ■ Title 29—Labor PART 1903—INSPECTIONS, CITATIONS, AND PROPOSED PENALTIES PART 825—THE FAMILY AND MEDICAL LEAVE ACT OF 1993 23. The authority citation for part 825 continues to read as follows: ■ [Amended] Add $12,080 54,910 1,894 Authority: Secs. 8 and 9 of the Occupational Safety and Health Act of 1970 (29 U.S.C. 657, 658); 5 U.S.C. 553; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990), as amended by Section 701, Pub. L. 114–74; Secretary of Labor’s Order No. 1–2012 (77 FR 3912, Jan. 25, 2012). § 1903.15 [Amended] 26. In the table below, for each paragraph indicated in the left column, remove the dollar amount or date indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount or date indicated in the right column. ■ 25. The authority citation for part 1903 continues to read as follows: ■ Remove § 1903.15(d) introductory text .......................................................................................................... mstockstill on DSK3G9T082PROD with RULES Paragraph on or after August 1, 2016. $8,908 ....................... 124,709 ..................... 124,709 ..................... 12,471 ....................... 12,471 ....................... 12,471 ....................... 12,471 ....................... § 1903.15(d)(1) § 1903.15(d)(1) § 1903.15(d)(2) § 1903.15(d)(3) § 1903.15(d)(4) § 1903.15(d)(5) § 1903.15(d)(6) VerDate Sep<11>2014 ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. ................................................................................................................................. 16:39 Jan 17, 2017 Jkt 241001 $12,278 55,808 1,925 PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 Add after January 13, 2017. $9,054. 126,749. 126,749. 12,675. 12,675. 12,675. 12,675. 5383 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations Employee Benefits Security Administration Authority: 5 U.S.C. 301; 30 U.S.C. 815, 820, 957; 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114–74 at sec. 701; Title 29—Labor ■ Department of Labor PART 2575—ADJUSTMENT OF CIVIL PENALTIES UNDER ERISA TITLE I 27. The authority citation for subpart A of 29 CFR part 2575 continues to read as follows: ■ Authority: Pub. L. 101–410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by section 31001(s) of Pub. L. 104–134, 110 Stat. 1321– 373, and section 701 of Pub. L. 114–74, 129 Stat. 584; 29 U.S.C 1059(b), 1132(c), 1135 and 1185d; and Secretary of Labor’s Order 1– 2011, 77 FR 1088 (January 9, 2012). ■ 28. Revise § 2575.3 to read as follows: § 2575.3 Subsequent adjustments to civil monetary penalties No later than January 15, starting in 2017, and each subsequent year, the Secretary shall adjust for inflation, as required by the Inflation Adjustment Act, the civil monetary penalties described in § 2575.2 for violations occurring on or after November 2, 2015, and any future civil monetary penalties enforceable by the Secretary under title I of ERISA. The Secretary shall publish such annual adjustments in the Federal Register notwithstanding section 553 of the Administrative Procedure Act. Future penalties or adjustments to the amount of the penalty that are enacted by statute or regulation (other than an adjustment for inflation under the Inflation Adjustment Act) will not be adjusted for inflation in the first year those penalty levels take effect. Annual inflation adjustments shall apply to penalties assessed after the date notice of the annual inflation adjustment is published in the Federal Register. Department of Labor Mine Safety and Health Administration Title 30—Mineral Resources PART 100—CRITERIA AND PROCEDURES FOR PROPOSED ASSESSMENT OF CIVIL PENALTIES 29. The authority citation for part 100 continues to read as follows: ■ 30. In § 100.3, amend paragraph (a)(1) introductory text by removing ‘‘$68,300’’ and adding in its place ‘‘$69,417’’ and in paragraph (g) by revising Table XIV—Penalty Conversion Table to read as follows: TABLE XIV—PENALTY CONVERSION TABLE Penalty ($) Points 60 or fewer ........................... 61 .......................................... 62 .......................................... 63 .......................................... 64 .......................................... 65 .......................................... 66 .......................................... 67 .......................................... 68 .......................................... 69 .......................................... 70 .......................................... 71 .......................................... 72 .......................................... 73 .......................................... 74 .......................................... 75 .......................................... 76 .......................................... 77 .......................................... 78 .......................................... 79 .......................................... 80 .......................................... 81 .......................................... 82 .......................................... 83 .......................................... 84 .......................................... 85 .......................................... 86 .......................................... 87 .......................................... 88 .......................................... 89 .......................................... 90 .......................................... 91 .......................................... 92 .......................................... 93 .......................................... 94 .......................................... 95 .......................................... 96 .......................................... 97 .......................................... 98 .......................................... 99 .......................................... 100 ........................................ 101 ........................................ 102 ........................................ 103 ........................................ 104 ........................................ $129 140 151 165 178 193 209 227 245 266 288 312 339 367 396 430 467 504 547 593 642 695 753 816 884 958 1,038 1,123 1,218 1,319 1,429 1,547 1,676 1,815 1,967 2,131 2,308 2,500 2,709 2,934 3,179 3,443 3,730 4,041 4,377 mstockstill on DSK3G9T082PROD with RULES Paragraph TABLE XIV—PENALTY CONVERSION TABLE—Continued 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ ........................................ or more .......................... * * 21:35 Jan 17, 2017 Jkt 241001 PO 00000 * * §§ 100.4 and 100.5 Fmt 4700 Sfmt 4700 * [Amended] 31. In the table below, for each paragraph indicated in the left column, remove the dollar amount indicated in the middle column from wherever it appears in the paragraph and add in its place the dollar amount indicated in the right column. Remove Frm 00049 4,742 5,137 5,565 6,029 6,531 7,075 7,663 8,303 8,994 9,743 10,554 11,433 12,385 13,417 14,535 15,745 17,057 18,477 20,016 21,684 23,488 25,445 27,565 29,861 32,348 35,042 37,960 41,122 44,546 48,099 51,652 55,206 58,758 62,311 65,864 69,417 ■ § 100.4(a) ................................................................................................................................. § 100.4(b) ................................................................................................................................. § 100.4(c) introductory text ...................................................................................................... § 100.4(c) introductory text ...................................................................................................... § 100.5(c) ................................................................................................................................. § 100.5(d) ................................................................................................................................. § 100.5(e) ................................................................................................................................. VerDate Sep<11>2014 Penalty ($) Points E:\FR\FM\18JAR1.SGM Add $2,277 4,553 5,692 68,300 7,399 313 250,433 18JAR1 $2,314 4,627 5,785 69,417 7,520 318 254,530 5384 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations Note: The following Appendix will not appear in the Code of Federal Regulations. 2016 Agency MSHA ....... MSHA ....... MSHA ....... Name/description Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) Min penalty (rounded to nearest dollar) Regular Assessment ........ 30 CFR 100.3(A) .............. ........................ $68,300 ....... ........................ Penalty Conversion Table Federal Mine Safety & Health Act of 1977. Federal Mine Safety & Health Act of 1977. Federal Mine Safety & Health Act of 1977. MSHA ....... Federal Mine Safety & Health Act of 1977. MSHA ....... Federal Mine Safety & Health Act of 1977. MSHA ....... Federal Mine Safety & Health Act of 1977. MSHA ....... Federal Mine Safety & Health Act of 1977. MSHA ....... Federal Mine Safety & Health Act of 1977. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ mstockstill on DSK3G9T082PROD with RULES CFR citation 30 CFR 100.3(G) .............. $127 68,300 ......... $129 Minimum Penalty for any order issued under 104(d)(1) of the Mine Act. Minimum penalty for any order issued under 104(d)(2) of the Mine Act. Penalty for failure to provide timely notification under 103(j) of the Mine Act. Any operator who fails to correct a violation for which a citation or order was issued under 104(a) of the Mine Act. Violation of mandatory safety standards related to smoking standards. Flagrant violations under 110(b)(2) of the Mine Act. Section 209(b): Failure to furnish reports (e.g., pension benefit statements) to certain former participants and beneficiaries or maintain records. Section 502(c)(2)—Per day for failure/refusal to properly file plan annual report. Section 502(c)(4)—Per day for failure to disclose certain documents upon request under ERISA 101(k) and (l); failure to furnish notices under 101(j) and 514(e)(3)—each statutory recipient a separate violation. Section 502(c)(5)—Per day for each failure to file annual report for Multiple Employer Welfare Arrangements (MEWAs). Section 502(c)(6)—Per day for each failure to provide Secretary of Labor requested documentation not to exceed a per-request maximum. Section 502(c)(7)—Per day for each failure to provide notices of blackout periods and of right to divest employer securities—each statutory recipient a separate violation. 30 CFR 100.4(a) ............... 2,277 ..................... 2,314 30 CFR 100.4(b) ............... 4,553 ..................... 4,627 39 CFR 100.4(c) ............... 5,692 68,300 ......... 5,785 30 CFR 100.5(C) .............. ........................ 7,399 ........... ........................ 7,520. 30 CFR 100.5(D) .............. ........................ 313 .............. ........................ 318. 30 CFR 100.5(e) ............... ........................ 250,433 ....... ........................ 254,530. 29 CFR 2575.2(a) ............. ........................ 28 ................ ........................ 28. 29 CFR 2575.2(b) ............. ........................ 2,063 ........... ........................ $2,097. 29 CFR 2575.2(c) ............. ........................ 1,632 ........... ........................ 1,659. 29 CFR 2575.2(d) ............. ........................ 1,502 ........... ........................ 1,527. 29 CFR 2575.2(e) ............. ........................ 147 per day, not to exceed $1,472 per request. ........................ 149 per day, not to exceed $1,496 per request. 29 CFR 2575.2(f) .............. ........................ 131 .............. ........................ 133. Law Employee Retirement Income Security Act. VerDate Sep<11>2014 16:39 Jan 17, 2017 2017 Jkt 241001 PO 00000 Frm 00050 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 Max penalty (rounded to nearest dollar) $69,417. 69,417. 69,417. 5385 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 2016 Agency Name/description EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. EBSA ........ mstockstill on DSK3G9T082PROD with RULES CFR citation Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) Min penalty (rounded to nearest dollar) Section 502(c)(8)—Per each failure by an endangered status multiemployer plan to adopt a funding improvement plan or meet benchmarks; failure of a critical status multiemployer plan to adopt a rehabilitation plan. Section 502(c)(9)(A)—Per day for each failure by an employer to inform employees of CHIP coverage opportunities under Section 701(f)(3)(B)(i)(l)—each employee a separate violation. Section 502(c)(9)(B)—Per day for each failure by a plan to timely provide to any State information required to be disclosed under Section 701(f)(3)(B)(ii), as added by CHIP regarding coverage coordination— each participant/beneficiary a separate violation. Section 502(c)(10)—Failure by any plan sponsor of group health plan, or any health insurance issuer offering health insurance coverage in connection with the plan, to meet the requirements of Sections 702(a)(1)(F), (b)(3), (c) or (d); or Section 701; or Section 702(b)(1) with respect to genetic information—daily per participant and beneficiary non-compliance period. Section 502(c)(10)—uncorrected de minimis violation. Section 502(c)(10)—uncorrected violations that are not de minimis. Section 502(c)(10)—unintentional failure maximum cap. Section 502(c)(12)—Per day for each failure of a CSEC plan in restoration status to adopt a restoration plan. Section 502(m)—Failure of fiduciary to make a proper distribution from a defined benefit plan under section 206(e) of ERISA. Failure to provide Summary of Benefits Coverage under PHS Act section 2715(f), as incorporated in ERISA section 715 and 29 CFR 2590.715–2715(e). Serious Violation ............... 29 CFR 2575.2(g) ............. ........................ 1,296 ........... ........................ 1,317. 29 CFR 2575.2(h) ............. ........................ 110 .............. ........................ 112. 29 CFR 2575.2(i) .............. ........................ 110 .............. ........................ 112. 29 CFR 2575.2(j)(1) ......... ........................ 110 .............. ........................ 112. 29 CFR 2575.2(j)(2) ......... 2,745 ..................... 2,790. 29 CFR 2575.2(j)(3) ......... 16,473 ..................... 16,742. 29 CFR 2575.2(j)(4) ......... ........................ 549,095 ....... ........................ 558,078. 29CFR 2575.2(k) .............. ........................ 100 .............. ........................ 102. 29 CFR 2575.2(l) .............. ........................ 15,909 ......... ........................ 16,169. 29 CFR 2575.2(m) ............ ........................ 1,087 ........... ........................ 1,105. 29 CFR 1903.15(d)(3) ...... ........................ 12,471 ......... ........................ 12,675. Law Employee Retirement Income Security Act. EBSA ........ Employee Retirement Income Security Act. OSHA ....... Occupational Safety and Health Act. VerDate Sep<11>2014 16:39 Jan 17, 2017 2017 Jkt 241001 PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 Max penalty (rounded to nearest dollar) 5386 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 2016 2017 Agency Law Name/description CFR citation Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) Min penalty (rounded to nearest dollar) OSHA ....... Occupational Safety and Health Act. Occupational Safety and Health Act. Occupational Safety and Health Act. Occupational Safety and Health Act. Occupational Safety and Health Act. Family and Medical Leave Act. Fair Labor Standards Act Fair Labor Standards Act Fair Labor Standards Act Fair Labor Standards Act Fair Labor Standards Act Other-Than-Serious .......... 29 CFR 1903.15(d)(4) ...... ........................ 12,471 ......... ........................ Willful ................................ 29 CFR 1903.15(d)(1) ...... 8,908 124,709 ....... 9,054 126,749. Repeated .......................... 29 CFR 1903.15(d)(2) ...... ........................ 124,709 ....... ........................ 126,749. Posting Requirement ........ 29 CFR 1903.15(d)(6) ...... ........................ 12,471 ......... ........................ 12,675. Failure to Abate ................ 29 CFR 1903.15(d)(5) ...... ........................ 12,471 ......... ........................ 12,675. FMLA ................................ 29 CFR 825.300(a)(1) ...... ........................ 163 .............. ........................ 166. FLSA ................................. Child Labor ....................... Child Labor ....................... Child Labor ....................... Child Labor that causes serious injury or death. Child Labor that causes serious injury or death. CL willful or repeated that causes serious injury or death. MSPA ................................ 29 29 29 29 29 578.3(a) ............... 579.1(a)(2) .......... 570.140(b)(1) ...... 579.1(a)(1)(i)(A) .. 570.140(b)(2) ...... ........................ ........................ ........................ ........................ ........................ 1,894 ........... 1,894 ........... 12,080 ......... 12,080 ......... 54,910 ......... ........................ ........................ ........................ ........................ ........................ 1,925. 1,925. 12,278. 12,278. 55,808. 29 CFR 579.1(a)(1)(i)(B) .. ........................ 54,910 ......... ........................ 55,808. 29 CFR 570.140(b)(2); 29 CFR 579.1(a)(1)(i)(B). ........................ 109,820 ....... ........................ 111,616. 29 CFR 500.1(e) ............... ........................ 2,355 ........... ........................ 2,394. H1B ................................... 20 CFR 655.810(b)(1) ...... ........................ 1,782 ........... ........................ 1,811. H1B retaliation .................. 20 CFR 655.801(b) ........... ........................ 7,251 ........... ........................ 7,370. H1B willful or discrimination. H1B willful that resulted in displacement of a US worker. D–1 ................................... 20 CFR 655.810(b)(2) ...... ........................ 7,251 ........... ........................ 7,370. 20 CFR 655.810(b)(3) ...... ........................ 50,758 ......... ........................ 51,588. 20 CFR 655.620(a) ........... ........................ 8,908 ........... ........................ 9,054. CWHSSA .......................... 29 CFR 5.5(b)(2) .............. ........................ 25 ................ ........................ 25. CWHSSA .......................... 29 CFR 5.8(a) ................... ........................ 25 ................ ........................ 25. Walsh-Healey ................... 41 CFR 50–201.3(e) ......... ........................ 25 ................ ........................ 25. EPPA ................................ 29 CFR 801.42(a) ............. ........................ 19,787 ......... ........................ 20,111 H2A ................................... 29 CFR 501.19(c) ............. ........................ 1,631 ........... ........................ 1,658. H2A willful or discrimination. H2A Safety or health resulting in serious injury or death. H2A willful or repeated safety or health resulting in serious injury or death. H2A failing to cooperate in an investigation. H2A displacing a US worker. H2A improperly rejecting a US worker. Home Worker ................... Home Worker ................... Failure to file first report of injury or filing a false statement or misrepresentation in first report. Failure to report termination of payments. 29 CFR 501.19(c)(1) ........ ........................ 5,491 ........... ........................ 5,581. 29 CFR 501.19(c)(2) ........ ........................ 54,373 ......... ........................ 55,263. 29 CFR 501.19(c)(4) ........ ........................ 108,745 ....... ........................ 110,524. 29 CFR 501.19(d) ............. ........................ 5,491 ........... ........................ 5,581. 29 CFR 501.19(e) ............. ........................ 16,312 ......... ........................ 16,579. 29 CFR 501.19(f) .............. ........................ 16,312 ......... ........................ 16,579. 29 CFR 530.302(a) ........... 29 CFR 530.302(b) ........... 20 CFR 702.204 ............... ........................ 20 ........................ 989 .............. 989 .............. 22,587 ......... ........................ 20 ........................ 1,005. 1,005. 22,957. 20 CFR 702.236 ............... ........................ 275 .............. ........................ 279. 20 CFR 702.271(a)(2) ...... 2,259 11,293 ......... 2,296 20 CFR 725.621(d) ........... ........................ 1,375 ........... ........................ 1,397. 20 CFR 725.621(d) ........... ........................ 1,375 ........... ........................ 1,397. OSHA ....... OSHA ....... OSHA ....... OSHA ....... WHD ......... WHD WHD WHD WHD WHD ......... ......... ......... ......... ......... WHD ......... Fair Labor Standards Act WHD ......... Fair Labor Standards Act WHD ......... Migrant and Seasonal Agricultural Worker Protection Act. Immigration & Nationality Act. Immigration & Nationality Act. Immigration & Nationality Act. Immigration & Nationality Act. WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... WHD ......... Immigration & Nationality Act. Contract Work Hours and Safety Standards Act. Contract Work Hours and Safety Standards Act. Walsh-Healey Public Contracts Act. Employee Polygraph Protection Act. Immigration & Nationality Act. Immigration & Nationality Act. Immigration & Nationality Act. WHD ......... Immigration & Nationality Act. WHD ......... Immigration & Nationality Act. Immigration & Nationality Act. Immigration & Nationality Act. Fair Labor Standards Act Fair Labor Standards Act Longshore and Harbor Workers’ Compensation Act. WHD ......... WHD ......... WHD ......... WHD ......... OWCP ...... mstockstill on DSK3G9T082PROD with RULES OWCP ...... OWCP ...... Longshore and Harbor Workers’ Compensation Act. Longshore and Harbor Workers’ Compensation Act. OWCP ...... Black Lung Benefits Act ... OWCP ...... Black Lung Benefits Act ... VerDate Sep<11>2014 16:39 Jan 17, 2017 Discrimination against employees who claim compensation or testify in a LHWCA proceeding. Failure to report termination of payments. Failure to file required reports. Jkt 241001 PO 00000 Frm 00052 CFR CFR CFR CFR CFR Fmt 4700 Sfmt 4700 E:\FR\FM\18JAR1.SGM 18JAR1 Max penalty (rounded to nearest dollar) 12,675. 11,478. 5387 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Rules and Regulations 2016 2017 Agency Law Name/description CFR citation Min penalty (rounded to nearest dollar) Max penalty (rounded to nearest dollar) Min penalty (rounded to nearest dollar) OWCP ...... Black Lung Benefits Act ... 20 CFR 726.300 ............... ........................ 2,500 ........... ........................ OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(2)(i) ... 134 ..................... 136 OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(2)(i) ... 268 ..................... 272 OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(2)(i) ... 402 ..................... 409 OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(2)(i) ... 535 ..................... 544 OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(4) ...... 134 ..................... 136 OWCP ...... Black Lung Benefits Act ... 20 CFR 726.302(c)(5) ...... 402 ..................... 409 OWCP ...... Black Lung Benefits Act ... Failure to secure payment of benefits. Failure to secure payment of benefits for mines with fewer than 25 employees. Failure to secure payment of benefits for mines with 25–50 employees. Failure to secure payment of benefits for mines with 51–100 employees. Failure to secure payment of benefits for mines with more than 100 employees. Failure to secure payment of benefits after 10th day of notice. Failure to secure payment of benefits for repeat offenders. Failure to secure payment of benefits. 20 CFR 726.302(c)(5) ...... ........................ 2,750 ........... ........................ Signed at Washington, DC this 9th day of January, 2017. Thomas E. Perez, Secretary, U.S. Department of Labor. [FR Doc. 2017–00614 Filed 1–13–17; 4:15 pm] BILLING CODE 4510–HL–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9810] RIN 1535–BN06 Certain Transfers of Property to Regulated Investment Companies [RICs] and Real Estate Investment Trusts [REITs] Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. AGENCY: This document contains final regulations effecting the repeal of the General Utilities doctrine by the Tax Reform Act of 1986. The final regulations address the length of time during which a RIC or a REIT may be subject to corporate level tax on certain dispositions of property. The final regulations affect RICs and REITs. DATES: Effective Date: These regulations are effective January 18, 2017. Applicability Dates: For dates of applicability, see § 1.337(d)–7(g)(2)(iii). FOR FURTHER INFORMATION CONTACT: Austin M. Diamond-Jones, (202) 317– 5363 (not a toll-free number). mstockstill on DSK3G9T082PROD with RULES SUMMARY: VerDate Sep<11>2014 16:39 Jan 17, 2017 Jkt 241001 SUPPLEMENTARY INFORMATION: Background This document contains amendments to 26 CFR part 1. On June 8, 2016, the Department of the Treasury (Treasury Department) and the IRS published temporary regulations (TD 9770) under section 337(d) (temporary regulations) in the Federal Register (81 FR 36793) concerning certain transfers of property to regulated investment companies (RICs) and real estate investment trusts (REITs). A notice of proposed rulemaking cross-referencing the temporary regulations (REG–126452–15) (proposed regulations) was published in the Federal Register (81 FR 36816) on the same day. A correction to the temporary regulations was published in the Federal Register (81 FR 41800) on June 28, 2016. The Treasury Department and the IRS received one written comment in response to the proposed regulations. The comment requested a public hearing, and a hearing was held on November 9, 2016. After consideration of the written comment and the comments made at the public hearing, the proposed regulations are adopted in part and as amended by this Treasury decision, and the corresponding temporary regulations are removed in part. The revisions adopted by this Treasury decision are discussed below. Summary of Comments and Explanation of Revisions The comment requested that the temporary regulations and the proposed regulations with respect to the PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 Max penalty (rounded to nearest dollar) 2,541. 2,795. recognition period be immediately withdrawn and the recognition period with respect to REITs be defined with reference to the recognition period of section 1374(d)(7), which is currently a five-year period as a result of section 127(a) of the Protecting Americans Against Tax Hikes Act of 2015 (PATH Act), enacted as Division Q of the Consolidated Appropriations Act, 2016, Public Law 114–113, 129 Stat. 2422. The comment asserted that the change to the length of the recognition period in the temporary regulations and the proposed regulations was inconsistent with Congress’s intent in the PATH Act and with prior administrative guidance. On October 18, 2016, the Chairmen and Ranking Members of the Ways and Means Committee of the U.S. House of Representatives and the Finance Committee of the U.S. Senate addressed a letter to the Secretary of the Treasury stating that the recognition period in the temporary regulations and the proposed regulations was inconsistent with congressional intent and the longstanding practice of treating REITs and RICs as having the same built-in gain recognition period as S corporations, currently five years. The Chairmen and Ranking Members also asked that the temporary regulations and the proposed regulations be modified to provide that REITs, RICs and S corporations are all subject to the same five-year built-in gain recognition period in order to be consistent with congressional intent and longstanding practice. E:\FR\FM\18JAR1.SGM 18JAR1

Agencies

[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5373-5387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00614]


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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 655

Office of Workers' Compensation Programs

20 CFR Parts 702, 725, and 726

Wage and Hour Division

29 CFR Parts 500, 501, 530, 570, 578, 579, 801, and 825

Occupational Safety and Health Administration

29 CFR Part 1903

Employee Benefits Security Administration

29 CFR Part 2560, 2575, and 2590

Mine Safety and Health Administration

30 CFR Part 100

RIN 1290-AA31


Department of Labor Federal Civil Penalties Inflation Adjustment 
Act Annual Adjustments for 2017

AGENCY: Employment and Training Administration, Office of Workers' 
Compensation Programs, Office of the Secretary, Wage and Hour Division, 
Occupational Safety and Health Administration, Employee Benefits 
Security Administration, and Mine Safety and Health Administration, 
Department of Labor.

ACTION: Final rule.

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SUMMARY: The U.S. Department of Labor (Department) is publishing this 
final rule to adjust for inflation the civil monetary penalties 
assessed or enforced in its regulations, pursuant to the Federal Civil 
Penalties Inflation Adjustment Act of 1990 as amended by the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 
(Inflation Adjustment Act). The Inflation Adjustment Act requires the 
Department to annually adjust its civil money penalty levels for 
inflation no later than January 15 of each year. The Inflation 
Adjustment Act provides that agencies shall adjust civil monetary 
penalties notwithstanding Section 553 of the Administrative Procedure 
Act (APA). Additionally, the Inflation Adjustment Act provides a cost-
of-living formula for adjustment of the civil penalties. Accordingly, 
this final rule sets forth the Department's 2017 annual adjustments for 
inflation to its civil monetary penalties, effective January 13, 2017.

DATES: This final rule is effective on January 13, 2017. As provided by 
the Inflation Adjustment Act, the increased penalty levels apply to any 
penalties assessed after the effective date of this rule.

FOR FURTHER INFORMATION CONTACT: Pamela Peters, Program Analyst, U.S. 
Department of Labor, Room S-2312, 200 Constitution Avenue, NW., 
Washington, DC 20210; telephone: (202) 693-5959 (this is not a toll-
free number). Copies of this final rule may be obtained in alternative 
formats (large print, Braille, audio tape or disc), upon request, by 
calling (202) 693-5959 (this is not a toll-free number). TTY/TDD 
callers may dial toll-free 1-877-889-5627 to obtain information or 
request materials in alternative formats.

SUPPLEMENTARY INFORMATION: 

Preamble Table of Contents

I. Background
II. Adjustment for 2017
III. Discussion of Public Comments
IV. Paperwork Reduction Act
V. Administrative Procedure Act
VI. Executive Order 12866: Regulatory Planning and Review, and 
Executive Order 13563: Improving Regulation and Regulatory Review
VII. Regulatory Flexibility Act and Small Business Regulatory 
Enforcement Fairness Act
VIII. Other Regulatory Considerations
    A. The Unfunded Mandates Reform Act of 1995
    B. Executive Order 13132: Federalism
    C. Executive Order 13175: Indian Tribal Governments
    D. The Treasury and General Government Appropriations Act of 
1999: Assessment of Federal Regulations and Policies on Families
    E. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    F. Environmental Impact Assessment
    G. Executive Order 13211: Energy Supply
    H. Executive Order 12630: Constitutionally Protected Property 
Rights
    I. Executive Order 12988: Civil Justice Reform Analysis

I. Background

    On November 2, 2015, Congress enacted the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, 
701 (Inflation Adjustment Act), which further amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990 as previously amended by the 
1996 Debt Collection Improvement Act (collectively, the ``Prior 
Inflation Adjustment Act''), to improve the

[[Page 5374]]

effectiveness of civil monetary penalties and to maintain their 
deterrent effect. The Inflation Adjustment Act required agencies to: 
(1) Adjust the level of civil monetary penalties with an initial 
``catch-up'' adjustment through an interim final rule (IFR); and (2) 
make subsequent annual adjustments for inflation. The Department is 
required to publish an annual inflation adjustment no later than 
January 15, 2017, and by January 15 of each subsequent year.
    On July 1, 2016, the Department published an IFR that established 
the initial catch-up adjustment for civil penalties that the Department 
administers and requested comments. See 81 FR 43430 (DOL IFR). Nine 
comments were received on the Employment and Training Administration, 
Wage and Hour Division, Occupational Safety and Health Administration, 
and Employee Benefit Security Administration sections of the IFR, and 
are discussed below.
    This rule implements the annual inflation adjustment that the 
Department is required by the Inflation Adjustment Act to publish by 
January 15, 2017 for civil monetary penalties assessed or enforced in 
the Department's regulations.\1\ The Inflation Adjustment Act provides 
that the increased penalty levels apply to any penalties assessed after 
the effective date of the increase. Pursuant to the Inflation 
Adjustment Act, this final rule is published notwithstanding Section 
553 of the APA.
---------------------------------------------------------------------------

    \1\ Civil monetary penalties under the H-2B program are 
addressed separately.
---------------------------------------------------------------------------

II. Adjustment for 2017

    The Department has undertaken a thorough review of civil penalties 
administered by its various components pursuant to the Inflation 
Adjustment Act and in accordance with guidance issued by the Office of 
Management and Budget.\2\ The Department first identified the most 
recent penalty amount, which was the amount established by the catch-up 
adjustment as set forth in the IFR published on July 1, 2016.
---------------------------------------------------------------------------

    \2\ M-17-11, Implementation of the 2017 annual adjustment 
pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Dec 16, 2016).
---------------------------------------------------------------------------

    The Department is required to calculate the annual adjustment based 
on the Consumer Price Index for all Urban Consumers (CPI-U). Annual 
inflation adjustments are based on the percent change between the 
October CPI-U preceding the date of the adjustment, and the prior 
year's October CPI-U; in this case, the percent change between the 
October 2016 CPI-U and the October 2015 CPI-U. The cost-of-living 
adjustment multiplier for 2017, based on the Consumer Price Index (CPI-
U) for the month of October 2016, not seasonally adjusted, is 
1.01636.\3\ In order to complete the 2017 annual adjustment, the 
Department multiplied the most recent penalty amount for each 
applicable penalty by the multiplier, 1.01636, and rounded to the 
nearest dollar.
---------------------------------------------------------------------------

    \3\ OMB provided the year-over-year multiplier, rounded to 5 
decimal points. Id. at 1.
---------------------------------------------------------------------------

    As provided by the Inflation Adjustment Act, the increased penalty 
levels apply to any penalties assessed after the effective date of this 
rule.\4\ Accordingly, for penalties assessed after January 13, 2017, 
whose associated violations occurred after November 2, 2015, the higher 
penalty amounts outlined in this rule will apply. The table below 
demonstrates the penalty amounts that apply:
---------------------------------------------------------------------------

    \4\ Appendix 1 consists of a table that provides ready access to 
key information about each penalty.

----------------------------------------------------------------------------------------------------------------
         Violations occurring              Penalty assessed                Which penalty level applies
----------------------------------------------------------------------------------------------------------------
On or before November 2, 2015........  On or before August 1,   Pre-August 1, 2016 levels.
                                        2016.
On or before November 2, 2015........  After August 1, 2016...  Pre-August 1, 2016 levels.
After November 2, 2015...............  After August 1, 2016,    August 1, 2016 levels.
                                        but on or before
                                        January 13, 2017.
After November 2, 2015...............  After January 13, 2017.  January 13, 2017 levels.
----------------------------------------------------------------------------------------------------------------

III. Discussion of Public Comments

    Nine organizations filed responsive comments with the Department 
within the public comment period for the IFR. The Department received 
comments from the Center for Progressive Reform (CPR); Farmworker 
Justice; Contractors Risk Management, Inc.; the North Carolina 
Department of Labor; the National Association of Heath Underwriters 
(NAHU); the Kentucky Labor Cabinet; the National Guestworker Alliance 
(NGA); the New Mexico Environment Department; and the Occupational 
Safety and Health State Plan Association (OSHSPA).
    Comments were received on the Employment and Training 
Administration, Wage and Hour Division, Occupational Safety and Health 
Administration, and Employee Benefit Security Administration sections 
of the IFR. No comments were received related to the Office of Workers' 
Compensation Programs, Office of the Secretary, and Mine Safety and 
Health Administration sections.
    The following discussion addresses the comments and the 
Department's responses. The Department has reviewed and considered 
these comments, but found none of them required a change in the penalty 
levels or regulatory text.

A. Employment and Training Administration (20 CFR Part 655) and Wage 
and Hour Division (29 CFR Parts 500, 501, 530, 570, 578, 579, 801, 825)

    In the IFR, the Department increased the civil monetary penalties 
enforced by Department's Wage and Hour Division (WHD) under the Migrant 
and Seasonal Agricultural Worker Protection Act (MSPA), the Immigration 
and Nationality Act (INA) (specifically, the H-2A, D-1, and H-1B visa 
programs), the Fair Labor Standards Act (FLSA) (including the child 
labor provisions), the Employee Polygraph Protection Act, and the 
Family and Medical Leave Act.\5\ The civil monetary penalties 
authorized by the INA's D-1 and H-1B visa programs are reflected in the 
Employment and Training Administration's regulations, title 20 of the 
Code of Federal Regulations (CFR), but are enforced by WHD. The 
Department increased these civil monetary penalties pursuant to the 
``catch-up'' adjustment formula as specified in the Inflation 
Adjustment Act. The Department explained each increase in the preamble 
to the IFR.
---------------------------------------------------------------------------

    \5\ The Department also increased civil monetary penalties 
provisions of the Contract Work Hours and Safety Standards Act 
(CWHSSA) and the Walsh-Healey Public Contracts Act (PCA), as 
amended. These provisions are included in regulations established by 
the Office of the Secretary, 29 CFR part 5 and 41 CFR part 50-201, 
which have been delegated to WHD for enforcement.
---------------------------------------------------------------------------

    The Department received two comments addressing the increase of 
civil monetary penalties under programs administered by the WHD. 
Farmworker Justice, a national advocacy

[[Page 5375]]

organization representing migrant and seasonal farmworkers, submitted a 
comment addressing civil monetary penalties under MSPA, H-2A, and 
FLSA.\6\ Farmworker Justice commented that while they were pleased that 
the civil monetary penalties under these programs had increased, the 
penalties remain ``woefully inadequate to deter agricultural employers 
from violating labor laws and should be significantly increased.'' 
Farmworker Justice recommended that all civil monetary penalties for 
these programs ``be raised significantly in order to have an impact on 
the pervasive labor law violations in agriculture.'' The National 
Guestworker Alliance (NGA), a membership organization representing 
contingent workers across labor sectors, submitted a comment addressing 
civil monetary penalties under the H-1B visa program.\7\ With respect 
to civil monetary penalties under the H-1B visa program, the NGA 
commented that while it supports the increases included in the IFR, 
``it believes that DOL should have increased the penalt[ies]'' to the 
``150 [percent] maximum allowed under the [Inflation Adjustment Act] to 
help ensure employer compliance with the regulation.''
---------------------------------------------------------------------------

    \6\ This comment also addressed civil money penalties under the 
Occupational Safety and Health Act (OSH Act), which is administered 
by the Occupational Safety and Health Administration; that portion 
of Farmworker Justice's comment is addressed below.
    \7\ This comment also addressed civil money penalties under the 
OSH Act; that portion of NGA's comment is addressed below.
---------------------------------------------------------------------------

    The Department agrees that civil monetary penalties serve an 
important role in deterring violations of the programs administered by 
the Department. Indeed, the Inflation Adjustment Act is intended to 
improve the effectiveness of civil monetary penalties and to maintain 
their deterrent effect. See DOL IFR, 81 FR at 43431. However, the 
Department increased civil monetary penalties under the H-1B, H-2A, 
FLSA, and MSPA programs in the IFR pursuant to the Inflation Adjustment 
Act's mandatory ``catch-up'' adjustment formula, which is specified in 
the statute and is based on inflation. For this ``catch-up'' 
adjustment, the Inflation Adjustment Act required agencies to identify, 
for each penalty, the year and corresponding amount(s) for which the 
penalty amount, the maximum penalty level, or range of minimum and 
maximum penalties was established (i.e., originally enacted by Congress 
or by regulation) or last adjusted other than pursuant to the Prior 
Inflation Adjustment Act. That amount became the basis of the ``catch-
up'' adjustment, subject to a cap on any penalty increase of 150 
percent of the current penalty amount as of November 2015--allowing for 
a total new penalty of no more than 250 percent of the November 2015 
penalty amount. See Inflation Adjustment Act, Sec. 701. This cap is 
triggered only where the relevant calculation results in a higher 
penalty amount; the Inflation Adjustment Act does not permit agencies 
to increase civil monetary penalties up to this cap where the specified 
calculation results in an increase lower than 150 percent of the 
November 2015 penalty amount. Id.
    As explained in the preamble to the IFR, applying the ``catch-up'' 
formula required by the Inflation Adjustment Act, the civil monetary 
penalties under the FLSA, H-1B, H-2A, and MSPA were increased to the 
maximum amounts permissible under the Inflation Adjustment Act, none of 
which reached or exceeded the 150 percent cap. Accordingly, the 
Department may not further increase civil monetary penalties under 
these programs pursuant to the Inflation Adjustment Act, other than by 
making the subsequent annual adjustments for inflation.

B. Occupational Safety and Health Administration (29 CFR Parts 1902, 
1903)

    In the IFR, the Department increased the civil monetary penalties 
administered by the Occupational Safety and Health Administration 
(OSHA) to enforce provisions of the Occupational Safety & Health Act of 
1970 (OSH Act), as amended, including conforming edits to the agency's 
State Plan regulations. The Department increased these civil monetary 
penalties pursuant to the ``catch-up'' adjustment formula as specified 
in the Inflation Adjustment Act. The Department explained each increase 
in the preamble to the IFR. The Department received four comments 
related to State Plans, and four comments related to the civil penalty 
adjustments.
    Section 18(c)(2) of the OSH Act provides that a State may assume 
responsibility for development and enforcement of its own occupational 
safety and health standards by submitting a State Plan. There were four 
State Plan related comments submitted in response to the DOL IFR. One 
was from the Occupational Safety and Health State Plan Association 
(OSHSPA) and three from individual State Plans (North Carolina, 
Kentucky and New Mexico). Responses to these four comments are 
discussed below.
    Section 18(c)(2) of the OSH Act requires that a State Plan 
``provides for the development and enforcement of safety and health 
standards relating to one or more safety or health issues, which 
standards (and the enforcement of which standards) are or will be at 
least as effective in providing safe and healthful employment and 
places of employment as the standards promulgated under section 6 which 
relate to the same issues. . . .'' Prior to the July 1, 2016 
publication of the IFR, the State Plan Indices of Effectiveness for 
initial approval stated that State Plans must ``[p]rovide[ ] effective 
sanctions against employers who violate State standards and orders, 
such as those prescribed in the Act.'' See 29 CFR 1902.4(c)(2)(xi) 
(2015). In the factors for determination of final approval status, the 
regulations require that, ``[t]he State proposes penalties in a manner 
at least as effective as under the Federal program, including the 
proposing of penalties for first instance violations and the 
consideration of factors comparable to those required to be considered 
under the Federal program.'' See 29 CFR 1902.37(b)(12).
    Thus, OSHA-approved State Plans must have maximum and minimum \8\ 
penalty levels that are at least as effective as federal OSHA's per 
Section 18 (c)(2) of the OSH Act; See 29 CFR 1902.4(c)(2)(xi); 
1902.37(b)(12). It is OSHA's long-standing position that ``at least as 
effective,'' in this context, means that State Plans must have maximum 
and minimum penalty levels that are at least as high as OSHA's maximum 
and minimum penalty levels. Therefore, all State Plans must increase 
their maximum and minimum penalty levels to be at least as high as 
OSHA's initial catch-up maximum and minimum penalty levels in 29 CFR 
1903.15(d), and must thereafter increase these maximums and minimums 
based on inflation.
---------------------------------------------------------------------------

    \8\ The penalties increased include the range of penalties for 
willful citations, which includes both a minimum and a maximum.
---------------------------------------------------------------------------

    With the publication of the IFR, the location of OSHA's maximum and 
minimum penalties was moved from Section 17 of the OSH Act to 29 CFR 
1903.15(d). To make it clear where the OSHA penalty levels are located, 
OSHA amended 29 CFR 1902.4(c)(2)(xi) to now read that State Plans must 
``[p]rovide[] effective sanctions against employers who violated State 
standards and orders, such as those prescribed in the Act and 29 CFR 
1903.15(d)''(emphasis added). This change was simply to add a reference 
to the new location of OSHA penalty levels, in 29 CFR 1903.15(d).
    OSHSPA submitted a letter requesting that OSHA make clear that the 
amendment to 29 CFR 1902.4(c)(2)(xi) is

[[Page 5376]]

not intended to require State Plans to have an identical penalty 
structure for assessed penalties. As explained above, State Plans have 
long been required to have effective sanctions as prescribed in the OSH 
Act. The penalty levels in the OSH Act (Section 17) have historically 
been OSHA's maximum and minimum penalties, while OSHA's structure or 
practice for assessing penalties has been developed through policy and 
is currently contained in OSHA's Field Operations Manual. OSHA confirms 
that the amendment to Sec.  1902.4(c)(2)(xi) refers only to the 
location of the new maximum and minimum penalty levels in 29 CFR 
1903.15(d). The change to Sec.  1902.4(c)(2)(xi) does not expand OSHA's 
scope of authority or control over State Plans' penalties, nor does it 
alter OSHA's obligation to analyze both State Plan maximum penalties 
and State Plan penalty assessment structures under the ``at least as 
effective'' lens.
    The North Carolina Department of Labor submitted a comment that 
took issue with OSHA's amendment of 29 CFR 1902.4(c)(2)(xi), and was 
joined by Kentucky Labor Cabinet and the New Mexico Environment 
Department. The North Carolina State Plan contended that OSHA's 
amendment to 29 CFR 1902.4(c)(2)(xi) was in excess of the authority 
granted by the Bipartisan Budget Act of 2015's amendment to the 
Inflation Adjustment Act; not in conformance with the APA, 5 U.S.C. 
553; and arbitrary, capricious, and an abuse of discretion.
    The Inflation Adjustment Act directed OSHA to increase maximum and 
minimum penalties through an IFR issuing without prior notice and 
comment rather than a change to the OSH Act. OSHA has the inherent 
authority to make technical amendments to its regulations to conform to 
Congress's direction to increase its penalty levels. With the change to 
the location of penalty levels to 29 CFR 1903.15(d), OSHA needed to 
update the reference in 29 CFR 1902.4(c)(2)(xi) to point to both the 
Act and the new regulation. This change was merely the addition of a 
reference, or pointer, to increase clarity and transparency in the 
State Plan Indices of effectiveness.
    The North Carolina, Kentucky and New Mexico State Plans argue that 
the change to 29 CFR 1902.4(c)(2)(xi) violated the APA because it was 
not issued through notice-and-comment rulemaking, and the good cause 
exception to notice-and-comment rulemaking is not applicable.
    As noted by the North Carolina State Plan, the APA exception from 
notice and comment applies to regulations that make minor technical 
amendments and non-substantive corrections. See p. 3. That comports 
with the APA language that notice and comment is not required where 
they are ``impractical, unnecessary, or contrary to the public 
interest.'' 5 U.S.C. 553(b)(3)(B). The amendment to 29 CFR 
1902.4(c)(2)(xi) fits within that exception because it is a minor, 
technical amendment that updated the reference to the location of OSHA 
maximum and minimum penalty levels. It is the ``at least as effective'' 
standard in OSH Act Sec.  18 that requires State Plans to increase 
their maximum and minimum penalty levels, and the amendment to 29 CFR 
1902.4(c)(2)(xi) only made clear to State Plans and all other 
stakeholders that the maximum and minimum penalty levels that State 
Plans are required to be at least as effective as, are now listed under 
29 CFR 1903.15(d), and are no longer in OSH Act Sec.  17. There is no 
need for notice and comment on that type of ``pointer'' reference. See, 
e.g., Corrections and Technical Amendments to 16 OSHA Standards, 76 FR 
80735 (Dec. 27, 2011) (updating cross-reference from ``Section 
101(14)'' of the Comprehensive Environmental Response Compensation and 
Liability Act (CERCLA) to ``Section 103(14)'' after Congress amended 
CERCLA). Nonetheless, DOL did accept comments on the IFR, and several 
State Plans took advantage of that opportunity to file comments,
    Further, the State Plan comments argue that the change to 29 CFR 
1902.4(c)(2)(xi) was arbitrary, capricious, and an abuse of discretion 
under the APA because it is not based on reasoned analysis. The North 
Carolina State Plan comment argues that OSHA should present current 
data to support the requirement that State Plans increase penalties to 
the level assessed by OSHA effective August 1, 2016 in order to be 
deemed ``at least as effective.'' Further, the North Carolina State 
Plan comment emphasizes that the ``at least as effective'' standard 
does not require State Plans to have programs identical to OSHA's. New 
Mexico joined in arguing that assessed penalty levels and injury rates 
are not correlated and thus penalty levels should not be part of the 
``at least as effective'' analysis.
    In the Inflation Adjustment Act, Congress found that ``(1) the 
power of Federal agencies to impose civil monetary penalties for 
violations of Federal law and regulations plays an important role in 
deterring violations and furthering the policy goals embodied in such 
laws and regulations; (2) the impact of many civil monetary penalties 
has been and is diminished due to the effect of inflation.'' See 28 
U.S.C. 2461 note, Sec.  2(a). This finding is as applicable to State 
Plan penalties as it is to federal penalties.
    The regulations that OSHA adopted (29 CFR 1903.15(d)) address only 
the maximum and minimum penalty levels--they do not address penalties 
finally assessed or the methodology involved in calculating assessed 
penalties. The latter are matters to be determined under the ``at least 
as effective'' standard, on a case-by-case basis with each State Plan.
    OSHA has an obligation to ensure that State Plans continue to 
maintain maximum and minimum penalty levels that are at least as 
effective as OSHA's. OSHA agrees that the ``at least as effective'' 
standard does not require State Plans to be identical to OSHA. However, 
as acknowledged by the OSHSPA comment, historically, State Plans have 
matched OSHA's maximum and minimum penalties identically. In 1990, when 
Congress last increased OSHA's maximum and minimum penalty levels, all 
State Plans adopted identical penalty levels, resulting in the $7,000/
$70,000 penalty levels in effect for 25 years for both OSHA and the 
State Plans. OSHA recognizes that the August 1, 2016 increase in OSHA's 
maximum and minimum penalty levels is complicated by the requirement 
that the penalties levels increase annually, based on the cost-of-
living adjustment, but that does not mean that State Plans do not have 
to increase their maximum and minimum penalty levels. OSHA will assist 
the State Plans to make these necessary changes occur. OSHA's position 
has been and continues to be that State Plans must have maximum and 
minimum penalties that are at least as effective as OSHA's.
    The IFR updated Sec.  1903.15 to read in part, ``After, or 
concurrent with, the issuance of a citation, and within a reasonable 
time after the termination of the inspection, the Area Director shall 
notify the employer by certified mail or by personal service by the 
Compliance Safety and Health Officer of the proposed penalty in 
accordance with paragraph (d) of this section, or that no penalty is 
being proposed.'' In its comments, Contractors Risk Management asked 
whether this means that the employer will be notified if there are no 
penalties proposed or no citations issued. At the closing of the 
inspection process, OSHA conducts a closing conference with the 
employer and the employee representatives to discuss the findings of 
the inspection. The compliance officer discusses possible courses of 
action an employer may take following an inspection,

[[Page 5377]]

which could include an informal conference with OSHA or contesting 
citations and proposed penalties where citations and penalties are 
proposed. The compliance officer also discusses consultation services 
and employee rights. This closing conference is held regardless of 
whether citations and penalties are proposed.
    The IFR added Sec.  1903.15(d) to provide the adjusted civil 
penalties for penalties proposed on or after August 1, 2016. 
Contractors Risk Management expressed concern about a case being opened 
before August 1, but higher penalty levied because the time OSHA takes 
to complete the case goes beyond August 1. The Inflation Adjustment Act 
mandates that the catch-up adjustment apply to any civil monetary 
penalty assessed after August 1, 2016, ``including those whose 
associated violation predated such increase'' See Public Law 114-74 at 
Sec.  701. OSHA attempted to complete open cases prior to the August 1 
conversion date. However, in some cases, citations for inspections 
opened prior to August 1st were not issued until after August 1, and 
enhanced penalties were proposed under the new rules. OSHA made every 
effort to inform employers, through outreach, use of our Web site, and 
notices to affected employers, of the changes to our penalties and the 
potential impact on the inspection.
    The NGA commented that it supports the increases in penalties for 
employer violations of the OSH Act, but believes that the Department 
should have increased the penalties to the 150% maximum allowed under 
Inflation Adjustment Act to help ensure employer compliance with the 
law. Farmworker Justice similarly commented that civil monetary 
penalties under the OSH Act should be increased. The Department agrees 
that civil monetary penalties serve an important role in deterring 
violations of the programs administered by the Department. However, the 
Department increased civil monetary penalties under the OSH Act in the 
IFR pursuant to the Inflation Adjustment Act's mandatory ``catch-up'' 
adjustment formula, which is specified in the statute and is based on 
inflation. For this ``catch-up'' adjustment, the Inflation Adjustment 
Act required agencies to identify, for each penalty, the year and 
corresponding amount(s) for which the penalty amount, the maximum 
penalty level, or range of minimum and maximum penalties was 
established (i.e., originally enacted by Congress or by regulation) or 
last adjusted other than pursuant to the Prior Inflation Adjustment 
Act. That amount became the basis of the ``catch-up'' adjustment, 
subject to a cap on any penalty increase of 150 percent of the current 
penalty amount as of November 2015--allowing for a total new penalty of 
no more than 250 percent of the November 2015 penalty amount. See 
Inflation Adjustment, Sec. 701. This cap is triggered only where the 
relevant calculation results in a higher penalty amount; the Inflation 
Adjustment Act does not permit agencies to increase civil monetary 
penalties up to this cap where the specified calculation results in an 
increase lower than 150 percent of the November 2015 penalty amount. 
Id. By applying the ``catch-up'' formula required by the Inflation 
Adjustment Act, the civil monetary penalties under the OSH Act were 
increased to the maximum amounts permissible under the Inflation 
Adjustment Act, none of which reached or exceeded the 150 percent cap.
    The Center for Progressive Reform commented that it applauds the 
agency for adjusting the penalties to the maximum amount permitted by 
the Inflation Adjustment Act, but it encourages OSHA to revise its 
informal settlement policies. In response to the penalty adjustments 
mandated by Congress, OSHA revised Chapter 6 of its Field Operations 
Manual. In revising the guidance, OSHA wanted to be consistent with 
current procedures and ensure that penalties were impactful. However, 
we were also mindful of the impact that these changes may have had on 
small businesses. To offset any undue impact, OSHA created an 
additional size category for businesses with 1-10 employees, and now 
offers a reduction of 70 percent for those smallest businesses. The 
informal settlement policy remains the same, but OSHA is closely 
monitoring the influence that the new penalties have on our contest 
rates, etc. to see where adjustments, if needed, may be appropriate.

C. Employee Benefits Security Administration (29 CFR Part 2560, 2575, 
2590)

    In the IFR, the Department increased the civil monetary penalties 
administered by the Employee Benefits Security Administration to 
enforce provisions of the Employee Retirement Income Security Act of 
1974, as amended, (ERISA). The Department increased these civil 
monetary penalties as required by the ``catch-up'' adjustment formula 
specified in the Inflation Adjustment Act. Minor modifications were 
made to 29 CFR 2575.3 to clarify that future inflation adjustments to 
ERISA civil monetary penalties would be made by notice in the Federal 
Register without amending the code of federal regulations each year to 
reflect an increase in the penalty amount.
    The Department received one comment letter regarding the adjustment 
of the ERISA civil monetary penalties under the IFR. The commenter, the 
National Association of Health Underwriters (NAHU), stated that ``the 
formula used to increase penalties was fairly applied in the IFR.'' 
NAHU, however, questioned the ``decision to impose increased penalties 
on employers at this time'' due to the increased cost of compliance and 
reporting responsibilities placed on group health plans by the Patient 
Protection and Affordable Care Act (ACA). NAHU expressed concern ``that 
increasing the potential penalties could have a detrimental impact on 
an employer's potential willingness to offer group benefits, 
particularly for smaller employers that have not previously offered 
coverage.'' Most ERISA civil monetary penalties affecting group health 
plans are expressed in terms of ``up to'' or ``not more than'' a 
maximum penalty. The Department did not automatically impose the 
maximum penalty in the past and has no plans at this time to change its 
enforcement policy to maximize penalty collections following the catch-
up adjustment. It is the view of the Department that neither the catch-
up adjustment nor any subsequent adjustment will have the detrimental 
impact on group health plans suggested by NAHU. Accordingly, the 
unverifiable social cost of the catch-up adjustment postulated by 
NAHU's comment does not outweigh the benefits of increasing the ERISA 
civil monetary penalties by the otherwise required amount.
    Section 4(a) of the Inflation Adjustment Act states that ``[n]ot 
later than July 1, 2016, and not later than January 15 of every year 
thereafter,'' the head of each agency shall adjust civil monetary 
penalties in accordance with section 4(b). Section 4(b)(1) states that 
``for purposes of the first adjustment'' (i.e., the catch-up 
adjustment) the ``head of each agency shall adjust the civil monetary 
penalties by IFR'' that ``shall take effect no later than August 1, 
2016.'' Since the operative word of the statute is ``shall,'' the 
Department did not have the discretion to delay adjustment of the ERISA 
civil monetary penalties beyond August 1, 2016, except as otherwise 
provided by section 4(c) of the Inflation Adjustment Act.
    Under section 4(c), an agency could not delay or otherwise reduce 
the catch-up adjustment unless: (1) After

[[Page 5378]]

publishing a notice of proposed rulemaking in the Federal Register, the 
agency determines that the increase in the penalty or penalty range 
would have a negative economic impact, or that the social costs of 
increasing the penalty would outweigh the benefits, and (2) OMB 
concurred with that determination. OMB advised that an agency seeking 
OMB's concurrence to a reduction of the required catch-up adjustment 
must submit the associated notice of proposed rulemaking to the Office 
of Information and Regulatory Affairs (OIRA) of OMB for review by May 
2, 2016.\9\ OMB also advised that its concurrence to a reduction of the 
catch-up adjustment would be ``rare.'' \10\ The Department decided not 
to pursue a reduction in the increase of any of the ERISA penalties, 
because, in the Department's view, there was no negative economic 
impact or a verifiable social cost resulting from the catch-up 
adjustment. Since the Department did not submit the requisite notice of 
proposed rulemaking to OIRA by May 2, 2016, the Department arguably 
does not have the authority to reduce a required catch-up adjustment to 
an ERISA penalty under section 4(c). Even if the Department currently 
has the authority to reduce a catch-up adjustment under section 4(c), 
the one comment received by the Department regarding ERISA penalties 
did not provide sufficient evidence of negative economic impact or 
social cost for the Department to seek a reduction of the increased 
ERISA penalties resulting from the catch-up adjustment.
---------------------------------------------------------------------------

    \9\ See, OMB Mem. M-16-06 (Feb. 24, 2016), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.
    \10\ Id.
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IV. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) 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 does not require any collection of 
information.

V. Administrative Procedure Act

    The Inflation Adjustment Act provides that agencies shall annually 
adjust civil monetary penalties for inflation notwithstanding Section 
553 of the APA. Additionally, the Inflation Adjustment Act provides a 
nondiscretionary cost-of-living formula for annual adjustment of the 
civil monetary penalties. For these reasons, the requirements in 
sections 553(b), (c), and (d) of the APA, relating to notice and 
comment and requiring that a rule be effective 30 days after 
publication in the Federal Register, are inapplicable.

VI. Executive Order 12866: Regulatory Planning and Review, and 
Executive Order 13563: Improving Regulation and Regulatory Review

    Executive Order 12866 requires that regulatory agencies assess both 
the costs and benefits of significant regulatory actions. Under the 
Executive Order, a ``significant regulatory action'' is one meeting any 
of a number of 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 Department has determined that this final rule is not a 
``significant'' regulatory action and a cost-benefit and economic 
analysis is not required. This regulation merely adjusts civil monetary 
penalties in accordance with inflation as required by the Inflation 
Adjustment Act, and has no impact on disclosure or compliance costs. 
The benefit provided by the inflationary adjustment to the maximum 
civil monetary penalties is that of maintaining the incentive for the 
regulated community to comply with the laws enforced by the Department, 
and not allowing the incentive to be diminished by inflation.
    Executive Order 13563 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility to 
minimize burden.
    This final rule is exempt from the requirements of the APA because 
the Inflation Adjustment Act directed the Department to issue the 
annual adjustments without regard to Section 553 of the APA. In that 
context, Congress has already determined that any possible increase in 
costs is justified by the overall benefits of such adjustments. This 
final rule makes only the statutory changes outlined herein; thus there 
are no alternatives or further analysis required by E.O. 13563.

VII. Regulatory Flexibility Act and Small Business Regulatory 
Enforcement Fairness Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes 
certain requirements on Federal agency rules that are subject to the 
notice and comment requirements of the APA, 5 U.S.C. 553(b). This final 
rule is exempt from the requirements of the APA because the Inflation 
Adjustment Act directed the Department to issue the annual adjustments 
without regard to Section 553 of the APA. Therefore, the requirements 
of the RFA applicable to notices of proposed rulemaking, 5 U.S.C. 603, 
do not apply to this rule. 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.

VIII. Other Regulatory Considerations

A. The Unfunded Mandates Reform Act of 1995

    Because the rule simply adjusts for inflation, it does not include 
any Federal mandate that may result in increased expenditures by State, 
local, or tribal governments; nor does it increase private sector 
expenditures by more than $100 million annually; nor does it 
significantly or uniquely affect small governments. Accordingly, the 
Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) requires 
no further agency action or analysis.

B. Executive Order 13132: Federalism

    Section 18 of the OSH Act (29 U.S.C. 667) requires OSHA-approved 
State Plans to have standards and an enforcement program that are at 
least as effective as federal OSHA's standards and enforcement program. 
OSHA-approved State Plans must have maximum and minimum penalty levels 
that are at least as effective as federal OSHA's per Section 18 (c)(2) 
of the OSH Act; 29 CFR 1902.4(c)(2)(xi); 1902.37(b)(12). State Plans 
are required to increase their penalties in alignment with OSHA's 
penalty increases to maintain at least as effective penalty levels.
    State Plans are not required to impose monetary penalties on state 
and local government employers. See Sec.  1956.11(c)(2)(x). Five (5) 
states and one territory have State Plans that cover only state and 
local government employees: Connecticut, Illinois, New Jersey, New 
York, Maine, and the Virgin Islands. Therefore, the requirements to 
increase the penalty levels do not apply to these State Plans. Twenty-
one (21)

[[Page 5379]]

states and one U.S. territory have State Plans that cover both private 
sector employees and state and local government employees: Alaska, 
Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland, 
Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto 
Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, 
and Wyoming. These states must increase their penalties for private-
sector employers.
    Other than as listed above, this final rule does not have 
federalism implications because it 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. Accordingly, 
Executive Order 13132, Federalism, requires no further agency action or 
analysis.

C. Executive Order 13175: Indian Tribal Governments

    This final rule does not have ``tribal implications'' because it 
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. Accordingly, Executive Order 
13175, Consultation and Coordination with Indian Tribal Governments, 
requires no further agency action or analysis.

D. The Treasury and General Government Appropriations Act of 1999: 
Assessment of Federal Regulations and Policies on Families

    This final rule will have no effect on family well-being or 
stability, marital commitment, parental rights or authority, or income 
or poverty of families and children. Accordingly, section 654 of the 
Treasury and General Government Appropriations Act of 1999 (5 U.S.C. 
601 note) requires no further agency action, analysis, or assessment.

E. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This final rule will have no adverse impact on children. 
Accordingly, Executive Order 13045, Protection of Children from 
Environmental Health Risks and Safety Risks, as amended by Executive 
Orders 13229 and 13296, requires no further agency action or analysis.

F. Environmental Impact Assessment

    A review of this final rule in accordance with the requirements of 
the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321 et 
seq.; the regulations of the Council on Environmental Quality, 40 CFR 
1500 et seq.; and the Departmental NEPA procedures, 29 CFR part 11, 
indicates that the final rule will not have a significant impact on the 
quality of the human environment. As a result, there is no 
corresponding environmental assessment or an environmental impact 
statement.

G. Executive Order 13211: Energy Supply

    This final rule has been reviewed for its impact on the supply, 
distribution, and use of energy because it applies, in part, to the 
coal mining and uranium industries. MSHA has concluded that the 
adjustment of civil monetary penalties to keep pace with inflation and 
thus maintain the incentive for operators to maintain safe and 
healthful workplaces is not a significant energy action because it is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy.
    This final rule has not been identified to have other impacts on 
energy supply. Accordingly, Executive Order 13211 requires no further 
Agency action or analysis.

H. Executive Order 12630: Constitutionally Protected Property Rights

    This final rule will not implement a policy with takings 
implications. Accordingly, Executive Order 12630, Governmental Actions 
and Interference with Constitutionally Protected Property Rights, 
requires no further agency action or analysis.

I. Executive Order 12988: Civil Justice Reform Analysis

    This final rule was drafted and reviewed in accordance with 
Executive Order 12988, Civil Justice Reform. This final rule was 
written to provide a clear legal standard for affected conduct and was 
carefully reviewed to eliminate drafting errors and ambiguities, so as 
to minimize litigation and undue burden on the Federal court system. 
The Department has determined that this IFR meets the applicable 
standards provided in section 3 of Executive Order 12988.

List of Subjects

20 CFR Part 655

    Immigration, Penalties, Labor.

20 CFR Part 702

    Administrative practice and procedure, Longshore and harbor 
workers, Penalties, Reporting and recordkeeping requirements, Workers' 
compensation.

20 CFR Part 725

    Administrative practice and procedure, Black lung benefits, Coal 
miners, Penalties, Reporting and recordkeeping requirements.

20 CFR Part 726

    Administrative practice and procedure, Black lung benefits, Coal 
miners, Mines, Penalties.

29 CFR Part 5

    Administrative practice and procedure, Construction industry, 
Employee benefit plans, Government contracts, Law enforcement, Minimum 
wages, Penalties, Reporting and recordkeeping requirements.

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, Labor, Migrant 
labor, Penalties, Transportation, Wages.

29 CFR Part 530

    Administrative practice and procedure, Clothing, Homeworkers, 
Indians-arts and crafts, Penalties, Reporting and recordkeeping 
requirements, Surety bonds, Watches and jewelry.

29 CFR Part 570

    Child labor, Law enforcement, Penalties.

29 CFR Part 578

    Penalties, Wages.

29 CFR Part 579

    Child labor, Penalties.

29 CFR Part 801

    Administrative practice and procedure, Employment, Lie detector 
tests, Penalties, Reporting and recordkeeping requirements.

29 CFR Part 825

    Administrative practice and procedure, Airmen, Employee benefit 
plans, Health, Health insurance, Labor management relations, Maternal 
and child health, Penalties, Reporting and recordkeeping requirements, 
Teachers.

[[Page 5380]]

29 CFR Part 1903

    Intergovernmental relations, Law enforcement, Occupational Safety 
and Health, Penalties.

29 CFR Part 2560

    Employee benefit plans, Employee Retirement Income Security Act, 
Law enforcement, Penalties, Pensions, Reporting and recordkeeping.

29 CFR Part 2575

    Administrative practice and procedure, Employee benefit plans, 
Employee Retirement Income Security Act, Health care, Penalties, 
Pensions.

29 CFR Part 2590

    Employee benefit plans, Employee Retirement Income Security Act, 
Health care, Health insurance, Penalties, Pensions, Reporting and 
recordkeeping.

30 CFR Part 100

    Mine safety and health, Penalties.

    For the reasons set out in the preamble, 20 CFR chapters V and VI, 
29 CFR chapters V, XVII, and XXV, and 30 CFR chapter I are amended as 
follows.

Department of Labor

Employment and Training Administration

Title 20--Employees' Benefits

PART 655--TEMPORARY EMPLOYMENT OF FOREIGN WORKERS IN THE UNITED 
STATES

0
1. The authority citation for part 655 continues to read as follows:

    Authority:  Section 655.0 issued under 8 U.S.C. 
1101(a)(15)(E)(iii), 1101(a)(15)(H)(i) and (ii), 8 U.S.C. 
1103(a)(6), 1182(m), (n) and (t), 1184(c), (g), and (j), 1188, and 
1288(c) and (d); sec. 3(c)(1), Pub. L. 101-238, 103 Stat. 2099, 2102 
(8 U.S.C. 1182 note); sec. 221(a), Pub. L. 101-649, 104 Stat. 4978, 
5027 (8 U.S.C. 1184 note); sec. 303(a)(8), Pub. L. 102- 232, 105 
Stat. 1733, 1748 (8 U.S.C. 1101 note); sec. 323(c), Pub. L. 103-206, 
107 Stat. 2428; sec. 412(e), Pub. L. 105-277, 112 Stat. 2681 (8 
U.S.C. 1182 note); sec. 2(d), Pub. L. 106-95, 113 Stat. 1312, 1316 
(8 U.S.C. 1182 note); 29 U.S.C. 49k; Pub. L. 107-296, 116 Stat. 
2135, as amended; Pub. L. 109-423, 120 Stat. 2900; 8 CFR 
214.2(h)(4)(i); and 8 CFR 214.2(h)(6)(iii).

    Subpart A issued under 8 CFR 214.2(h).
    Subpart B issued under 8 U.S.C. 1101(a)(15)(H)(ii)(a), 1184(c), 
and 1188; and 8 CFR 214.2(h).
    Subparts F and G issued under 8 U.S.C. 1288(c) and (d); sec. 
323(c), Pub. L. 103-206, 107 Stat. 2428; and 28 U.S.C. 2461 note, 
Pub. L. 114-74 at section 701.
    Subparts H and I issued under 8 U.S.C. 1101(a)(15)(H)(i)(b) and 
(b)(1), 1182(n) and (t), and 1184(g) and (j); sec. 303(a)(8), Pub. 
L. 102-232, 105 Stat. 1733, 1748 (8 U.S.C. 1101 note); sec. 412(e), 
Pub. L. 105-277, 112 Stat. 2681; 8 CFR 214.2(h); and 28 U.S.C. 2461 
note, Pub. L. 114-74 at section 701.
    Subparts L and M issued under 8 U.S.C. 1101(a)(15)(H)(i)(c) and 
1182(m); sec. 2(d), Pub. L. 106-95, 113 Stat. 1312, 1316 (8 U.S.C. 
1182 note); Pub. L. 109-423, 120 Stat. 2900; and 8 CFR 214.2(h).


Sec. Sec.  655.620, 655.801, and 655.810  [Amended]

0
2. In the table below, for each paragraph indicated in the left column, 
remove the dollar amount indicated in the middle column from wherever 
it appears in the paragraph and add in its place the dollar amount 
indicated in the right column.

----------------------------------------------------------------------------------------------------------------
                           Paragraph                                     Remove                    Add
----------------------------------------------------------------------------------------------------------------
Sec.   655.620(a).............................................                   $8,908                   $9,054
Sec.   655.801(b).............................................                    7,251                    7,370
Sec.   655.810(b)(1) introductory text........................                    1,782                    1,811
Sec.   655.810(b)(2) introductory text........................                    7,251                    7,370
Sec.   655.810(b)(3) introductory text........................                   50,758                   51,588
----------------------------------------------------------------------------------------------------------------

Department of Labor

Office of Workers' Compensation Programs

PART 702--ADMINISTRATION AND PROCEDURE

0
3. The authority citation for part 702 continues to read as follows:

    Authority:  5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et 
seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 
114-74 at sec.701; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 
Stat. 1263; Secretary's Order 10-2009, 74 FR 58834.


Sec. Sec.  702.204, 702.236, and 702.271   [Amended]

0
4. In the table below, for each paragraph indicated in the left column, 
remove the dollar amount or date indicated in the middle column from 
wherever it appears in the paragraph and add in its place the dollar 
amount or date indicated in the right column.

----------------------------------------------------------------------------------------------------------------
               Paragraph                               Remove                                Add
----------------------------------------------------------------------------------------------------------------
Sec.   702.204........................  $22,587............................  $22,957.
Sec.   702.204........................  August 1, 2016.....................  January 13, 2017.
Sec.   702.236........................  $275...............................  $279.
Sec.   702.236........................  August 1, 2016.....................  January 13, 2017.
Sec.   702.271(a)(2)..................  August 1, 2016.....................  January 13, 2017.
Sec.   702.271(a)(2)..................  $2,259.............................  $2,296.
Sec.   702.271(a)(2)..................  $11,293............................  $11,478.
----------------------------------------------------------------------------------------------------------------

PART 725--CLAIMS FOR BENEFITS UNDER PART C OF TITLE IV OF THE 
FEDERAL MINE SAFETY AND HEALTH ACT, AS AMENDED

0
5. The authority citation for part 725 continues to read as follows:

    Authority:  5 U.S.C. 301; 28 U.S.C. 2461 note (Federal Civil 
Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at sec. 
701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 30 U.S.C. 901 et 
seq., 902(f), 921, 932, 936; 33 U.S.C. 901 et seq.; 42 U.S.C. 405; 
Secretary's Order 10-2009, 74 FR 58834.


Sec.  725.621   [Amended]

0
6. In Sec.  725.621, amend paragraph (d) by removing ``August 1, 2016'' 
and adding in its place ``January 13, 2017'' and by removing ``$1,375'' 
and adding in its place ``$1,397''.

PART 726--BLACK LUNG BENEFITS; REQUIREMENTS FOR COAL MINE 
OPERATOR'S INSURANCE

0
7. The authority citation for part 726 continues to read as follows:


[[Page 5381]]


    Authority:  5 U.S.C. 301; 33 U.S.C. 901 et seq., 902(f), 925, 
932, 933, 934, 936; 33 U.S.C. 901 et seq.; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 
114-74 at sec. 701; Reorganization Plan No. 6 of 1950, 15 FR 3174; 
Secretary's Order 10-2009, 74 FR 58834.


Sec.  726.302   [Amended]

0
8. In the table below, for each paragraph indicated in the left column, 
remove the dollar amount or date indicated in the middle column from 
wherever it appears in the paragraph and add in its place the dollar 
amount or date indicated in the right column.

----------------------------------------------------------------------------------------------------------------
               Paragraph                               Remove                                Add
----------------------------------------------------------------------------------------------------------------
Sec.   726.302(c)(2)(i)...............  August 1, 2016.....................  January 13, 2017.
Sec.   726.302(c)(2)(i)...............  $134...............................  $136.
Sec.   726.302(c)(2)(i)...............  268................................  272.
Sec.   726.302(c)(2)(i)...............  402................................  409.
Sec.   726.302(c)(2)(i)...............  535................................  544.
Sec.   726.302(c)(4)..................  August 1, 2016.....................  January 13, 2017.
Sec.   726.302(c)(4)..................  $134...............................  $136.
Sec.   726.302(c)(5)..................  August 1, 2016.....................  January 13, 2017.
Sec.   726.302(c)(5)..................  $402...............................  $409.
Sec.   726.302(c)(6)..................  August 1, 2016.....................  January 13, 2017.
Sec.   726.302(c)(6)..................  $2,750.............................  $2,795.
----------------------------------------------------------------------------------------------------------------

Department of Labor

Wage and Hour Division

Title 29--Labor

PART 500--MIGRANT AND SEASONAL AGRICULTURAL WORKER PROTECTION

0
9. 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.


Sec.  500.1  [Amended]

0
10. In Sec.  500.1, amend paragraph (e) by removing ``$2,355'' and 
adding in its place ``$2,394''.

PART 501--ENFORCEMENT OF CONTRACTUAL OBLIGATIONS FOR TEMPORARY 
ALIEN AGRICULTURAL WORKERS ADMITTED UNDER SECTION 218 OF THE 
IMMIGRATION AND NATIONALITY ACT

0
11. 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.


Sec.  501.19  [Amended]

0
12. In the table below, for each paragraph indicated in the left 
column, remove the dollar amount indicated in the middle column from 
wherever it appears in the paragraph and add in its place the dollar 
amount indicated in the right column.

----------------------------------------------------------------------------------------------------------------
                           Paragraph                                     Remove                    Add
----------------------------------------------------------------------------------------------------------------
Sec.   501.19(c) introductory text............................                   $1,631                   $1,658
Sec.   501.19(c)(1)...........................................                    5,491                    5,581
Sec.   501.19(c)(2)...........................................                   54,373                   55,263
Sec.   501.19(c)(4)...........................................                  108,745                  110,524
Sec.   501.19(d)..............................................                    5,491                    5,581
Sec.   501.19(e)..............................................                   16,312                   16,579
Sec.   501.19(f)..............................................                   16,312                   16,579
----------------------------------------------------------------------------------------------------------------

PART 530--EMPLOYMENT OF HOMEWORKERS IN CERTAIN INDUSTRIES

0
13. The authority citation for part 530 continues to read as follows:

    Authority: Sec. 11, 52 Stat. 1066 (29 U.S.C. 211) as amended by 
sec. 9, 63 Stat. 910 (29 U.S.C. 211(d)); 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); 
Pub. L. 114-74 at sec. 701, 129 Stat 584.

0
14. In Sec.  530.302, amend paragraph (a) by removing ``$989'' and 
adding in its place ``$1,005'' and revise paragraph (b) to read as 
follows:


Sec.  530.302  Amounts of civil penalties.

* * * * *
    (b) The amount of civil money penalties shall be determined per 
affected homeworker within the limits set forth in the following 
schedule, except that no penalty shall be assessed in the case of 
violations which are deemed to be de minimis in nature:

----------------------------------------------------------------------------------------------------------------
                                                                          Penalty per affected homeworker
                                                                 -----------------------------------------------
                       Nature of violation                                                           Repeated,
                                                                       Minor        Substantial   intentional or
                                                                                                      knowing
----------------------------------------------------------------------------------------------------------------
Recordkeeping...................................................         $20-201        $201-402      $402-1,005
Monetary violations.............................................          20-201         201-402
Employment of homeworkers without a certificate.................  ..............         201-402       402-1,005
Other violations of statutes, regulations or employer assurances          20-201         201-402       402-1,005
----------------------------------------------------------------------------------------------------------------


[[Page 5382]]

PART 570--CHILD LABOR REGULATIONS, ORDERS AND STATEMENTS OF 
INTERPRETATION

0
15. The authority citation for Subpart G of part 570 continues to read 
as follows:

    Authority:  52 Stat. 1060-1069, as amended; 29 U.S.C. 201-219; 
28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment 
Act of 1990); Pub. L. 114-74 at Sec.  701.


Sec.  570.140  [Amended]

0
16. In Sec.  570.140, amend paragraph (b)(1) by removing ``$12,080'' 
and adding in its place ``$12,278'' and paragraph (b)(2) by removing 
``$54,910'' and adding in its place ``$55,808''.

PART 578--MINIMUM WAGE AND OVERTIME VIOLATIONS--CIVIL MONEY 
PENALTIES

0
17. The authority citation for part 578 continues to read as follows:

    Authority:  Sec. 9, Pub. L. 101-157, 103 Stat. 938, sec. 3103, 
Pub. L. 101-508, 104 Stat. 1388-29 (29 U.S.C. 216(e)), Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note), as amended by Pub. L. 104-
134, section 31001(s), 110 Stat. 1321-358, 1321-373, and Pub. L. 
114-74, 129 Stat 584.


Sec.  578.3  [Amended]

0
18. In Sec.  578.3, amend paragraph (a) by removing ``$1,894'' and 
adding in its place ``$1,925''.

PART 579--CHILD LABOR VIOLATIONS--CIVIL MONEY PENALTIES

0
19. The authority citation for part 579 continues to read as follows:

    Authority: 29 U.S.C. 203(l), 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 of Labor'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. 114-7, 129 
Stat 584.


Sec.  579.1  [Amended]

0
20. In the table below, for each paragraph indicated in the left 
column, remove the dollar amount indicated in the middle column from 
wherever it appears in the paragraph and add in its place the dollar 
amount indicated in the right column.

 
----------------------------------------------------------------------------------------------------------------
                           Paragraph                                     Remove                    Add
----------------------------------------------------------------------------------------------------------------
Sec.   579.1(a)(1)(i)(A)......................................                  $12,080                  $12,278
Sec.   579.1(a)(1)(i)(B)......................................                   54,910                   55,808
Sec.   579.1(a)(2)............................................                    1,894                    1,925
----------------------------------------------------------------------------------------------------------------

PART 801--APPLICATION OF THE EMPLOYEE POLYGRAPH PROTECTION ACT OF 
1988

0
21. 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.


Sec.  801.42  [Amended]

0
22. In Sec.  801.42, amend paragraph (a) by removing ``$19,787'' and 
adding in its place ``$20,111''.

PART 825--THE FAMILY AND MEDICAL LEAVE ACT OF 1993

0
23. The authority citation for part 825 continues to read as follows:

    Authority: 29 U.S.C. 2654; 28 U.S.C. 2461 Note (Federal Civil 
Penalties Inflation Adjustment Act of 1990); and Pub. L. 114-74 at 
sec. 701.


Sec.  825.300  [Amended]

0
24. In Sec.  825.300 amend paragraph (a)(1) by removing ``$163'' and 
adding in its place ``$166''.

Department of Labor

Occupational Safety and Health Administration

Title 29--Labor

PART 1903--INSPECTIONS, CITATIONS, AND PROPOSED PENALTIES

0
25. The authority citation for part 1903 continues to read as follows:

    Authority: Secs. 8 and 9 of the Occupational Safety and Health 
Act of 1970 (29 U.S.C. 657, 658); 5 U.S.C. 553; 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990), as 
amended by Section 701, Pub. L. 114-74; Secretary of Labor's Order 
No. 1-2012 (77 FR 3912, Jan. 25, 2012).


Sec.  1903.15  [Amended]

0
26. In the table below, for each paragraph indicated in the left 
column, remove the dollar amount or date indicated in the middle column 
from wherever it appears in the paragraph and add in its place the 
dollar amount or date indicated in the right column.

 
----------------------------------------------------------------------------------------------------------------
               Paragraph                               Remove                                Add
----------------------------------------------------------------------------------------------------------------
Sec.   1903.15(d) introductory text...  on or after August 1, 2016.........  after January 13, 2017.
Sec.   1903.15(d)(1)..................  $8,908.............................  $9,054.
Sec.   1903.15(d)(1)..................  124,709............................  126,749.
Sec.   1903.15(d)(2)..................  124,709............................  126,749.
Sec.   1903.15(d)(3)..................  12,471.............................  12,675.
Sec.   1903.15(d)(4)..................  12,471.............................  12,675.
Sec.   1903.15(d)(5)..................  12,471.............................  12,675.
Sec.   1903.15(d)(6)..................  12,471.............................  12,675.
----------------------------------------------------------------------------------------------------------------


[[Page 5383]]

Department of Labor

Employee Benefits Security Administration

Title 29--Labor

PART 2575--ADJUSTMENT OF CIVIL PENALTIES UNDER ERISA TITLE I

0
27. The authority citation for subpart A of 29 CFR part 2575 continues 
to read as follows:

    Authority: Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note), 
as amended by section 31001(s) of Pub. L. 104-134, 110 Stat. 1321-
373, and section 701 of Pub. L. 114-74, 129 Stat. 584; 29 U.S.C 
1059(b), 1132(c), 1135 and 1185d; and Secretary of Labor's Order 1-
2011, 77 FR 1088 (January 9, 2012).


0
28. Revise Sec.  2575.3 to read as follows:


Sec.  2575.3  Subsequent adjustments to civil monetary penalties

    No later than January 15, starting in 2017, and each subsequent 
year, the Secretary shall adjust for inflation, as required by the 
Inflation Adjustment Act, the civil monetary penalties described in 
Sec.  2575.2 for violations occurring on or after November 2, 2015, and 
any future civil monetary penalties enforceable by the Secretary under 
title I of ERISA. The Secretary shall publish such annual adjustments 
in the Federal Register notwithstanding section 553 of the 
Administrative Procedure Act. Future penalties or adjustments to the 
amount of the penalty that are enacted by statute or regulation (other 
than an adjustment for inflation under the Inflation Adjustment Act) 
will not be adjusted for inflation in the first year those penalty 
levels take effect. Annual inflation adjustments shall apply to 
penalties assessed after the date notice of the annual inflation 
adjustment is published in the Federal Register.

Department of Labor

Mine Safety and Health Administration

Title 30--Mineral Resources

PART 100--CRITERIA AND PROCEDURES FOR PROPOSED ASSESSMENT OF CIVIL 
PENALTIES

0
29. The authority citation for part 100 continues to read as follows:

    Authority: 5 U.S.C. 301; 30 U.S.C. 815, 820, 957; 28 U.S.C. 2461 
note (Federal Civil Penalties Inflation Adjustment Act of 1990); 
Pub. L. 114-74 at sec. 701;

0
30. In Sec.  100.3, amend paragraph (a)(1) introductory text by 
removing ``$68,300'' and adding in its place ``$69,417'' and in 
paragraph (g) by revising Table XIV--Penalty Conversion Table to read 
as follows:

                   Table XIV--Penalty Conversion Table
------------------------------------------------------------------------
                         Points                            Penalty  ($)
------------------------------------------------------------------------
60 or fewer.............................................            $129
61......................................................             140
62......................................................             151
63......................................................             165
64......................................................             178
65......................................................             193
66......................................................             209
67......................................................             227
68......................................................             245
69......................................................             266
70......................................................             288
71......................................................             312
72......................................................             339
73......................................................             367
74......................................................             396
75......................................................             430
76......................................................             467
77......................................................             504
78......................................................             547
79......................................................             593
80......................................................             642
81......................................................             695
82......................................................             753
83......................................................             816
84......................................................             884
85......................................................             958
86......................................................           1,038
87......................................................           1,123
88......................................................           1,218
89......................................................           1,319
90......................................................           1,429
91......................................................           1,547
92......................................................           1,676
93......................................................           1,815
94......................................................           1,967
95......................................................           2,131
96......................................................           2,308
97......................................................           2,500
98......................................................           2,709
99......................................................           2,934
100.....................................................           3,179
101.....................................................           3,443
102.....................................................           3,730
103.....................................................           4,041
104.....................................................           4,377
105.....................................................           4,742
106.....................................................           5,137
107.....................................................           5,565
108.....................................................           6,029
109.....................................................           6,531
110.....................................................           7,075
111.....................................................           7,663
112.....................................................           8,303
113.....................................................           8,994
114.....................................................           9,743
115.....................................................          10,554
116.....................................................          11,433
117.....................................................          12,385
118.....................................................          13,417
119.....................................................          14,535
120.....................................................          15,745
121.....................................................          17,057
122.....................................................          18,477
123.....................................................          20,016
124.....................................................          21,684
125.....................................................          23,488
126.....................................................          25,445
127.....................................................          27,565
128.....................................................          29,861
129.....................................................          32,348
130.....................................................          35,042
131.....................................................          37,960
132.....................................................          41,122
133.....................................................          44,546
134.....................................................          48,099
135.....................................................          51,652
136.....................................................          55,206
137.....................................................          58,758
138.....................................................          62,311
139.....................................................          65,864
140 or more.............................................          69,417
------------------------------------------------------------------------

* * * * *


Sec. Sec.  100.4 and 100.5  [Amended]

0
31. In the table below, for each paragraph indicated in the left 
column, remove the dollar amount indicated in the middle column from 
wherever it appears in the paragraph and add in its place the dollar 
amount indicated in the right column.

----------------------------------------------------------------------------------------------------------------
                           Paragraph                                     Remove                    Add
----------------------------------------------------------------------------------------------------------------
Sec.   100.4(a)...............................................                   $2,277                   $2,314
Sec.   100.4(b)...............................................                    4,553                    4,627
Sec.   100.4(c) introductory text.............................                    5,692                    5,785
Sec.   100.4(c) introductory text.............................                   68,300                   69,417
Sec.   100.5(c)...............................................                    7,399                    7,520
Sec.   100.5(d)...............................................                      313                      318
Sec.   100.5(e)...............................................                  250,433                  254,530
----------------------------------------------------------------------------------------------------------------



[[Page 5384]]

    Note: The following Appendix will not appear in the Code of 
Federal Regulations.


--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 2016                                2017
                                                                                ------------------------------------------------------------------------
                                                                                   Min penalty                          Min penalty
     Agency               Law            Name/description       CFR citation       (rounded to       Max penalty        (rounded to       Max penalty
                                                                                     nearest     (rounded to nearest      nearest         (rounded to
                                                                                     dollar)            dollar)           dollar)      nearest  dollar)
--------------------------------------------------------------------------------------------------------------------------------------------------------
MSHA............  Federal Mine Safety  Regular Assessment.  30 CFR 100.3(A)....  ..............  $68,300............  ..............  $69,417.
                   & Health Act of
                   1977.
MSHA............  Federal Mine Safety  Penalty Conversion   30 CFR 100.3(G)....            $127  68,300.............            $129  69,417.
                   & Health Act of      Table.
                   1977.
MSHA............  Federal Mine Safety  Minimum Penalty for  30 CFR 100.4(a)....           2,277  ...................           2,314
                   & Health Act of      any order issued
                   1977.                under 104(d)(1) of
                                        the Mine Act.
MSHA............  Federal Mine Safety  Minimum penalty for  30 CFR 100.4(b)....           4,553  ...................           4,627
                   & Health Act of      any order issued
                   1977.                under 104(d)(2) of
                                        the Mine Act.
MSHA............  Federal Mine Safety  Penalty for failure  39 CFR 100.4(c)....           5,692  68,300.............           5,785  69,417.
                   & Health Act of      to provide timely
                   1977.                notification under
                                        103(j) of the Mine
                                        Act.
MSHA............  Federal Mine Safety  Any operator who     30 CFR 100.5(C)....  ..............  7,399..............  ..............  7,520.
                   & Health Act of      fails to correct a
                   1977.                violation for
                                        which a citation
                                        or order was
                                        issued under
                                        104(a) of the Mine
                                        Act.
MSHA............  Federal Mine Safety  Violation of         30 CFR 100.5(D)....  ..............  313................  ..............  318.
                   & Health Act of      mandatory safety
                   1977.                standards related
                                        to smoking
                                        standards.
MSHA............  Federal Mine Safety  Flagrant violations  30 CFR 100.5(e)....  ..............  250,433............  ..............  254,530.
                   & Health Act of      under 110(b)(2) of
                   1977.                the Mine Act.
EBSA............  Employee Retirement  Section 209(b):      29 CFR 2575.2(a)...  ..............  28.................  ..............  28.
                   Income Security      Failure to furnish
                   Act.                 reports (e.g.,
                                        pension benefit
                                        statements) to
                                        certain former
                                        participants and
                                        beneficiaries or
                                        maintain records.
EBSA............  Employee Retirement  Section 502(c)(2)--  29 CFR 2575.2(b)...  ..............  2,063..............  ..............  $2,097.
                   Income Security      Per day for
                   Act.                 failure/refusal to
                                        properly file plan
                                        annual report.
EBSA............  Employee Retirement  Section 502(c)(4)--  29 CFR 2575.2(c)...  ..............  1,632..............  ..............  1,659.
                   Income Security      Per day for
                   Act.                 failure to
                                        disclose certain
                                        documents upon
                                        request under
                                        ERISA 101(k) and
                                        (l); failure to
                                        furnish notices
                                        under 101(j) and
                                        514(e)(3)--each
                                        statutory
                                        recipient a
                                        separate violation.
EBSA............  Employee Retirement  Section 502(c)(5)--  29 CFR 2575.2(d)...  ..............  1,502..............  ..............  1,527.
                   Income Security      Per day for each
                   Act.                 failure to file
                                        annual report for
                                        Multiple Employer
                                        Welfare
                                        Arrangements
                                        (MEWAs).
EBSA............  Employee Retirement  Section 502(c)(6)--  29 CFR 2575.2(e)...  ..............  147 per day, not to  ..............  149 per day, not
                   Income Security      Per day for each                                          exceed $1,472 per                    to exceed $1,496
                   Act.                 failure to provide                                        request.                             per request.
                                        Secretary of Labor
                                        requested
                                        documentation not
                                        to exceed a per-
                                        request maximum.
EBSA............  Employee Retirement  Section 502(c)(7)--  29 CFR 2575.2(f)...  ..............  131................  ..............  133.
                   Income Security      Per day for each
                   Act.                 failure to provide
                                        notices of
                                        blackout periods
                                        and of right to
                                        divest employer
                                        securities--each
                                        statutory
                                        recipient a
                                        separate violation.

[[Page 5385]]

 
EBSA............  Employee Retirement  Section 502(c)(8)--  29 CFR 2575.2(g)...  ..............  1,296..............  ..............  1,317.
                   Income Security      Per each failure
                   Act.                 by an endangered
                                        status
                                        multiemployer plan
                                        to adopt a funding
                                        improvement plan
                                        or meet
                                        benchmarks;
                                        failure of a
                                        critical status
                                        multiemployer plan
                                        to adopt a
                                        rehabilitation
                                        plan.
EBSA............  Employee Retirement  Section              29 CFR 2575.2(h)...  ..............  110................  ..............  112.
                   Income Security      502(c)(9)(A)--Per
                   Act.                 day for each
                                        failure by an
                                        employer to inform
                                        employees of CHIP
                                        coverage
                                        opportunities
                                        under Section
                                        701(f)(3)(B)(i)(l)
                                        -each employee a
                                        separate violation.
EBSA............  Employee Retirement  Section              29 CFR 2575.2(i)...  ..............  110................  ..............  112.
                   Income Security      502(c)(9)(B)--Per
                   Act.                 day for each
                                        failure by a plan
                                        to timely provide
                                        to any State
                                        information
                                        required to be
                                        disclosed under
                                        Section
                                        701(f)(3)(B)(ii),
                                        as added by CHIP
                                        regarding coverage
                                        coordination--each
                                        participant/
                                        beneficiary a
                                        separate violation.
EBSA............  Employee Retirement  Section 502(c)(10)-- 29 CFR 2575.2(j)(1)  ..............  110................  ..............  112.
                   Income Security      Failure by any
                   Act.                 plan sponsor of
                                        group health plan,
                                        or any health
                                        insurance issuer
                                        offering health
                                        insurance coverage
                                        in connection with
                                        the plan, to meet
                                        the requirements
                                        of Sections
                                        702(a)(1)(F),
                                        (b)(3), (c) or
                                        (d); or Section
                                        701; or Section
                                        702(b)(1) with
                                        respect to genetic
                                        information--daily
                                        per participant
                                        and beneficiary
                                        non-compliance
                                        period.
EBSA............  Employee Retirement  Section 502(c)(10)-- 29 CFR 2575.2(j)(2)           2,745  ...................          2,790.
                   Income Security      uncorrected de
                   Act.                 minimis violation.
EBSA............  Employee Retirement  Section 502(c)(10)-- 29 CFR 2575.2(j)(3)          16,473  ...................         16,742.
                   Income Security      uncorrected
                   Act.                 violations that
                                        are not de minimis.
EBSA............  Employee Retirement  Section 502(c)(10)-- 29 CFR 2575.2(j)(4)  ..............  549,095............  ..............  558,078.
                   Income Security      unintentional
                   Act.                 failure maximum
                                        cap.
EBSA............  Employee Retirement  Section 502(c)(12)-- 29CFR 2575.2(k)....  ..............  100................  ..............  102.
                   Income Security      Per day for each
                   Act.                 failure of a CSEC
                                        plan in
                                        restoration status
                                        to adopt a
                                        restoration plan.
EBSA............  Employee Retirement  Section 502(m)--     29 CFR 2575.2(l)...  ..............  15,909.............  ..............  16,169.
                   Income Security      Failure of
                   Act.                 fiduciary to make
                                        a proper
                                        distribution from
                                        a defined benefit
                                        plan under section
                                        206(e) of ERISA.
EBSA............  Employee Retirement  Failure to provide   29 CFR 2575.2(m)...  ..............  1,087..............  ..............  1,105.
                   Income Security      Summary of
                   Act.                 Benefits Coverage
                                        under PHS Act
                                        section 2715(f),
                                        as incorporated in
                                        ERISA section 715
                                        and 29 CFR
                                        2590.715-2715(e).
OSHA............  Occupational Safety  Serious Violation..  29 CFR               ..............  12,471.............  ..............  12,675.
                   and Health Act.                           1903.15(d)(3).

[[Page 5386]]

 
OSHA............  Occupational Safety  Other-Than-Serious.  29 CFR               ..............  12,471.............  ..............  12,675.
                   and Health Act.                           1903.15(d)(4).
OSHA............  Occupational Safety  Willful............  29 CFR                        8,908  124,709............           9,054  126,749.
                   and Health Act.                           1903.15(d)(1).
OSHA............  Occupational Safety  Repeated...........  29 CFR               ..............  124,709............  ..............  126,749.
                   and Health Act.                           1903.15(d)(2).
OSHA............  Occupational Safety  Posting Requirement  29 CFR               ..............  12,471.............  ..............  12,675.
                   and Health Act.                           1903.15(d)(6).
OSHA............  Occupational Safety  Failure to Abate...  29 CFR               ..............  12,471.............  ..............  12,675.
                   and Health Act.                           1903.15(d)(5).
WHD.............  Family and Medical   FMLA...............  29 CFR               ..............  163................  ..............  166.
                   Leave Act.                                825.300(a)(1).
WHD.............  Fair Labor           FLSA...............  29 CFR 578.3(a)....  ..............  1,894..............  ..............  1,925.
                   Standards Act.
WHD.............  Fair Labor           Child Labor........  29 CFR 579.1(a)(2).  ..............  1,894..............  ..............  1,925.
                   Standards Act.
WHD.............  Fair Labor           Child Labor........  29 CFR               ..............  12,080.............  ..............  12,278.
                   Standards Act.                            570.140(b)(1).
WHD.............  Fair Labor           Child Labor........  29 CFR               ..............  12,080.............  ..............  12,278.
                   Standards Act.                            579.1(a)(1)(i)(A).
WHD.............  Fair Labor           Child Labor that     29 CFR               ..............  54,910.............  ..............  55,808.
                   Standards Act.       causes serious       570.140(b)(2).
                                        injury or death.
WHD.............  Fair Labor           Child Labor that     29 CFR               ..............  54,910.............  ..............  55,808.
                   Standards Act.       causes serious       579.1(a)(1)(i)(B).
                                        injury or death.
WHD.............  Fair Labor           CL willful or        29 CFR               ..............  109,820............  ..............  111,616.
                   Standards Act.       repeated that        570.140(b)(2); 29
                                        causes serious       CFR
                                        injury or death.     579.1(a)(1)(i)(B).
WHD.............  Migrant and          MSPA...............  29 CFR 500.1(e)....  ..............  2,355..............  ..............  2,394.
                   Seasonal
                   Agricultural
                   Worker Protection
                   Act.
WHD.............  Immigration &        H1B................  20 CFR               ..............  1,782..............  ..............  1,811.
                   Nationality Act.                          655.810(b)(1).
WHD.............  Immigration &        H1B retaliation....  20 CFR 655.801(b)..  ..............  7,251..............  ..............  7,370.
                   Nationality Act.
WHD.............  Immigration &        H1B willful or       20 CFR               ..............  7,251..............  ..............  7,370.
                   Nationality Act.     discrimination.      655.810(b)(2).
WHD.............  Immigration &        H1B willful that     20 CFR               ..............  50,758.............  ..............  51,588.
                   Nationality Act.     resulted in          655.810(b)(3).
                                        displacement of a
                                        US worker.
WHD.............  Immigration &        D-1................  20 CFR 655.620(a)..  ..............  8,908..............  ..............  9,054.
                   Nationality Act.
WHD.............  Contract Work Hours  CWHSSA.............  29 CFR 5.5(b)(2)...  ..............  25.................  ..............  25.
                   and Safety
                   Standards Act.
WHD.............  Contract Work Hours  CWHSSA.............  29 CFR 5.8(a)......  ..............  25.................  ..............  25.
                   and Safety
                   Standards Act.
WHD.............  Walsh-Healey Public  Walsh-Healey.......  41 CFR 50-201.3(e).  ..............  25.................  ..............  25.
                   Contracts Act.
WHD.............  Employee Polygraph   EPPA...............  29 CFR 801.42(a)...  ..............  19,787.............  ..............  20,111
                   Protection Act.
WHD.............  Immigration &        H2A................  29 CFR 501.19(c)...  ..............  1,631..............  ..............  1,658.
                   Nationality Act.
WHD.............  Immigration &        H2A willful or       29 CFR 501.19(c)(1)  ..............  5,491..............  ..............  5,581.
                   Nationality Act.     discrimination.
WHD.............  Immigration &        H2A Safety or        29 CFR 501.19(c)(2)  ..............  54,373.............  ..............  55,263.
                   Nationality Act.     health resulting
                                        in serious injury
                                        or death.
WHD.............  Immigration &        H2A willful or       29 CFR 501.19(c)(4)  ..............  108,745............  ..............  110,524.
                   Nationality Act.     repeated safety or
                                        health resulting
                                        in serious injury
                                        or death.
WHD.............  Immigration &        H2A failing to       29 CFR 501.19(d)...  ..............  5,491..............  ..............  5,581.
                   Nationality Act.     cooperate in an
                                        investigation.
WHD.............  Immigration &        H2A displacing a US  29 CFR 501.19(e)...  ..............  16,312.............  ..............  16,579.
                   Nationality Act.     worker.
WHD.............  Immigration &        H2A improperly       29 CFR 501.19(f)...  ..............  16,312.............  ..............  16,579.
                   Nationality Act.     rejecting a US
                                        worker.
WHD.............  Fair Labor           Home Worker........  29 CFR 530.302(a)..  ..............  989................  ..............  1,005.
                   Standards Act.
WHD.............  Fair Labor           Home Worker........  29 CFR 530.302(b)..              20  989................              20  1,005.
                   Standards Act.
OWCP............  Longshore and        Failure to file      20 CFR 702.204.....  ..............  22,587.............  ..............  22,957.
                   Harbor Workers'      first report of
                   Compensation Act.    injury or filing a
                                        false statement or
                                        misrepresentation
                                        in first report.
OWCP............  Longshore and        Failure to report    20 CFR 702.236.....  ..............  275................  ..............  279.
                   Harbor Workers'      termination of
                   Compensation Act.    payments.
OWCP............  Longshore and        Discrimination       20 CFR                        2,259  11,293.............           2,296  11,478.
                   Harbor Workers'      against employees    702.271(a)(2).
                   Compensation Act.    who claim
                                        compensation or
                                        testify in a LHWCA
                                        proceeding.
OWCP............  Black Lung Benefits  Failure to report    20 CFR 725.621(d)..  ..............  1,375..............  ..............  1,397.
                   Act.                 termination of
                                        payments.
OWCP............  Black Lung Benefits  Failure to file      20 CFR 725.621(d)..  ..............  1,375..............  ..............  1,397.
                   Act.                 required reports.

[[Page 5387]]

 
OWCP............  Black Lung Benefits  Failure to secure    20 CFR 726.300.....  ..............  2,500..............  ..............  2,541.
                   Act.                 payment of
                                        benefits.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          134  ...................             136
                   Act.                 payment of           726.302(c)(2)(i).
                                        benefits for mines
                                        with fewer than 25
                                        employees.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          268  ...................             272
                   Act.                 payment of           726.302(c)(2)(i).
                                        benefits for mines
                                        with 25-50
                                        employees.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          402  ...................             409
                   Act.                 payment of           726.302(c)(2)(i).
                                        benefits for mines
                                        with 51-100
                                        employees.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          535  ...................             544
                   Act.                 payment of           726.302(c)(2)(i).
                                        benefits for mines
                                        with more than 100
                                        employees.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          134  ...................             136
                   Act.                 payment of           726.302(c)(4).
                                        benefits after
                                        10th day of notice.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR                          402  ...................             409
                   Act.                 payment of           726.302(c)(5).
                                        benefits for
                                        repeat offenders.
OWCP............  Black Lung Benefits  Failure to secure    20 CFR               ..............  2,750..............  ..............  2,795.
                   Act.                 payment of           726.302(c)(5).
                                        benefits.
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Signed at Washington, DC this 9th day of January, 2017.
Thomas E. Perez,
Secretary, U.S. Department of Labor.
[FR Doc. 2017-00614 Filed 1-13-17; 4:15 pm]
 BILLING CODE 4510-HL-P