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.

-----------------------------------------------------------------------

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.
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\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.

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.

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.

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.

[[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

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