The 2017 Adjustment of the Penalty for Violation of Notice Posting Requirements, 8812-8813 [2017-01277]

Download as PDF 8812 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations controlled corporation without the recognition of income, gain, or loss. DATES: This correction is effective January 31, 2017 and applicable December 19, 2016. FOR FURTHER INFORMATION CONTACT: Richard K. Passales at (202) 317–5024 or Marie C. Milnes-Vasquez, (202) 317– 7700 (not a toll-free number). SUPPLEMENTARY INFORMATION: The final regulation (TD 9805) that is the subject of this correction is under section 355 of the Internal Revenue Code. This final rule is effective March 2, 2017. FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal Counsel, (202) 663–4668, or Ashley M. Martin, General Attorney, (202) 663– 4695, Office of Legal Counsel, 131 M St. NE., Washington, DC 20507. Requests for this notice in an alternative format should be made to the Office of Communications and Legislative Affairs at (202) 663–4191 (voice) or (202) 663– 4494 (TTY), or to the Publications Information Center at 1–800–669–3362 (toll free). SUPPLEMENTARY INFORMATION: Need for Correction I. Background As published, the final regulation (TD 9805) contains errors that may prove to be misleading and are in need of clarification. Under section 711 of the Civil Rights Act of 1964 (Title VII), which is incorporated by reference in section 105 of the Americans with Disabilities Act (ADA) and section 207 of the Genetic Information Non-Discrimination Act (GINA), and 29 CFR 1601.30(a), every employer, employment agency, labor organization, and joint labormanagement committee controlling an apprenticeship or other training program covered by Title VII, ADA, or GINA must post notices describing the pertinent provisions of Title VII, ADA, or GINA. Such notices must be posted in prominent and accessible places where notices to employees, applicants, and members are customarily maintained. The EEOC first adjusted the civil monetary penalty for violations of the notice posting requirements in 1997 pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIA Act), 28 U.S.C. 2461 note, as amended by the Debt Collection Improvement Act of 1996 (DCIA), Public Law 104–134, Sec. 31001(s)(1), 110 Stat. 1373. A final rule was published in the Federal Register on May 16, 1997, at 62 FR 26934, which raised the maximum penalty per violation from $100 to $110. The EEOC’s second adjustment, made pursuant to the FCPIA Act, as amended by the DCIA, was published in the Federal Register on March 19, 2014, at 79 FR 15220 and raised the maximum penalty per violation from $110 to $210. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), Public Law 114–74, Sec. 701(b), 129 Stat. 599, further amended the FCPIA Act, to require each federal agency, not later than July 1, 2016, and not later than January 15 of every year thereafter, to issue regulations adjusting for inflation the maximum civil penalty that may be imposed pursuant to each agency’s statutes. The EEOC’s initial adjustment Background Correction of Publication Accordingly, the final regulation (TD 9805), that are the subject of FR Doc. 2016–30160, are corrected as follows: 1. On page 91745, in the preamble, third column, the last line from the bottom of the last full paragraph, the language ‘‘Controlled stock its distributes.’’ is corrected to read ‘‘Controlled stock it distributes’’. Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2017–01055 Filed 1–30–17; 8:45 am] BILLING CODE 4830–01–P EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 29 CFR Part 1601 RIN 3046–AB06 The 2017 Adjustment of the Penalty for Violation of Notice Posting Requirements Equal Employment Opportunity Commission. ACTION: Final rule. AGENCY: In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990, this final rule adjusts for inflation the civil monetary penalty for violation of the noticeposting requirements in Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Genetic Information Non-Discrimination Act. asabaliauskas on DSK3SPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 15:52 Jan 30, 2017 Jkt 241001 DATES: PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 made pursuant to the 2015 Act was published in the Federal Register on June 2, 2016, at 81 FR 35269 and raised the maximum penalty per violation from $210 to $525. The purpose of the annual adjustment for inflation is to maintain the remedial impact of civil monetary penalties and promote compliance with the law. These periodic adjustments to the penalty are to be calculated pursuant to the inflation adjustment formula provided in section 5(b) of the 2015 Act and, in accordance with section 6 of the 2015 Act, the adjusted penalty will apply only to penalties assessed after the effective date of the adjustment. Generally, the periodic inflation adjustment to a civil monetary penalty under the 2015 Act will be based on the percentage change between the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October preceding the date of adjustment and the prior year’s October CPI–U. II. Mathematical Calculation The adjustment set forth in this final rule was calculated by comparing the CPI–U for October 2016 with the CPI– U for October 2015, resulting in an inflation adjustment factor of 1.01636. The first step of the calculation is to multiply the inflation adjustment factor (1.01636) by the most recent civil penalty amount ($525) to calculate the inflation-adjusted penalty level ($533.589). The second step is to round this inflation-adjusted penalty to the nearest dollar ($534). Accordingly, we are adjusting the maximum penalty per violation specified in 29 CFR 1601.30(a) from $525 to $534. III. Regulatory Procedures Administrative Procedure Act The Administrative Procedure Act (APA) provides an exception to the notice and comment procedures where an agency finds good cause for dispensing with such procedures, on the basis that they are impracticable, unnecessary, or contrary to the public interest. EEOC finds that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with the notice of proposed rulemaking and public comment procedures for this rule because this adjustment of the civil monetary penalty is required by the 2015 Act, the formula for calculating the adjustment to the penalty is prescribed by statute, and the Commission has no discretion in determining the amount of the published adjustment. Accordingly, we are issuing this revised regulation as a final rule without notice and comment. E:\FR\FM\31JAR1.SGM 31JAR1 Federal Register / Vol. 82, No. 19 / Tuesday, January 31, 2017 / Rules and Regulations Executive Order 13563 and 12866 In promulgating this final rule, EEOC has adhered to the regulatory philosophy and applicable principles set forth in Executive Order 13563. Pursuant to Executive Order 12866, the EEOC has coordinated with the Office of Management and Budget (OMB). Under section 3(f) of Executive Order 12866, the EEOC and OMB have determined that this final rule will not have an annual effect on the economy of $100 million or more, or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or state, local, or tribal governments or communities. The great majority of employers and entities covered by these regulations comply with the posting requirement, and, as a result, the aggregate economic impact of these revised regulations will be minimal, affecting only those limited few who fail to post required notices in violation of the regulation and statute. The rule only increases the penalty by $9 for each separate offense, nowhere near the $100 million figure that would amount to a significant regulatory action.1 Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) (PRA) applies to rulemakings in which an agency creates a new paperwork burden on regulated entities or modifies an existing burden. This final rule contains no new information collection requirements, and therefore, will create no new paperwork burdens or modifications to existing burdens that are subject to review by the Office of Management and Budget under the PRA. Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601–612) only requires a regulatory flexibility analysis when notice and comment is required by the Administrative Procedure Act or some other statute. As stated above, notice and comment is not required for this rule. For that reason, the requirements of the Regulatory Flexibility Act do not apply. asabaliauskas on DSK3SPTVN1PROD with RULES Unfunded Mandates Reform Act of 1995 This final rule will not result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. The Congressional Review Act (CRA) requires that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EEOC will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to the effective date of the rule. Under the CRA, a major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a ‘‘major rule’’ as defined by the CRA at 5 U.S.C. 804(2). List of Subjects in 29 CFR Part 1601 Administrative practice and procedure. For the Commission. Dated: January 13, 2017. Jenny R. Yang, Chair. Accordingly, the Equal Employment Opportunity Commission amends 29 CFR part 1601 as follows: PART 1601—PROCEDURAL REGULATIONS 1. The authority citation for part 1601 continues to read as follows: ■ Authority: 42 U.S.C. 2000e to 2000e–17; 42 U.S.C. 12111 to 12117; 42 U.S.C. 2000ff to 2000ff–11. 2. Section 1601.30 is amended by revising paragraph (b) to read as follows: ■ Notices to be posted. * * * * * (b) Section 711(b) of Title VII and the Federal Civil Penalties Inflation Adjustment Act, as amended, make failure to comply with this section punishable by a fine of not more than $534 for each separate offense. [FR Doc. 2017–01277 Filed 1–30–17; 8:45 am] BILLING CODE 6570–01–P 1 In the last ten years, the highest number of charges alleging notice posting violations occurred in 2010. In that year, only 114 charges of the 90,837 Title VII, ADA, and GINA charges (.13%) contained a notice posting violation. VerDate Sep<11>2014 15:52 Jan 30, 2017 Jkt 241001 PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4071 and 4302 RIN 1212–AB33 Adjustment of Civil Penalties Congressional Review Act § 1601.30 8813 Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: The Pension Benefit Guaranty Corporation is required to amend its regulations annually to adjust the penalties provided for in sections 4071 and 4302 of the Employee Retirement Income Security Act of 1974. This action is being taken in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget memorandum M–17–11. The regulations being amended are those on Penalties for Failure to Provide Certain Notices or Other Material Information and Penalties for Failure to Provide Certain Multiemployer Plan Notices. DATES: Effective date: This rule is effective on January 31, 2017. Applicability date: The increases in the civil monetary penalties under sections 4071 and 4302 provided for in this rule apply to such penalties assessed after January 31, 2017. FOR FURTHER INFORMATION CONTACT: Stephanie Cibinic, Deputy Assistant General Counsel for Regulatory Affairs (cibinic.stephanie@pbgc.gov), Office of the General Counsel, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005–4026; 202– 326–4400 extension 6352. (TTY and TDD users may call the Federal relay service toll-free at 800–877–8339 and ask to be connected to 202–326–4400 extension 6352.) SUPPLEMENTARY INFORMATION: SUMMARY: Executive Summary Purpose of the Regulatory Action This rule is needed to carry out the requirements of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The rule finalizes the 2016 interim final regulations required under the 2015 act and further adjusts, as required for 2017, the maximum civil penalties that PBGC may assess for failure to provide certain notices or other material information. PBGC’s legal authority for this action comes from the Federal Civil Penalties Inflation Adjustment Act of 1990 as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and from sections 4002(b)(3), 4071, and 4302 of the E:\FR\FM\31JAR1.SGM 31JAR1

Agencies

[Federal Register Volume 82, Number 19 (Tuesday, January 31, 2017)]
[Rules and Regulations]
[Pages 8812-8813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01277]


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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

29 CFR Part 1601

RIN 3046-AB06


The 2017 Adjustment of the Penalty for Violation of Notice 
Posting Requirements

AGENCY: Equal Employment Opportunity Commission.

ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, which further amended the 
Federal Civil Penalties Inflation Adjustment Act of 1990, this final 
rule adjusts for inflation the civil monetary penalty for violation of 
the notice-posting requirements in Title VII of the Civil Rights Act of 
1964, the Americans with Disabilities Act, and the Genetic Information 
Non-Discrimination Act.

DATES: This final rule is effective March 2, 2017.

FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal 
Counsel, (202) 663-4668, or Ashley M. Martin, General Attorney, (202) 
663-4695, Office of Legal Counsel, 131 M St. NE., Washington, DC 20507. 
Requests for this notice in an alternative format should be made to the 
Office of Communications and Legislative Affairs at (202) 663-4191 
(voice) or (202) 663-4494 (TTY), or to the Publications Information 
Center at 1-800-669-3362 (toll free).

SUPPLEMENTARY INFORMATION: 

I. Background

    Under section 711 of the Civil Rights Act of 1964 (Title VII), 
which is incorporated by reference in section 105 of the Americans with 
Disabilities Act (ADA) and section 207 of the Genetic Information Non-
Discrimination Act (GINA), and 29 CFR 1601.30(a), every employer, 
employment agency, labor organization, and joint labor-management 
committee controlling an apprenticeship or other training program 
covered by Title VII, ADA, or GINA must post notices describing the 
pertinent provisions of Title VII, ADA, or GINA. Such notices must be 
posted in prominent and accessible places where notices to employees, 
applicants, and members are customarily maintained.
    The EEOC first adjusted the civil monetary penalty for violations 
of the notice posting requirements in 1997 pursuant to the Federal 
Civil Penalties Inflation Adjustment Act of 1990 (FCPIA Act), 28 U.S.C. 
2461 note, as amended by the Debt Collection Improvement Act of 1996 
(DCIA), Public Law 104-134, Sec. 31001(s)(1), 110 Stat. 1373. A final 
rule was published in the Federal Register on May 16, 1997, at 62 FR 
26934, which raised the maximum penalty per violation from $100 to 
$110. The EEOC's second adjustment, made pursuant to the FCPIA Act, as 
amended by the DCIA, was published in the Federal Register on March 19, 
2014, at 79 FR 15220 and raised the maximum penalty per violation from 
$110 to $210.
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (2015 Act), Public Law 114-74, Sec. 701(b), 129 Stat. 599, 
further amended the FCPIA Act, to require each federal agency, not 
later than July 1, 2016, and not later than January 15 of every year 
thereafter, to issue regulations adjusting for inflation the maximum 
civil penalty that may be imposed pursuant to each agency's statutes. 
The EEOC's initial adjustment made pursuant to the 2015 Act was 
published in the Federal Register on June 2, 2016, at 81 FR 35269 and 
raised the maximum penalty per violation from $210 to $525. The purpose 
of the annual adjustment for inflation is to maintain the remedial 
impact of civil monetary penalties and promote compliance with the law. 
These periodic adjustments to the penalty are to be calculated pursuant 
to the inflation adjustment formula provided in section 5(b) of the 
2015 Act and, in accordance with section 6 of the 2015 Act, the 
adjusted penalty will apply only to penalties assessed after the 
effective date of the adjustment. Generally, the periodic inflation 
adjustment to a civil monetary penalty under the 2015 Act will be based 
on the percentage change between the Consumer Price Index for all Urban 
Consumers (CPI-U) for the month of October preceding the date of 
adjustment and the prior year's October CPI-U.

II. Mathematical Calculation

    The adjustment set forth in this final rule was calculated by 
comparing the CPI-U for October 2016 with the CPI-U for October 2015, 
resulting in an inflation adjustment factor of 1.01636. The first step 
of the calculation is to multiply the inflation adjustment factor 
(1.01636) by the most recent civil penalty amount ($525) to calculate 
the inflation-adjusted penalty level ($533.589). The second step is to 
round this inflation-adjusted penalty to the nearest dollar ($534). 
Accordingly, we are adjusting the maximum penalty per violation 
specified in 29 CFR 1601.30(a) from $525 to $534.

III. Regulatory Procedures

Administrative Procedure Act

    The Administrative Procedure Act (APA) provides an exception to the 
notice and comment procedures where an agency finds good cause for 
dispensing with such procedures, on the basis that they are 
impracticable, unnecessary, or contrary to the public interest. EEOC 
finds that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing 
with the notice of proposed rulemaking and public comment procedures 
for this rule because this adjustment of the civil monetary penalty is 
required by the 2015 Act, the formula for calculating the adjustment to 
the penalty is prescribed by statute, and the Commission has no 
discretion in determining the amount of the published adjustment. 
Accordingly, we are issuing this revised regulation as a final rule 
without notice and comment.

[[Page 8813]]

Executive Order 13563 and 12866

    In promulgating this final rule, EEOC has adhered to the regulatory 
philosophy and applicable principles set forth in Executive Order 
13563. Pursuant to Executive Order 12866, the EEOC has coordinated with 
the Office of Management and Budget (OMB). Under section 3(f) of 
Executive Order 12866, the EEOC and OMB have determined that this final 
rule will not have an annual effect on the economy of $100 million or 
more, or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or state, local, or tribal governments or 
communities. The great majority of employers and entities covered by 
these regulations comply with the posting requirement, and, as a 
result, the aggregate economic impact of these revised regulations will 
be minimal, affecting only those limited few who fail to post required 
notices in violation of the regulation and statute. The rule only 
increases the penalty by $9 for each separate offense, nowhere near the 
$100 million figure that would amount to a significant regulatory 
action.\1\
---------------------------------------------------------------------------

    \1\ In the last ten years, the highest number of charges 
alleging notice posting violations occurred in 2010. In that year, 
only 114 charges of the 90,837 Title VII, ADA, and GINA charges 
(.13%) contained a notice posting violation.
---------------------------------------------------------------------------

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) (PRA) applies to 
rulemakings in which an agency creates a new paperwork burden on 
regulated entities or modifies an existing burden. This final rule 
contains no new information collection requirements, and therefore, 
will create no new paperwork burdens or modifications to existing 
burdens that are subject to review by the Office of Management and 
Budget under the PRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612) only requires a 
regulatory flexibility analysis when notice and comment is required by 
the Administrative Procedure Act or some other statute. As stated 
above, notice and comment is not required for this rule. For that 
reason, the requirements of the Regulatory Flexibility Act do not 
apply.

Unfunded Mandates Reform Act of 1995

    This final rule will not result in the expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector, of 
$100 million or more in any one year, and it will not significantly or 
uniquely affect small governments. Therefore, no actions were deemed 
necessary under the provisions of the Unfunded Mandates Reform Act of 
1995.

Congressional Review Act

    The Congressional Review Act (CRA) requires that before a rule may 
take effect, the agency promulgating the rule must submit a rule 
report, which includes a copy of the rule, to each House of the 
Congress and to the Comptroller General of the United States. EEOC will 
submit a report containing this rule and other required information to 
the U.S. Senate, the U.S. House of Representatives, and the Comptroller 
General of the United States prior to the effective date of the rule. 
Under the CRA, a major rule cannot take effect until 60 days after it 
is published in the Federal Register. This action is not a ``major 
rule'' as defined by the CRA at 5 U.S.C. 804(2).

List of Subjects in 29 CFR Part 1601

    Administrative practice and procedure.

    For the Commission.

    Dated: January 13, 2017.
Jenny R. Yang,
Chair.

    Accordingly, the Equal Employment Opportunity Commission amends 29 
CFR part 1601 as follows:

PART 1601--PROCEDURAL REGULATIONS

0
1. The authority citation for part 1601 continues to read as follows:

    Authority:  42 U.S.C. 2000e to 2000e-17; 42 U.S.C. 12111 to 
12117; 42 U.S.C. 2000ff to 2000ff-11.


0
2. Section 1601.30 is amended by revising paragraph (b) to read as 
follows:


Sec.  1601.30   Notices to be posted.

* * * * *
    (b) Section 711(b) of Title VII and the Federal Civil Penalties 
Inflation Adjustment Act, as amended, make failure to comply with this 
section punishable by a fine of not more than $534 for each separate 
offense.

[FR Doc. 2017-01277 Filed 1-30-17; 8:45 am]
 BILLING CODE 6570-01-P