The U.S. Department of Labor has published its new civil penalties for 2018. The new penalties reflect a 2% increase in civil penalties for those employers who violate the DOL rules, including for minimum wage and overtime, child labor laws, family and medical leave, construction contracts, and foreign workers.
The increase is part of a required inflation adjustment to penalties imposed by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The Act was put in place to ensure to strengthen their deterrent effect of civil money penalties. According to the DOL, civil penalties are less effective when they do not keep pace with the cost of living.
The law requires agencies across the federal government to adjust their penalties for inflation every year. The DOL’s 2018 civil penalties were published in the January 2, 2018 Federal Register.
You can find a listing of the new penalties by clicking here.
The U.S. Department of Labor (DOL) has said it will be cracking down on regulatory violations of its Wage and Hour Division, particularly as it applies to minimum wage rules and overtime, along with other illegal practices. Be prepared to pay a bit more for these violations. The best way to address this penalty increase? Don’t violate the regulations.