10 Jan 2025

💼2025 Federal Civil Penalties Inflation Adjustment - Labor Impact

Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2025

Summary

The U.S. Department of Labor (Department) is publishing this final rule to adjust for inflation the civil monetary penalties assessed or enforced by the Department, 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 2025 annual adjustments for inflation to its civil monetary penalties.

Agencies

  • N/A
  • Labor Department
  • Occupational Safety and Health Administration
  • Employment and Training Administration
  • Workers' Compensation Programs Office
  • Wage and Hour Division
  • Mine Safety and Health Administration

Business Impact ?

$$ - Med

The regulation adjusts civil monetary penalties for various labor law violations due to inflation, impacting businesses by increasing compliance costs and potential penalties for non-compliance. This change requires business owners and executives to reassess their compliance strategies and financial reserves in anticipation of higher penalties effective January 15, 2025.

< >