[Federal Register Volume 62, Number 95 (Friday, May 16, 1997)]
[Rules and Regulations]
[Pages 26933-26934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12769]
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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
29 CFR Part 1601
Increased Fine for Notice Posting Violations
AGENCY: Equal Employment Opportunity Commission.
[[Page 26934]]
ACTION: Final rule.
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SUMMARY: In accordance with Federal Civil Monetary Penalty Inflation
Adjustment Act of 1990, as amended by the Debt Collection Improvement
Act of 1996, this final rule adjusts for inflation the civil money
penalty for violation of notice posting requirements.
EFFECTIVE DATE: This rule is effective on June 16, 1997.
FOR FURTHER INFORMATION CONTACT: Willie King, Director, Financial
Management Division (202) 663-4224.
SUPPLEMENTARY INFORMATION:
I. The Debt Collection Improvement Act of 1996
In an effort to maintain the remedial impact of civil money
penalties (CMPs) and promote compliance with the law, the Federal Civil
Monetary Penalty Inflation Adjustment Act of 1990 (Pub. L. 101-410) was
amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-
134) to require Federal agencies to regularly adjust certain CMPs for
inflation. As amended, the law requires each agency to make an initial
inflationary adjustment for all applicable CMPs, and to make further
adjustments at least once every four years thereafter for these penalty
amounts.
The Debt Collection Improvement Act of 1996 further stipulates that
any resulting increases in a CMP due to the calculated inflation
adjustments (i) Should apply only to the violations that occur after
October 23, 1996 (the Act's effective date) and (ii) should not exceed
10 percent of the penalty indicated.
Method of Calculation
Under the Act, the inflation adjustment is determined by increasing
the maximum CMP amount per violation by the cost-of-living adjustment.
The ``cost-of-living'' adjustment is defined as the percentage for each
CMP by which the Consumer Price Index (CPI) for June of the calendar
year preceding the adjustment exceeds the CPI for the month of June of
the calendar year in which the amount of such CMP was last set or
adjusted pursuant to the law. Any calculated increase under this
adjustment is subject to a specific rounding formula set forth in the
Act and a ten percent limitation.
II. EEOC Civil Money Penalties Effected by This Adjustment
Under 42 U.S.C. Sec. 2000e-10(a) and 29 CFR Sec. 1601.30(a), every
employer, employment agency, labor organization, and joint labor-
management committee controlling an apprenticeship or other training
program that has an obligation under Title VII or the ADA must post
notices describing the applicable provisions of Title VII and the ADA.
Such notices must be posted in prominent and accessible places where
notices to employees, applicants and members are customarily
maintained.
Currently, 42 U.S.C. 2000e-10(b) and 29 CFR 1601.30(b) make failure
to comply with the notice posting requirements punishable by a fine of
not more than $100 for each separate offense. Based on the inflation
calculation described in Section I of this notice, we are adjusting the
maximum penalty per violation to $110.
III. Waiver of Proposed Rulemaking
In developing this final rule, we are waiving the usual notice of
proposed rulemaking and public comment procedures set forth in the
Administrative Procedure Act (APA) (5 U.S.C. 553). The APA provides an
exception to the notice and comment procedures when an agency finds
there is good cause for dispensing with such procedures on the basis
that they are impracticable, unnecessary or contrary to the public
interest. We have determined 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. Specifically, this rulemaking
is required by the Debt Collection Improvement Act of 1996, and the
Commission has no discretion in determining the amount of the published
adjustment. Accordingly, we are issuing these revised regulations as a
final rule.
IV. Regulatory Impact Statement
Executive Order 12866
This final rule is exempt from Office of Management and Budget
(OMB) review under Executive Order 12866 because it is limited to the
adoption of statutory language, without interpretation. As indicated
above, the provisions contained in this final rulemaking set forth an
inflation adjustment required by the Debt Collection Improvement Act of
1996. Moreover, it has been determined that this final rule is not
significant. The great majority of employers and entities covered by
these regulations comply with the posting requirement, and a result, we
believe that any 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.
Regulatory Flexibility Act
A regulatory flexibility analysis is only required by the
Regulatory Flexibility Act (5 U.S.C. 601-612), 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.
Paperwork Reduction Act
This final rule imposes no new reporting or recordkeeping
requirements necessitating clearance by OMB.
List of Subjects in 29 CFR Part 1601
Administrative practice and procedure.
For the Commission.
Gilbert F. Casellas,
Chairman.
For the reasons set forth in the preamble, 29 CFR part 1601 is
revised 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. 1111 to 12117.
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 makes failure to comply with this
section punishable by a fine of not more than $110 for each separate
offense.
[FR Doc. 97-12769 Filed 5-15-97; 8:45 am]
BILLING CODE 6570-06-M
