97-17351. Office of Workers' Compensation Programs; Longshore Act Civil Money Penalties Adjustment  

  • [Federal Register Volume 62, Number 127 (Wednesday, July 2, 1997)]
    [Proposed Rules]
    [Pages 35715-35716]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-17351]
    
    
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    DEPARTMENT OF LABOR
    
    Employment Standards Administration
    
    20 CFR Part 702
    
    RIN 1215-AB17
    
    
    Office of Workers' Compensation Programs; Longshore Act Civil 
    Money Penalties Adjustment
    
    AGENCY: Employment Standards Administration, Labor.
    
    ACTION: Proposed rule.
    
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    SUMMARY: The Department of Labor is proposing to revise certain 
    provisions of the regulations implementing the Longshore and Harbor 
    Workers' Compensation Act (LHWCA). More specifically, the regulatory 
    changes will increase the maximum civil penalties that can be assessed 
    under the LHWCA as required by the Federal Civil Monetary Penalties 
    Inflation Adjustment Act of 1990 (FCPIAA) (Pub. L. 101-410, 104 Stat. 
    890), as amended by the Debt Collection Improvement Act of 1996 (DCIA) 
    (Pub. L. 104-134, 110 Stat. 1321-1373).
    
    DATES: Written comments must be submitted on or before August 1, 1997.
    
    ADDRESSES: Send written comments to Joseph F. Olimpio, Director for 
    Longshore and Harbor Workers' Compensation, Employment Standards 
    Administration, U.S. Department of Labor, Room C-4315, 200 Constitution 
    Avenue, NW., Washington, DC 20210-0002. Tel. (202) 219-8721.
    
    FOR FURTHER INFORMATION CONTACT: Joseph F. Olimpio at the address and 
    telephone number listed above.
    
    SUPPLEMENTARY INFORMATION: The DCIA, amending the Federal Civil 
    Monetary Penalties Inflation Adjustment Act of 1990 (FCPIAA) (Pub. L. 
    104-410, 104 Stat. 890), requires each agency to issue regulations 
    adjusting the civil money penalties that they are authorized to levy. 
    The DCIA requires that the civil money penalty covered by the DCIA be 
    adjusted by a cost-of-living increase equal to the percentage, if any, 
    by which the Department of Labor's Consumer Price Index for all-urban 
    consumers (CPI) for June of the calendar year preceding the adjustment 
    exceeds the June CPI for the calendar year in which the civil penalty 
    amount was last set or adjusted. The increase is then mathematically 
    rounded pursuant to section 5 of the FCPIAA to arrive at the final 
    adjusted figure, which may not, for the first adjustment under the 
    FCPIAA as amended, exceed 10% of the current statutory civil penalty 
    amount.
        The LHWCA authorizes the assessment of a civil money penalty in 
    three situations: (1) Where an employer fails to file a report within 
    sixteen days of the final payment of compensation, it shall be assessed 
    a $100.00 civil penalty (LHWCA section 14(g)); (2) where an employer, 
    insurance carrier, or self-insured employer knowingly and willfully 
    fails to file any report required by section 30, or knowingly or 
    willfully makes a false statement or misrepresentation in any required 
    report, the employer, insurance carrier, or self-insured employer shall 
    be assessed a civil penalty not to exceed $10,000.00 (LHWCA section 
    30(e)); and (3) where an employer is found to have discriminated 
    against an employee because he claimed or attempted to claim 
    compensation, or has testified or is about to testify in proceedings 
    under the LHWCA, the employer shall be liable for a civil penalty of 
    not less than $1,000.00 or more than $5,000.00 (LHWCA section 49).
        Due to inflation since the civil money penalties in the LHWCA were 
    last set or adjusted, the increase will, in every case, be the maximum 
    10% initially permitted under the DCIA. The adjusted civil penalties 
    will apply only to violations occurring after the proposed regulations 
    become effective.
    
    Executive Order 12866
    
        The Department has determined that this regulatory action is not a 
    ``significant'' rule within the meaning of Executive Order 12866 
    concerning federal regulations, because it is not likely to result in: 
    (1) An annual effect on the economy of $100 million or more, or an 
    adverse and material effect on a sector of the economy, productivity, 
    competition, jobs, the environment, public health or safety, or State, 
    local or tribal governments or communities; (2) the creation of a
    
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    serious inconsistency or interference with an action taken or planned 
    by another agency; (3) a material alteration in the budgetary impacts 
    of entitlement, grants, user fees, or loan programs or the rights and 
    obligation of recipients thereof; or (4) the raising of novel legal or 
    policy issues arising out of legal mandates, the President's 
    priorities, or the principles set forth in Executive Order 12866.
    
    Regulatory Flexibility Act
    
        The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., requires each 
    agency to perform an initial regulatory flexibility analysis for all 
    proposed rules unless the head of the agency certifies that the rule 
    will not, if promulgated, have a significant economic impact on a 
    substantial number of small entities. Small entities include small 
    businesses, organizations, and governmental jurisdictions. This 
    proposed regulation does no more than mechanically increase certain 
    statutory civil money penalties to account for inflation, pursuant to 
    specific directions set forth in the FCPIAA, as amended. The statute 
    specifies the procedures for calculating the adjusted civil money 
    penalties and does not allow the Department to vary the calculation to 
    minimize the effect on small entities. Moreover, it will be noted that 
    during the period 1995 through 1996, an average of $25,000.00 in civil 
    penalties was collected each year in 206 cases. Under the amended rule, 
    the total additional amount collected would not exceed $2,500.00. As a 
    result, the Assistant Secretary hereby certifies that the rule, if 
    adopted as proposed, will not have a significant impact on a 
    substantial number of small entities within the meaning of the 
    Regulatory Flexibility Act.
    
    Unfunded Mandates Reform Act
    
        For purposes of the Unfunded Mandates Reform Act of 1995, as well 
    as E.O. 12875, this rule does not include any federal mandate that may 
    result in increased expenditures by State, local and tribal 
    governments, or increased expenditures by the private sector of more 
    than $100 million.
    
    Paperwork Reduction Act
    
        The proposed rule does not contain any collection of information 
    requirements.
    
    List of Subjects in 20 CFR Part 702
    
        Administrative practice and procedure, Claims, Insurance, 
    Longshoremen, Vocational rehabilitation, and Workers' compensation.
    
        For the reasons set forth in the preamble, it is proposed that part 
    702 of chapter VI of title 20, Code of Federal Regulations, be amended 
    as follows:
    
    PART 702--ADMINISTRATION AND PROCEDURE
    
        1. The authority citation for part 702 is revised to read as 
    follows:
    
        Authority: 5 U.S.C. 301, 8171 et seq., Reorganization Plan No. 6 
    of 1950, 15 FR 3174, 3 CFR 1949-1953, Comp., p. 1004, 64 Stat. 1263; 
    28 U.S.C. 2461, 33 U.S.C. 939, 36 D.C. Code 501 et seq., 42 U.S.C. 
    1651 et seq., 43 U.S.C. 1331; Secretary's Order 5-96, 62 FR 107.
    
        2. Section 702.204 is revised to read as follows:
    
    
    Sec. 702.204  Employer's report; penalty for failure to furnish and/or 
    falsifying.
    
        Any employer, insurance carrier, or self-insured employer who 
    knowingly and willfully fails or refuses to send any report required by 
    Sec. 702.201, or who knowingly or willfully makes a false statement or 
    misrepresentation in any report, shall be subject to a civil penalty 
    not to exceed $10,000 for each such failure, refusal, false statement, 
    or misrepresentation. Provided, however, that for any violation 
    occurring on or after (insert effective date of revised regulations), 
    the maximum civil penalty may not exceed $11,000.00. The district 
    director shall have the authority and responsibility for assessing a 
    civil penalty under this section.
        3. Section 702.236 is revised to read as follows:
    
    
    Sec. 702.236  Penalty for failure to report termination of payments.
    
        Any employer failing to notify the district director that the final 
    payment of compensation has been made as required by Sec. 702.235 shall 
    be assessed a civil penalty in the amount of $100. Provided, however, 
    that for any violation occurring on or after (insert effective date of 
    revised regulations) the civil penalty will be $110.00. The district 
    director shall have the authority and responsibility for assessing a 
    civil penalty under this section.
        4. Paragraph (a) of Sec. 702.271 is revised to read as follows:
    
    
    Sec. 702.271  Discrimination against employees who bring proceedings, 
    prohibition and penalty.
    
        (a) No employer or its duly authorized agent may discharge or in 
    any manner discriminate against an employee as to his/her employment 
    because that employee: has claimed or attempted to claim compensation 
    under this Act; or has testified or is about to testify in a proceeding 
    under this Act. To discharge or refuse to employ a person who has been 
    adjudicated to have filed a fraudulent claim for compensation or 
    otherwise made a false statement or misrepresentation under section 
    31(a)(1) of the Act, 33 U.S.C. 931(a)(1), is not a violation of this 
    section. Any employer who violates this section shall be liable to a 
    penalty of not less than $1,000 or more than $5,000 to be paid (by the 
    employer alone, and not by a carrier) to the district director for 
    deposit in the special fund described in section 44 of the Act, 33 
    U.S.C. 944; and shall restore the employee to his or her employment 
    along with all wages lost due to the discrimination unless that 
    employee has ceased to be qualified to perform the duties of the 
    employment. Provided, however, that for any violation occurring on or 
    after (insert the effective date of the regulations) the employer shall 
    be liable to a penalty of not less than $1,100.00 or more than 
    $5,500.00.
    * * * * *
        Signed at Washington, DC, this 25th day of June, 1997.
    Bernard E. Anderson,
    Assistant Secretary for Employment Standards.
    
    Shelby Hallmark,
    Acting Director, Office of Workers' Compensation Programs.
    [FR Doc. 97-17351 Filed 7-1-97; 8:45 am]
    BILLING CODE 4510-27-M
    
    
    

Document Information

Published:
07/02/1997
Department:
Employment Standards Administration
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
97-17351
Dates:
Written comments must be submitted on or before August 1, 1997.
Pages:
35715-35716 (2 pages)
RINs:
1215-AB17: Civil Money Penalties Adjustment of the Longshore Act
RIN Links:
https://www.federalregister.gov/regulations/1215-AB17/civil-money-penalties-adjustment-of-the-longshore-act
PDF File:
97-17351.pdf
CFR: (4)
20 CFR 702.201
20 CFR 702.204
20 CFR 702.236
20 CFR 702.271