In order to maintain the effectiveness of penalties as deterrents for civil monetary penalties, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act. This act, effective August 1, 2016, allows for agencies to adjust their penalties for inflation each year using a more straightforward method.
As a result of the increase in penalties to violations to such laws as the Employee Retirement Income Security Act (ERISA), the Fair Labor Standards Act (FLSA), and the Family Medical Leave Act (FMLA), organizations will have to get and display updated employment posters. You can find the new posters at https://www.dol.gov/whd/regs/compliance/posters/minwagebwp.pdf and at https://www.dol.gov/whd/regs/compliance/posters/eppabw.pdf.
Going forth, the inflation adjustment will be determined from October to October using the CPI-U with the new amounts being announced no later than January 15th of each year. To learn more about the new rules, you can visit the DOL’s website or see the increased penalty amounts here.