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Personnel Staffing, Inc.

Feds Ratchet Up Employer Penalties, Effective August 1

dept of labor

While this development was technically announced on the last day of June, it occurred right before the long holiday weekend, so we’re counting for July. On June 30, the U.S. Department of Labor (USDOL) announced a series of civil penalty increases that will impact the nation’s employers in the very near future. The agency announced that the vast majority of penalties associated with wage and hour, safety, and benefits compliance matters will soon increase, as will certain penalties associated with immigration matters.

The USDOL reminded employers that penalties exist in order to “encourage greater compliance” with federal law, but pointed out that they are less effective if they haven’t been raised for decades to keep pace with inflation. The new civil penalty amounts will be applicable only to penalties assessed after August 1, 2016, but will apply to violations that occurred after November 2, 2015 (read more here).

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