Tuesday, June 7, 2016

EEOC Increases Monetary Penalties For Posting Violations

Pursuant to section 711 of the Civil Rights Act of 1964 (Title VII), incorporated by reference in the Americans with Disabilities Act (ADA) and the Genetic Information Non-Discrimination Act (GINA), covered employers must post notices describing the pertinent provisions of the abovementioned Acts in prominent and accessible places where notices to employees and applicants are customarily maintained. Employers who fail to comply with the posting requirements are now subject to a penalty of $525 per violation, a 150% increase from the previous $210 fine. Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, federal agencies are now required annually to adjust the maximum civil penalty imposed by the agency’s statues with a maximum adjustment of 150% for the first adjustment made under the 2015 Act1. With this new regulatory mandate to submit annual increases it’s likely the penalty will be steadily increased in the coming years to nearly $800 per violation2.

Kairos urges you to ensure your internal (intranet, breakrooms, etc.) and external (Career Pages, Online Application Systems, etc.) postings are compliant and up-to-date. The most current postings and requirements can be found on the Kairos Client Portal.

If you have any questions concerning this communication please contact your Kairos representative, Nick Paul at Nick@KairosServicesInc.com, or call Kairos’ office at 972-369-0015.

1. Based on the mathematical calculation for inflation from 1964 to 2015, the inflation-adjusted penalty is $765. However, since the penalty was $210 previously, the adjustment can only be increased by 150% capping this year’s penalty violation at $525. ($210 x 150% = $525). Therefore, it is expected that adjustments for the next year will approximate the $765 figure.

2. See “Adjusting the Penalty for Violations of Notice Posting Requirements”, Section “II. Mathematical Calculation” for further explanation. (Federal Register, Vol. 81, No 106, Thursday, June 2, 2016) https://www.gpo.gov/fdsys/pkg/FR-2016-06-02/pdf/2016-12999.pdf