• Client Briefing from the Labor and Employment Group
  • September 6, 2016 | Author: Patricia F. Weisberg
  • Law Firm: Walter - Cleveland Office
  • EEOC More than Doubles Penalty for Notice Violations

    The Equal Employment Opportunity Commission (EEOC) raised the penalty for employers who fail to properly post required workplace notices under Title VII, the Americans with Disabilities Act (ADA), and Genetic Information Non-Discrimination Act (GINA) from $210 per violation to $525 per violation, effective July 5, 2016.

    Employers Must Post Notices Under Title VII, ADA, and GINA

    Employers are required to post notices describing the relevant provisions of Title VII, the ADA, and GINA in a prominent and accessible place where notices to employees are usually posted. The notice requirement applies to employers with 15 or more employees, including educational institutions and state and local governments, as well as all federal contractors and subcontractors.

    Increased Penalty Intended to Promote Compliance with Notice Requirement

    The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires the EEOC to adjust penalties consistent with inflation. Adjusting the 1964 penalty of $100 for inflation would result in an inflation-adjusted penalty of $765 for 2016. However, the EEOC may not increase the penalty by more than 150% in a year, which means the EEOC could only raise the penalty from $210 to $525 this year.

    Expectations and Guidance for Employers

    The new fee took effect on July 5, 2016 and the penalty does not apply to violations issued before July 5. Because the current penalty is lower than the inflation-adjusted penalty, employers can expect another significant penalty increase in 2017, and minor adjustments to the penalty each year following.

    Employers should regularly review their postings to check that the postings are both current and properly placed to ensure compliance with the notice requirement.