On January 11, 2024. DOL issued final rule implementing the annual adjustment of certain penalties for inflation required by the Inflation Adjustment Act. Among the penalties affected are penalties for employer violations of the D-1, H-1B, H-2A, and H-2B visa programs. The rule is effective January 15, 2024.
As background, the Inflation Adjustment Act significantly revised the method for calculating inflation adjustments for penalty increases, including by:
- Providing an initial “catch-up” adjustment for civil money penalties.
- Requiring the DOL and other federal agencies to annually adjust the penalties for inflation (using a cost-of-living formula), by January 15 of each year.
For Adjustments of 2024
The increased penalty levels. Accordingly, for penalties assessed after January 15, 2024, whose associated violations occurred after the applicable dates listed below;
| Violation occurring | Penalty assessed | Which penalty level applies | |
| Civil Monetary Penalties for Violations of | After March 23, 2018
|
After March 23, 2018 but on or before November 23, 2021 | Consolidated Appropriations Act of
2018 amount |
| Section 3(m)(2)(B) of the FLSA (TIPS) | After March 23, 2018
|
After November 23, 2021 but on or before January 15, 2022 | November 23, 2021 level
|
| After March 23, 2018
|
After January 15, 2022 but on or before January 15, 2023 | January 15, 2022 level
|
|
| After March 23, 2018
|
After January 15, 2023 but on or before January 15, 2024 | January 15, 2023 level
|
|
| After March 23, 2018 | After January 15, 2024 | January 15, 2024 level | |
| Civil Monetary Penalties for USMCA Violations | After July 1, 2020
|
After July 1, 2020 but on or before January 15, 2022 | 2020 USMCA IFR amount
|
| After July 1, 2020
|
After January 15, 2022 but on or before January 15, 2023 | January 15, 2022 level
|
|
| After July 1, 2020
|
After January 15, 2023 but on or before January 15, 2024 | January 15, 2023 level.
|
|
| After July 1, 2020
|
After January 15, 2024 | January 15, 2024 level. | |
| Civil Monetary Penalties for
the H–2B Temporary Non-Agricultural Worker Program |
On or before November 2, 2015
On or before |
On or before August 1, 2016
|
Pre-August 1, 2016 levels.
|
| November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015 |
After August 1, 2016
After August 1, 2016, but on or before March 17, 2017 After March 17, 2017 but on or before January 2, 2018 After January 2, 2018 but on or before January 23, 2019
After January 23, 2019 but on or before January 15, 2020 After January 15, 2020 but on or before January 15, 2021 After January 15, 2021 but on or before January 15, 2022 After January 15, 2022 but on or before January 15, 2023 After January 15, 2023 but on or before January 15, 2024 After January 15, 2024 |
Pre-August 1, 2016 levels.
August 1, 2016 levels
March 17, 2017 levels
January 2, 2018 levels
January 23, 2019 levels
January 15, 2020 levels
January 15, 2021 levels
January 15, 2022 levels
January 15, 2023 level
January 15, 2024 level |
|
| Civil Monetary Penalties for
Other DOL Program |
On or before November 2, 2015 | On or before August 1, 2016 | Pre-August 1, 2016 levels |
| On or before November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015
After November 2, 2015 |
After August 1, 2016
After August 1, 2016, but on or before January 13, 2017 After January 13, 2017 but on or before January 2, 2018 After January 2, 2018 but on or before January 23, 2019 After January 23, 2019 but on or before January 15, 2020 After January 15, 2020 but on or before January 15, 2021 After January 15, 2021 but on or before January 15, 2022 After January 15, 2022 but on or before January 15, 2023 After January 15, 2023 but on or before January 15, 2024 After January 15, 2024 |
Pre-August 1, 2016 levels.
August 1, 2016 levels.
January 13, 2017 levels
January 2, 2018 levels
January 23, 2019 levels
January 15, 2020 levels
January 15, 2021 levels
January 15, 2022 levels
January 15, 2023 level
January 15, 2024 level |
Adjustment Process and Calculation
The U.S. Department of Homeland Security (DHS) and the U.S. Department of Labor (DOL) (collectively, “the Department”) is required to calculate the annual adjustment based on the Consumer Price Index for all Urban Consumers (CPI–U).
Annual inflation adjustments are based on the percent change between the October CPI–U preceding the date of the adjustment, and the prior year’s October CPI–U.
For the cost-of-living adjustment multiplier for 2024, the Department multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.03241, and rounded to the nearest dollar