Failure to Post Notices: Inflation Penalties Coming Your Way

υCongress has found another way to harass insurance industry employers by passing a new law called the “Federal Civil Penalties Inflation Adjustment Act.”  It directs federal agencies to increase civil penalties for failure to post required notices of various discrimination laws in places where they are reasonably accessible by employees.

As a result, fines have more than doubled with the maximum penalty being $525 for certain notices not posted or, even if posted, not prominently displayed.

Violations are typically found where employees alert the applicable agency, random checks are conducted, or when a discrimination claim is filed by an alienated employee.  These inspections result in the applicable penalties for each separate violation.

Among the required federal posters are:

• Minimum wage and overtime (“FLSA”);

•Family and Medical Leave Act (“FMLA”);

• Occupational Safety and Health Act (“OSHA”);

• Equal Employment Opportunity Commission (“EEOC”); and,

• Employee Polygraph Protection Act (“EPPA”).

Each of the notices advise employees of their rights under the respective laws and, of course, encourage employees to file complaints with federal agencies or seek private attorney relief if they believe their rights have been violated.  Under the new law, the fines will be increased annually in accordance with inflation.

While there are feeforservice organizations that will supply required federal AND state posters for a reasonable fee, note that all notices are available free of charge from the applicable federal and state agencies, accessible through government websites.

Takeaway for Insurance Executives

Particularly in light of the increased and sizeable penalties for each violation, all employers should become aware of both federal and state notice posting requirements and act accordingly in order to comply with the law.[IA]