EEOC Adjusts 2023 Penalty for Violation of Notice Posting Requirements

The Equal Employment Opportunity Commission (EEOC) issued a final rule adjusting for inflation the civil monetary penalty for violation of the notice-posting requirements in Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Genetic Information Non-Discrimination Act.

Under section 711 of the Civil Rights Act of 1964 (Title VII), which is incorporated by reference in section 105 of the Americans with Disabilities Act (ADA) and section 207 of the Genetic Information Non-Discrimination Act (GINA), and implemented in 29 CFR 1601.30(a), every employer, employment agency, labor organization, and joint labor-management committee controlling an apprenticeship or other training program covered by Title VII, ADA, or GINA must post notices describing the pertinent provisions of these laws.

Notices must be posted in prominent and accessible places where notices to employees, applicants, and members are customarily maintained. Failure to comply with this posting requirement is subject to penalty pursuant to the Federal Civil Penalties Adjustment Act, as amended.

The adjustment set forth in the final rule was calculated by comparing the CPI-U for October 2021 with the CPI-U for October 2022, resulting in an inflation adjustment factor of 1.07745.

• The first step of the calculation is to multiply the inflation adjustment factor (1.07745) by the most recent civil penalty amount ($612) to calculate the inflation adjusted penalty level ($659.3994).
• The second step is to round this inflation-adjusted penalty to the nearest dollar ($659). EEOC is now adjusting the maximum penalty per violation specified in 29 CFR 1601.30(a) from $612 to $659.

The final rule is effective March 23, 2023.