Legal Update: New Penalty for “EEO is the Law” Poster Failures
The Equal Employment Opportunity Commission (EEOC) has issued a final rule raising the penalty from $210 to $525 for failing to post the “Equal Employment Opportunity is the Law” poster.
The poster is required by Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Genetic Information Non-Discrimination Act (GINA), which generally apply to employers with 15 or more employees and certain federal contractors. The official poster also includes information about the federal Age Discrimination in Employment Act (ADEA), the Equal Pay Act, the Rehabilitation Act, and the Vietnam Era Veterans’ Readjustment Assistance Act. It must be posted in a conspicuous location in the workplace where notices to employees and applicants are customarily maintained.
The new penalty is effective July 5, 2016. The penalty was last raised from $110 to $210 in 2014.
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires federal agencies to make inflation adjustments to civil penalties that may be imposed pursuant to each agency’s statutes. Under the Act, the EEOC’s adjustment could not exceed 150% of the current penalty, rounded to the nearest dollar.
A footnote to the rule notes that the penalty is rarely imposed, stating: “In the last ten years, the highest number of charges alleging notice posting violations occurred in 2010. In that year, only 114 charges of the 90,837 Title VII, ADA, and GINA charges (.13%) contained a notice posting violation.”
Compliance training is one way employers can incorporate regulatory requirements into their workplace. If you’re unsure about how to do it, this case study on Namely, an HR-compliance startup that combined growth and culture with training, provides an inside look.