Fine for Failure To Post “EEO is the Law” Poster Increased to $525

The Equal Employment Opportunity Commission (EEOC) announced recently that the maximum allowable fine for failing to post the “EEO is the Law” poster will be increased from $210 to $525 for each separate offense, effective July 1, 2016.

In a final rule published on June 2, 2016, the EEOC states that the increase in the posting penalty is mandatory under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the “Act”), a federal law enacted last year that required federal agencies to make inflation adjustments by July 1 of this year for any civil monetary penalties that fall under the statutes and regulations they enforce. The Act also requires that these penalties be adjusted for inflation each year thereafter.

As a practical matter, the EEOC rarely issues fines for posting violations. Thus, in this case at least, the increase in the fine will be primarily for its deterrent effect because companies that fail to meet their posting obligations will have considerably more monetary exposure than they would have had previously.

Members of the Equal Employment Advisory Council (EEAC) can read more here.