Overtime and Holiday Inspection Fee Reductions for Small and Very Small Establishments
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Abstract
This notice provides instructions to small and very small establishments for applying for reduced overtime and holiday inspection fees. It also describes FSIS' procedures for implementing the reduced fees. FSIS is using $20 million in de-obligated funds to temporarily reduce overtime and holiday inspection fees for small and very small official meat, poultry, and egg products establishments for Fiscal Year (FY) 2026. Eligible small establishments that apply will receive a 30 percent reduction and eligible very small establishments that apply will receive a 75 percent reduction. Establishments must submit the FSIS Form 5200-16, Overtime/Holiday Rate Reduction Form for FSIS to determine eligibility.
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<title>Federal Register, Volume 91 Issue 60 (Monday, March 30, 2026)</title>
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[Federal Register Volume 91, Number 60 (Monday, March 30, 2026)]
[Notices]
[Pages 15589-15591]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06071]
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Notices
Federal Register
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Federal Register / Vol. 91, No. 60 / Monday, March 30, 2026 /
Notices
[[Page 15589]]
DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
[Docket No. FSIS-2026-0070]
Overtime and Holiday Inspection Fee Reductions for Small and Very
Small Establishments
AGENCY: Food Safety and Inspection Service (FSIS), U.S. Department of
Agriculture (USDA).
ACTION: Notice.
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SUMMARY: This notice provides instructions to small and very small
establishments for applying for reduced overtime and holiday inspection
fees. It also describes FSIS' procedures for implementing the reduced
fees. FSIS is using $20 million in de-obligated funds to temporarily
reduce overtime and holiday inspection fees for small and very small
official meat, poultry, and egg products establishments for Fiscal Year
(FY) 2026. Eligible small establishments that apply will receive a 30
percent reduction and eligible very small establishments that apply
will receive a 75 percent reduction. Establishments must submit the
FSIS Form 5200-16, Overtime/Holiday Rate Reduction Form for FSIS to
determine eligibility.
DATES: Establishments may begin submitting their completed FSIS Form
5200-16, Overtime/Holiday Rate Reduction Forms on March 30, 2026. While
funding lasts, all establishments that submit their forms and qualify
for a fee reduction will receive a partial refund for overtime and
holiday inspection fees paid since October 5, 2025, which was the first
day of the pay period following the start of FY 2026. FSIS encourages
establishments to submit their forms as soon as possible to ensure
consideration for both retroactive and future fee reductions.
Retroactive and future fee reductions will be processed in the order in
which complete submissions are received, while funds remain available.
ADDRESSES: Small and very small establishments should submit their
completed forms to the FSIS inspection personnel assigned to their
establishment or, alternatively, email the completed form to the
appropriate FSIS District Office, ``Attention Grant Curator.'' Contact
information for the FSIS District Offices, including email addresses,
is available at: <a href="https://www.fsis.usda.gov/contactus/fsis-offices/office-field-operations-ofo">https://www.fsis.usda.gov/contactus/fsis-offices/office-field-operations-ofo</a>.
FOR FURTHER INFORMATION CONTACT: April Regonlinski, Assistant
Administrator, Office of Policy and Program Development by telephone at
(202) 205-0495.
For billing issues and to request refunds contact the FSIS Office
of the Chief Financial Officer: (515) 334-2000 or email at
<a href="/cdn-cgi/l/email-protection#accadfc5df82cec5c0c0c5c2cbecd9dfc8cd82cbc3da"><span class="__cf_email__" data-cfemail="4325302a306d212a2f2f2a2d2403363027226d242c35">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
I. Background
FSIS is responsible for ensuring that meat, poultry, and egg
products are safe, wholesome, and properly labeled and packaged. The
Agency administers a regulatory program for meat products under the
Federal Meat Inspection Act (FMIA) (21 U.S.C. 601 et seq.), for poultry
products under the Poultry Products Inspection Act (PPIA) (21 U.S.C.
451 et seq.), and for egg products under the Egg Products Inspection
Act (EPIA) (21 U.S.C. 1031 et seq.).
FSIS previously announced that it intends to use $20 million in de-
obligated funds from the Meat and Poultry Processing Expansion Program
to temporarily reduce overtime and holiday inspection fees for small
and very small establishments (90 FR 51638). In that notice, FSIS
explained that the Agency previously implemented a similar fee
reduction initiative and intends to resume providing for reduced
overtime and holiday fees for small and very small establishments (see
86 FR 37276). FSIS intends to temporarily reduce overtime and holiday
inspection fees for small establishments by thirty percent and for very
small establishments by seventy-five percent for FY 2026, or until all
appropriated funds are expended.
II. Eligibility
Only small and very small official meat, poultry, or egg products
establishments are eligible to receive overtime and holiday inspection
at the reduced rates discussed above. For purposes of determining
eligibility, an ``official establishment'' is defined as any entity
that slaughters livestock or poultry and/or processes meat (including
Siluriformes fish), poultry, or egg products at which inspection is
required by the FMIA, PPIA, or EPIA. Facilities that receive voluntary
inspection services, establishments that function solely as Official
Import Inspection Establishments, or solely as exporting facilities are
not eligible for the fee reduction.
``Small establishment'' and ``very small establishment'' will have
the meaning given to those terms in FSIS' final rule ``Pathogen
Reduction; Hazard Analysis and Critical Control Point (HACCP)'' (PR/
HACCP)(61 FR 38806, July 25, 1996). As defined in the PR/HACCP final
rule, an establishment is ``small'' if it has 10 or more but fewer than
500 employees, and an establishment is ``very small'' if it has fewer
than 10 employees or less than $2.5 million in annual sales (61 FR
38806). Employees mean all individuals employed on a full-time, part-
time, temporary, or other basis. FSIS will also consider the number of
employees at any affiliated companies when determining whether an
establishment meets the thresholds for the small and very small
definitions.
III. Overtime/Holiday Rate Reduction Form
FSIS will use FSIS Form 5200-16, Overtime/Holiday Rate Reduction
Form to collect information to determine whether an establishment
inspected by FSIS qualifies for an overtime and holiday inspection fee
reduction and, if so, the amount of the reduction; this is the same
form that FSIS used when it previously provided for reduced overtime
and holiday inspection fees. FSIS will use this form again because the
Agency does not have complete data on establishment size and average
annual sales, and the form allows the Agency to collect information to
determine whether an establishment is a subsidiary, affiliate, or part
of some other business structure that would prevent it from being
eligible for a fee reduction. The form also serves as an attestation
from the establishment that the data provided are accurate. The form
[[Page 15590]]
is optional in that those small and very small establishments that do
not use overtime or holiday inspection services, or that are not
interested in receiving a fee reduction, are not required to complete
it. However, small and very small official establishments that would
like to request a fee reduction must complete the form to receive the
benefit.
In addition to the definitions for ``official establishment'' and
``employees'' discussed above, the form includes definitions for
``affiliated companies'' and ``company'' for purposes of determining
whether an official establishment qualifies for a fee reduction. For
purposes of the form, companies are considered affiliated with each
other when one controls the other or a third-party controls both. It
does not matter whether control is exercised, so long as the power to
control exists. For example, a corporate company that owns one or more
establishments is affiliated with those establishments, and the
establishments are affiliated with the corporate company and each
other. Affiliated companies do not typically include entities that
perform common administrative services, including human resource
support and cleaning services, as defined by the Small Business
Administration (SBA) in 13 CFR 121.103. For purposes of the form, a
``company'' is any organization or entity (including an establishment)
that buys or sells goods or services. A company may be organized in
various forms, including partnerships and corporations, and can be
privately held or publicly traded. Affiliation alone does not prevent
an establishment from qualifying for a fee reduction. A company may
have affiliates, so long as the combined size of the establishment and
its affiliated companies remains within the applicable thresholds for
small or very small establishments.
To complete the form, establishments must answer a series of
questions designed to collect data on the total number of employees
employed by the establishment and any affiliated companies, as well as
the average annual sales for the establishment. As stated in the form,
the number of employees is the average number of employees. The average
is calculated by summing the number of employees at the end of each pay
period over the preceding 52 weeks and dividing by the total number of
pay periods. In addition, for purposes of the form, establishments
should determine their annual average sales based on their sales over
the past five years or, for establishments that have been in business
for less than five years, on the number of years they have been in
business. This is consistent with the SBA's regulations for calculating
a business's annual receipts (13 CFR 121.104). Thus, under this
approach, the average annual sales of an establishment that has been in
business for five or more completed fiscal years means the
establishment's total sales over its most recently completed five
fiscal years divided by five. Establishments that have been in business
fewer than five years should use the annual sales for their fully
completed years in business divided by their number of fully completed
fiscal years. Because FSIS intends to use data collected on the form to
determine whether an official establishment is qualified for a rate
reduction and the amount of the reduction, the establishment must also
attest that data provided are accurate. Official establishments that
are not affiliated with other companies will only need to report the
number of employees employed by the establishment and whether the
establishment's average annual sales are less than $2.5 million or $2.5
million or more.
Establishments may obtain an Overtime/Holiday Rate Reduction form
from the FSIS inspection personnel assigned to the establishment or may
download the form from <a href="https://www.fsis.usda.gov/inspection/inspection-forms">https://www.fsis.usda.gov/inspection/inspection-forms</a>. The form is provided as a fillable PDF that may be signed
electronically.
Establishments should submit the completed form to the FSIS
frontline supervisor assigned to the establishment. The frontline
supervisor will submit the completed form to the District Office for
processing. Alternatively, establishments that prefer to submit the
form themselves may email the completed form to the appropriate
District Office, ``Attention Grant Curator.''
Establishments are encouraged to submit their completed Overtime/
Holiday Rate Reduction forms as soon as possible to expedite the
process. All establishments that qualify for a fee reduction will
receive a partial refund for overtime and holiday inspection fees paid
since October 5, 2025, which was the first day of the first pay period
in FY 2026. Establishments may request that FSIS provide the refund as
a lump sum or as a credit to be applied to future overtime and holiday
inspection fees. Establishments may submit the form at any time. If the
establishment qualifies for a fee reduction, future fee reductions will
begin on the date the form is submitted, provided funds are still
available. A partial refund for overtime and holiday inspection fees
paid since October 5, 2025, will also be considered once the form is
submitted, contingent on the availability of funds. As noted above, to
those deemed eligible for reduced rates, FSIS will offer overtime and
holiday inspection at the reduced rates in FY 2026, or until all
available funds for overtime and holiday inspection are expended.
IV. Determining Establishment Eligibility and Fee Reduction
After an establishment's completed FSIS Form 5200-16, Overtime/
Holiday Rate Reduction Form is received by the District Office, the
District Office's Grant Curator will review the form to determine
whether an official establishment is eligible for an overtime and
holiday inspection fee reduction and, if so, whether the establishment
qualifies for the small establishment or very small establishment
reduced fee.
When reviewing an establishment's form, the Grant Curator will
first assess the information to determine whether the establishment is
affiliated with other companies, including other establishments. If the
establishment is affiliated with other companies and the total number
of employees employed by the establishment and its affiliated companies
is less than 500, the establishment would qualify for an overtime and
holiday inspection fee reduction. If the establishment together with
its affiliated companies employ 500 or more employees, the
establishment would not qualify for a fee reduction.
If an establishment qualifies for a fee reduction, the Grant
Curator will conduct an additional review to determine if the
establishment qualifies for the small establishment or very small
establishment reduction rate. The amount of the fee reduction will be
based on the number of employees or average annual sales for the
establishment as a discrete entity without considering employees or
average annual sales associated with any affiliated companies. Thus, if
the establishment itself employs fewer than 10 employees or has less
than $2.5 million in average annual sales, the establishment would
qualify as a ``very small establishment'' for purposes of the fee
reduction and would receive a 75 percent reduction on overtime and
holiday inspection fees. The establishment would qualify for the ``very
small establishment'' fee reduction even if the total number of
employees employed by all affiliated companies is over 10, but less
than 500, and if the average annual sales for all affiliated companies
is greater than $2.5 million. If the establishment employs
[[Page 15591]]
more than 10 employees but fewer than 500 employees and its annual
average sales are greater than $2.5 million, it would qualify as a
``small establishment'' for purposes of the fee reduction and would
receive a 30 percent reduction on overtime and holiday inspection fees.
This approach will allow FSIS to maintain and update individual
establishment HACCP size information in the Public Health Information
System (PHIS), while also providing the greatest fee reductions to
those establishments that would benefit the most. See Table 1 for an
overview of applicant establishments that qualify for a fee reduction
and the amount of their reduction.
Table 1--Overtime and Holiday Inspection Rate Reduction: Eligibility and Fee Reduction
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Applicant + affiliated Applicant + Applicant eligibility
Applicant average # of employees companies average # of Applicant HACCP size Applicant average affiliated companies for rate reduction/
employees in PHIS annual income average annual income percentage
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<=9................................ <=9................... VS.................... Any.................. Any.................. Yes/75%.
<=9................................ >=10 and <=499........ VS.................... Any.................. Any.................. Yes/75%.
>=10 and <=499..................... >=10 and <=499........ VS.................... <2.5 million......... Any.................. Yes/75%.
<=9................................ >= 500................ VS.................... N/A.................. N/A.................. No.
>=10 and <=499..................... >=10 and <=499........ S..................... >=2.5 million........ Any.................. Yes/30%.
>=10 and <=499..................... >=500................. VS.................... <2.5 million......... N/A.................. No.
>=10 and <=499..................... >= 500................ S..................... >=2.5 million........ N/A.................. No.
>=500.............................. >=500................. L..................... N/A.................. N/A.................. No.
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Establishments that have questions regarding their eligibility for
a fee reduction should contact their FSIS District Office. Contact
information for the FSIS District Offices is available at: <a href="https://www.fsis.usda.gov/contactus/fsis-offices/office-field-operations-ofo">https://www.fsis.usda.gov/contactus/fsis-offices/office-field-operations-ofo</a>.
An establishment that has a change that would affect its
eligibility or the amount of its fee reduction, e.g., a small
establishment has a reduction in employees or annual sales such that it
qualifies as very small, must submit a new Overtime/Holiday Rate
Reduction form to FSIS as close as possible to the time the change
occurs so that the Agency may make the associated change to the
establishment's fee reduction. FSIS also will apply any new fee
reduction to qualified establishments as soon as possible after it is
notified of the change.
V. Additional Public Notification
Public awareness of all segments of rulemaking and policy
development is important. Consequently, FSIS will announce this Federal
Register publication online through the FSIS web page located at:
<a href="https://www.fsis.usda.gov/federal-register">https://www.fsis.usda.gov/federal-register</a>. FSIS will also announce and
provide a link through the FSIS Constituent Update, which is used to
provide information regarding FSIS policies, procedures, regulations,
Federal Register notices, FSIS public meetings, and other types of
information that could affect or would be of interest to our
constituents and stakeholders. The Constituent Update is available on
the FSIS web page. Through the web page, FSIS is able to provide
information to a much broader, more diverse audience. In addition, FSIS
offers an email subscription service which provides automatic and
customized access to selected food safety news and information. This
service is available at: <a href="https://www.fsis.usda.gov/subscribe">https://www.fsis.usda.gov/subscribe</a>. Options
range from recalls to export information, regulations, directives, and
notices. Customers can add or delete subscriptions themselves and have
the option to password protect their accounts.
VI. USDA Non-Discrimination Statement
In accordance with Federal civil rights law and USDA civil rights
regulations and policies, the USDA, its Agencies, offices, and
employees, and institutions participating in or administering USDA
programs are prohibited from discriminating based on race, color,
national origin, religion, sex, disability, age, marital status,
family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the State or
local Agency that administers the program or contact USDA through the
Telecommunications Relay Service at 711 (voice and TTY). Additionally,
program information may be made available in languages other than
English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at How to
File a Program Discrimination Complaint and at any USDA office or write
a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by: (1) mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop
9410, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3) email:
<a href="/cdn-cgi/l/email-protection#3b4b49545c495a561552554f5a505e7b4e485f5a155c544d"><span class="__cf_email__" data-cfemail="166664797164777b387f7862777d73566365727738717960">[email protected]</span></a>.
USDA is an equal opportunity provider, employer, and lender.
Justin Ransom,
Administrator.
[FR Doc. 2026-06071 Filed 3-27-26; 8:45 am]
BILLING CODE 3410-DM-P
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