Notice2026-06071

Overtime and Holiday Inspection Fee Reductions for Small and Very Small Establishments

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Published
March 30, 2026

Issuing agencies

Agriculture DepartmentFood Safety and Inspection Service

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.

Full Text

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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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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.

-----------------------------------------------------------------------

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&#160;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&#160;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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