Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2026
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Issuing agencies
Abstract
As required by statute, the Department of Labor annually publishes a final rule updating the civil monetary penalties it assesses. The Bureau of Labor Statistics (BLS) did not publish its October 2025 Consumer Price Index for All Urban Consumers (CPI-U) data due to a lapse in funding. Because the relevant law requires that annual penalty adjustments be based specifically on October CPI-U data--with no alternative calculation allowed--the 2026 adjustment is cancelled entirely.
Full Text
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<title>Federal Register, Volume 91 Issue 101 (Wednesday, May 27, 2026)</title>
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[Federal Register Volume 91, Number 101 (Wednesday, May 27, 2026)]
[Rules and Regulations]
[Page 31358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10456]
[[Page 31358]]
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DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 655
Office of Workers' Compensation Programs
20 CFR Parts 702, 725, and 726
Office of the Secretary
29 CFR Part 5
41 CFR Part 50-201
Wage and Hour Division
29 CFR Parts 500, 501, 503, 530, 570, 578, 579, 801, 810, and 825
Occupational Safety and Health Administration
29 CFR Part 1903
Mine Safety and Health Administration
30 CFR Part 100
RIN 1290-AA46
Department of Labor Federal Civil Penalties Inflation Adjustment
Act Annual Adjustments for 2026
AGENCY: Employment and Training Administration, Office of Workers'
Compensation Programs, Office of the Secretary, Wage and Hour Division,
Occupational Safety and Health Administration, Employee Benefits
Security Administration, and Mine Safety and Health Administration,
Department of Labor.
ACTION: Notification of no inflation adjustment to U.S. Department of
Labor civil monetary penalties for 2026.
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SUMMARY: As required by statute, the Department of Labor annually
publishes a final rule updating the civil monetary penalties it
assesses. The Bureau of Labor Statistics (BLS) did not publish its
October 2025 Consumer Price Index for All Urban Consumers (CPI-U) data
due to a lapse in funding. Because the relevant law requires that
annual penalty adjustments be based specifically on October CPI-U
data--with no alternative calculation allowed--the 2026 adjustment is
cancelled entirely.
DATES: Effective May 27, 2026.
FOR FURTHER INFORMATION CONTACT: Amy Hunter, Senior Policy Advisor,
U.S. Department of Labor, Room S-2312, 200 Constitution Avenue NW,
Washington, DC 20210; telephone: (202) 693-5076 (this is not a toll-
free number). Copies of this final rule may be obtained in alternative
formats (large print, Braille, audio tape or disc), upon request, by
calling (202) 693-5959 (this is not a toll-free number). TTY/TDD
callers may dial toll-free 1-877-889-5627 to obtain information or
request materials in alternative formats.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, Congress enacted the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74,
sec. 701 (Inflation Adjustment Act), which further amended the Federal
Civil Penalties Inflation Adjustment Act of 1990 as previously amended
by the 1996 Debt Collection Improvement Act, to improve the
effectiveness of civil monetary penalties and to maintain their
deterrent effect. The Inflation Adjustment Act required agencies to (1)
adjust the level of civil monetary penalties with an initial ``catch-
up'' adjustment through an interim final rule (IFR); and (2) make
subsequent annual adjustments for inflation no later than January 15 of
each year.
On July 1, 2016, the Department published an IFR that established
the initial catch-up adjustment for most civil penalties that the
Department administers and requested comments. See 81 FR 43430 (DOL
IFR). Every year thereafter, the Department has published a final rule
establishing the annual adjustment for civil monetary penalties based
on the October CPI-U from the prior year.
II. No Adjustment for 2026
According to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, the annual inflation adjustment to civil
penalties is based on BLS CPI-U data from the month of October of the
prior year. Due to the October-November 2025 lapse in appropriations,
BLS was unable to produce the October 2025 data. The statute does not
allow for an alternative method of calculating civil penalty amounts.
On April 17, 2026, Office of Management and Budget (OMB) Director
Russell T. Vought issued OMB memorandum M-26-11, which informed
agencies of the cancellation of the penalty inflation adjustment for
2026 based on the lack of October 2025 CPI-U data. OMB instructed
agencies to continue using the 2025 civil monetary penalties as
applicable.
Consistent with the guidance provided in M-26-11, the Department of
Labor is not making any adjustments to civil money penalties under the
Inflation Adjustment Act in 2026.
In 2027, the Department will undertake a thorough review of civil
penalties administered by its various components pursuant to the
Inflation Adjustment Act and in accordance with guidance issued by the
Office of Management and Budget.
Dated: May 20, 2026.
Keith Sonderling,
Acting Secretary of Labor.
[FR Doc. 2026-10456 Filed 5-26-26; 8:45 am]
BILLING CODE 4510-HL-P
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