Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the Inflation Adjustment Act), the cost of violating employment-related federal laws and regulations enforced by the Equal Employment Opportunity Commission (EEOC), the U.S. Department of Labor (DOL), and the U.S. Department of Justice (DOJ) has increased by more than 7% for 2023. The Inflation Adjustment Act requires federal agencies to adjust their civil monetary penalties each year to account for inflation. A memorandum from the White House Office of Management and Budget (OMB) in December 2022 instructed executive branch departments and agencies to apply a cost-of-living adjustment multiplier of 1.07745 to increase civil penalties for 2023. Agencies have published their annual adjustments in the Federal Register. The Inflation Adjustment Act does not apply to victim-specific relief such as back pay, liquidated damages, or compensatory and punitive damages that may be recoverable under the various federal workplace-related laws.
Members of the Center for Workplace Compliance (CWC) can read more here.