Laws and fines

FEDERAL EMPLOYMENT LAWS AND APPLICABLE PENALTIES FOR NON‐COMPLIANCE

Employment Law Coverage Penalties for Non‐Compliance

Americans with Disabilities Act

Prohibits employers from discriminating against individuals with disabilities

15 or more EEs

Same as for Title VII – back pay, reinstatement, retroactive seniority; for international discrimination, possible jury trial with compensatory and punitive damages up to the maximum established by the Civil Rights Act of 1991 based on the number of employees: 15 – 100 – Maximum of $50,000 101 – 200 – Maximum of $100,000 201 – 500 – Maximum of $200,000 Over 500 – Maximum of $300,000

Age Discrimination in Employment Act

Prohibits age discrimination unless age is a bona fide occupational qualification

20 or more EEs

Back pay, reinstatement, retroactive seniority, and attorneys’ fees; liquidated damages equal to the amount of back pay may be awarded if the violation is willful

COBRA

Employers must offer separated employees the option of retaining health insurance at their own expense

20 or more EEs

ERISA – failure to provide notice: $100 per day per violation until notice is provided to employees or beneficiaries IRS – Excise tax of $100 per day per violation for each qualified beneficiary during the non‐compliance period A qualified beneficiary who did not receive coverage can bring a lawsuit against the employer

Consumer Credit Protection Act

Protects employees from termination due to garnished wages and limits the amount that can be garnished

1 or more EE

Fine of up to $1,000, one year imprisonment, or both. Actual damages, punitive damages, and attorneys’ fees

ERISA Ensures that employers provide pension benefits for employees

Covers those who voluntarily establish a pension and health plans

Willful violations result in criminal and civil penalties

Employee Polygraph Protection Act

Prohibits employers from requiring employees to submit to lie detector tests

1 or more EE

Up to $10,000 in civil penalties; aggrieved candidates for employment may obtain employment; aggrieved employees may be awarded reinstatement, back pay, and benefits


Equal Pay Act

Requires all interstate commerce employers to pay men and women equal wages for equal duties

2 or more EEs

Back pay for up to two years, or three years if the violation was willful and liquidated damages in an amount equal to back pay

Fair Credit Reporting Act

Allows credit‐reporting agencies to provide financial and personal information on prospective and current employees to employers

1 or more EE

Actual damages, costs and attorneys’ fees; additional punitive damages for willful non‐compliance; actual damages, fines of at least $1,000 plus imprisonment up to two years for obtaining a report under false pretenses

Fair Labor Standards Act

Sets minimum hourly wages, overtime hours, rates and regulates the employment of children under 18

1 or more EE

Employers who willfully or repeatedly violate the Act may be penalized up to $10,000 per violation. Second convictions can impose $10,000 and/or imprisonment for up to 6 months

Family and Medical Leave Act

Provides 12 weeks of unpaid leave to eligible employees in the case of the birth of a child or the care of a spouse or child

50 or more EEs

EEs may recover back pay and benefits with interest, as well as reinstatement and/or promotion. Attorneys’ fees and costs may also be awarded

Health Insurance Portability and Accountability Act

Creates standards to protect an individual’s medical records and other personal health information

2 or more EEs

$100 per day for each employee up to $500,000 for willful violations

Immigration Reform and Control Act

Prohibits the hiring of illegal aliens and requires employers to verify an employee’s eligibility to work in this country

1 or more EE

Civil fines of $100 to $10,000 per violation for record keeping and employment violations. Back pay/front pay and attorneys’ fee for discriminatory actions. Criminal penalties may be imposed for repeated violations

New Hire Reporting

Requires that employers submit information on new employees within 20 days of hire

1 or more EE

Pursuant to federal law, states have the option of imposing civil monetary penalties on employers who fail to report new hires. The fine can be up to $25 per newly hired employee, and if there is a conspiracy between the employer and employee not to report, the penalty can be up to $500 per newly hired employee

Occupational Safety and Health Act

Requires safe and healthful working conditions and authorizes the enforcement of certain occupational safety and health standards

1 or more EE

Civil penalties up to $1,000 for individual violations; up to $10,000 for repeated and willful violations; back pay and reinstatement for employees who suffer discrimination


Title VII

Prohibits employment discrimination based on race, color, sex, religion or national origin

15 or more EEs

Remedies of back pay, reinstatement, retroactive seniority; for intentional discrimination, possible jury trial with compensatory and punitive damages up to the maximum established by the Civil Rights Act of 1991 based on the number of EEs: 15 – 100 – Maximum of $50,000 101 – 200 – Maximum of $100,000 201 – 500 – Maximum of $200,000 Over 500 – Maximum of $300,000

Uniformed Services Employment & Reemployments Rights Act (USERA)

Is intended to minimize the disadvantages to an individual when that person needs to be absent to serve in this country’s uniformed services

1 or more EE

Back pay and benefits and liquidated damages (if conduct was willful)

Worker Adjustment and Retraining Notification Act

Imposes restrictions on the way layoffs are handled

100 or more

EEs

Back pay and lost benefits, including medical expenses which would have otherwise been paid for up to 60 days, as well as attorneys’ fees. Class action suits are allowed but punitive damages will not be awarded

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Laws and fines