NATDA Magazine Sept/Oct 2016 - Page 84

Complex rules and increased fines equal compliance headaches for employers. Let’s take a look at just a few of the programs, practices and policies that employers will need to review before the end of the year. There’s been a wave of new rules and regulations from Washington in the past year related to human resources compliance and workforce management. Understanding the rules and how to comply is critical as fines for non-compliance will increase, effective August 1st 2016, with some fines increasing up to 75%. Why the big increase? The Federal Civil Penalties Inflation Adjustment Act of 1990 requires agencies to adjust statutory civil penalties for inflation and to have a deterrent, compliancepromoting effect. On November 2nd 2015, the 2015 Adjustment Act was signed into law that amended the FCPIA by adding two requirements: A onetime catch-up provision to adjust penalties to account for inflation (increases are capped at 150% of penalties in effect November 2nd 2015) Beginning January 15th 2017, agencies must annually review statutory civil penalties and make adjustments to account for inflation IS YOUR WORKPLACE SAFE? OSHA fines for violations, and failure to meet posting requirements are increasing from $7,000 to $12,471 per violation. Failure to abate penalties will increase from $7,000 per days beyond the abatement date to $12,471. Willful and repeated violations could cost you up to $124,709 per violations. ARE YOU SURE YOUR I-9 FORMS ARE COMPLETE AND ACCURATE? The Department of Homeland Security (DHS), Department of Justice (DOJ), and Department of Labor (DOL) announced increased civil fines against employers who commit immigration-related offenses, such as Form I-9 and E-Verify violations, H-1B visa program violations, unfair immigration employment practices, and unlawfully employing foreign nationals. For example, the penalties for violating the Form I-9 identity and employment eligibility verification provisions almost doubled, going from a range of $110 – $1,100 to now $216 – $2,156. The penalties for knowingly hiring, recruiting, referring, or retaining an unauthorized worker increased per unauthorized alien to $539 to $4,313 for the first offense, $4,313 to $10,781 for the second offense, and $6,469 to $21,563 for subsequent offenses. ARE YOU FILING REQUIRED FORMS AND REPORTS FOR RETIREMENT SAVING PLANS? Failure to file Form 5500 increases the penalty from $1,100 to $2,063 per day. Have you provided requested information to the DOL? That penalty will increase to $147 per day for every day you fail to furnish information. How about providing required information to every new hire and each employee? Failure to provide a Summary of Benefits and Coverage means the penalty will increase from $1,000 to $1,087 per failure. continued on page 86 84 NATDA Magazine www.natda.org