The U.S. Department of Labor (DOL) announced civil penalties have been increased to adjust for inflation. Fair Labor Standards Act violations are affected, including wage and overtime violations. Penalties rose based on the consumer price index for urban consumers, per the Federal Civil Penalties Inflation Adjustment Act of 1990. The increase, based on the percentage difference between October 2021 and October 2020, is 1.06222%, per the DOL. The most recent penalty amount is increased by the given percentage and then rounded to the nearest dollar.

Wage violations related to H-2B visas will see a penalty of $13,885. For H-1B visas, the penalty will be $59,028. Civil penalties for U.S.-Mexico-Canada Agreement violations will be $50,000.

H-2B visa violation penalties are enacted when:

  • Violation of any provisions of section 503.16 related to wages, impermissible deductions, or prohibited fees and expenses (equal to the difference between the amount that should have been paid and the amount that actually was paid to such worker(s)).
  • Violation related to termination by layoff or otherwise or refusal to employ any worker in violation of section 503.16(r), (t), or (v), within the periods described in those sections (equal to the wages that would have been earned but for the layoff or failure to hire).
  • Any other violation that meets the standards described in section 503.19.

H-1B visa violations penalties are enacted when:

  • (1) A willful violation resulting in the displacement of a US worker employed by the employer in the period beginning 90 days before and ending 90 days after the filing of an H-1B petition in conjunction with:
    • (i) A willful violation of the provisions pertaining to wages/working condition, strike/lockout, notification, labor condition application specificity, displacement, or recruitment; or
    • (ii) A willful misrepresentation of a material fact on the labor condition application.

Other violations apply so check the DOL website for more information.

Civil penalties for the tip credit rule rose from $1,110 to $1,162.

Penalties for employers who violate minimum wage and overtime rules under the FLSA will see penalties increase from $2,074 to $2,203.

ILBSG continues to monitor ongoing policies to ensure our clients get the right advice. If you have questions about required payment policies and your immigration-related case, contact us anytime. We work with our clients to ensure violations are avoided from the start.

dol h-1b h-2b Wage Violations