August 2016 was an important month, with penalties increasing for violations of the False Claims Act and OSHA. Review our infographic to familiarize yourself with the changes.
As of August 1st, 2016, there are new penalties for the False Claims Act. The Department of Justice will nearly double the statutory penalties under the False Claims Act (FCA) under an interim final rule published June 29, 2016. The minimum penalty charge will double from $5,500 to $11,000 per violation. The new rule sets the maximum violation charge at $21,563, up from the previous limit of $10,781. This marks the first time FCA penalties have been adjusted for inflation since 1999.
Additionally, OSHA made drastic changes to their penalty structure, effective August 2nd, 2016. It has been 25 years since the last time any adjustments were made. Since 1990, OSHA has been specifically exempt from a law that required federal agencies to raise their fines to keep pace with inflation. That exemption was eliminated in the 2015 Bipartisan Budget Bill. For serious and other-than-serious violations, the penalty maximums will rise from $7,000 to $12,471 per violation. For failure to abate, penalties rise from $7,000 to $12,471 per day beyond the abatement date. Willful or repeated violations carry a heavy weight: the maximum penalties have risen from $70,000 to $124,709 per violation.