Department of Labor cancels its 2026 inflation adjustment to civil penalties
As of our last check on November 3, 2026, this is in effect, since May 27, 2026.
We check the Federal Register daily for later actions. We check federal court opinions for rulings on published rules weekly, on Mondays. A ruling can take time to reach us, so not finding one here does not mean there is none.
In short
- What changed
- The Department of Labor will not raise its civil penalty amounts for inflation in 2026. The law ties the yearly adjustment to October consumer price data, and the Bureau of Labor Statistics could not produce the October 2025 data during the lapse in funding.
- Who's affected
- Employers that could face civil penalties from Department of Labor agencies, such as the Wage and Hour Division, the Occupational Safety and Health Administration, the Employee Benefits Security Administration and the Mine Safety and Health Administration.
- What to do
- This rule creates no new duties for employers. Penalty amounts stay where they were, so the only update is to any internal materials that assumed a 2026 increase.
What changed
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From the sourceSUMMARY
the 2026 adjustment is cancelled entirely
Also: II. No Adjustment for 2026
the Department of Labor is not making any adjustments to civil money penalties under the Inflation Adjustment Act in 2026.
The Department of Labor is making no inflation adjustment to its civil monetary penalties for 2026. The 2026 adjustment is cancelled entirely.
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From the sourceII. No Adjustment for 2026
BLS was unable to produce the October 2025 data. The statute does not allow for an alternative method of calculating civil penalty amounts.
The law bases the yearly adjustment on October consumer price data from the prior year. The Bureau of Labor Statistics could not produce the October 2025 data, and the law allows no other way to calculate the amounts.
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From the sourceII. No Adjustment for 2026
OMB instructed agencies to continue using the 2025 civil monetary penalties as applicable.
The Office of Management and Budget (OMB) told federal agencies to keep using the 2025 civil penalty amounts, as applicable.
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From the sourceII. No Adjustment for 2026
In 2027, the Department will undertake a thorough review of civil penalties administered by its various components pursuant to the Inflation Adjustment Act
In 2027, the Department will conduct a thorough review of the civil penalties its agencies administer.
Who is affected
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Our analysisAGENCY
Wage and Hour Division, Occupational Safety and Health Administration, Employee Benefits Security Administration, and Mine Safety and Health Administration, Department of Labor.
Also: I. Background
the initial catch-up adjustment for most civil penalties that the Department administers
The rule touches any employer that could face a civil penalty from the Department agencies named in the rule, including the Wage and Hour Division, the Occupational Safety and Health Administration, the Employee Benefits Security Administration and the Mine Safety and Health Administration.
What it means in practice
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Our analysisII. No Adjustment for 2026
OMB instructed agencies to continue using the 2025 civil monetary penalties as applicable.
Also: SUMMARY
the 2026 adjustment is cancelled entirely
Civil penalty amounts from the Department of Labor stay at their 2025 levels for 2026 rather than rising with inflation, so an employer's penalty exposure does not grow this year.
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Our analysisII. No Adjustment for 2026
In 2027, the Department will undertake a thorough review of civil penalties administered by its various components pursuant to the Inflation Adjustment Act
The planned 2027 review could lead to changes in penalty amounts later, but the rule does not say what those changes would be.
What to do
Required
The rule creates no new requirements for employers. It only states that the Department of Labor will not adjust its civil penalty amounts for inflation in 2026.
Worth considering
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Our suggestionII. No Adjustment for 2026
OMB instructed agencies to continue using the 2025 civil monetary penalties as applicable.
Consider checking that compliance training, risk assessments and budgets use the 2025 civil penalty amounts rather than an assumed 2026 increase.
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Our suggestionII. No Adjustment for 2026
In 2027, the Department will undertake a thorough review of civil penalties administered by its various components pursuant to the Inflation Adjustment Act
Consider watching for the Department's 2027 review of civil penalties, which may change penalty amounts.
Open questions
The source leaves these open. We'll update this record if a later document answers them.
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What are the 2025 civil penalty amounts that continue to apply in 2026?
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Will the 2027 review make up for the skipped 2026 adjustment?
Related changes
History
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Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2026 Source (opens in a new tab)