No Federal Labor Penalty Hikes in 2026 Due to Missing Data

You might care about this because the Department of Labor (DOL) announced that it will not adjust federal civil monetary penalties for inflation in 2026. This means the penalties will stay at their 2025 levels. The reason for this unusual decision comes from a federal law. This law requires annual penalty adjustments to be based on specific economic data: the Consumer Price Index for All Urban Consumers (CPI-U) from October of the previous year. However, the Bureau of Labor Statistics (BLS) could not publish the October 2025 CPI-U data. This was due to a lapse in government funding that happened in October and November 2025. Because the law does not allow for any other way to calculate this adjustment, the DOL had no choice but to cancel the 2026 increase entirely. The Office of Management and Budget (OMB) also issued guidance confirming this. This guidance told all agencies to continue using their 2025 civil monetary penalties. The DOL intends to review these penalties thoroughly in 2027. This situation is particularly interesting because it shows how a specific legal requirement can be directly affected by other government operations. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 clearly states that penalty adjustments must rely on October CPI-U data. It does not provide any backup method if this data is unavailable. The funding lapse for the Bureau of Labor Statistics in late 2025 meant this critical piece of information was missing. This made it legally impossible for the Department of Labor to perform its mandated annual adjustment. This highlights the strict interpretation of statutory language. It also shows the domino effect that a government funding lapse can have on various regulatory processes. It means that even though an annual inflation adjustment is expected by law, a procedural gap prevented it from happening this year. This document would be of most interest to several groups. Businesses and employers, especially those who must follow labor laws, should pay attention. This includes companies that deal with issues handled by the Employment and Training Administration, the Wage and Hour Division, or the Occupational Safety and Health Administration. Legal professionals who advise these businesses will also find this information important. Human resources departments should be aware of this news. Organizations representing workers or employees might also be interested. Basically, anyone who might be subject to or concerned about federal civil monetary penalties related to labor and employment rules should know about this update. It affects how the government applies financial penalties.