FAA UPDATES CIVIL PENALTY AMOUNTS FOR 2017
On April 10, 2017, the FAA published the updated civil penalty table for inflation adjustment. It took effect on April 10th and finalizes the catch-up adjustment interim final rule and provides the required annual adjustment of civil penalty maximums and minimums that may be imposed for violations of FAA regulations and the Hazardous Materials Regulations in accordance with the Federal Civil Penalties Inflation Adjustment Act (FCPIAA).
Background. Under the FCPIAA, the cost-of-living adjustment (COLA) for each civil penalty is the percent change between the U.S. Department of Labor's Consumer Price Index for all-urban consumers (CPI-U) for the month of October of the calendar year preceding the adjustment and the CPI-U for the month of October of the previous calendar year. Any resulting increase must be rounded to the nearest $1.
For example, for HazMat violations not involving death, serious injury, or substantial property damage, the maximum penalty rises from $77,114 to $78,836.
If you have any questions or would like further information, please contact Shelley Ewalt.
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