New Year, Larger Penalties: What DOT Regulated Businesses Need to Know
Client Alert | 2 min read | 01.10.24
On December 28, 2023, the Department of Transportation (DOT) published a final rule increasing the statutory maximum monetary civil penalty for regulated entities. The final rule raised the minimum and maximum fines for 2024 by about 3.2 percent from the 2023 level across most DOT modes. The new fine amounts became effective on December 28, 2023 and will only apply to violations that take place after that date.
The impacted DOT agencies include the Office of the Secretary, the Federal Aviation Administration (FAA), the Great Lakes St. Lawrence Seaway Development Corporation, the Maritime Administration, the Pipeline and Hazardous Materials Safety Administration, the Federal Railroad Administration, the Federal Motor Carrier Safety Administration (FMCSA), and the National Highway Traffic Safety Administration (NHTSA).
DOT, as with other federal agencies, is required by federal law to publish its annual civil penalties update no later than January 15 each year. Based on guidance issued by the Office of Management and Budget in OMB Memorandum M–24–07, this year’s annual adjustment is the percent change between the October 2023 Consumer Price Index for All Urban Consumers (CPI-U) and the October 2022 CPI-U, or a factor of 1.03241, a smaller increase than in prior recent years. By comparison, the 2023 annual adjustment was 1.07745, and the 2022 annual adjustment was 1.06222.
DOT regulated entities should take note of this increase. For example, a general violation of FAA regulations by an entity other than a small business has increased from $40,272 to $41,577. And the maximum penalty amount for a series of NHTSA violations related to failure to timely report safety-related defects or non-compliances with Federal Motor Vehicle Safety Standards, among others, increases from $131,564,183 to $135,828,178.
A full listing of new fine amounts for each DOT agency can be found in Section III of the final rule.
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