[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR579.5]

[Page 353-354]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 579_CHILD LABOR VIOLATIONS_CIVIL MONEY PENALTIES--Table of Contents
 
Sec. 579.5  How is the amount of the penalty determined?

    (a) The administrative determination of the amount of the civil 
penalty, of not to exceed $10,000 for each employee who was the subject 
of a violation of section 12 or section 13(c)(5) of the Act relating to 
child labor or of any regulation issued under that section, will be 
based on the available evidence of the violation or violations and will 
take into consideration the size of the business of the person charged 
and the gravity of the violation as provided in paragraphs (b) through 
(d) of this section; Provided, however, that for any violation occurring 
on or after January 7, 2002 the civil money penalty amount will increase 
to not to exceed $11,000 for each employee who was the subject of a 
violation.
    (b) In determining the amount of such penalty there shall be 
considered the appropriateness of such penalty to the size of the 
business of the person charged with the violation or violations, taking 
into account the number of employees employed by that person (and if the 
employment is in agriculture, the man-days of hired farm labor used in 
pertinent calendar quarters), dollar volume of sales or business done, 
amount of capital investment and financial resources, and such other 
information as may be available relative to the size of the business of 
such person.
    (c) In determining the amount of such penalty there shall be 
considered the appropriateness of such penalty to the gravity of the 
violation or violations, taking into account, among other things, any 
history of prior violations; any evidence of willfulness or failure to 
take reasonable precautions to avoid violations; the number of minors 
illegally employed; the age of the minors so employed and records of the 
required proof of age; the occupations in which the minors were so 
employed; exposure of such minors to hazards and any resultant injury to 
such minors;

[[Page 354]]

the duration of such illegal employment; and, as appropriate, the hours 
of the day in which it occurred and whether such employment was during 
or outside school hours.
    (d) Based on all the evidence available, including the investigation 
history of the person so charged and the degree of willfulness involved 
in the violation, it shall further be determined, where appropriate,
    (1) Whether the evidence shows that the violation is ``de minimis'' 
and that the person so charged has given credible assurance of future 
compliance, and whether a civil penalty in the circumstances is 
necessary to achieve the objectives of the Act; or
    (2) Whether the evidence shows that the person so charged had no 
previous history of child labor violations, that the violations 
themselves involved no intentional or heedless exposure of any minor to 
any obvious hazard or detriment to health or well-being and were 
inadvertent, and that the person so charged has given credible assurance 
of future compliance, and whether a civil penalty in the circumstances 
is necessary to achieve the objectives of the Act.
    (e) An administrative determination of the amount of the civil money 
penalty for a particular violation or particular violations of section 
12 relating to child labor or any regulation issued under that section 
shall become final 15 days after receipt of the notice of penalty by 
certified mail by the person so charged unless such person has, pursuant 
to Sec. 580.6 filed with the Secretary an exception to the 
determination that the violation or violations for which the penalty is 
imposed occurred.
    (f) A determination of the penalty made in an administrative 
proceeding after opportunity for hearing as provided in section 16(e) of 
the Act and pursuant to Part 580 of this chapter shall be final.

[40 FR 25792, June 18, 1975, as amended at 56 FR 8679, Feb. 28, 1991; 66 
FR 63503, Dec. 7, 2001]