[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR578.3]

[Page 304]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 578_MINIMUM WAGE AND OVERTIME VIOLATIONS_CIVIL MONEY PENALTIES
--Table of Contents
 
Sec. 578.3  What types of violations may result in a penalty being 
assessed?

    (a) A penalty of up to $1,000 per violation may be assessed against 
any person who repeatedly or willfully violates section 6 (minimum wage) 
or section 7 (overtime) of the Act; Provided, however, that for any 
violation occurring on or after January 7, 2002 the civil money penalty 
amount will increase to up to $1,100. The amount of the penalty will be 
determined by applying the criteria in Sec. 578.4.
    (b) Repeated violations. An employer's violation of section 6 or 
section 7 of the Act shall be deemed to be ``repeated'' for purposes of 
this section:
    (1) Where the employer has previously violated section 6 or 7 of the 
Act, provided the employer has previously received notice, through a 
responsible official of the Wage and Hour Division or otherwise 
authoritatively, that the employer allegedly was in violation of the 
provisions of the Act; or
    (2) Where a court or other tribunal has made a finding that an 
employer has previously violated section 6 or 7 of the Act, unless an 
appeal therefrom which has been timely filed is pending before a court 
or other tribunal with jurisdiction to hear the appeal, or unless the 
finding has been set aside or reversed by such appellate tribunal.
    (c) Willful violations. (1) An employer's violation of section 6 or 
section 7 of the Act shall be deemed to be ``willful'' for purposes of 
this section where the employer knew that its conduct was prohibited by 
the Act or showed reckless disregard for the requirements of the Act. 
All of the facts and circumstances surrounding the violation shall be 
taken into account in determining whether a violation was willful.
    (2) For purposes of this section, an employer's conduct shall be 
deemed knowing, among other situations, if the employer received advice 
from a responsible official of the Wage and Hour Division to the effect 
that the conduct in question is not lawful.
    (3) For purposes of this section, an employer's conduct shall be 
deemed to be in reckless disregard of the requirements of the Act, among 
other situations, if the employer should have inquired further into 
whether its conduct was in compliance with the Act, and failed to make 
adequate further inquiry.

[57 FR 49129, Oct. 29, 1992; 57 FR 57280, Dec. 3, 1992, as amended at 66 
FR 63503, Dec. 7, 2001]