Day

June 30, 2016

30 June 2016

DOJ Rule Confirms That FCA Penalties Will Nearly Double Effective August 1, 2016

As we reported here, the Bipartisan Budget Act of 2015 (“the Act”) required all federal agencies to increase the civil monetary penalties within their purview.  While the adjustment is painted as a “cost-of-living adjustment,” the first step up is a jarring one: agencies must take penalties as they were last adjusted by law (other than under the Inflation Adjustment Act), and increase each penalty by the change in the Consumer Price Index (“CPI”) since that time.  The Act requires agencies to make adjustments effective no later than August 1, 2016.  Yesterday DOJ released an interim final rule (available here), announcing adjustments to the penalties it enforces, including penalties under the FCA.

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