Penalties & Enforcement
What Actually Happens
$500 first violation, $1,500 for subsequent violations. But here's what enforcement really looks like.
Penalty Structure
Each candidate affected is a separate violation
First violation (any requirement)
Official penalty: $500
Loophole
DCWP must give written notice first. You have opportunity to cure before penalty.
Strategy
Respond immediately to DCWP notice. Show good faith compliance efforts to reduce penalty.
Subsequent violations (same day)
Official penalty: $500-$1,500 each
Loophole
Each candidate affected is separate violation. Can add up quickly for high-volume hiring.
Strategy
If caught, immediately stop using AEDT. Limits number of violations to candidates already processed.
Subsequent violations (different days)
Official penalty: $1,500 each
Loophole
Continuing violations after first notice get maximum penalty. No cure period for repeat violations.
Strategy
Never ignore DCWP notice. First violation is cheap. Subsequent violations are expensive.
Enforcement Realities: Myth vs Reality
What you've heard vs what actually happens
Myth
DCWP actively monitors all employers
Reality
DCWP enforcement is complaint-driven. Most violations discovered through candidate complaints.
Your Strategy
Provide excellent candidate experience. Happy candidates don't file complaints.
Myth
Every violation results in penalty
Reality
DCWP often issues warnings first, especially for good-faith compliance attempts.
Your Strategy
Document all compliance efforts. Show you're trying to comply even if imperfect.
Myth
Penalties are per AEDT
Reality
Penalties are per candidate affected. One non-compliant AEDT used on 100 candidates = 100 violations.
Your Strategy
Audit high-volume AEDTs first. Prioritize compliance for tools used most frequently.
Myth
Private lawsuits are possible
Reality
NO private right of action. Only DCWP can enforce. Candidates cannot sue under LL144.
Your Strategy
Only worry about DCWP enforcement. No class action risk like other employment laws.
Avoid Penalties Entirely
Our platform ensures continuous compliance with automated monitoring and alerts.