2026-07877RuleWallet

FLRA Rolls Out False Claims Rules with Inflation Adjustments

Published Date: 4/23/2026

Rule

Summary

Starting May 26, 2026, the Federal Labor Relations Authority is rolling out new rules to handle false claims under the updated Administrative False Claims Act (AFCA). This affects anyone dealing with government claims, making sure false statements get caught and handled fairly. Agencies now have clear steps to follow, and penalties may adjust with inflation, so watch your paperwork!

Analyzed Economic Effects

6 provisions identified: 2 benefits, 3 costs, 1 mixed.

Civil Penalty Increased to $12,500

If the FLRA finds you liable for a false claim or false statement under the Administrative False Claims Act, the civil penalty for that violation is $12,500. This adjusted penalty replaces the prior statutory $5,000 figure and takes effect May 26, 2026.

Double-Damages Plus Penalty for False Claims

If you make a false claim, liability can include an assessment equal to up to twice the amount of the false claim plus the $12,500 civil penalty. That means the government can seek both double the claimed amount and the civil penalty in the same action.

30-Day Answer Rule — Risk of Default

If you are served with an AFCA complaint, you have 30 days to file an answer. If you fail to answer in time, the presiding officer will assume the complaint's facts are true and will issue an initial decision imposing the maximum penalties and assessments; that decision becomes final 30 days later unless reopened for extraordinary circumstances.

DOJ Approval and $1,000,000 Claim Threshold

The FLRA may issue an AFCA complaint only with written approval from the Department of Justice, and for allegations about a claim the reviewing official must determine the claimed amount does not exceed $1,000,000 for that complaint. The rule also allows the FLRA to join unrelated claims without regard to that $1,000,000 limit.

Time Limits to Charge You (Statute of Limitations)

A notice alleging AFCA liability must be mailed within the later of: 6 years after the violation or 3 years after the authority knew or should have known the facts — but in no event more than 10 years after the violation. Civil actions to recover penalties or assessments must be started within the 3-year discovery timeframe noted in 31 U.S.C. 3808(b).

You May Use a Non-Attorney Representative

Under the rule, a party may elect to be represented by an attorney or another duly qualified representative who is not an attorney. The rule clarifies the term "representative" to include non-attorneys.

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Key Dates

Published Date
Rule Effective
4/23/2026
5/26/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Labor Relations Authority
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