New guidelines for sentencing organizations convicted of federal offenses became effective on November 1, 1991. Issued by the United States Sentencing Commission after four years of public hearings and internal debate, the guidelines establish parameters and set policies for judges in sentencing companies within the boundaries of the federal sentencing statutes. The guidelines provide incentives for a company to have an "effective program to prevent and detect violations of law." A well-documented compliance program is one of the few mitigating factors available to reduce the size of fines imposed on a convicted company. The failure to implement such a program may require a court to impose a period of corporate probation. This article will describe the guidelines and how they operate, review the sanctions available under the guidelines in sentencing organizations convicted of federal offenses, explain how the benefits for having an effective compliance program apply to companies regulated by the Food and Drug Administration, and discuss elements of an effective compliance program that would satisfy the guidelines.
