Penalty/ˈpenəlti/ Definition 1 of 4Pro Tip 1/3Rule Violation Penalty often relates to specific regulations or codes being broken. The company faced a penalty for violating environmental regulations. Pro Tip 2/3Legal Consequences Penalty in legal contexts can lead to fines or imprisonment depending on the offense. For tax evasion, she was given a stiff penalty. Pro Tip 3/3Severity Varies Penalties can range from minor to severe, reflecting the seriousness of the breach. Not wearing a seatbelt could incur a small penalty.