Penalty is an American record label and entertainment company, founded and run by CEO Neil Levine. The company was founded in 1995 as a record label specializing in hip-hop music. The original Penalty label was acquired by its distributor, Tommy Boy, in 1999. A second version, Penalty Associated Labels, was operated by Levine in association with Rykodisc from 2002 to 2006. The third and current incarnation was established in 2014.