The Department of Labor (DOL) has released its 2024 inflation-adjusted civil penalty amounts that may be assessed on employers for violations of a wide range of federal laws, including:
- The Fair Labor Standards Act (FLSA);
- The Employee Retirement Income Security Act (ERISA); and
- The Family and Medical Leave Act (FMLA)
To maintain their deterrent effect, the DOL is required to adjust these penalties for inflation, no later than Jan. 15 of each year. Key penalty increases include the following:
- The maximum penalty for violations of federal minimum wage or overtime requirements increases from $2,374 to $2,451 per violation.
- The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases from $2,586 to $2,670 per day.
- The maximum penalty for violations of the poster requirement under the FMLA increases from $204 to $211 per offense.
REQUIREMENTS
Failure to file an annual report (Form 5500) with the DOL (unless a filing exemption applies)
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- 2023 penalty amount: up to $2,586 per day
- 2024 penalty amount: up to $2,670 per day
Failure to provide summary of benefits and coverage (SBC)
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- 2023 penalty amount: up to $1,362 per failure
- 2024 penalty amount: up to $1,406 per failure
Failure to furnish plan-related information requested by the DOL
Under ERISA, administrators of employee benefit plans must furnish to the DOL, upon request, any documents relating to the employee benefit plan.
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- 2023 penalty amount: up to $184 per day, but not to exceed $1,846 per request
- 2024 penalty amount: up to $190 per day, but not to exceed $1,906 per request
For 401(k) plans, failure to provide blackout notice or notice of right to divest employer securities
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- 2023 penalty amount: up to $164 per day
- 2024 penalty amount: up to $169 per day
Failure to provide the annual notice regarding CHIP coverage opportunities
This notice applies to employers with group health plans that cover residents of states that provide a premium assistance subsidy under a Medicaid or CHIP program.
- 2023 penalty amount: up to $137 per day for each failure (each employee is a separate violation)
- 2024 penalty amount: up to $141 per day for each failure (each employee is a separate violation)
The DOL must adjust its civil penalty amounts for inflation each year. The DOL may assess these penalties on employers that violate federal laws that the DOL enforces, such as the FLSA, ERISA, the FMLA and the OSH Act. The increased amounts apply to civil penalties that are assessed after Jan. 15, 2024 (for violations occurring after Nov. 2, 2015). Employers should become familiar with the new penalty amounts and review their pay practices, benefit plan administration, and safety protocols to ensure compliance with federal requirements.
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