DOL Increases Civil Penalty Amounts for 2024

Posted: January 31, 2024 in Compliance , DOL

The Department of Labor (DOL) has released its 2024 inflation-adjusted civil monetary penalties 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);
The Family and Medical Leave Act (FMLA); and
The Occupational Safety and Health Act (OSH Act).

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.

Highlights

Annual Updates
The DOL must adjust its civil penalty amounts for inflation each year.

Possible Penalties
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.

Compliance Review
To minimize potential liability, employers should review their compliance with laws enforced by the DOL.

Effective Date

Jan. 15, 2024
The increased amounts apply to civil penalties that are assessed after Jan. 15, 2024 (for violations occurring after Nov. 2, 2015).

REQUIREMENT		2023 PENALTY AMOUNT	2024 PENALTY AMOUNT
Wage and Hour
Repeated or willful violations of minimum wage or overtime requirements (FLSA)	Up to $2,374 for each violation		Up to $2,451 for each violation
Violations of child labor laws	Up to $15,138 for each employee subject to violation		Up to $15,629 for each employee subject to violation
Violations of child labor laws that cause death or serious injury to an employee under age 18	Up to $68,801 for each violation ( doubled to $137,602 if the violation is repeated or willful)		Up to $71,031 for each violation ( doubled to $142,602 if the violation is repeated or willful)
Willful failure to post FMLA general notice	Up to $204 for each separate offense		Up to $211 for each separate offense
Violations of the Employee Polygraph Protection Act (EPPA)	Up to $24,793 for each violation		Up to $25,597 for each violation
Employee Benefits
Failure to file an annual report (Form 5500) with the DOL (unless a filing exemption applies)	Up to $2,586 per day		Up to $2,670 per day
Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL	Up to $1,881 per day		Up to $1,942 per day
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.	Up to $184 per day, but not to exceed $1,846 per request		Up to $190 per day, but not to exceed $1,906 per request
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.	Up to $137 per day for each failure (each employee is a separate violation)		Up to $141 per day for each failure (each employee is a separate violation)
For 401(k) plans, failure to provide blackout notice or notice of right to divest employer securities	Up to $164 per day		Up to $169 per day
Failure to provide summary of benefits and coverage (SBC)	Up to $1,362 per failure		Up to $1,406 per failure
Employee Safety – OSH Act
Violation of posting requirement	Up to $15,625 for each violation		Up to $16,131 for each violation
Other-than-serious violation	Up to $15,625 for each violation		Up to $16,131 for each violation
Serious violation	Up to $15,625 for each violation		Up to $16,131 for each violation
Willful violation	Between $11,162 and $156,259 per violation		Between $11,524 and $161,323 per violation
Uncorrected violation	Up to $15,625 per day until the violation is corrected		Up to $16,131 per day until the violation is corrected

Action Steps

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. Contact us to learn more about how we can help you manage all your compliance needs.