Mar 04, 2025
Department of Labor Announces Annual Civil Penalties Adjustments for 2025
Every year, the Department of Labor (DOL) issues their Federal Civil Penalties Inflation Adjustment Act Annual Adjustments no later than January 15th.
These penalty amounts apply to benefit plan compliance failures and are reported as the maximum penalty amounts. However, the DOL can lower penalties of some failures or violations depending on circumstances.
The penalties are effective after January 15, 2025 for violations occurring after November 2, 2015.
| Violation | 2024 | 2025 |
|---|---|---|
| Failure to inform an employee about Children's Health Insurance Program (CHIP) coverage opportunities each employee is a separate violation) | $141 for each day late | $145 for each day late |
| Failure to timely provide any state information about coverage coordination with Medicaid or CHIP (each participant or beneficiary is a separate violation) | $141 for each day late | $145 for each day late |
| Failure to meet genetic information restrictions (on discriminating in eligibility; coverage or premiums; requesting or requiring genetic texts; collecting genetic information: etc.) | $141 for every day of noncompliance | $145 for every day of noncompliance |
| $3,550 | $3,642 |
| $21,310 | $21,864 |
| $710,310 | $728,764 |
| Failure to provide summary of benefits and coverage (SBC) with uniform glossary | $1,406 per failure | $1,443 per failure |
| Failure to provide plan documents to DOL within 30 days after request | $190 for each day late, capped at $1,906 per each request | $195 for each day late, capped at $1,956 per each request |
| Failure to file Form 5500 | $2,670 for each day late | $2,739 for each day late |
| Failure to file a multiple employer welfare arrangement (MEWA) annual report (Form M-1) | $1,942 for each day late | $1,992 for each day late |
Definition of de minimis – a legal term that means something is too insignificant to be considered or taken into account.
While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting, or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
