DOL Announces 2020 Annual Inflation Adjustments for Noncompliance

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The Department of Labor (DOL) announced 2020 annual inflation adjustments to the civil monetary penalties for various violations pertaining to health and welfare benefit plans and pension and retirement plans. The 2020 adjustments are effective for penalties assessed after January 15, 2020, with respect to violations occurring after November 2, 2015.

Some of the more notable changes to the maximum penalty for employers sponsoring health and welfare plans are as follows:

Description of Violation

New Penalty

Old Penalty

Failure or refusal to file a Form 5500

$2,233 per day

$2,194 per day

Failure to provide documents and information requested by the DOL

$159 per day

$156 per day

Failure to provide reports to certain former participants and beneficiaries and failure to maintain records

$31 per day

$30 per day

Failure by an employer to inform employees of CHIP coverage opportunities

$119 per day per employee

$117 per day per employee

Violations of the Genetic Information Nondiscrimination Act (GINA), such as establishing eligibility rules based on genetic information or requesting genetic information for underwriting purposes

$119 per participant per day

$117 per participant per day

Failure to provide annual Summary of Benefits Coverage (SBC)

$1,176 per failure

$1,156 per failure

Employers should review the Final Rule carefully and ensure that they are meeting DOL requirements in order to avoid any potential penalties related to their plans. Although the adjustments for inflation reflect the maximum penalties that the DOL can impose and lower penalties may be assessed, failure to comply with DOL requirements can still prove extremely costly for employers.


Categories: Compliance | Tags: DOL , Penalty , Inflation Adjusted , 2020 | Return