Effective Date
- January 15, 2023: The increased amounts apply to civil penalties that are assessed after January 15, 2023 (for violations occurring after November 2, 2015).
Highlights
- Annual Updates: The DOL must adjust its civil penalty amounts for inflation each year.
- Compliance Review: To minimize potential liability, employers should review their compliance with laws enforced by the DOL.
- 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.
The Department of Labor (DOL) has released its 2023 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 January 15 of each year. Key penalty increases include the following:
- The maximum penalty for violations of federal minimum wage or overtime requirements increases from $2,203 to $2,374 per violation.
- The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases from $2,400 to $2,586 per day.
- The maximum penalty for violations of the poster requirement under the FMLA increases from $189 to $204 per offense.
Action Steps
Employers should familiarize themselves with the new penalty amounts and review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements.
| REQUIREMENT | 2022 PENALTY AMOUNT | 2023 PENALTY AMOUNT | |
|
Wage and Hour |
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|
Repeated or willful violations of minimum wage or overtime requirements (FLSA) |
Up to $2,203 for each violation |
Up to $2,374 for each violation |
|
|
Violations of child labor laws |
Up to $14,050 for each employee subject to the violation |
Up to $15,138 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 $63,855 for each violation (doubled to $127,710 if the violation is repeated or willful) |
Up to $68,801 for each violation ( doubled to $137,602 if the violation is repeated or willful) |
|
|
Willful failure to post FMLA general notice |
Up to $189 for each separate offense |
Up to $204 for each separate offense |
|
|
Violations of the Employee Polygraph Protection Act (EPPA) |
Up to $23,011 for each violation |
Up to $24,793 for each violation |
|
|
Employee Benefits |
|||
|
Failure to file an annual report (Form 5500) with the DOL (unless a filing exemption applies) |
Up to $2,400 per day |
Up to $2,586 per day |
|
|
Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL |
Up to $1,746 per day |
Up to $1,881 per day |
|
|
Failure to furnish plan-related information requested by the DOL |
Up to $171 per day, but not to exceed $1,713 per request |
Up to $184 per day, but not to exceed $1,846 per request |
|
|
Failure to provide the annual notice regarding CHIP coverage opportunities |
Up to $127 per day for each failure (each employee is a separate violation) |
Up to $137 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 $152 per day |
Up to $164 per day |
|
|
Failure to provide summary of benefits and coverage (SBC) |
Up to $1,264 |
Up to $1,362 per failure |
|
|
Employee Safety – OSH Act |
|||
|
Violation of posting requirement |
Up to $14,502 for each violation |
Up to $15,625 for each violation |
|
|
Other-than-serious violation |
Up to $14,502 for each violation |
Up to $15,625 for each violation |
|
|
Serious violation |
Up to $14,502 for each violation |
Up to $15,625 for each violation |
|
|
Willful violation |
Between $10,360 and $145,027 per violation |
Between $11,162 and $156,259 per violation |
|
|
Uncorrected violation |
Up to $14,502 per day until the violation is corrected |
Up to $15,625 per day until the violation is corrected |
|
Provided to you by The Horton Group, Inc.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.
