Department of Labor Increases Penalties for Compliance Transgressions in 2024
The Department of Labor has released their annual inflation adjustments for certain civil penalties. Employers should review the increased amounts and ensure that each compliance requirement is being fulfilled.
- Failure to Provide SBC- The penalty for failure to provide a Summary of Benefits and Coverage to health plan participants and beneficiaries has increased from $1,362 per participant/beneficiary to $1,406.
- Failure to File Form 5500- The penalty for failure to File Form 5500 with the DOL will now cost $2,670 per day (the amount was $2,586 in 2023).
- Failure to Provide CHIP Notice- The penalty for failure to provide the annual CHIP notice to employees has increased from $137 per day to $141 per day.
- Failure to Provide 410(k) Notice- The penalty for failure to provide required 401(k) notices to plan participants (such as blackout notices) has increased from $164 per day to $169 per day.
These increases are expected annual adjustments due to inflation and are not tied to any changes in text or interpretation of the law. Employers need not make any significant adjustments in compliance.