Civil penalties were recently updated, adjusting for inflation, by the Department of Labor (DOL) for 2024. Federal law requires penalties be adjusted annually by January 15th. Employers found in violation will be assessed these increased penalties beginning after January 15, 2024. The year-over-year inflation increase for 2024 is 3.241%. Annual inflation adjustments are based on the percent change between the October Consumer Price Index for All Urban Consumers (CPI–U) before the adjustment date and the prior year’s October CPI–U.
The increased penalties are as follows:
Filing Violation |
2024 Penalty |
2023 Penalty |
|---|---|---|
| Failure to timely file the annual form 5500 report | $2,670 per day, starting with the day of failure | $2,586 per day |
| Failure to file annual report for MEWAs (including M-1) | $1,942 per day | $1,881 per day |
| Failure to timely provide the SBC | $1,406 per failure | $1,362 per failure |
| Failure to inform an employee about CHIP coverage opportunities | $141 per day, per employee | $137 per day, per employee |
| Failure to meet genetic information restrictions (on discriminating in eligibility, coverage or premiums; requesting or requiring genetic tests; collecting genetic information; etc.) | $141 per day, per employee | $137 per day, per employee |
| Failure to provide plan documents to participants upon request | $110 per day | $110 per day |
| Failure to comply with Women’s Health and Cancer Rights Act (WHCRA) notice requirements | $100 per day, per employee | $100 per day, per employee |
| Failure to notify participants and their beneficiaries of their COBRA rights within 14 days of notice of the qualifying event | $110 per day | $110 per day |
| Failure to provide HIPAA privacy notice | $100 per day, per employee | $100 per day, per employee |
| Failure to provide HIPAA special enrollment rights notice | $100 per day, per employee | $100 per day, per employee |
| Failure to provide Medicare Part D notice | No enforcement from CMS. | No enforcement from CMS. |
| Failure to provide plan documents to DOL within 30 days after request | $190 per day late, capped at $1,906 per request | $184 per day late, capped at $1,846 per request |
| Cap on penalties for unintentional failures | $710,310 | $688,012 |
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