DOL Updates Civil Penalty Amounts for 2023

April 3, 2023
Hall Benefits Law, LLC

The U.S. Department of Labor (DOL) has issued its 2023 annual updates to various civil monetary penalties that it imposes for benefit-related violations. The 2023 adjusted penalty amounts are effective for penalties assessed after January 15, 2023, and they apply to violations after November 2, 2015.

The following summarizes some updated DOL penalty amounts for failing to comply with various DOL rules and regulations. Benefit plans and participating employers should remember that the DOL can impose lower penalties in certain circumstances. As a result, not all cases will result in the DOL assessing the maximum permissible penalties.

  • Form 5500 – The maximum penalty for failing to file Form 5500, a required annual filing for most ERISA plans, increased from $2,400 to $2,586 daily.
  • Summary of Benefits and Coverage (SBC) – The maximum penalty for failing to provide the SBC increased from $1,264 to $1,362.
  • Other Group Health Plan Penalties – Violations of the Genetic Information Nondiscrimination Act (GINA) or related to disclosures regarding Medicaid or the children’s health insurance program (CHIP) program now carry increased penalties of $137 per participant per day, up from $127.
  • 401(k) Plan Disclosure, Recordkeeping, and Reporting –
    • The penalty for failure to provide the required ERISA §514(e) preemption notice to participants increased from $1,889 to $2,046 per day for plans with automatic contribution arrangements.
    • The penalty for failing to provide blackout notices or notices of diversification rights increases from $152 to $164 daily.
    • The maximum penalty for failure to comply with the ERISA §209(b) recordkeeping and reporting requirements increased from $33 to $36 per employee.
  • Multiple Employer Welfare Arrangement (MEWA) Filing – The penalty for not meeting MEWA filing requirements, including annual Form M-1 filings and filings upon origination, increased from $1,746 to $1,881 per day.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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