Salus Group Go to main content
Search

News

All Salus Group News
On June 30, 2016, the Department of Labor (DOL) issued an interim final regulations to adjust the amounts of civil penalties assessed in its regulations, as required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The Inflation Adjustment Act significantly revises the method of calculating inflation adjustments for penalty increases, including by providing an initial "catch-up" adjustment that may result in a more substantial initial penalty increase.
 
This interim final regulations increases penalties imposed under the Employee Retirement Income Security Act of 1974 (ERISA), Occupational Safety and Health Act (OSHA), Fair Labor Standards Act (FLSA), and the Family and Medical Leave Act (FMLA), among other laws.  The adjusted civil penalty amounts apply to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015. Therefore, violations occurring on or before November 2, 2015, as well as assessments made before August 1, 2016 whose associated violations occurred after November 2, 2015, continue to be subject to the civil penalty amounts set out in the DOL's prior regulations (or under the applicable statute, if the amount has not yet been adjusted by regulation). 
 
Below is a table listing the current and new monetary penalty amounts.  Boxes highlighted in yellow are penalties for sponsored group health plans.
 

NEW PENALTY AMOUNTS ADJUSTED FOR INFLATION

ERISA Penalty Statute Description of ERISA Violations Subject to Penalty CURRENT Penalty Amount NEW Penalty  Amount 
ERISA § 209(b) Failure to furnish reports (e.g.,pension benefit statements) to certain former participants and beneficiaries or maintain records Up to $11 per employee Up to $28 per employee
ERISA § 502(c)(2)

Failure refusal to file annual report (Form 5500) required by ERISA § 104; and

Failure of a multiemployer plan to certify endangered or critical status under ERISA § 305(b)(3)(C) treated as failure to final annual report 

Up to $1,100 per day Up to $2,063 per day
ERISA § 502(c)(4)

Failure to notify participants undert ERISA § 101(j) of certain benefit restrictions and/or limitations arising under Internal Revenue Code § 436;

Failure to furnish ceratin mulitemployer plan financial and actuarial reports under request of ERISA § 101(k);

Failure to furnish estimate of withdrawal liability upon request under ERISA § 101(l); and

Failure to furnish automatic contribution arrangement notice

Up to $1,000 per day Up to $1,632 per day
ERISA § 502(c)(5) Failure of a multiple employer welfare arrangement to file report required by regulations issued under ERISA § 1101(g). Up to $1,100 per day Up to $1,502 per day
ERISA § (c)(6) Failure to furnish information requested by Secretary of Labor uner ERISA § 104(a)(6) Up to $110 per day not exceed $1,100 per request Up to $147 per day not to exceed $1,472 per request
ERISA § 502(c)(7) Failure to furnish a blackout notice under section 101(i) of ERISA or notice of the right to divest employer securities under section 101(m) of ERISA Up to $100 per day Up to $131 per day
ERISA § 502(c)(8) Failure by a plan sponsor of a multiemployer plan in endangered status to adopt a funding improvement plan or a multiemployer plan in critical status to adopt a rehabilitation plan.  Penalty also applies to a plan sponsor of an endangered status plan (other than a seriously endangered plan) that fails to meet its benchmark by the end of the funding improvement period. Up to $1,100 per day Up to $1,296 per day
ERISA § 502(c)(9)(A) Failure by an employer to inform employees of CHIP coverage opportunities under ERISA § 701(f)(3)(B)(i)(I) - each employee a seprate penalty Up to $100 per day Up to $110 per day
ERISA § 502(c)(9)(B) Failure by a plan administer to timely provide to any State information required to be disclosed under ERISA § 701(f)(3)(B)(ii), regarding coordination - each participant/beneficiary a seperate violation $100 per day  $110 per day 
ERISA § 502(c)(10)(B)(i) Failure by a plan sponsor of a group health plan, or any health insurance carrier offering insurance coverage in connection with the plan, to meet requirements of ERISA §§ 702(a)(1)(F), (b)(3), (c), or (D); or § 702(b)(1) with respect to genetic information $100 per day during non-compliance period $110 per day during non-compliance period
ERISA § 502(c)(10)(C)(i) Minimum penalty for de minimis failures to meet genetic information requirements not corrected prior to notice from Secretary of Labor $2,500 minimum $2,745 minimum
ERISA § 502(c)(10)(C)(ii) Minimum penalty for failures to meet genetic information requirements which are not corrected prior to notice from Secretary of Labor and are not de minimis $15,000 minimum $16,473 minimum
ERISA § 502(c)(10)(D)(iii)(II) Cap on unintentional failures to meet genetic information requirements $500,000 maximum $549,095 maximum
ERISA § 502(c)(12) Failure of CSEC plan sponsor to establish or update a funding restoration plan Up to $100 per day Up to $110 per day
ERISA § 502(m) Distribution prohibited by ERISA § 206(e) of ERISA Up to $10,000 per distribution Up to $15,909 per distribution
ERISA § 715 Failure to provide Summary of Benedits Coverage under Public Health Services Act section 2715(f), as incorporated into ERISA section § 715 and 28 CFR 2590 715-2715(e). Up to $1,000 per failure Up to $1,087 per failure

 

 

Go to main navigation
Salus
Latin: health, safety and well being; a wish for a personís welfare