DOL Increases Civil Penalty Amounts for 2020

Posted March 09, 2020

The Department of Labor announced on January 15, 2020 that they are going to increase the civil penalty amounts that can be imposed on employers that violate a number of federal laws in order to align the penalties with annual inflation. The federal laws include the following:

• The Fair Labor Standards Act (FSLA)
• The Employee Retirement Income Security Act (ERISA)
• The Family and Medical Leave Act (FMLA)
• 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 Jan 15 of each year. Key penalty increases include the following:

• The maximum penalty for violations of federal minimum wage or overtime requirements increase from $2,014 to $2,050 per violation
• The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases from $2,194 to $2,233 per day
• The maximum penalty for violations of the poster requirement under the FMLA increases from $173 to $176 per each offense

Employers should become familiar with the new penalty amounts and review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements. Download our Compliance Bulletin: DOL Increases Civil Penalty Amounts for 2020 to learn more, and contact your representative at Horst Insurance with any questions.