DOL Increases Civil Penalty Amounts for 2018
The Department of Labor (DOL) issued a final rule that increased the civil penalty amounts that may be imposed on employers under various federal laws. The DOL's final rule implements the 2018 annual adjustments for civil penalties assessed or enforced by the DOL, including penalties under the FLSA, FMLA, OSHA, and ERISA. The increased penalty amounts became effective on January 2, 2018, and may apply for any violations occurring after November 2, 2015.
The final rule increases the civil penalty amounts associated with:
Fair Labor Standards Act (FLSA)
- Repeated or willful violations of minimum wage or overtime requirementes
- Violations of child labor laws
- Violations of child labor laws that cause death or serious injury to an employee under the age of 18
- Violation of homeworker regulations
Family and Medical Leave Act (FMLA)
- Willful failure to post the general notice
Occupational Safety and Health Act (OSHA)
- Violations of the poster requirement under the Other-than-serious violation
- Serious, Willful, and Uncorrected violations
Employee Retirement Security Act (ERISA) and Employee Benefits
- Failing to file an annual Form 5500
- Failure to file multiple employer welfare arrangement (MEWA) annual report (Form M-1), as applicable
- Failure to furnish plan-related information requested by the DOL
- Failing to provide the annual notice regarding CHIP coverage opportunities
- For 401(k) plans, failure to provide blackout notice or notice of right to divest employer securities
- Failure to provide Summary of Benefits and Coverage (SBC)
To minimize potential liability, employers should become familiar with the new penalty amounts and review their safety practices, benefit plan, and pay procedures to confirm they are in compliance with federal requirements.
Contact your Friedman Account Executive for additional information.