DOL Increases Civil Penalty Amounts for 2020

On January 15, 2020, the Department of Labor (DOL) released its 2020 inflation-adjusted civil monetary penalties that may be assessed on employers for violations of a wide range of federal laws, including:

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

• The maximum penalty for violations of federal minimum wage or overtime requirements increases 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.

Action Steps
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.
2020 Penalty Amounts
Should you have any questions, please reach out to your Account Manager or Account Executive.
Links:

• DOL Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2020