DOL sets 2025 penalties for health and welfare benefit plan violations 

USA, New York, New York City, Traders at trading desk  

January 10, 2025

Employers violating Department of Labor (DOL) regulations — including employee benefit, wage and hour, mine safety, occupational safety and health, and workers' compensation rules — could face stiffer penalties in 2025, due to new inflation adjustments. The higher rates apply to penalties assessed after Jan. 15, 2025, for violations occurring after Nov. 2, 2015. DOL rarely assesses the maximum and often waives penalties entirely for failures due to reasonable cause. But the penalty threat is an important enforcement and deterrent tool.

2025 adjustments for health and welfare benefits

The year-over-year inflation increase for 2025 is 2.598%. Annual inflation adjustments are based on the percent change between the October Consumer Price Index for All Urban Consumers (CPI–U) before the adjustment date and the prior year’s October CPI–U. In this case, the adjustment reflects the percent change in the October CPI–U from 2023 to 2024. The following chart shows the 2025 and 2024 maximum (and in some cases, minimum) penalties for certain health and welfare plan violations assessed after Jan. 15.
Type of health or welfare benefit plan failure Maximum penalty
(unless otherwise indicated)

Type of health or welfare benefit plan failure

 

Maximum penalty
(unless otherwise indicated)

2025 (after Jan. 15)

2024 (after Jan. 15)

Type of health or welfare benefit plan failure

Failure to file Form 5500

Maximum penalty
(unless otherwise indicated)

$2,739/day late

$2,670/day late

Type of health or welfare benefit plan failure

Failure to file a multiple employer welfare arrangement (MEWA) annual report (Form M-1)

Maximum penalty
(unless otherwise indicated)

$1,992/day late

$1,942/day late

Type of health or welfare benefit plan failure

Failure to provide plan documents to DOL within 30 days after request

Maximum penalty
(unless otherwise indicated)

$195/day late, capped at $1,956/request

$190/day late, capped at $1,906/request

Type of health or welfare benefit plan failure

Failure to inform an employee about Children's Health Insurance Program (CHIP) coverage opportunities (each employee is a separate violation)

Maximum penalty
(unless otherwise indicated)

$145/day late

$141/day late

Type of health or welfare benefit plan failure

Failure to timely provide to any state information about coverage coordination with Medicaid or CHIP (each participant or beneficiary is a separate violation)

Maximum penalty
(unless otherwise indicated)

$145/day late

$141/day late

Type of health or welfare benefit plan failure

Failure to meet genetic information restrictions (on discriminating in eligibility, coverage or premiums; requesting or requiring genetic tests; collecting genetic information; etc.)

Maximum penalty
(unless otherwise indicated)

$145/day of noncompliance

$141/day of noncompliance

Type of health or welfare benefit plan failure

  • Minimum penalty for de minimis failure not corrected before notice from DOL

Maximum penalty
(unless otherwise indicated)

$3,642

$3,550

Type of health or welfare benefit plan failure

  • Minimum penalty for non-de minimis failure not corrected before notice from DOL

Maximum penalty
(unless otherwise indicated)

$21,864

$21,310

Type of health or welfare benefit plan failure

  • Cap on penalties for unintentional failures

Maximum penalty
(unless otherwise indicated)

$728,764

$710,310

Type of health or welfare benefit plan failure

Failure to provide summary of benefits and coverage (SBC) with uniform glossary

Maximum penalty
(unless otherwise indicated)

$1,443 per failure

$1,406 per failure

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About the author(s)
Dorian Z. Smith
Katharine Marshall

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