Inflation has hit nearly every area of the economy including the penalties for those violating Department of Labor (DOL) regulations. Employers caught violating employee benefit, wage and hour, mine safety, occupational safety and health, and workers’ compensation rules will pay higher fines this year than last. These fines apply to penalties levied after January 15, 2022, for violations that occurred after November 2, 2015. While the DOL will often waive penalties and seldom assesses the maximum amount, ultimately it can do what it wants, making these fines a solid deterrent for those found non-compliant.

Below you will find a list of some common health and welfare plan violations and the penalty amounts for 2022 and 2021.

Health or Welfare Benefit Plan Failure Penalty after 1/15/22 Penalty after 1/15/21
Maximum penalty for failure to file Form 5500 $2400/day late $2259/day late
Maximum penalty for failure to file a multiple employer welfare arrangement (MEWA annual report (Form M-1)) $1746/day late $1644/day late
Maximum penalty for failure to provide plan documents to DOL within 30 days after request $171/day late, capped at $1713/request $161/day late, capped at $1613/request
Maximum penalty for failure to inform employees of Children’s Health Insurance Program (CHIP) coverage opportunities (each employee is a separate violation) $127/day late $120/day late
Maximum penalty for failure to timely provide to any state information about coverage coordination with Medicaid or CHIP (each participant or beneficiary is a separate violation)  $127/day late $120/day late
Maximum penalty for failure to meet genetic information restrictions (on discriminating in eligibility, coverage, or premiums; requesting or requiring genetic tests; collecting genetic information; etc.) $127/day of noncompliance $120/day of noncompliance
Minimum penalty for de minimis failure not corrected before notice from DOL $3192 $3005
Minimum penalty for non-de minimis failure not corrected before notice from DOL $19,157 $18,035
Cap on penalties for unintentional failures $636,556 $601,152
Maximum penalty for failure to provide summary of benefits and coverage (SBC) with uniform glossary $1264 per failure $1190 per failure

If you have questions about your compliance with these regulations or need additional help with your plans, don’t hesitate to reach out.

About the Author:


Timothy A. Heller TMDG Healthcare Assurance and Risk Consulting
Timothy A. Heller, CPA | Partner

Tim leads the assurance group and provides compliance-oriented services to large and jumbo self-funded health and welfare plans. A national thought leader, he has exceptional expertise in accounting and financial reporting, as well ERISA-related compliance matters. He has successfully handled many complex multiple and multi-employer engagements for collectively-bargained union plans and often assists trustees with various fiduciary matters.