Department of Labor Increases Civil Penalties for Noncompliance

Description

Prior Maximum Penalty (rounded to nearest dollar)

New Maximum Penalty (rounded to nearest dollar)

Increase in Penalty Amount

Per-day penalty for failure/refusal to properly file plan annual report (e.g., Form 5500)

$2,670

$2,739

$69

Per-day penalty for each failure to file an annual report for a Multiple Employer Welfare Arrangement (MEWA)

$1,942

$1,992

$50

Per-day penalty for each failure to provide the Secretary of Labor requested documentation, including the not-to-exceed per-request maximum

$190 per day, not to exceed $1,906 per request

$195 per day, not to exceed $1,956 per request

$5 per day, not to exceed $50 per request

Per-day penalty for each failure by an employer to inform employees of CHIP coverage opportunities (Note: Each employee is considered a separate penalty.)

$141

$145

$4

Per-day penalty for each failure by a plan to timely provide to any state the information required to be disclosed under CHIP regarding coverage coordination (Note: Each participant/beneficiary is considered a separate penalty.)

$141

$145

$4

Failure by any plan sponsor of a group health plan, or any health insurance issuer offering health insurance coverage in connection with the plan, to meet the requirements with respect to genetic information (i.e., discriminating against individual participants and beneficiaries based on health status) (Note: Each participant/beneficiary is considered a separate violation.)

$141

$145

$4

Failure to provide a Summary of Benefits Coverage

$1,406

$1,443

$37

Minimum penalty for de minimis failures to meet genetic information requirements not corrected prior to notice from Secretary of Labor

$3,550

$3,642

$92

Minimum penalty for failures to meet genetic information requirements that are not corrected prior to notice from Secretary of Labor and are not de minimis

$21,310

$21,864

$554

Cap on unintentional failures to meet genetic information requirements

$710,310

$728,764

$18,454