The U.S. Department of Labor (DOL) has confirmed that it will make no adjustments to civil monetary penalties for 2026 and will continue to use the 2025 penalties as applicable. This applies to penalties that may be assessed on employers for violations of a wide range of federal laws, including the Employee Retirement Income Security Act (ERISA) and the Family and Medical Leave Act (FMLA).
Federal law requires agencies to adjust their civil money penalties for inflation no later than Jan. 15 each year to maintain their effectiveness and deterrent effect. Last year, the DOL’s final rule on 2025 inflation-adjusted amounts was published on Jan. 10, 2025.
The annual adjustment is based on Bureau of Labor Statistics (BLS) data from October of the prior year. However, due to the government shutdown, the BLS was unable to produce October 2025 data. As a result of this lack of data, and because the law does not provide an alternate method for calculating the adjustments, the 2026 adjustment is canceled entirely.
Employers should continue to prioritize compliance with all applicable federal requirements, as the 2025 penalty amounts remain fully in effect for 2026. For example, the following key penalty amounts remain in effect:
- Failure to provide a summary of benefits and coverage (SBC) for a health plan may result in a penalty of up to $1,443 per participant or beneficiary.
- Failure to file an annual Form 5500 with the DOL can result in a penalty of up to $2,739 per day.
- Employers that willfully violate the FMLA posting requirement may face a penalty of up to $216 for each separate offense.
- Failure to provide the annual notice regarding Children’s Health Insurance Program (CHIP) coverage opportunities may result in a penalty of up to $145 per day (each employee is a separate violation).
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