New Civil Monetary Penalties in 2018 from the Department of Labor
CPS is dedicated to making our clients’ lives easier and that involves keeping you up to date with all of the latest changes in compliance regulations. Most recently, the Department of Labor (DOL) ruled to adjust the civil monetary penalties assessed for violations of a number of federal labor laws.
Labor Law Penalties for 2018
What exactly does this mean? As of January 2, 2018, this rule increased the penalty for when employers that don’t comply with certain requirements under the federal Fair Labor Standards Act (FLSA), the Family and Medical Leave Act (FMLA), the employee Retirement Income Security Act (ERISA), and the Occupational Safety and Health Act (OSH Act), and others. These increases apply to civil penalties assessed after January 2, 2018 whose associated violations occurred after November 2, 2015.
Labor Law Penalty Increases
Employers should be taking note of some of these penalty increases in particular. Repeated or willful violations of the FLSA’s minimum wage or overtime pay requirements are subject to a penalty of up to $1,964 per violation, formerly $1,925. Willful violations of the FMLA’s posting requirement are also subject to a higher penalty, an increase from $166 to $169 for each separate offense.
In addition to those, failure to provide employees with an Employer Children’s Health Insurance Program (CHIP) notice is subject to a penalty of up to $114 per day. This penalty was formerly $112. Failure to prove a Summary of benefits and Coverage (SBC) is subject to a penalty of up to $1,128 per failure, which used to be $1,105.
Failure or refusal to file an annual report, known as a Form 5500, with the DOL can entail a penalty of up to $2,140 per day, formerly $2,097. If there is a violation of the OSH Act’s posting requirement, the penalty can be up to $12,934 for each violation, which has increased from $12,675.
To learn about more penalty increases and view the DOL summary chart, access the final rule here. If you have any questions about regulation changes or any other business solution inquiries, feel free to contact us.