DOL Cancels Civil Penalty Inflation Adjustments for 2026

 
DOL Cancels Civil Penalty Inflation Adjustments for 2026
 
 
The Office of Management and Budget has issued a memorandum to federal agencies canceling penalty inflation adjustments for 2026. This applies to penalties that may be assessed on employers for violations of a wide range of federal laws, including: 
 
  • The Fair Labor Standards Act (FLSA);
  • The Employee Retirement Income Security Act (ERISA);
  • The Family and Medical Leave Act (FMLA); and
  • The Occupational Safety and Health Act (OSH Act).
 
Federal law generally requires the DOL to adjust civil penalties annually for inflation no later than Jan. 15 to maintain their effectiveness and deterrent effect. However, no inflation adjustment will be applied for 2026; therefore, penalty amounts remain unchanged from 2025. Key penalty amounts include the following:
 
  • The maximum penalty for violations of federal minimum wage or overtime requirements remains $2,515 per violation.
  • The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases remains $2,739 per day.
  • The maximum penalty for violations of the poster requirement under the FMLA increases remains $216 per offense.
 
Action Items
 
Employers should stay familiar with the current penalty amounts and review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements. 
 

REQUIREMENT

2025 PENALTY AMOUNT

2026 PENALTY AMOUNT

Wage and Hour

Repeated or willful violations of minimum wage or overtime requirements (FLSA)

Up to $2,515 for each violation

Up to $2,515 for each violation

Violations of child labor laws

Up to $16,035 for each employee subject to violation

Up to $16,035 for each employee subject to violation

Violations of child labor laws that cause death or serious injury to an employee under age 18

Up to $72,876 for each violation (doubled to $145,752 if the violation is repeated or willful)

Up to $72,876 for each violation (doubled to $145,752 if the violation is repeated or willful)

Willful failure to post FMLA general notice

Up to $216 for each separate offense

Up to $216 for each separate offense

Violations of the Employee Polygraph Protection Act (EPPA)

Up to $26,262 for each violation

Up to $26,262 for each violation

Employee Benefits

Failure to file an annual report (Form 5500) with the DOL (unless a filing exemption applies)

Up to $2,739 per day

Up to $2,739 per day

Failure of a multiple employer welfare arrangement (MEWA) to file an annual report (Form M-1) with the DOL

Up to $1,992 per day

Up to $1,992 per day

Failure to furnish plan-related information requested by the DOL

*Under ERISA, administrators of employee benefit plans must furnish to the DOL, upon request, any documents relating to the employee benefit plan.

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

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

Failure to provide the annual notice regarding CHIP coverage opportunities

*This notice applies to employers with group health plans that cover residents of states that provide a premium assistance subsidy under a Medicaid or CHIP program.

Up to $145 per day for each failure (each employee is a separate violation)

Up to $145 per day for each failure (each employee is a separate violation)

For 401(k) plans, failure to provide blackout notice or notice of right to divest employer securities

Up to $173 per day

Up to $173 per day

Failure to provide summary of benefits and coverage (SBC)

Up to $1,443 per failure

Up to $1,443 per failure

Employee Safety – OSH Act

Violation of posting requirement

Up to $16,550 for each violation

Up to $16,550 for each violation

Other-than-serious violation

Up to $16,550 for each violation

Up to $16,550 for each violation

Serious violation

Up to $16,550 for each violation

Up to $16,550 for each violation

Willful violation

Between $11,823 and $165,514 per violation

Between $11,823 and $165,514 per violation

Uncorrected violation

Up to $16,550 per day until the violation is corrected

Up to $16,550 per day until the violation is corrected

 
 
© 2026 Zywave, Inc. All rights reserved.
This Compliance Bulletin is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. ©2026 Zywave, Inc. All rights reserved.
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Creative Benefits, Inc.

3809 West Chester Pike, Suite 190
Newtown Square, PA 19073
610.325.0200

http://www.creativebenefitsinc.com