DOL Increases Civil Penalty Amounts for 2021

The Department of Labor (DOL) has released its 2021 inflation-adjusted civil monetary 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).

To maintain their deterrent effect, the DOL is required to adjust these penalties for inflation, no later than Jan. 15 of each year. Key penalty increases include the following:

• The maximum penalty for violations of federal minimum wage or overtime requirements increases from $2,050 to $2,074 per violation.
• The maximum penalty for failing to file a Form 5500 for an employee benefit plan increases from $2,233 to $2,259 per day.
• The maximum penalty for violations of the poster requirement under the FMLA increases from $176 to $178 per offense.

Action Steps
Employers should become familiar with the new penalty amounts and review their pay practices, benefit plan administration and safety protocols to ensure compliance with federal requirements.

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