DOL Penalties for Employee Benefit Plans Remain Unchanged in 2026

DOL Confirms No 2026 Inflation Increase for Civil Penalties

The U.S. Department of Labor has confirmed that civil monetary penalties will remain unchanged for 2026. This means employers and plan sponsors subject to ERISA will continue using the same penalty amounts that applied in 2025.

Typically, certain DOL penalties are adjusted each year for inflation under the Federal Civil Penalties Inflation Adjustment Act. For 2026, however, the DOL did not make an annual adjustment. As a result, penalties tied to employee benefit plan compliance, including Form 5500 filings, Summary of Benefits and Coverage notices, CHIP notices, MEWA reporting, and certain genetic information requirements, remain at their current 2025 levels.

Why the 2026 DOL Penalties Did Not Increase

Annual civil penalty adjustments are normally calculated using Consumer Price Index data from October of the prior year. Because the required October 2025 CPI-U data was not available, federal agencies were directed to continue applying the 2025 penalty amounts for 2026.

For employers, this does not reduce compliance responsibilities. Instead, it means the maximum penalty exposure for many common employee benefit plan violations remains the same as last year.

2026 DOL Penalty Amounts for Health and Welfare Plans

The following penalties apply to health and welfare plans subject to ERISA:

What Employers Should Do Now

Even though the DOL did not increase these penalties for 2026, employers should continue reviewing their employee benefit plan compliance practices. Private employers, including nonprofit organizations, should confirm that required notices and disclosures are prepared, distributed, and retained on schedule.

Key compliance steps include:

  • Filing Form 5500 accurately and on time, when required

  • Providing Summary of Benefits and Coverage notices by applicable deadlines

  • Distributing CHIP notices to eligible employees

  • Keeping SPDs, SMMs, and other plan documents current and accessible

  • Responding promptly to document requests from the Employee Benefits Security Administration

  • Reviewing compliance procedures for GINA, CHIP, Medicaid coordination, and ERISA disclosure rules

Employer Takeaway

DOL penalties for employee benefit plan violations remain unchanged for 2026, but the financial risk of noncompliance is still significant. Employers should use this as an opportunity to review benefit plan notices, filing calendars, document retention procedures, and internal compliance responsibilities.

Staying organized throughout the year can help reduce the risk of missed deadlines, incomplete disclosures, and costly civil penalty assessments.

Mark C