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DOL Penalties for Employee Benefit Plan Violations Remain the Same for 2026

June 17, 2026
Employee Benefits Employee Benefits Compliance
2 min read
Regulatory & Legislative Strategy Group
DOL Penalties for Benefit Plan Violations Remain the Same for 2026

Table of Contents

    Key takeaways

    • The DOL announced that the civil monetary penalties for common employee benefit plan violations – such as failures in reporting, disclosure, and fiduciary responsibilities – will remain the same in 2026 as they were in 2025

    • This is a one-time exception caused by the government shutdown in October/November 2025, which prevented the federal government from being able to collect necessary data for calculating inflationary adjustments to these civil monetary penalties.

    On May 27, 2026, the U.S. Department of Labor (DOL) issued a final rule announcing that the DOL will not make inflationary adjustments to the civil monetary penalties for certain violations occurring in 2026. As a result, the penalty amounts that applied to certain employee benefit plan violations occurring in 2025 will remain unchanged in 2026. The chart below highlights some of these key penalties:

    Inflation-Adjusted Penalties

    Description

    2026

    2025

    ERISA Form 5500

    Daily penalty for failure to properly file annual reports

    $2,739

    $2,739

    ERISA Form M-1

    Daily penalty for failure of a MEWA to file Form M-1

    $1,992

    $1,992

    CHIP Notice and Disclosures

    Per day penalty for each failure (per beneficiary) by an employer to either inform employees of CHIP opportunities or inform state agencies of coverage confirmation information

    $145

    $145

    SBC Disclosure

    Failure to provide Summary of Benefits Coverage as required under the ACA (PHSA)

    $1,443

    $1,443

     

    Under the Civil Penalties Inflation Adjustment Act, the DOL normally updates the civil monetary penalties each year using the Consumer Price Index for All Urban Consumers (CPI-U) from October of the prior year. However, a government shutdown in October–November of 2025 prevented the Bureau of Labor Statistics (BLS) from collecting the required data to produce the applicable October 2025 CPI-U. In response, the Office of Management and Budget (OMB) issued a memo on April 17, 2026, directing all federal agencies — including the DOL — to continue using the applicable 2025 penalty amounts. The DOL’s May 27, 2026, final rule implements this guidance.

    Note that this is a one-time pause that was caused by the lack of necessary data for BLS to calculate the CPI-U, not a permanent DOL policy change or amendment to either ERISA or the Civil Penalties Inflation Adjustment Act. Employers should expect possible increased inflationary adjustments to penalties for 2027 to compensate for the lack of a penalty increase in 2026, provided normal CPI-U data is available in October 2026.

    Conclusion

    The lack of inflationary adjustments to the civil monetary penalties for 2026 provides some short-term predictability for employer plan sponsors in understanding the potential liability for various employee benefit plan violations. Despite the penalties remaining unchanged for 2026, employer plan sponsors should still ensure they are meeting their reporting, disclosure, and other compliance obligations in a timely manner to avoid potentially substantial penalties.

    Please contact your Brown & Brown team with any questions or learn more about Brown & Brown's comprehensive compliance support here.