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The Department of Labor (DOL) recently released a final rule providing the adjusted civil penalty amounts for certain health and welfare plan violations assessed after January 15, 2024.
The Employee Retirement Income Security Act (ERISA) provides for the imposition of penalties for a number of plan-related failures or administrative errors and further provides that penalties are subject to annual adjustment for inflation.
Adjusted 2024 Penalty Amounts
The following chart shows the adjusted penalty amount for certain health and welfare plan violations assessed after January 15, 2024.
Action Items for Employers
To minimize the risk of incurring penalties, health plans, health plan administrators, and health plan service providers should:
- Review notice obligations to employees and plan participants.
- Verify the current contact information for the party responsible for receiving and responding to participant, DOL, or other agency requests for information.
- Review internal procedures in place to ensure timely compliance with notice obligations and filing requirements.
This information has been prepared for UBA by Fisher & Phillips LLP. It is general information and provided for educational purposes only. It is not intended to provide legal advice. You should not act on this information without consulting legal counsel or other knowledgeable advisors.
