The Department of Labor (DOL) recently released regulations increasing the civil monetary penalties for a number of ERISA, DOL and other violations. In 2015, to better deter these violations, Congress enacted legislation intended to serve as a catch-up adjustment of previous statutory penalty amounts. The regulation mentioned here establishes the actual catch-up amounts. Future adjustments will be made by January 15 of each year, starting in 2017. The increases apply to ERISA penalties assessed after August 1, 2016 with respect to violations occurring after November 2, 2015. Penalty assessments made before August 1, 2016 (including those relating to violations after November 2, 2015) and assessments at any time relating to violations on or before November 2, 2015 will reflect the lower pre-adjustment amounts. Highlights of the changes to ERISA violations can be found below.
Highlights of ERISA Violations Subject to Penalty Increase
No direct employer action is required. However, the increase in penalties for noncompliance highlights the need for employers to ensure compliance with all applicable requirements as oversight and penalties continue to increase. The new regulations also increased penalties for DOL violations, as well as other wage and labor violations.
NOTICE OF DISCLAIMER
The information herein is intended to be educational only and is based on information that is generally available. HUB International makes no representation or warranty as to its accuracy and is not obligated to update the information should it change in the future.
The information is not intended to be legal or tax advice. Consult your attorney and/or professional advisor as to your organization’s specific circumstances and legal, tax or other requirements.