Employee Benefits Compliance

Employee Benefits Noncompliance Sees Increased Penalties in 2020


The Department of Labor recently released the 2020 adjustments to penalties for noncompliance with certain employee benefits plan requirements. Aptly titled the Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2020, the annual adjustments to the civil monetary penalties are mandated annually for penalties occurring on or after January 15, 2020 with respect to violations occurring after November 2, 2015, adjusted annually.

Requirement2019 Penalty2020 Penalty
Form 5500
(Required for plans over 100 lives and some small unfunded plans)
$2,194$2,233 per day
Summary of Benefits and Coverage (SBC)$1,156$1,176 per failure
MEWA M-1 Filing
(Association Health Plans and MEWA)
$1,597$1,625 per day
Other Group Health Plan Penalties
(GINA, CHIP, Medicaid availability requirement)
$117$119 per participant per day

No action is required but this announcement emphasizes the need to have a good partner to assist employee benefits administrators with ensuring they are complying with the multitude of laws applicable to group health plans. If you are not signed up for the Leavitt newsletter, be sure to sign up to ensure you receive the latest news to help you keep abreast of applicable laws.