Following an Office of Management and Budget (OMB) memorandum canceling penalty inflation adjustments for 2026, the Department of Labor (DOL) confirmed that it will make no adjustment for 2026 and will continue using the 2025 civil monetary penalties as applicable. This applies to penalties that may be assessed on employers for violations of a wide range of federal laws, including the Fair Labor Standards Act (FLSA), the Employee Retirement Income Security Act (ERISA), the Family and Medical Leave Act (FMLA), and the Occupational Safety and Health Act (OSH Act).

Background

Federal law requires agencies to adjust their civil money penalties for inflation no later than Jan. 15 of each year in order to maintain their effectiveness and deterrent effect. Last year, the DOL’s final rule on 2025 inflation-adjusted amounts was published on Jan. 10, 2025.

The annual adjustment is based on Bureau of Labor Statistics (BLS) data from October of the prior year. However, due to the government shutdown, BLS was unable to produce October 2025 data. As a result of this lack of data, and because the law does not provide an alternate method for calculating the adjustments, the 2026 adjustment is canceled entirely.

Current Penalty Amounts

The following key penalty amounts remain in effect for both 2025 and 2026:

• FLSA violations: Civil penalties of up to $2,515 per violation may be imposed for willful or repeated violations. For child labor violations, penalties may reach up to $16,035 per violation and $72,876 for each violation that causes death or serious injury of a minor employee (which may be doubled for willful or repeated violations, up to $145,752).
• Summary of Benefits and Coverage (SBC): Failure to provide group health plan participants and beneficiaries with an SBC may result in a penalty of up to $1,443 per participant or beneficiary.
• Form 5500 filings: Failure to file an annual Form 5500 with the DOL can result in a penalty of up to $2,739 per day.
• FMLA notice: Employers who willfully violate the FMLA posting requirement may face a penalty of up to $216 for each separate offense.
• Children’s Health Insurance Program (CHIP) notice: Failure to provide the annual notice regarding CHIP coverage opportunities may result in a penalty of up to $145 per day (each employee is a separate violation).
• Failure to furnish DOL-requested plan information: Penalties of up to $195 per day apply, not to exceed $1,956 per request.
• OSH Act: Civil penalties range from no penalty for de minimis violations to up to $16,550 per violation for serious, other-than-serious or uncorrected violations. Willful or repeat violations carry penalties between $11,823 and $165,514 per violation.

This Know Your Benefits article is to be used for informational purposes only and is not intended to replace the advice of an insurance professional. © 2026 Zywave, Inc. All rights reserved.