A memorandum issued by the Office of Management and Budget (OMB) to federal agencies states that the U.S. Department of Labor (DOL) will not increase civil penalties for 2026. Federal agencies, including the DOL, are generally required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 to adjust civil monetary penalties annually by January 15 to preserve their deterrent effect.
This decision impacts employers nationwide, as penalties tied to key federal employment laws will remain unchanged throughout 2026:
- 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).
Key Employer Penalties Remaining Unchanged for 2026
The halted penalty inflation adjustments will keep many major regulation thresholds the same, including:
- The maximum penalty for violating federal minimum wage and overtime requirements remains $2,515 per violation.
- The maximum penalty for failing to file Form 5500 for an employee benefit increase remains $2,739per day
- The maximum penalty for violations of the FMLA posting requirement remains $216 per offense.
Penalty Amounts Applicable to Employers
| Requirement | 2025 Penalty Amount | 2026 Penalty Amount |
| Wage and Hour | ||
| Willful failure to post FMLA general notice | Up to $216 for each separate offense | Up to $216 for each separate offense |
| Employee Benefits | ||
| Failure to file an annual report (Form 5500) with the DOL (unless a filing exemption applies) | Up to $2,739 per day | Up to $2,739 per day |
| Failure to furnish plan-related information requested by the DOL *Under ERISA, administrators of employee benefit plans must furnish to the DOL, upon request, any documents relating to the employee benefit plan. | Up to $195 per day, but not to exceed $1,956 per request | Up to $195 per day, but not to exceed $1,956 per request |
| Failure to provide the annual notice regarding CHIP coverage opportunities *This notice applies to employers with group health plans that cover residents of states that provide a premium assistance subsidy under a Medicaid or CHIP program. | Up to $145 per day for each failure (each employee is a separate violation) | Up to $145 per day for each failure (each employee is a separate violation) |
| For 401(k) plans, failure to provide blackout notice or notice of right to divest employer securities | Up to $173 per day | Up to $173 per day |
| Failure to provide summary of benefits and coverage (SBC) | Up to $1,443 per failure | Up to $1,443 per failure
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