The Office of Management and Budget (OMB) has issued a memorandum canceling federal penalty inflation adjustments for 2026, affecting employer penalties under laws such as FLSA, ERISA, FMLA, and the OSH Act.
Background
Federal law requires agencies to adjust civil monetary penalties for inflation each year. However, because the government shutdown prevented the Bureau of Labor Statistics from issuing October 2025 data, there will be no new cost-of-living adjustment for 2026, and 2025 penalty amounts will remain in effect.
Current Penalty Amounts
The following penalty amounts remain in effect for both 2025 and 2026:
- FLSA violations: Civil penalties can reach $2,515 per willful or repeated violation, up to $16,035 for most child labor violations, and up to $145,752 for violations causing a minor’s death or serious injury;
- 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: Failing to file Form 5500 with the DOL can result in penalties of up to $2,739 per day;
- FMLA notice: Willful violations of the FMLA posting requirement can result in penalties of up to $216 per offense;
- Children’s Health Insurance Program (CHIP) notice: Failing to provide the annual CHIP coverage notice can result in penalties of up to $145 per day, per employee;
- Failure to furnish DOL-requested plan information: Penalties can be assessed at up to $195 per day, capped at $1,956 per request; and
- OSH Act: Civil penalties range from no penalty for minor issues to $16,550 per serious violation, and $11,823–$165,514 per willful or repeat violation.
Because 2025 penalty levels remain in force for 2026, employers should continue to closely adhere to all applicable federal requirements. Download the bulletin for more details.
