Short answer: Employers that fail to comply with ERISA may face daily monetary penalties, government audits, and corrective enforcement actions, depending on the type of violation.
ERISA authorizes the federal government to impose penalties when employers fail to meet documentation, disclosure, or reporting requirements for covered health and welfare plans. Enforcement authority rests primarily with the U.S. Department of Labor.
One of the most common penalties applies when required plan documents are not provided upon request. If an employer fails to furnish a Summary Plan Description (SPD) or other required plan document within 30 days of a participant’s written request, ERISA allows for a daily penalty assessed per affected participant. These penalties are set by regulation and adjusted periodically for inflation.
Plans that are required to file an annual Form 5500 may also face significant penalties if the filing is late or not submitted at all. ERISA authorizes daily penalties that can accrue until the filing is corrected, with maximum amounts established by the Department of Labor and adjusted over time.
In addition to monetary penalties, ERISA noncompliance may trigger a Department of Labor investigation or audit. Audits can lead to broader enforcement actions, including requirements to retroactively correct plan documents, reissue disclosures, amend administrative procedures, or resolve fiduciary compliance issues.
Penalty exposure under ERISA does not depend on employer size. Even small employers subject to ERISA may be penalized if required documents are missing or not properly maintained.
Sources
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U.S. Department of Labor, ERISA Enforcement
https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/enforcement -
U.S. Department of Labor, Civil Penalties Inflation Adjustments
https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa/civil-penalties -
Employee Retirement Income Security Act of 1974 (ERISA)
Content history
Originally published: March 27, 2025
Last reviewed: January 25, 2026