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🗞️ DOL Expands Self-Correction Program to Cover MEWA Form M-1 Filing Violations

The U.S. Department of Labor's Employee Benefits Security Administration expanded its Delinquent Filer Voluntary Compliance Program on December 31, 2025, to include Multiple Employer Welfare Arrangements (MEWAs) and Entities Claiming Exception (ECEs) that failed to file required Form M-1 reports.

onthelaborfront

05 Jan 2026 — 3 min read

The Department of Labor's expansion of the Delinquent Filer Voluntary Compliance (DFVC) Program represents a significant policy shift in how the agency enforces Form M-1 reporting requirements for Multiple Employer Welfare Arrangements. Previously, MEWA administrators who missed filing deadlines had no voluntary compliance pathway and faced civil penalties that could exceed $1,800 per day (adjusted annually for inflation).

MEWAs are arrangements that provide health and welfare benefits to employees of two or more unrelated employers. Under the Employee Retirement Income Security Act (ERISA), MEWAs that provide medical benefits must file Form M-1 annually by March 1 and also upon certain triggering events such as beginning operations in a new state, mergers, or experiencing a 50% increase in covered employees. The form collects critical information about the MEWA's operations, financial condition, compliance with federal health laws, and the identities of individuals responsible for managing the arrangement.

The DFVC Program, originally established in 1995, allowed plan administrators who filed late Form 5500 annual reports to pay reduced penalties instead of facing the full statutory amounts. The program has been modified several times, with the 2002 version capping penalties at $750 for small plans and $2,000 for large plans. The 2025 expansion now extends these same reduced penalties to MEWA administrators filing late Form M-1 reports.

Under the new policy, MEWA and ECE administrators can file their most recent required Form M-1 electronically and pay a flat $750 penalty through the Department's online payment system. This represents a dramatic reduction from the potential daily penalties that could accumulate into tens or hundreds of thousands of dollars for arrangements that have been delinquent for extended periods. The relief is only available to administrators who have not yet been notified in writing by the DOL of their filing failure.

The expansion addresses a compliance gap that left MEWA administrators with no practical way to self-correct filing violations. This policy change aligns with the Department's enforcement philosophy of encouraging voluntary compliance while reserving full statutory penalties for arrangements that ignore their obligations or engage in fraudulent conduct. By providing a clear pathway to compliance with predictable costs, the DOL aims to increase Form M-1 filing rates and improve transparency in the MEWA marketplace, ultimately better protecting workers and employers who participate in these arrangements.

The timing of this expansion is notable given the DOL's increased focus on MEWA enforcement following the Affordable Care Act, which added enhanced registration requirements, criminal penalties for false statements, and authority for cease-and-desist orders against abusive MEWAs. The voluntary compliance program serves as a complement to these enhanced enforcement tools by providing compliant actors a way to cure technical violations without devastating financial consequences.

Key Points

Reduced Penalties: MEWA administrators can now file late Form M-1 reports for a flat $750 penalty instead of facing daily penalties that can exceed $1,800 per day (adjusted annually for inflation)
Eligibility Window: Relief is only available before the DOL sends written notification of the filing failure
Electronic Filing Required: Administrators must file the most recent required Form M-1 electronically through the DOL's online system
Single Filing Requirement: Only one Form M-1 must be filed for the most recent filing year, even if multiple years are delinquent
No Prior Relief: Before this expansion, MEWAs had no voluntary compliance program for Form M-1 violations
Effective Date: The program became effective December 31, 2025, and applies immediately
Form M-1 Purpose: The form collects information about MEWAs' financial condition, regulatory compliance, and responsible parties to prevent fraud and protect participants
MEWA Definition: MEWAs provide health/welfare benefits to employees of two or more unrelated employers not under common control
Annual Filing Deadline: Form M-1 must be filed by March 1 following each calendar year, plus within 30 days of certain triggering events
Statutory Authority: The expansion uses the Secretary of Labor's authority under ERISA sections 502(c)(2) and 502(c)(5) to assess and waive civil penalties