OSHA Penalty Adjustments to Take Effect August 2016

07/29/16 By Dana Szymkowiak

With the OSHA penalty adjustment starting today, we wanted to share all of the below information with you to act as a quick reference guide.

In November 2015, Congress enacted legislation requiring federal agencies to adjust their civil penalties to account for inflation. The Department of Labor is adjusting penalties for its agencies, including the Occupational Safety and Health Administration (OSHA).

“Civil penalties should be a credible deterrent that influences behavior far and wide,” said U.S. Secretary of Labor Thomas E. Perez. “Adjusting our penalties to keep pace with the cost of living can lead to significant benefits for workers and can level the playing field responsible employers who should not have to compete with those who don’t follow the law.”

OSHA’s maximum penalties, which were last adjusted in 1990, will increase by 78%. Going forward, the agency will continue to adjust its penalties for inflation each year based on the Consumer Price Index.

The new penalties will take effect after August 1, 2016.  Any citations issued by OSHA after that date will be subject to the new penalties if the related violations occurred after November 2, 2015.

Type of Violation Current Maximum PenaltyNew Maximum Penalty
Serious$7,000 per violation$12,471 per violation
Other-Than-Serious
Posting Requirements
Failure to Abate$7,000 per day beyond the abatement date$12,471 per day beyond the abatement date
Willful or Repeated$70,000 per violation$124,709 per violation

 

Adjustments to Penalties

To provide guidance to field staff on the implementation of the new penalties, OSHA will issue revisions to its Field Operations Manual by August 1. To address the impact of these penalty increases on smaller businesses, OSHA will continue to provide penalty reductions based on the size of the employer and other factors.

State Plan States

States that operate their own Occupational Safety and Health Plans are required to adopt maximum penalty levels that are at least as effective as Federal OSHA’s.

For More Assistance

OSHA offers a variety of options for employers looking for compliance assistance.

The On-site Consultation Program provides professional, high-quality, individualized assistance to small businesses at no cost.

OSHA also has compliance assistance specialists in most of our 85 Area Offices across the nation who provide robust outreach and education programs for employers and workers.

For more information, please contact the Regional or Area Office nearest you.

 

References:

https://www.osha.gov/penalties.html

https://ehssafetynewsamerica.com/2016/07/05/osha-penalties-to-be-adjusted-for-inflation-after-august-1-2016/