OSHA PENALTIES INCREASE 78 PERCENT STARTING AUGUST 1, 2016
On June 30, 2016, the Occupational Safety and Health Administration (OSHA) announced an increase in monetary penalties for violations of OSHA standards and regulations.
The increased penalties are the direct result of a provision in the 2015 Inflation Adjustment Act which gives OSHA the authority to increase penalties to adjust for inflation. This new law requires agencies to publish “catch up” rules to make up for low penalties over the past three decades, and directs agencies to adjust their penalties moving forward based on the Consumer Price Index. OSHA has not adjusted it’s penalties since 1990.
HOW DOES THIS AFFECT ME?
Effective Aug. 1, 2016, OSHA's maximum penalties will increase by 78 percent. Any citations issued by OSHA after that date will be subject to the new penalties if the related violations occurred after Nov. 2, 2015.
AMOUNT OF PENALTY INCREASE
Type of Violation
Current Maximum Penalty
New Maximum Penalty
Serious – High probability that serious physical harm may occur
Other than Serious – Probably would not cause serious physical harm
$7,000 per violation
Up to $12,471 per violation
Failure to Abate – Did not correct a prior violation
$7,000 per day beyond the abatement date
Up to $12,471 per day beyond the abatement date
Willful – Employer intentionally and knowingly violates a standard
Repeated – A substantially similar violation is identified as noted in a previous inspection