For the first time since 1990, fines for OSHA violations have increased. The changes are effective as of August 1, 2016.
This isn’t just a small increase. Penalties have increased by 78%.
What are the new penalty amounts? See below for a breakdown by type of violation:
- Serious – maximum penalty increases from $7,000 per violation to $12,471
- Failure to Abate – maximum penalty increases from $7,000 per day beyond the abatement date to $12,741
- Willful or Repeat – maximum penalty increases from $70,000 per violation to $124,709
Why are we seeing such a large increase? The Federal Civil Penalties Inflation Adjustment Act of 1990 prevented OSHA from adjusting and increasing its fines to account for inflation. But on November 2, 2015, President Obama signed a budget bill into law – and that bill included a provision to remove this exemption, allowing OSHA to increase their fines.
The initial change is the most significant, as it allows the fines to catch up from the past 25 years of inflation. In future years, OSHA will be permitted to increase its fines based on inflation.
It is important to note that even if you had an OSHA inspection in the past couple of months, you will be subject to the increased fines if you have yet to receive your alleged violations letter.
To help you comply with OSHA standards and prevent costly violations, check out our safety and risk management resources:
- Guide To Workplace Safety eBook
- Most Frequently Cited OSHA Violations eBook
- Sample OSHA Checklist
- Blogs on a variety of safety and risk management topics
Taking proper precautions to prevent safety hazards can not only protect your organization from increased fines, but more importantly it can keep your workforce safe.
