OSHA fines to increase by as much as 80% in 2016
Fines levied by the U.S. Department of Labor's Occupational Safety and Health Administration will increase for the first time in a quarter century, under a provision in the recently signed congressional budget deal.
The new budget, signed into law on Nov. 2 by President Barack Obama, contains an amendment canceling a 1990 federal rule that exempted OSHA from increasing its penalties to account for inflation. The last time OSHA's maximum penalty levels were increased was in the Omnibus Budget Reconciliation Act of 1990.
Under the new budget deal, OSHA is directed to make a one-time “catch-up” increase to make up for more than two decades without increases. The catch-up increase cannot exceed the inflation rate from 1990 through 2015 as measured by the Consumer Price Index, which is expected to be around 82% over the 25-year span.
If OSHA applies the maximum catch-up increase allowed, the current maximum $70,000 fine for “repeat” and “willful” violations would grow to a maximum of $127,400, and the $7,000 maximum fine for “serious” and “failure-to-abate” violations would increase to $12,744.
The adjustment must occur before Aug. 1, 2016. In subsequent years, OSHA also will be allowed — for the first time — to adjust its penalties levels based on inflation.
Maine DOL commissioner touts SafetyWorks! program
Maine Commissioner of Labor Jeanne Paquette will use those pending fine increases to encourage Maine businesses to invest in safer workplaces and thereby avoid the risk of being cited by OSHA.
“Maine has one of the strongest workplace safety consulting programs in the country, SafetyWorks!,” she said in a press release announcing OSHA's looming fine increases. “I encourage all businesses to contact the department to learn about how the SafetyWorks! program can help them improve safety and avoid these higher fines.”
SafetyWorks! is not an OSHA program and cannot issue fines or citations to private businesses.
Instead, SafetyWorks! provides trained consultants with industry-specific expertise who can review an employer's facility, arranged by appointment. The consultation may include such elements as recognizing safety hazards, sampling for air and noise exposures, recommending ways to reduce or to eliminate hazards, developing or improving a safety program, complying with federal OSHA regulations and identifying training needs.
Although the Maine Department of Labor has the authority to fine public-sector employers for workplace safety violations, Paquette said the state's practice has been to work with the employer. It is often willing to reduce the fine for “non-willful violations as long as the employer is making the necessary corrections.”
Maine's SafetyWorks! program trains about 8,000 people and consults at nearly 1,000 Maine worksites each year. To learn more about the program, call 1-877-723-3345 or go to the website www.safetyworksmaine.com
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