Fines levied by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) will increase for the first time in a quarter century, under a provision in the recently signed congressional budget deal.
Of course, OSHA and state enforcement programs will use this development to encourage employers to improve existing safety programs, achieve greater and more consistent compliance with OSHA regulations and identifying training needs for employees.
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 percent 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.
So, employers beware!!! OSHA is finally catching up with other government agencies who seek and clamor for ever increasing authority to fine and punish the manufacturers and businesses in our economy.
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