OSHA Penalties May Increase by Summer

Heads up employers: the Occupational Safety and Health Administration (OSHA) may increase the penalties for safety violations by summer.

Last year, OSHA had "proposed" a new format that would increase penalties for safety violations, but it was just that: a proposal. Now, however, the U.S. Department of Labor’s OSHA has been given the green light to proceed with the penalty hike.

This is certainly a major step for OSHA, as it hasn't increased fines in more than two decades. In fact, the last time it increased fines for safety violations was back in 1990.

So, just how much higher can you expect the new fines to be? There's still no word yet on an official penalty structure, although some experts are saying fines could rise by as much as 80%. That means a $10,000 penalty under the old rule would be $18,000 under the new rule, assuming the 80% number is correct.

OSHA is expected to announce the penalty increase in July, at which point it will appear as an interim ruling for a specified period of time. Final approval for the increased penalty cost is expected to happen one month later in August.

It's important to note that OSHA investigators may reduce fines for employers based on the employer's history and his or her number of employees. For instance, OSHA allows for a 60% reduction in penalties for companies with fewer than 25 employees. This number drops to 30% for companies with 26 to 100 employees. And it drops even further to just 10% for companies with 101 to 250 employees.

Being that summer is right around the corner, employers should use this time now to ensure that they are compliant with all of the OSHA standards for their specific industry. Here are some tips to avoid getting hit with a penalty:

• Conduct thorough inspections of your workplace and equipment.
• Ensure that all employees are given the appropriate Personal Protective Equipment (PPE).
• Maintain proper records of all incidents.
• Train employees to report injuries in a timely manner.
• Make sure all containers with hazardous substances/liquid are labeled.
• Keep emergency exit doors free from obstruction.

You can learn more about OSHA's penalties by visiting https://www.osha.gov/dep/administrative-penalty.html.