OSHA to Increase Penalties in 2016

The Occupational Safety and Health Administration (OSHA) is expected to increase the fines it levies to businesses in noncompliance with its rules.

Congress voted in favor of the penalty increase in October, just shy of the final days in the fiscal year. President Obama signed off on the bill, giving it his stamp of approval.

Up until now, civil penalties for OSHA violations were capped at $7,000 for serious violations (e.g. injury that results in amputation, or work-related fatality), and $70,000 for repeat violations. Some people may view the current penalties as sufficient, but apparently they are not.

To put those numbers into perspective, the Environmental Protection Agency (EPA) is able to hand down penalties of up to $270,000 for violations involving the Clean Air Act and $1 million for violations involving the public water systems.

According to OSHA, many employers view OSHA penalties as a cost of a doing business. So instead of taking the necessary measures to remain compliant with OSHA and provide a safe working environment for their employees, employers simply set aside money to pay the fines -- something that OSHA is hoping to discourage by increasing its fines.

"OSHA's current penalties are clearly not strong enough to provide adequate incentives, and some employers see them as simply the ‘cost of doing business," explained OSHA in a press release announcing the new penalty increase. "The maximum civil penalty OSHA may impose when a hard-working man or woman is killed on the job – even when the death is caused by a willful violation of an OSHA requirement – is $70,000."

OSHA has reportedly found more than 599 violations involving penalties of at least $40,000 this year, for a grand total of $54 million. Of course, the total amount of penalties is expected to increase next year as OSHA adjusts its fine system. This begs the question, however: how much can employers expect to pay for a safety violation under OSHA's new system? Unfortunately, there's still no official word yet on just how much OSHA plans to fine offending employers for workplace violations. According to some sources, however, the newly approved bill grants the administration the right to increase fines by "about" 78%, which is a pretty substantial sum to say the least. Whether or not it will have a positive impact on work-related injuries remains to be seen.