Osha penalty calculation procedure
- 1. OSHA Penalty Calculation Procedure
- 2. Background OSHA penalties have not been adjusted for several decades Work group assembled to evaluate the Agency’s penalty policies Conclusion of the work group – current penalties are too low to have an adequate deterrent effect New changes announced April 22, 2010
- 3. Administrative Penalty Changes Gravity-Based Penalty Size History Good Faith Increased Minimum Penalties Severe Violator Enforcement Program Repeat Violations Informal Conference Consideration Application of penalty adjustment factors
- 4. Gravity-Based Penalty $3,000 $1,500 Low/Lesser $4,000 $2,000 Medium/Lesser $5,000 $2,500 High/Lesser $5,000 $2,500 Low/Greater $6,000 $3,500 Medium/Greater $7,000 $5,000 or $7,000 High/Greater New Current
- 5. Size None None 251 or more 10% 20% 101 - 250 30% 40% 26 - 100 40% 60% 1 - 25 New Reduction Current Reduction
- 6. History No reduction or increase Never inspected or no HG citations in the previous 5 yrs 10% increase Inspected and HG citations issued in the previous 5 yrs No reduction Citations within the previous 3 yrs 10% reduction Inspected and no SWRF citations in the previous 5 yrs 10% reduction Consider previous 3 yrs New Current
- 7. Good Faith New policy will retain evaluating an employers safety and health program The additional 10% reduction for participation in a strategic partnership has been eliminated
- 8. Increased Minimum Penalties Minimum penalty for a serious is increasing from $100 to $500 Minimum penalty for a posting violation will increase from $100 to $250 if the company was previously provided a poster by OSHA
- 9. Severe Violator Enforcement Program Modifies guidance for grouping related HG serious violations and permits citing each with its own penalty AD may limit adjustment for SVEP related violations to achieve the appropriate deterrent effect Note: another section on SVEP
- 10. Repeat Violations Proposed if a final order citation in the previous 5 yrs Proposed if a final order citation in the previous 3 yrs New Current
- 11. Informal Conference Consideration - No longer allow penalty reduction when employer has an outstanding balance owed to OSHA at this establishment or others. If on a penalty plan, penalty reduction may be granted. - AD may offer an additional 20% if an outside H&S consultant is hired Greater than 50% requires RA approval - AD may reduce penalty up to 30%. > reduction requires RA approval AD may reduce penalty up to 50% New Current
- 12. Application of Penalty Adjustment Factors All penalty reduction factors summed and multiplied by the Gravity-Based Penalty (GBP)--currently Penalty adjustment factors will be applied serially to the GBP---new policy
- 13. End