Dive Brief:
- After 25 years of members of Congress trying to raise OSHA fines via legislation without success, the Federal goverment, in its annual budget, may have decided the time has come.
- The fines could increase almost 80% in a single case, and increase annually by the rate of inflation after that. For example, the maximum "repeat or willful" violation fine would increase from $70,000 now to $124,768, and the maximum "serious violation" fine would jump from $7,000 to $12,477.
- While not official yet, OSHA fines could increase starting on Aug. 1, 2016, according to a report at Safety Alert Net.
Dive Insight:
Apart from the potential serious raise in fines, OSHA penalties could increase each year using the consumer price index, according to the article. The head of OSHA has the discretion to choose not to increase fines the first year the new rules are in effect -- but only with the agreement of the Director of the Office of Management and Budget, according to the report.
Allowing OSHA its fine increase and future inflationary bumps would put it in line with many other federal agencies that can increase fines by inflation, including the FDA, the EPA, the EEOC, the FCC and several agencies under the Department of Transportation, the article notes.
“Unscrupulous employers often consider it more cost effective to pay the minimal OSHA penalty and continue to operate an unsafe workplace than to correct the underlying health and safety problem,” OSHA chief David Michaels once said in support of previous bills that would increase agency penalties, but were not passed. In this case, the U.S. House and Senate have passed the budget bill and it waits for President Obama’s signature.
Seems a good time for employers to take an even harder look at potential OSHA workplace violations.
