For the first time since 1990, the Occupational Safety & Health Administration (OSHA) will be raising its fines. To make up for nearly two decades of no increases, some penalties could increase as much as 82%. This is all part of the Federal Budget Agreement which was signed earlier this week.
OSHA will make a one-time "catch-up" increase which can't exceed the inflation rate from 1990 through 2015. After the one time "catch-up" OSHA will annually increase maximum penalties the amount of inflation rate for the prior fiscal year.
Assuming OSHA decides to apply the maximum catch-up increase, the current maximum fine for repeat and willful violations would increase $55,438 from the current $70,000 to $125,438.
The maximum penalty for serious and failure-to-abate violations would increase $5,744 from the current $7,000 to $12,744. Both of those would be a nearly 45% increase.
The initial penalty increase must become effective by August 1, 2016, which means OSHA will need to publish an interim final rule by July 1, 2016.
