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Archived News Release--Caution: information may be out of date.

OSHA LOWERS MINIMUM PENALTIES FOR WILLFUL SERIOUS VIOLATIONS BY SMALLER EMPLOYERS TO EASE FINANCIAL BURDENS

Mon., April 10, 1995

For more information call: (202) 219-8151.

The Occupational Safety and Health Administration (OSHA) today announced that it is lowering its minimum penalties for willful serious violations by small businesses. The move is designed to ease the financial burden on small employers.

Small employers are those with 50 or fewer employees. The proposed penalty for a serious willful violation for those employers will be no less than the statutory minimum of $5,000.

Last June OSHA announced a five-fold increase to $25,000 in the minimum proposed penalty for a willful serious violation in order to deter bad actors.

"Some of our state plan partners voiced concern that this might place too heavy a financial burden on the small employers who were cited for such violations," said Assistant Secretary of Labor for Occupational Safety and Health Joseph A. Dear, "and that they would need legislative authorization to adopt this policy. To meet those concerns and at the same time maintain an appropriate deterrent, we will now use a graduated scale."

Appropriate changes are being made in the OSHA Field Inspection Reference Manual (FIRM).

For willful serious violations, the adjustment factor for size in the proposed penalty is to be applied as shown:

There can be an additional 10-percent reduction based on the employer's history. This adjustment can be made if the employer has not been cited by OSHA for any serious, willful or repeated violations in the past three years. There is to be no adjustment for good faith.

In addition, a gravity of high, moderate or low will be assigned. This gravity is based on the severity of the violation (i.e., the probability of serious injury or death) determined during an inspection.

The proposed penalty will then be determined from the table below:

Penalties to be ProposedTotal

percentage
reduction
for size
and/or
history

High
Gravity

Moderate
Gravity

Low Gravity

0% $70,000 $55,000 $40,00010%$63,000$49,500$36,00020%$56,000$44,000$32,00030%$49,000$38,500$28,00040%$42,000$33,000$24,00050%$35,000$27,500$20,00060%$28,000$22,000$16,000 70%$21,000$16,500$12,00080%$14,000$11,000$8,00090%$7,000$5,500$5,000

The 25 states and territories that operate their own OSHA- approved occupational safety and health programs are encouraged to adopt this or an equivalent policy. They are to advise OSHA of their intentions within 30 days.

States and territories that adopt an identical or alternative policy should submit appropriate documentation. States wishing to conduct pilot alternatives may do so and should consider entering into limited performance agreements on the policy.

These states and territories include Alaska, Arizona, California, Hawaii, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Puerto Rico, South Carolina, Tennessee, Utah, Vermont, Virginia, Virgin Islands, Washington and Wyoming. Connecticut and New York have plans that cover public employees only.

Archived News Release--Caution: information may be out of date.