🔒Politics & Co.: OSHA fines to skyrocket under new U.S. Department of Labor rule

A new U.S. Department of Labor rule that took effect on Aug. 1 imposes dramatically higher penalties upon employers cited by the federal Occupational Safety and Health Administration for workplace safety violations. Any citations issued by OSHA on or after that date will be subject to the new penalties if the related violations occurred after Nov. 2, 2015.

The maximum penalty for “serious,” “other-than-serious” and “posting requirement” violations jumps 78% from the current $7,000 fine to $12,471. For “failure to abate” violations, fines jump from the current maximum of $7,000 per day beyond the abatement date to $12,471 per day. And if violations are deemed “willful” or “repeated,” employers are looking at a $54,709 increase in the maximum fine, from $70,000 to $124,709.

The changes stem from the Inflation Adjustment Act of 2015, which requires the DOL and other federal agencies to hike penalties for violations in a number of federal programs, some of which haven't seen increases since 1990. After this year's catch-up adjustment, the law provides for annual adjustments for inflation based on the Consumer Price Index.

The U.S. DOL also is raising penalties for willful violations of minimum wage and overtime rules under the federal Fair Labor Standards Act from $1,100 to $1,894. Employers would do well to update their workplace posters detailing federal and state labor laws, since fines are also increasing for violations of many of those posting requirements — the Family Medical Leave Act penalty, for example, jumps from $110 to $163.

“Civil penalties should be a credible deterrent that influences behavior far and wide,” said U.S. Secretary of Labor Thomas E. Perez in a statement announcing the new penalties. “Adjusting our penalties to keep pace with the cost of living can lead to significant benefits for workers and can level the playing field for responsible employers who should not have to compete with those who don't follow the law.”

Best practice: Avoid the fines

Jeanne Paquette, commissioner of Maine's Department of Labor, says the state offers two programs designed to help employers stay in compliance with OSHA's regulations and avoid hefty fines:

• SHARP, the Safety and Health Achievement Recognition Program, which enables employers completing the program's requirements to have their facility removed from OSHA's programmed inspection list. In simple terms, employers agree to correct all hazards identified by a trained consultant and commit to lowering their workplace injury rates to below the state average. In doing so, SHARP companies may also qualify for reduced insurance premiums.

• SHAPE, the Safety and Health Award for Public Employers, which offers similar services and benefits for public sector workplaces.

Pam Megathlin, director of Maine DOL's Bureau of Labor Standards, said an additional resource is the department's SafetyWorks! program, which provides free, confidential workplace safety and health consultations that include recommendations to help employers stay out of trouble with OSHA.

“We will work with employers to help them get completely in compliance,” she said. “This is the most opportune way for a small business in Maine to ensure they are in 100% compliance with OSHA's regulations.”

Besides creating a safer workplace, she said, there's a significant benefit for companies participating in the program: If OSHA shows for a programmed inspection, they will leave if the company provides documentation of a wall-to-wall inspection by a SafetyWorks! consultant.

Megathlin said SafetyWorks! also offers more than 100 safety and health classes each year on a range of safety and health topics. Companies can call toll-free 877-723-3345 to learn more about the program or request particular services.

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