OSHA increased fine amounts by 78 percent effective August 1, 2016. The maximum penalty for a serious violation will increase from $7,000 to $12,471. The maximum penalty for a repeat or willful violation will increase from $70,000 to $124,709. Failure to abate citations will increase from $7,000 per day beyond the abatement date to $12,471 per day beyond the abatement date.
On August 2, 2016, OSHA released a new Field Operations Manual, which explains how OSHA will calculate fine amounts for employers who violate OSHA regulations.
Specifically, the fine amounts for a Serious violation vary depending on the violation’s “Severity” and “Probability” as determined by OSHA when calculating the fine. Below is a guide of fine amounts for a Serious violation without considering potential discounts based on the employer’s size and good faith.
Severity |
Probability | Fine Amount |
Increase from Prior
Penalty Amount
|
High | Greater | $12,471 | $5,471 |
Medium | Greater | $10,689 |
$4,689 |
Low | Greater | $8,908 | $3,908 |
High | Lesser | $8,908 | $3,908 |
Medium | Lesser | $7,126 | $3,126 |
Low | Lesser | $5,345 | $2,345 |
Similarly, for Willful citations, the Field Operations Manual contains a chart explaining the fine amounts based on “Gravity.” Below is a guide of fine amounts for a Willful violation without considering potential discounts based on the employer’s size and good faith.
Gravity | Fine Amount |
High | $124,709 |
Moderate | $106,890 |
Low | $89,080 |
The manual contains other information regarding calculating penalties; however, the formulas are mostly unchanged from previous years.