Request a Demo
Request A Demo
+1.216.765.7100
close

EHSvoice

Dakota Software's Blog for EHS and Sustainability Professionals

OSHA fine increases fast approaching

July 15th, 2016 by Dakota Software Staff Industry News

OSHA fine increases fast approaching

It's important to remember there is little time left before the Occupational Safety and Health Administration substantially increases the fines it charges for noncompliance. In a regulatory environment where the impacts of proposed rule changes can take years to fully reach the companies they affect, the handful of months between OSHA's announcement and the official change is an unusually short timeframe. Businesses must recognize the significant cost increases - even for the most minor of OSHA infractions - that are fast approaching and review and improve their safety compliance efforts.

Major increases set for Aug. 1
The more costly penalties OSHA will soon enforce aren't just a token change made to highlight the agency's ability to create negative consequences for noncompliant businesses. Law firm Keller and Heckman LLP provided the reminder that the Department of Labor's interim final rule, a rule required by Congress as part of the Federal Civil Penalties Inflation Adjustment and Improvements Act, increases OSHA fines by 78 percent from current levels.

The sudden, drastic increase in financial penalties is mostly due to a lack of more metered increases during the past 26 years. OSHA's fine structure hasn't changed since 1990, even though inflation and a host of other economic factors mean the value of a dollar is significantly less now than it was 26 years ago. While there's no single, concrete method available to definitively calculate the relative value of a dollar over time, MeasuringWorth.com places the relative value of $1 in 1990 between $0.33 and $0.61 today.

Perhaps more important in the long run for businesses is the way the size of fines will increase in the future. The Inflation Adjustment Act not only brought OSHA's penalties in line with a more current economic standard, it also provides a framework for regularly updating those costs in the future. Instead of rare, major increases, OSHA fines will rise along with inflation and related factors.

For violations other than willful or repeated ones, the financial penalty increases to $12,471 from $7,000, while willful and repeated instances of noncompliance will cost companies $124,709 instead of $70,000 by August 1. Businesses need to recognize these significantly increased costs and use EHS compliance software to make sure their workspaces are in accord with all OSHA rules.

Be Part of the Solution

Sign up for the Dakota EHS e-Newsletter for monthly updates from our regulatory and industry experts.

subscribe