Skip to Main Content
Services Talent Knowledge
Site Search
Menu

Alert

Our attorneys stay on top of changes in legislation, agency regulations, case law, and industry trends—then craft timely legal alerts to keep clients up to date on legal developments important to their business.

November 16, 2015

New Federal Budget Deal Means Stiffer OSHA Penalties

Employers subject to workplace safety inspections by OSHA, which can be triggered by a complaint, referral, agency emphasis program, or a site-specific targeting program, will soon face much higher penalties for violations. Buried in the 144-page Bipartisan Budget Act of 2015, signed into law on November 2, 2015, is an amendment to the Federal Civil Penalties Inflation Adjustment Act increasing OSHA's civil monetary penalties for the first time since 1990.

The amendment requires OSHA to begin annually adjusting its penalties for inflation based on the Consumer Price Index. In addition, OSHA must implement a one-time "catch up" adjustment to account for inflation occurring since the last time those penalties were adjusted – unless it determines such an increase would have a "a negative economic impact or social costs that outweigh the benefits" and the Office of Management and Budget (OMB) agrees. Such a determination seems unlikely considering recent comments by the Assistant Secretary of Labor for OSHA, Dr. Michaels: "Simply put, OSHA penalties must be increased to provide a real disincentive for employers accepting injuries and worker deaths as a cost of doing business."

This means OSHA will most likely increase its penalties by approximately 80% over current levels, which it would implement via interim final rulemaking effective on or before August 1, 2016. OSHA's current maximum penalties for "other-than-serious" and "serious" violations are $7,000, and are $70,000 for repeat and "willful" violations. If these amounts are increased as directed, they will become approximately $12,500 and $125,000, respectively, and then increase annually thereafter.


If you have any questions about the content of this alert please contact the Barclay Damon attorney with whom you normally work or any attorney in our Labor & Employment Practice Area.

Subscribe

Click here to sign up for alerts, blog posts, and firm news.

Featured Media

Alerts

ERISA Forfeiture Lawsuits: Navigating the Emerging Legal Landscape

Alerts

EU Leads the Way on Artificial Intelligence Regulation

Alerts

End of An Era: SCOTUS Overturns Chevron After 40 Years of Deference to Administrative Agencies

Alerts

SCOTUS Rejects Proposed Release of Sackler Family From Purdue Pharma Chapter 11 Plan as Not Permitted by the Bankruptcy Code

Alerts

NYS Appellate Court Reverses and Holds Liability Insurer Owed Duty to Defend to Policyholder in Sexual Abuse Lawsuit

Alerts

New York State's Secret Sauce: Summary Judgment in Lieu of Complaint

This site uses cookies to give you the best experience possible on our site and in some cases direct advertisements to you based upon your use of our site.

By clicking [I agree], you are agreeing to our use of cookies. For information on what cookies we use and how to manage our use of cookies, please visit our Privacy Statement.

I AgreeOpt-Out