The Bipartisan Budget Act of 2015 required Department of Labor (DOL) agencies to adjust civil penalties for violations on or before July 1, 2016. Accordingly, the DOL published an Interim Final Rule on July 1, 2016 in which civil penalties for five DOL agencies, including the Occupational Safety and Health Administration (OSHA), will be increased substantially beginning with penalties assessed on or after August 1, 2016. The jump in civil penalties results from a one-time “catch up” adjustment to account for inflation since 1990 when penalties were last increased. Going forward, however, penalties will be adjusted on an annual basis according to the Consumer Price Index for all Urban Consumers. The annual adjustment, however, will be limited to 150% of the amount then in effect.
The table below summarizes the increases for OSHA penalties on or after August 1:
Type of Violation Current Maximum Penalty New Maximum Penalty Serious $7,000 per violation $12,471 per violation Other-Than-Serious $7,000 per violation $12,471 per violation Posting Requirements $7,000 per violation $12,471 per violation Failure to Abate $7,000 per day beyond the abatement date $12,471 per day beyond the abatement date Willful or Rebated $70,000 per violation $124,709 per violationDOL has made available a table outlining the changes for all five agencies covered by the July 1 rule.