Increase in OSHA Fines and Compliance Requirements

This white paper discusses the significant increase in OSHA penalties for workplace violations, marking the first adjustment in twenty-five years. The federal act passed in 1990 had previously exempted OSHA from increasing fines to account for inflation, but a new budget amendment signed into law on November 2, 2015, has removed this exemption. The 'Catch-Up Adjustment' will raise the current cap on serious OSHA violations from $7,000 to approximately $12,500, while penalties for willful and repeat violations will increase from $70,000 to over $126,000. These changes will take effect on July 1, 2016, with increased penalties starting August 1. Employers are advised to ensure compliance with workplace safety standards, which includes comprehensive employee safety training, hazard assessments, and operational safety equipment. The paper suggests that the increase in fines may enhance workplace safety by raising employer awareness regarding the financial implications of non-compliance.