By Pat Miller, Rod Smith, Chuck Newcom and Matt Morrison

As we mentioned previously, Congress has allowed federal agencies, including OSHA, to increase their penalty structures in order to keep up with inflation. OSHA recently has announced that it will do just that. Effective August 1, 2016, OSHA’s penalties will increase by 78%. This means that the maximum penalty for Other-Than-Serious or Serious violations will increase from $7,000 to $12,471. The maximum penalty for Willful or Repeat violations will jump from $70,000 to $124,709. These increases will apply to citations issued after August 1, 2016, but OSHA plans to apply them to such citations where the alleged violation occurred within the six-month statute of limitations period leading up to that date. This means that employers may be subject to the increase for alleged violations going back to February 1, 2016. While the new penalty structure does not mandate that OSHA issue citations with these maximum amounts, and only time will tell what fines will be handed down, there is little doubt that penalties will be increasing.

This increase underscores the need for employers to be diligent in their safety and health compliance efforts. It reemphasizes the importance of OSHA citations not only for employers’ records, but for their bottom line as well. Employers are advised to continue to assert their rights in defense of OSHA citations in order to minimize these risks.

Rod Smith, Pat Miller, Chuck Newcom and Matt Morrison are part of Sherman & Howard’s Labor & Employment Law Department, practicing in the areas of occupational safety and health law. They routinely appear before the federal Occupational Safety and Health Review Commission, the federal Mine Safety and Health Review Commission, and state occupational safety and health boards.

Sherman & Howard L.L.C. has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation and does not create an attorney-client relationship between any reader and the Firm.

©2016 Sherman & Howard L.L.C.                                                                                             July 5, 2016