Exempt from penalty increases due to inflation since the Federal Civil Penalties Inflation Adjustment Act of 1990, the Occupational Safety and Health Administration (OSHA) will be raising the cost of citations for the first time in a quarter century.
The Omnibus Reconciliation Act of 1990 was a measure to reduce the United State budget deficit, which, in turn, was the last time OSHA carried out a penalty increase. Now, the new budget recently approved by President Obama, allows a provision for OSHA to catch up with inflation for the past 25 years. Inflation in that time is estimated to be around 80%, which could equate to 80% increases in OSHA penalties for contractors. The final decision will have to be made no later than August 1st, 2016 according to the amendment, so it’s not necessarily final that all penalties will jump up the full 80%.
That’s not the end of the increases, however. The very next section in the budget allows OSHA the ability to raise their penalties every year, but the maximum increase cannot exceed the determined inflation percentage. The current maximum penalty from OSHA is $7,000 for serious violations, but can jump to $70,000 for repeated or willful violations. An 80% increase in those amounts would jump those to $12,600 and $126,000, respectively. Those numbers don’t sound that high, but if OSHA is coming to your job site for a reason, they probably aren’t going to only find one infraction.
OSHA fines to increase significantly | Safety and Health Magazine
Multi-employer worksites are extremely common in the construction industry, but they can still make work extremely complicated. One of those complications results when a subcontractor receives a governmental violation, such as an OSHA violation. As a controlling employer on the site, can a general contractor be held responsible for safety hazards of a subcontractor? One court says yes.
After an abundance of delays on rule that would require crane operators to be formally qualified to operate, OSHA finally landed on an effective date of February 7, 2019. After receiving feedback from industry partners, OSHA has decided to delay enforcement for 60 days for contractors who make a “good faith effort” to comply.
As has been expected for a few months now, OSHA has officially removed the requirement for large companies with 250 or more employees to submit OSHA Forms 300 and 301. The administration cited privacy concerns as the reason for the change.
Be careful - owners and contractors are now being held criminally liable for their carelessness and disregard of safety protocols.
Since the 2016 Federal budget was passed, OSHA has increased their maximum citation penalty amount to adjust for inflation on a yearly basis. The 2019 increase has recently been announced.
Last November, Manhattan District Attorney Cyrus R. Vance Jr. announced felonious assault charges against a contractor’s superintendent and a manufacturer’s branch manager after two men suffered horrific injuries on a New York jobsite. Last week, OSHA formally announced citations against the St. Louis, Missouri based contractor.
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At the National Safety Council Congress & Expo on October 23, 2018, OSHA’s deputy director of Directorate of Enforcement Programs, Patrick Kapust, announced their 10 most frequesntly cited safety violations for their fiscal year 2018.
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