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Osha penalty calculation procedure


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Osha penalty calculation procedure

  1. 1. OSHA Penalty Calculation Procedure
  2. 2. Background <ul><li>OSHA penalties have not been adjusted for several decades </li></ul><ul><li>Work group assembled to evaluate the Agency’s penalty policies </li></ul><ul><li>Conclusion of the work group – current penalties are too low to have an adequate deterrent effect </li></ul><ul><li>New changes announced April 22, 2010 </li></ul>
  3. 3. Administrative Penalty Changes <ul><li>Gravity-Based Penalty </li></ul><ul><li>Size </li></ul><ul><li>History </li></ul><ul><li>Good Faith </li></ul><ul><li>Increased Minimum Penalties </li></ul><ul><li>Severe Violator Enforcement Program </li></ul><ul><li>Repeat Violations </li></ul><ul><li>Informal Conference Consideration </li></ul><ul><li>Application of penalty adjustment factors </li></ul>
  4. 4. Gravity-Based Penalty $3,000 $1,500 Low/Lesser $4,000 $2,000 Medium/Lesser $5,000 $2,500 High/Lesser $5,000 $2,500 Low/Greater $6,000 $3,500 Medium/Greater $7,000 $5,000 or $7,000 High/Greater New Current
  5. 5. Size None None 251 or more 10% 20% 101 - 250 30% 40% 26 - 100 40% 60% 1 - 25 New Reduction Current Reduction
  6. 6. History No reduction or increase Never inspected or no HG citations in the previous 5 yrs 10% increase Inspected and HG citations issued in the previous 5 yrs No reduction Citations within the previous 3 yrs 10% reduction Inspected and no SWRF citations in the previous 5 yrs 10% reduction Consider previous 3 yrs New Current
  7. 7. Good Faith <ul><li>New policy will retain evaluating an employers safety and health program </li></ul><ul><li>The additional 10% reduction for participation in a strategic partnership has been eliminated </li></ul>
  8. 8. Increased Minimum Penalties <ul><li>Minimum penalty for a serious is increasing from $100 to $500 </li></ul><ul><li>Minimum penalty for a posting violation will increase from $100 to $250 if the company was previously provided a poster by OSHA </li></ul>
  9. 9. Severe Violator Enforcement Program <ul><li>Modifies guidance for grouping related HG serious violations and permits citing each with its own penalty </li></ul><ul><li>AD may limit adjustment for SVEP related violations to achieve the appropriate deterrent effect </li></ul><ul><li>Note: another section on SVEP </li></ul>
  10. 10. Repeat Violations Proposed if a final order citation in the previous 5 yrs Proposed if a final order citation in the previous 3 yrs New Current
  11. 11. Informal Conference Consideration - No longer allow penalty reduction when employer has an outstanding balance owed to OSHA at this establishment or others. If on a penalty plan, penalty reduction may be granted. - AD may offer an additional 20% if an outside H&S consultant is hired Greater than 50% requires RA approval - AD may reduce penalty up to 30%. > reduction requires RA approval <ul><li>AD may reduce penalty up to 50% </li></ul>New Current
  12. 12. Application of Penalty Adjustment Factors <ul><li>All penalty reduction factors summed and multiplied by the Gravity-Based Penalty (GBP)--currently </li></ul><ul><li>Penalty adjustment factors will be applied serially to the GBP---new policy </li></ul>
  13. 13. End