OSHA Penalties Understanding Consequences for Workplace Safety Violations

Ensuring a safe and healthy work environment is of paramount importance for both employers and employees. The Occupational Safety and Health Administration (OSHA) plays a pivotal role in maintaining workplace safety standards in the United States. To encourage compliance with these standards, OSHA has established a system of penalties for violations. In this article, we’ll delve into the details of OSHA penalties, helping you gain a comprehensive understanding of the consequences that can result from non-compliance with workplace safety regulations.

Every establishment covered by the Occupational Safety and Health (OSH) Act is subject to inspection by Occupational Safety and Health Administration (OSHA) compliance safety and health officers. These professionals possess the knowledge and experience required to conduct workplace inspections. They have been thoroughly trained in recognizing safety and health hazards and enforcing OSHA’s standards. In states with their own OSHA-approved state plan, pursuant to state law, state officials conduct inspections, issue citations for violations and propose penalties in a manner that is at least as effective as the federal program. The process for inspections is described in the publication OSHA Fact Sheet: Inspections.

When an inspector finds violations of OSHA standards or serious hazards, OSHA may issue citations and penalties within six months of the violation’s occurrence. Small employers and employers acting in good faith may have penalties reduced; however, no penalty reduction will be made for willful violations. See OSHA penalties.
If an employer is convicted of a willful violation of a standard that has resulted in the death of an employee, the offense is punishable by a court-imposed fine or imprisonment for up to six months, or both.
The OSH Act authorizes OSHA to treat certain violations that have no direct or immediate relationship to safety and health as “de minimus”, requiring no penalty or abatement. OSHA does not issue citations for de minimus violations.

Types of OSHA Violations

OSHA violations are categorized into different classes based on the severity of the infraction and the level of danger it poses to workers. The four primary types of OSHA violations are:

1- Serious

When a business owner or manager knows a hazard can result in injury or death and does not resolve it, OSHA considers this a serious violation. Fines are based on the seriousness of the violation and can reach up to $13,653 for each.

It can be more cost effective to have a workplace risk assessment consultant identify and resolve these hazards before OSHA applies a costly fine.

Gravity-based OSHA Penalties

Gravity-based penalties (GBP) are classified into three categories.

1- High-gravity (serious) violation penalties are $14,502.

2- Moderate-gravity (semi-serious) violation fines range from $8,287 – $12,431.

3- A low-gravity (less serious) violation fine is $6,215 for each incurred penalty.

2- Other-Than-Serious

A violation that does not result in injury or death but does compromise an employee’s health or safety is considered other-than-serious-threat by OSHA. The maximum penalty for this type of violation is the same as a serious one. However, the Occupational Safety and Health Agency can issue a citation or reduce the penalty amount by 95%.

Minimal-only Severity

Other-than-serious violations are divided into two classifications. Lesser minimal-only violations usually only come with a warning. The penalty is zero in financial terms. Greater minimal-only infractions have a broad range. Companies can face fines ranging from $1,000 – $14,502.

3- Willful or Repeated

When a violation is repeated within three years, companies will face stiffer penalties of up to $145,027. Willful violations are the most serious. The violation occurs when the employer knows there’s a risk to employees and does nothing to resolve it.

4- Posting Requirements

Any employer that receives a citation or violation notice from OSHA must post it near the incident area. The post must be visible to all employees until the violation is resolved or for three days, whichever comes first.

5- Failure to Abate

The OSHA notice contains a date when the safety violation must be resolved. Companies that don’t meet this date are subject to the maximum penalty per day.

6- De Minimus Violation

An example of a De Minimus Violation is ladder safety. According to OSHA, a ladder having 13 inches between rungs instead of 12 inches isn’t technically compliant. A citation or notice isn’t always necessary; OSHA may give a verbal warning. A note is made in your company’s safety file, but there aren’t always penalties.

OSHA Penalties Increase: 5 Things to Know

The U.S. Department of Labor announced changes to Occupational Safety and Health Administration (OSHA) civil penalty amounts based on cost-of-living adjustments for 2023. OSHA’s maximum penalties for serious and other-than-serious violations will increase from $14,502 per violation to $15,625 per violation. The maximum penalty for willful or repeated violations will increase from $145,027 per violation to $156,259 per violation. Here are five questions and answers that building owners and facility managers should know about the increases.

Type of Violation	Minimum Penalty	Maximum Penalty
Serious	$1,116 per violation	$15,625 per violation
Other-Than-Serious	$0 per violation	$15,625 per day beyond the abatement date
Posting Requirements	$0 per violation	$15,625 per violation
Failure to Abate	N/A	$15,625 per day unabated beyond the abatement date (generally limited to 30 days maximum)
Willful or Repeated	$11,162 per violation	$156,259 per violation

1- How much of an effect will these 2023 OSHA fine increases have?

These fines will have a tremendous impact on institutional and commercial facilities that are inspected and fined by OSHA, especially considering OSHA fines are not covered by any insurance product, and are paid directly from the finances of the company or facility that has been fined. When considering smaller companies, these increased fines can have an even more serious impact on cash flow. These latest increases make it even more important for companies and facilities big and small to carefully review and abide by the latest OSHA policies and ensure they are conducting the latest OSHA or Cal/OSHA required safety and health standards, not just from a financial standpoint, but from a moral standpoint. It’s good business to ensure the safety of all employees, including those in the field

2- Will some industries and facilities be impacted by the fine increases more than others? If so, which industries do you think will feel this the most?

OSHA has specific areas of concern based on historical injuries and fatalities. Types of work that have been reviewed and designated by OSHA as having higher than average rates of injuries and fatal accidents are grouped into two categories: National Enforcement Programs (NEPs) and Local Enforcement Programs (LEPs). From an enforcement perspective, any business that falls into either of those categories, or conducts those types of work, has a better chance of receiving a visit from OSHA, and in-turn could be more impacted by the latest fine increases.

3- Do you think smaller facilities will feel more of a hit than larger ones? Why or why not?

Smaller facilities have less resources to utilize across the board, so it’s fair to assume they’ll feel the pinch of the fine increases more than larger organizations. The reality is that even when a company is trying to do all the right things, it’s still sometimes difficult to have all the correct information and comply with all of OSHA’s required actions. So, smaller companies with less staff often have a harder time meeting compliance demands and keeping up with paperwork and protocols. Not to mention, smaller companies also often lack the resources to fight any OSHA citations that may come their way, unlike larger companies. On the other hand, larger companies have more employees and, in-theory, more risk, but it’s important to note that as companies get larger, and the risk in the field grows, so does a company’s revenue and their ability to hire in-house safety and risk professionals to focus on OSHA-related concerns full-time. Not only can those additional resources help companies stay on top of all the required documents and details in the event of a violation, but having a dedicated safety team also allows a company to be more proactive with training and preventive safety measures, which can limit the chances of OSHA violations all together.

4- Why have OSHA fines increased so much?

OSHA looks to enforce the laws that exist in the Code of Federal Regulations IE. CFR. These laws exist in the OSHA regulatory text and lay out the required minimum safety standards employers must provide to employees to ensure a safe and healthful work environment. In order to deter companies from failing to comply with these regulations, the citations and monetary amounts were raised with reference to the link above.

5- Any additional thoughts on the latest OSHA fine increases?

For facilities prioritizing safety and OSHA compliance, having dedicated staff whose goal is to create safety programs, implement the required training, and inspect worksites is very valuable. Another great safety and compliance resource, no matter the industry, is a company’s insurance broker, and their workers’ compensation insurance carrier. Most companies have a guaranteed cost or deductible program in which employee injuries are covered, so a company’s brokers and workers’ comp carriers should have resources to guide an employer in the OSHA landscape.