Higher OSHA fines for employers who violate federal workplace laws

Employers who violate federal workplace laws could face higher proposed penalties later this year.

Under the new congressional budget, the U.S. Department of Labor’s Occupational Safety and Health Administration has been given the authority to boost penalties.

OSHA hasn’t increased citation fines since 1990.

Congress is analyzing the inflation index to determine a “catch-up” percentage, said Jeff Funke, director of OSHA’s Omaha-area office.

If the increase is based on the difference between the 2015 Consumer Price Index and the 1990 Consumer Price Index, penalties could get a hefty boost.

Thereafter, any penalty increases would be linked to the annual rate of inflation.

Some industry groups are predicting that OSHA fines could rise more than 80 percent and are advising employers to make sure their workplace practices are up to OSHA standards to avoid potential fines.

Using the 80 percent figure, serious citations would increase from a maximum of $7,000 to more than $12,600. The most serious violations, repeat and willful citations, would rise from the current maximum of $70,000 to $126,000.

The actual increase won’t be announced until July when it would appear as an interim ruling, Funke said.

Final approval is expected to occur in August.

OSHA regulators also can elect to reduce penalties based on an employer’s history or number of employees. Those allowable reductions would remain in place despite increased citation fines.

The agency allows a 60 percent reduction in penalties for enterprises with one to 25 employees; 30 percent for 26 to 100 employees; and 10 percent for 101 to 250 employees.

“The goal of OSHA is not to put employers out of business but ensure employees go home safe,” Funke said.