In 2015, President Obama signed a two-year budget deal called the Bipartisan Budget Act of 2015 which allowed OSHA to increase their maximum penalty amounts. Unlike many other government agencies that have historically been able to adjust their maximum penalty amounts each year to account for inflation, OSHA hasn’t been allowed to do this. Meaning the maximum amount of an OSHA penalty had remained unchanged since its formation in 1971.

With the Bipartisan Budget Act of 2015, OSHA was granted two changes: 

1. OSHA would be able to make one large adjustment in 2016 to account for inflation over the previous 25 years (1971 – 2016). This turned out to be a 78 percent increase.
2. OSHA will be able to make annual adjustments starting in 2017.

Continuing with the annual adjustments, OSHA just published the new maximum penalty amounts for 2018. As of January 2, 2018, the new maximum penalty amounts will be:

• Serious, Other-Than-Serious and Posting Requirement Violations - $12,934 per violation
• Failure to Abate - $12,934 per day beyond the abatement date
• Willful or Repeat Violation - $129,336

It’s important to keep in mind these are maximum amounts only. There are many factors that go into determining the amount of an individual citation such as:

• Severity of the hazard
• Probability an injury or illness could occur
• Good faith of the employer
• Size of the company
• History of prior violations

For more information on OSHA updates, contact a member of the ‘A’ Team.

Related Resources

• OSHA Electronic Reporting: How to Report Webinar Recording
• OSHA Electronic Reporting Submission Guidelines White Paper
• 2 Minute Tuesday Video: OSHA Electronic Reporting Rule 
• OSHA Electronic Reporting White Paper

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