As part of the 2015 Budget Deal, Congress authorized OSHA to increase its maximum penalties and then continue to adjust them annually based on cost-of-living increases.
The way it is going to work is . . . .
- In August 2016, OSHA will adjust its maximum penalties based upon the CPI over the past 25 years (when the penalties were initially enacted). This increase is expected to be 80%. These increases will be announced in July 2016.
- Each succeeding year, OSHA will be authorized to adjust the penalties by up to 150% depending on the CPI. OSHA will announce these increases in January of each year.
- OSHA can increase the penalties in an amount less than CPI if it determines that such an increase would (a) have a negative effect on the economy; or (b) result in social costs that outweigh the benefits of the full increase (and OMB agrees with the determination).
- Non-serious or Serious or Uncorrected - Current: $7,000; Expected $12,600
- Willful or Repeated - Current: $70,000; Expected $126,000