OSHA Fines at Highest Level Since 1990

Fines handed down to employers by the Occupational Safety and Health Administration (OSHA) have increased to their highest level since 1990.

As you may already know, OSHA is the government-operated body that is responsible for ensuring worker safety. President Richard Nixon signed the Occupational Safety and Health Act into law back in 1970s, establishing OSHA to enforce the new workplace laws. Since then, rates of work-related fatalities and injuries have continued to decline with each passing year.

So, why did OSHA fines reach a high point if work-related fatalities and injuries have declined? The reason for the increased fines is attributed to inflation. While the U.S. dollar and economy has suffered from inflation throughout the years, OSHA fines have remained relatively the same. This has prompted President Obama to make a provision in the budget bill to raise OSHA-handed fines, which will be the first time OSHA fines have increased in more than 25 years.

While it's still too early to tell exactly how these new changes will affect workplaces, reports indicate that it could increase the maximum fines for severe citations from $70,000 to more than $125,000. Smaller violations will also see a hike from roughly $7,000 to $12,500. Those are pretty significant increases to say the least, and it's bound to cause some criticism from employers.

Many workplace and labor safety experts were surprised to learn of the new, higher OSHA fines. Others, however, applauded the federal government's efforts to change the outdated fine structure used by OSHA.

"It’s very difficult to defend the present penalty structure,” said Baruch Fellner. “If you look at OSHA penalties in the context of other programs, they are in fact for individual items minuscule comparatively speaking. For larger corporations it can be a cost of doing business.”

Of course, it may take some time before we actually see the new fines being implemented. While President Obama has already made the provision in the budget bill, federal and state-level OSHA entities must now implement it. And it's safe to assume that some employers and lobbyists will fight back, arguing that higher fines aren't necessary.

Do you agree with the higher OSHA fines or do you think they should have been alone?