The Bipartisan Budget Act of 2015 required the Department of Labor to adjust its civil money penalties to account for inflation, and OSHA’s penalties were last adjusted in 1990. The initial fine increase in 2016 can account for the previous 25 years of non-adjustment, which could mean an increase of over 80%. OSHA will be required to publish the plan for the first inflation adjustment by July 1, 2016, with the fee adjustment to become effective by August 1, 2016.
In addition to the catch-up adjustment this year, the bill allows OSHA to continue raising fines annually to keep pace with inflation. Businesses can expect to see these annual increases by no later than January 15 of each year.
For more information on the fine increase, click here.