In 2018, the U.S. Occupational Safety and Health Administration (OSHA) adjusted its maximum civil penalties for workplace safety violations. For serious and other-than-serious violations, the maximum penalty increased to $12,934. The penalty for failure-to-abate violations rose to $12,934 per day, and the maximum for willful or repeated violations increased to $129,336.
Understanding OSHA's penalty structure is less about memorizing dollar amounts and more about recognizing how each category reflects a different level of employer responsibility and potential harm to workers.
Deconstructing the Penalty Structure
The specific penalty amount OSHA proposes is not arbitrary. It is directly tied to the severity and nature of the violation, reflecting the employer's level of culpability.
Serious & Other-Than-Serious Violations
A Serious violation is one where there is a substantial probability that death or serious physical harm could result from a hazard the employer knew or should have known about.
An Other-Than-Serious violation is a hazard that has a direct relationship to job safety and health but is not likely to cause death or serious physical harm. For 2018, both carried a maximum penalty of $12,934.
Willful or Repeat Violations
A Willful violation is defined as one committed with intentional, knowing, or voluntary disregard for the law's requirements, or with plain indifference to worker safety.
A Repeat violation is a citation for a substantially similar condition for which the employer has been previously cited. These represent the most significant failures in safety management and carried a maximum penalty of $129,336.
Failure-to-Abate Violations
This penalty applies when an employer fails to correct a previously cited violation by the prescribed abatement date. The key distinction here is its recurring nature.
The penalty of $12,934 per day beyond the abatement date is designed to create immense financial pressure on employers to fix known hazards promptly.
Common Misconceptions About OSHA Fines
It's crucial to look beyond the headline numbers and understand the practical application of these penalties. The figures represent legal maximums, not automatic fines.
Maximums vs. Actual Penalties
The amounts cited are the statutory maximums. OSHA can, and often does, adjust the final penalty based on factors like the employer's size, good faith efforts to comply, and history of previous violations.
Small businesses with a clean record and a demonstrated commitment to safety will likely face a significantly lower penalty than a large corporation with a history of repeated offenses.
It's Not Just About the Fine
The direct cost of an OSHA penalty is often only the beginning. The indirect costs can be far greater.
These include legal fees, increased insurance premiums, reputational damage, and the cost of business interruption during an investigation or required corrective action.
How to Proactively Manage Compliance Risk
A proactive approach to safety is the most effective strategy for avoiding violations and protecting your bottom line. It shifts the focus from reacting to penalties to preventing incidents from ever occurring.
- If your primary focus is basic compliance: Conduct regular self-audits against OSHA standards and ensure hazards are documented and corrected immediately.
- If your primary focus is building a strong safety culture: Go beyond the minimum requirements by implementing robust employee training, encouraging hazard reporting without fear of reprisal, and investing in safety improvements.
- If you have received a citation: Address the cited hazard immediately to avoid the severe daily penalties associated with a failure-to-abate violation.
Ultimately, investing in workplace safety is the most reliable way to prevent the significant financial and operational costs of non-compliance.
Summary Table:
| Violation Type | 2018 Maximum Penalty | Key Details |
|---|---|---|
| Serious & Other-Than-Serious | $12,934 | Hazard with potential for serious harm or a direct relationship to safety. |
| Willful or Repeat | $129,336 | Committed with indifference to the law or for a previously cited issue. |
| Failure-to-Abate | $12,934 per day | Penalty for not correcting a cited violation by the deadline. |
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