Department of Labor Civil Penalties Increase Effective January 15, 2021

<p>Fennemore Client Alert</p>

Department of Labor Civil Penalties Increase Effective January 15, 2021

Pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015) the Department of Labor published new civil penalty amounts that will become effective for any penalties assessed after January 15, 2021. Below are the changes for civil penalties for the Mine Safety and Health Administration (“MSHA”) and the Occupational Safety and Health Administration (“OSHA”).

MSHA – Section 100.3 – Regular Assessments

MSHA’s regular assessment penalty conversion table is found in 30 C.F.R. Section 100.3 and utilizes a point system to assess civil penalties. The range of points is between 60 or fewer and 144 or more based on a number of factors – operator size, history of previous violations, gravity, negligence, etc. Previously, the minimum penalty was $137 and with the increase the new penalty will be $139. The previous maximum regular assessment penalty was $73,901 and the new maximum is $74,775, an increase of $875. Overall, this results in an approximate increase of 1.2% for all civil penalties assessed under the regular assessment procedure.

MSHA – Section 100.4 – Unwarrantable Failure and Immediate Notification

If MSHA issues an unwarrantable failure citation or order under Section 104(d)(1) of the Federal Mine Safety and Health Act of 1977 (“Mine Act”) the new minimum penalty has increased from $2,464 to $2,493, or an increase of $29 and approximately 1.2%. For any order issued under Section 104(d)(2) of the Mine Act the new minimum penalty has increased from $4,925 to $4,983, or an increase of $58 and approximately 1.2%.

If an operator fails to provide timely notification under Section 103(j) of the Mine Act the minimum penalty is now $6,232 – an increase of $73 from $6,159 or approximately 1.2%. The new maximum penalty is $74,775, up $875 from $73,901 or approximately 1.2%.

MSHA – Section 100.5 – Special Assessments

If MSHA issues a Section 104(b) failure to abate order the new penalty increases from $8,006 to $8,101, an increase of $95 or approximately 1.2%.

For violations of mandatory safety standards related to smoking the new penalty is $342, up from $338, an increase of $4 or approximately 1.2%.

Finally, flagrant violations under Section 110(b)(2) of the Mine Act increased from $270,972 to $274,175, an increase of $3,203 or approximately 1.2%.

OSHA – Serious Violation

Under 29 C.F.R. Section 1903.15(d)(3) serious violations of the Occupational Safety and Health Act (“OSH Act”) the penalty has increased from $13,494 to $13,653, an increase of $159 or approximately 1.2%.

OSHA – Other-Than-Serious

Other-than-serious violations under 29 C.F.R. 1903.15(d)(4) have increased from $13,494 to $13,653, an increase of $159 or approximately 1.2%.

OSHA – Willful

Minimum penalties for willful violations under 29 C.F.R. Section 1903.15(d)(1) have increased from $9,639 to $9,753, or an increase of $114 or approximately 1.2%. Maximum penalties are now at $136,532 from $134,937, or an increase of $1,595 or approximately 1.2%.

OSHA – Repeated

Repeated violations under 29 C.F.R. Section 1903.15(d)(2) are now at $136,532 from $134,937, or an increase of $1,595 or approximately 1.2%.

OSHA – Posting Requirement

If an operator violates the posting requirement, 29 C.F.R. Section 1903.15(d)(6) penalties have increased from $13,494 to $13,653, an increase of $159 or approximately 1.2%.

OSHA – Failure to Abate

Finally, if an operator fails to abate a violation, 29 C.F.R. Section 1903.15(d)(5) increased the daily penalty from $13,494 to $13,563, an increase of $159 or approximately 1.2%.

If you have any MSHA or OSHA related question, please feel free to reach out to your Fennemore attorney for assistance.