OSHA OKLAHOMA CITY AREA OFFICE

1. OSHA OKLAHOMA CITY AREA OFFICE 55 North Robinson, Suite 315 Oklahoma City, OK 73102 (405) 278-9560 www.osha.gov 1-800-321-OSHA

2. OSHA’s PENALTY ENHANCEMENT POLICY Effective for Inspections opened on and after October 1, 2010

3. HISTORY • Reduction consideration is expanded from 3 years to 5 years • 10% Reduction off the GBP • NEW – History Increase • Employers cited for HG serious, willful, repeat or FTA in past 5 years • 10% Increase in penalty (up to statutory max)

4. INFORMAL CONFERENCES AT AREA OFFICES • Area Director retains authority to determine application of size and history reductions • 30% max penalty reduction at informal conferences • No reductions granted for employers with outstanding penalty balances (penalty payment plans ok) • Additional reduction only if employer agrees to retain an outside safety and health consultant

5. EXPEDITED INFORMAL SETTLEMENT AGREEMENTS • Are reduced from 40% to 30% • Additional reduction if outside safety consultant is hired

6. GRAVITY-BASED PENALTY STRUCTURE

7. Size Reduction

8. GOOD FAITH ADJUSTMENTS • Remains Same • 15% or 25% • Based on effective safety and health system in place • No reduction if: • HG Serious Violations • Willful Violations • Repeat Violations • Failure to Abate Violations • Major deficiencies in S&H System

9. MINIMUM PENALTY • Increased to $500 • If proposed/calculated penalty is less than $500, a $500 penalty is assessed

10. MODIFICATION TO PENALTY CALCULATION • Calculation of penalties will be done serially • In past, all penalty reduction adjustment percentages were totaled and applied to each violation penalty • New policy is to apply serially in this order: History, Good Faith, Size

11. EXAMPLE OF PENALTY CALCULATION

12. Fines and Insurance Rates • Underwriters can access the fines that companies receive online. • This can lead to increased insurance rates particularly on workers comp policies.