Did You Know?
In November 2015, President Obama signed the 2016 federal
budget bill. This is not something that the average
person delves into, especially the private sector, like PDCA
members who are doing their best to secure, manage, complete
and get paid for work so their business can exist.
In the new budget bill, there was a small provision that
could have a giant financial impact on PDCA members.
The impact comes in the form of adjustments in OSHA
fines. The U.S. Department of Labor’s Occupational Safety and
Health Administration (OSHA) has not made any increasing
adjustments of fines since 1990. The new 2016 federal budget
directs OSHA to raise fines to keep in line with the Consumer
Price Index, which has risen approximately 82 percent since
1990. In addition, OSHA has been directed to make annual
adjustments based on the index changes.
What does this mean to the construction industry? OSHA
fines will steeply rise in August 2016, when the directive goes
into effect.
Some examples include the change in fines for a “simple”
posting requirement that previously would cost a company
a maximum fine of $7,000; now, the cost could be $12,740
($7,000 x 1.82 = $12,740). While this is a significant increase
and could have a major impact on many small companies, it is
nothing compared to a fine for “willful violations.” If OSHA
determines an employer knowingly failed to comply with a legal
requirement or acted with “plain indifference” to employee safety,
the fine will be devastating. For instance, a willful violation
penalty is currently $70,000. Given the new directive, this violation
would now be $127,400. With the construction industry
leading the way in fatalities, safety will now be more important
than ever.
PDCA suggests that all companies review your safety
manuals to make sure they are up-to-date, ensure that your policies
are being conveyed and implemented from the top down,
educate your employees and make safety a critical pillar of your
organizational culture.
PDCA has “Toolbox Safety Review” booklets on many construction
topics, including:
•• Crane, rigging and signaling
•• Overhead power lines
•• Welding, cutting and brazing
•• Marine construction
•• Compressed gases
•• Heat illnesses
•• PPE
•• Hazard communications
•• Fueling
•• Flammable and combustible material
•• Fire prevention
•• Fall protection
•• Material handling
•• First aid/BBP
•• Industrial trucks (forklifts)
•• Housekeeping
•• Back injuries
•• Lightning
•• Vehicle safety
•• Road work safety
•• Ladder safety
•• Cell phone use
Copies can be obtained by calling the PDCA office at
888-311-PDCA (7322). t
DID YOU KNOW?
The 2016 federal budget bill raises OSHA fines
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