On November 2, 2015, the Federal Civil Penalties Inflation Adjustment Act was enacted to improve the effectiveness of civil monetary penalties and maintain their deterrent effect. The Inflation Adjustment Act required agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment through an interim final rule and (2) make subsequent annual adjustments for inflation, no later than January 15 of each year.
The cost-of-living adjustment multiplier for 2021, based on the Consumer Price Index for All Urban Consumers for October 2020 (not seasonally adjusted), is 1.01182. To compute the 2021 annual adjustment, the Department multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.01182, and rounded to the nearest dollar. The adjustment factor of 1.01182 is consistent across the minimum and maximum penalties set forth in the Occupational Safety and Health Act.
As of January 15, the Occupational Safety and Health Association (OSHA) started assessing penalties based upon the following:
Violation
Serious, Other-Than-Serious, and Posting Requirements
Penalty: $13,653 per violation
Violation
Failure to Abate
Penalty: $13,653 per day beyond the abatement date
Violation
Willful or Repeated
Penalty: $136,532 per violation
