Tag: Fines

U.S. Department of Labor Announces Annual Adjustments to OSHA Civil Penalties

WASHINGTON, DC – The U.S. Department of Labor has announced adjustments to Occupational Safety and Health Administration (OSHA) civil penalty amounts based on cost-of-living adjustments for 2021.

In 2015, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act to advance the effectiveness of civil monetary penalties and to maintain their deterrent effect. Under the Act, agencies are required to publish “catch-up” rules that adjust the level of civil monetary penalties, and make subsequent annual adjustments for inflation no later than January 15 of each year.

OSHA’s maximum penalties for serious and other-than-serious violations will increase from $13,494 per violation to $13,653 per violation. The maximum penalty for willful or repeated violations will increase from $134,937 per violation to $136,532 per violation.

Visit the OSHA Penalties page for more information. The Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2021 final rule is effective January 15, 2021, and the increased penalty levels apply to any penalties assessed after January 15, 2021.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit www.osha.gov.

The mission of the Department of Labor is to foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

While I’m sure the next few years are going to be very interesting from a regulatory standpoint, this is just he annual change to reflect inflation.

Link to full press release.

Compliance in a time of COVID-19 Pandemic

The whole country is facing a very difficult situation right now as we all deal with both the COVID-19 disease and the effects of government’s response to it. Some customers (especially restaurant service) are seeing a 2/3rds drop in their business. Other sectors, such as Grocery, are seeing unprecedented demand. Either way, that’s a recipe for chaos.

One of the first cultural victims of chaos is usually the safety / regulatory community. We’re easy to ignore whether the reason is “we’re facing layoffs and bankruptcy” or “orders are up 300% and we don’t have time for this.”

On top of that, in a good-faith effort to re-assure the regulated community that they understand the burdens we’re under right now, the EPA drafted a policy saying they would use discretion on compliance during the pandemic.

That EPA policy was interpreted by some (the environmental lobby mostly) as a blanket waiver of all regulations allowing the regulated community to pollute at will. More significantly worrying to me personally was the calls, emails & texts I started getting Friday where people in our refrigeration community were being “told” this temporary EPA policy was being used to avoid compliance with their PSM / RMP obligations.

With that in mind, let’s look at what it actually says, shall we?

 

What is the EPA actually saying?

Here’s the actual EPA press release. Here’s the actual EPA guidance memorandum. Here’s the important part:

  1. Entities should make every effort to comply with their environmental compliance obligations.
  2. If compliance is not reasonably practicable, facilities with environmental compliance obligations should:
    1. Act responsibly under the circumstances in order to minimize the effects and duration of any noncompliance caused by COVID-19;
    2. Identify the specific nature and dates of the noncompliance;
    3. Identify how COVID-19 was the cause of the noncompliance, and the decisions and actions taken in response, including best efforts to comply and steps taken to come into compliance at the earliest opportunity;
    4. Return to compliance as soon as possible; and
    5. Document the information, action, or condition specified in a. through d

The consequences of the pandemic may constrain the ability of regulated entities to perform routine compliance monitoring,  integrity testing, sampling,  laboratory analysis, training, and reporting or certification. … In general, the EPA does not expect to seek penalties for violations of routine compliance monitoring, integrity testing, sampling, laboratory analysis, training, and reporting or certification obligations in situations where the EPA agrees that COVID-19 was the cause of the noncompliance and the entity provides supporting documentation to the EPA upon request.

 

What does that mean for us in  PSM/RMP covered processes?

Short answer: Not a lot. Long answer follows…

 

Here’s some examples of what it might let you avoid a fine for:

  • Getting an annual compressor vibration analysis a few weeks late because all your contractor’s technicians were ill due to COVID-19
  • Performing a routine MI inspection late because your technicians were ill due to COVID-19.
  • Delaying some training, a compliance audit, PHA revalidation, etc. because of COVID-19 related travel restrictions.

 

Here’s some examples of what it definitely WILL NOT let you avoid a fine for:

  • Starting up equipment without a proper Pre-Startup Safety Review. (If you have time to start it, you have time to check it)
  • Making changes without implementing your written Management of Change policy. (If you have time to change it, you have time to do so safely)
  • Addressing existing recommendations and known problems.
    • If your SOPs have been out of compliance since IIAR 7 was published in 2013, this memo is NOT going to help you avoid fines because COVID-19 doesn’t explain the delay.
    • If your PHA hasn’t been updated to reflect the 2012 IIAR Compliance guidance, this memo is NOT going to help you avoid fines because COVID-19 doesn’t explain the delay.
    • If you haven’t provided documentation that your Operators and/or Contractors are properly trained, this memo is NOT going to help you avoid fines because COVID-19 doesn’t explain the delay.
    • If you have rusted pipes, and have for several years, but you still haven’t gotten around to dealing with them, this memo is NOT going to help you avoid fines because COVID-19 doesn’t explain the delay.
  • Delaying, or failing to report a release of ammonia. It does not affect the requirements to REPORT releases.

Accidental Releases: Nothing in this temporary policy relieves any entity from the responsibility to prevent, respond to, or report accidental releases of oil, hazardous substances, hazardous chemicals, hazardous waste, and other pollutants, as required by federal law, or should be read as a willingness to exercise enforcement discretion in the wake of such a release.

 

Closing thoughts

Unless you are in a very unique position, this EPA memo means very little to you at all. Here’s examples of two clients that it does affect:

  • Scheduled 5yr MI delayed: The client has delayed their scheduled 5yr MI inspection & audit because of travel restrictions in their state. Their intent is to schedule it as soon as it is reasonably safe to do so once this pandemic has passed. If they document how COVID-19 caused this delay, this memo helps them feel confident that the EPA understands the issue.
  • Compliance Audits delayed: The client still has until June to meet their 3yr date but had to delay their scheduled March compliance audits due to travel restrictions. Assuming the issue has passed, and they can reschedule before they hit their June requirement, they have no issue at all. If the issue continues such that they will not be able to complete their 3yr compliance audits before the deadline this EPA policy helps them if:
    1. The audit activities that can be done remotely are done before the 3yr date, and
    2. The audit activities that cannot be done remotely are done as soon as reasonably possible after the pandemic has passed. They will also need to document how COVID-19 caused this delay.

OSHA fines getting more expensive again!

The Obama administration signed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 which requires OSHA to adjust their fine amounts for inflation. 2020’s numbers are in: OSHA will adjust the fines by the  Consumer Price Index cost-of-living adjustment multiplier of 1.01764 which turns into a $230 increase for Serious and a $2300 increase for Willful / Repeat. The table below shows the new penalty amounts.

 

 

Memo File:  2020 OSHA Annual Adjustments

Responding to an OSHA NEP Inspection Document Request

Back in 2017 I posted on how to answer an OSHA document request from the published NEP.

OSHA’s published CPL-03-00-021 – “PSM Covered Chemical Facilities National Emphasis Program” includes an example document request list that often correlates fairly well to the one that OSHA inspectors provide during an NEP inspection.

Recently, a friend sent me the Document Request they received at the onset of the inspection which was quite a bit different from that PSM ChemNEP. Here’s what I noticed reviewing this new document:

  • It’s quite a bit longer.
  • The information – again – isn’t NH3 Refrigeration Specific. That means you have to interpret some of it.
  • In my opinion, It’s designed to be a huge fishing expedition.

I took that request and modified it to show how I would answer the 110 questions if you were using my PSM programs. You can download the 13 page, 4,500 word Microsoft Word monstrosity through the following link: 0419 OSHA Document Request.

Just a few general warnings about questions and document requests:

  • When in doubt, ask for clarification. Always get clarifications in WRITING.
  • When you are unsure of the appropriate documentation to provide, or what documentation addresses the issue, ask to get back to them and seek quality advice.
  • Always get additional documentation requests and follow-up questions in WRITING.

Previous Post on the subject.

If you need help preparing for, managing, or dealing with the aftermath of an OSHA or EPA inspection, please contact us.

OSHA Announces Higher Penalties for 2018

In a recent  Federal Register notice, OSHA has announced updated fine amounts for 2018.

OSHA penalties for other-than-serious, serious and failure to abate violations increased by $319 from $12,615 per violation to $12,934 per violation.

The penalty for willful and repeat violations increased from $126,749 to $129,336, an increase of $2, 587.

The new penalty increase is effective immediately and will apply to any citations issued through the remainder of 2018.

Note: This only applies to Federal OSHA states but it’s very likely that State Plans will follow.