Pub. 4 2015-2016 Issue 3

industries (auto dealers are not part of that list) or for employers with aWorkers Compensation ex-mod exceeding 1.5. Penalty Structure: Penalties are expected to follow Cal/OSHA citations. Our newsletter on “How to Handle an OSHA Inspection”discussed the procedural issues involved in an inspection in detail. Current penalty structure is as follows: • General & regulatory violations: $700 each • Serious violation: $25,000/violation • Failure to correct a violation by abatement date: $15,000 • Willful violation: min of $5,000 and max of $70,000 Criminal penalties are assessed when a willful violation that causes death or permanent/pro- longed impairment of the body of an employee occurs. Upon conviction, a fine of up to $250,000 or imprisonment of up to three years, or both can take place. For corporations or LLCs, the maximum fine is $1.5 million. OSHA inspectors are seasoned profession- als with a firm grip of the safety code. The inspectors have a tendency to be harsh when a serious injury occurs at a place of employment. Certain employers are of the opinion that minor infractions such as an opening from a missing breaker in an electrical panel are not a big deal. In reality, such a violationmay result in a penalty of $3,710. Penalties that have recently been assessed are as follows: OSHA GENERAL VIOLATIONS: • Forklift: Inspection not completed at start of shift. Assessed Penalty $350. • Safety Data Sheets: No Safety Data Sheets available at the workplace. Assessed Penalty $485. • Heat Illness Prevention: Employees not trained on Heat Illness Prevention. Assessed Penalty $560. • Grinder: Not securelymounted. Assessed Penalty $825. OSHA SERIOUS VIOLATIONS: • Gloves: Gloves not worn when spraying corrosive liquid. Assessed Penalty $1,350. • Hazmat Labeling: Flammable liquid not labeled with hazard warning. Assessed Penalty $1,800. Forklift: Forklift with no rating plate. Assessed Penalty $2,250. • Extension Cord: Ground prong removed. Assessed Penalty $2,250. • Forklift Training: Training not renewed in the past three years. Assessed Penalty $2,250. • Body Protection: Failure to provide protection to employees whose work exposes parts of their body to a hazardous substance. Assessed Penalty $2,915. • Eyewash Station: Eyewash station not available. Assessed Penalty $3,150. • Electrical Panels: Open breakers not covered. Assessed Penalty $3,710. • Portable Ladders: Employees not receiv- ing training on safe ladder usage. Assessed Penalty $4,050. • Emergency Shower: Failure to provide an emergency shower for employees who may come into contact with corrosive or severely irritating substances. Assessed Penalty $4,385. • Reporting Serious Injury: Failure to report serious injuries, illnesses, and/ or death within an 8 hour time frame. Assessed Penalty $5,000. • Failure to Report Serious Injury to Cal- OSHA: Employer did not report in an 8 hour window following a serious injury. Assessed Penalty $5,000. • Respiratory Protection: Not developing and implementing a written respiratory protection program. Assessed Penalty $5,060 (following serious injury). • Grinder: Contact surface of the abrasive wheel was not flat and free of foreign matter. Assessed Penalty $6,185. • Injury and Illness Prevention Program: Failed to correct unsafe conditions to protect employees from injury. Assessed Penalty $7,650 (following serious injury). • Safety Glasses/Face Shields: Safety glasses/face shields not worn when there is a risk of receiving an eye injury. Assessed Penalty $7,650 (following serious injury). • Footwear Protection: Employer failed to provide proper footwear protection. Assessed Penalty $18,000 (following serious injury). • Ladder Usage: Improper use of ladders. Assessed Penalty $18,000 (following serious injury). • Ladder Usage: Utilizing the step below the top cap of a ladder. Assessed Penalty $6,750. EPA VIOLATIONS: • SPCCTrainingDocumentation: Not avail- able. Assessed Penalty $600. • Hazardous Waste Storage Violations: Secondary containment requirements, proper labeling, and timely disposal pro- cedures not followed. Assessed Penalty $25,000. FEDERAL OSHA PENALTIES PROPOSED TO GO UP 82% Background: Fed-OSHA last raised fines in 1990 and is one of the few federal agencies with civil penalties not pegged to the rate of inflation. OSHA is usually a forgotten agency on the Hill and this specific mandate of increasing the penalties by 82% in the new budget deal is somewhat unusual. Increased Penalties: The Budget Agreement of November 2015 requires Fed-OSHA to increase the penalties by 82 % to catch up with the absence of increases since 1990 and thereafter, increase the fines with the Consumer Price Index (CPI) on an annual basis. If Fed- OSHA does choose to increase the penalties, the current maximum of $7,000 for serious violations and failure to abate will go up to $12,744. Californians merely yawned at this proposal as the present Cal/OSHA penalty for serious violation is $25,000. Opponents of this fine structure argue that OSHA does not even use the present maximum penalty structure, so the increase is unwarranted. Supporters argue that increases in fines makes employers more likely to follow OSHA regulations. In a country where mail fraud can get you 20 years in jail and the Clean Air Act violations (releasing Freon into the atmosphere) can get you 31 months in jail; death of an employee at a workplace hardly gets a serious penalty, let alone jail time! DISCLAIMER: Information from the Cal/EPA, Cal/OSHA & Fed-OSHA websites was obtained to prepare this newsletter. The contents of this newsletter are for informational purposes only and not to be considered as legal advice. Employers must consult with their lawyer for legal matters and safety consultants formatters related to safety. The article was authored by Sam Celly of Celly Services, Inc., who has been helping automobile dealers comply with EPA & OSHA regulations since 1987. Sam received his BE (1984) and MS (1986) in Chemical Engineering, followed by a J.D. from Southwestern University School of Law (1997). Our newsletters can be accessed at www. epaoshablog.com. Your comments and questions are always welcome. Please send them to sam@ cellyservices.com.