How OSHA penalties are set, and how they come down.
OSHA sets each proposed penalty from the gravity of the violation, then adjusts it for the size of your business, your good faith and your history of violations (29 CFR 1903.15(b)). After the citation arrives, the usual place to discuss a lower penalty is the informal conference, inside the 15 working day contest period. There, the Area Director can negotiate when you show the hazards are fixed or scheduled and your safety program is real (FOM chapter 8).
Not legal advice. OSHA Action Packet is an administrative response tool, not a law firm. Nobody can promise how OSHA will decide a case or what a penalty will end up being. Talk to a lawyer about whether to contest, and check every date against your own citation. This page covers federal OSHA; state plan states set their own rules.
Step 1 · gravity
Gravity sets the starting amount.
Gravity is the main factor. OSHA rates the severity of the worst injury or illness the hazard could reasonably cause, and the probability that it happens, judged by things like how many workers were exposed, how often and for how long, and how close they were (FOM chapter 6). That gives the gravity-based penalty for each item. OSHA proposes the penalty; if you contest, the Review Commission decides it (FOM chapter 6). Current maximum and minimum amounts change each year and are on osha.gov/penalties.
Step 2 · reductions
The reductions OSHA publishes.
OSHA applies them one after another to each item's gravity-based penalty, in this order: size, good faith, history, then Quick-Fix. So 20% and then 25% is not the same as 45%.
| Factor | Reduction | Who gets it |
|---|---|---|
| Size | 70% (1 to 25 employees), 30% (26 to 100), 10% (101 to 250), none (251 or more) | Most employees at all workplaces nationwide at any one time in the previous 12 months. Serious willful violations use a separate table. |
| Good faith | Up to 25%, or 15% | 25% normally needs a written safety and health management system with the core elements OSHA lists. 15% for a documented, effective system with only small gaps. |
| History | 20% | No inspection by federal OSHA or a state plan before, or an inspection in the past 5 years that found nothing or only other-than-serious items. |
| Quick-Fix | 15% | Other-than-serious and low or moderate gravity serious items, not tied to a death or serious injury, fixed for good during the inspection, or within 5 days (up to 15 in some cases) with proof sent to OSHA. |
Source: OSHA Field Operations Manual, chapter 6, Penalty Factors and Quick-Fix (FOM chapter 6)
Where the reductions stop
- Repeated violations are reduced only for size (FOM chapter 6).
- Willful violations, and high gravity serious violations, are reduced only for size and history (FOM chapter 6).
- No good faith reduction for anything in the inspection once a willful, repeated or failure to abate violation is found, if there is no safety and health management system or it has major gaps, or if a required report of a fatality, hospitalization, amputation or loss of an eye was not made (FOM chapter 6).
- History can also go the other way: up to a 20% increase if serious high gravity citations became final orders in the past 5 years (FOM chapter 6).
- Penalties for missing abatement certification or other 1903.19 duties get only the size reduction (FOM chapter 6). See the abatement certification letter.
These adjustments are part of how OSHA calculates the proposed penalty it issues with your citation (FOM chapter 6), so they are usually already in the number you see.
Step 3 · the informal conference
What usually happens to penalties there.
You can ask for an informal conference with the Area Director to discuss proposed penalties and settle, inside the 15 working days you have to contest (OSHA 3000). OSHA says that in settling a penalty it has a policy of reducing penalties for small employers and those acting in good faith (OSHA 3000).
Employers usually ask for a lower penalty, a lower classification (for example serious to other-than-serious), both, or for an item to be withdrawn (FOM chapter 8). The Area Director can negotiate proposed penalties depending on the case and the safety improvements that can be obtained (FOM chapter 8).
OSHA's manual sets two conditions. You show a safety and health program you have built or will keep improving, for example by hiring a safety consultant or using OSHA's consultation service. And a lower classification or penalty is only given once proof of correct abatement is in, or you commit to fix the items by their abatement dates (FOM chapter 8).
If you settle, you sign an informal settlement agreement and give up the right to contest those citations (FOM chapter 8). The penalty is then due 15 working days after the last signature, unless the agreement sets a later date, and you can ask for installments for good cause (FOM chapter 6). If you contest instead, the offer made at the conference is no longer available from the Area Office (FOM chapter 8).
Look up your inspection and see your dates
Search OSHA's public records by company or inspection number to see each cited item, its proposed penalty and its abatement date, and work out your 15 working day contest deadline.
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After the citation
OSHA citation deadlines
Every date in order, from the 15 working day contest period to abatement certification.
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OSHA informal conference
What to bring, what is usually discussed, and why it does not stop the 15 working day clock.
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Abatement certification letter
What 29 CFR 1903.19 asks for, what counts as proof, and an example letter.
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OSHA penalties · FAQ
OSHA penalty questions
What factors does OSHA use to set a penalty?
The size of the business, the gravity of the violation, the employer's good faith, and the history of previous violations (29 CFR 1903.15(b)). Gravity is the main factor and sets the starting amount; size, good faith and history then adjust it (OSHA Field Operations Manual, chapter 6).
How much can a small business penalty be reduced?
OSHA's Field Operations Manual allows a size reduction of up to 70 percent for employers with 1 to 25 employees, 30 percent for 26 to 100, 10 percent for 101 to 250, and none for 251 or more. Size counts the most employees you had at all workplaces nationwide at any one time in the previous 12 months. Serious willful violations use a different table (FOM chapter 6).
Are these reductions already in the penalty on my citation?
They are part of how OSHA calculates the proposed penalty it issues with the citation (FOM chapter 6). Any further change usually comes through settlement, which is discussed at the informal conference (FOM chapter 8).
Can I negotiate an OSHA penalty?
The Area Director can negotiate proposed penalties at the informal conference, depending on the case and the safety improvements that can be obtained. OSHA's manual says a lower penalty or classification can only be given if you show a safety and health program you have built or will keep improving, and have fixed the violations or committed to fix them by their abatement dates (FOM chapter 8). Nothing guarantees a reduction.
Can I pay an OSHA penalty in installments?
OSHA's manual allows other payment methods, such as installments, when the employer asks and has good cause (FOM chapter 6). Payment plans can come up at the informal conference (FOM chapter 8).
When is an OSHA penalty due?
For uncontested items, 15 working days after you receive the citation. Under an informal settlement agreement, 15 working days after the last signature unless the agreement sets a later date (FOM chapter 6). If you contest in good faith, payment for the contested items is suspended until a final order (OSHA booklet 3000).
Is this legal advice?
No. OSHA Action Packet is an administrative response tool, not a law firm, and nobody can promise what a penalty will end up being. Talk to a lawyer about settling or contesting.
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