Make sure policyholders are aware of the current state of fines for workplace noncompliance.

In addition to the federal Occupational Safety and Health Administration (OSHA), several states in which SFM operates have their own occupational safety and health administrations. Each has the authority to issue fines for a number of workplace violations.

For the primary states in which SFM operates, the following have their own Occupational Safety and Health Plans :

• Minnesota
• Iowa
• Indiana
• Tennessee

South Dakota, Nebraska and Kansas follow federal OSHA standards.

Below is a rundown of information agents may want to communicate to policyholders about these states, and the risks associated with workplace violations.

Federal OSHA penalties

To begin, the U.S. Occupational Safety and Health Administration has its own set of fines for violations.

As of this writing, these are the maximum penalty amounts for of certain types workplace malpractice:

• Serious; other-than-serious; posting requirements – $16,131 per violation
• Failure to abate – $16,131 per day beyond the abatement date
• Willful or repeated – $161,323 per violation

Note that OSHA typically updates its fine amounts annually.

Minnesota OSHA penalties

In Minnesota, the maximum penalties for violations are as follows:

• Nonserious violation – $15,625
• Serious violation – $15,625
• Willful violation – $156,259 (smaller penalties may be assessed to smaller employers)
• Repeated violation – $156,259 per violation
• Failure to abate violation – $15,625 per day beyond the prescribed abatement date
• Fatality penalty – $50,000 (minimum total negotiable fine)

Iowa

Iowa’s rules regarding maximum citations for workplace noncompliance are:

• Willful violation – $156,259
• Repeated violation – $156,259
• Serious violation – $15,625
• Other-than-serious violation – $15,625
• Failure to correct violation – $15,625 per day
• Posting, reporting or record-keeping violation – $15,625

Indiana

Indiana OSHA penalties are assessed in accordance with state law and can be calculated using the Indiana Field Operations Manual . Maximum fines for certain types of violations are:

• Posting Requirements – $7,000 per violation
• Nonserious – $7,000 per violation
• Serious – $7,000 per violation
• Knowing (did not contribute to employee fatality) – $70,000 per violation
• Repeat – $70,000 per violation
• Knowing (contributed to employee fatality) – $132,598 per violation
• Failure to correct – $7,000 per violation per day it continues (30-day maximum)

Tennessee

Lastly, Tennessee OSHA has its own Penalty Program, which investigates and assesses penalties for violations of the Tennessee Workers’ Compensation Act other than those covered by the Uninsured Employers Fund and the Employee Misclassification Education and Enforcement Fund. 

The department’s website lists dozens of penalties for workers’ compensation violations.

Conclusion

While most employers don’t set out to violate OSHA standards, agents should remind policyholders of the potential for hefty fines for noncompliance.