• Costello Safety

How to Contest and Reduce OSHA Fines



So you were visited by the Occupational Safety and Health Administration (OSHA)

and citations were issued.


As an employer who has been cited, you can either:

▪ Agree to the citation, correct the condition by the date set in the citation and pay

the penalty, if one is proposed.

▪ Disagree with the citation. You have 15 working days from the date you receive

the citation to contest in writing the citation, the proposed penalty and/or the

abatement date.


Before deciding to contest the citation, you may request an informal conference with your local OSHA area director within the 15-working- day period to discuss any issues related to

the citation.


It's almost always advised that you ask for an informal conference.


The potential advantages of an informal conference include:

▪ Penalty reduction.

▪ Extension of abatement dates.

▪ Deletion of citations.

▪ Reclassification of citations.

▪ Clarification of abatement procedures or alleged violations.

▪ A public relations opportunity with the area director.

▪ The discovery of more facts to ascertain whether to contest the citation.


You also have the right to challenge the citation before the Occupational Safety and

Health Review Commission (OSHRC).


The Occupational Safety and Health Review Commission is an independent agency that hears employer contests of OSHA citations. Both employers and employees have the right to participate in this hearing before an administrative law judge (ALJ). The hearing mirrors all the elements of a trial, including examination and cross-examination of witnesses. You may choose to represent yourself or have an attorney represent you. The ALJ may affirm, modify or eliminate any contested items of the citation or penalty.

Other than contesting citations, you may solicit OSHA’s discretion to reduce fines for the following reasons:


A good safety record. OSHA may cut fines up to 10 percent, as long as you don’t have any willful, serious, repeat or failure-to-abate citations in the previous five years.

This particular reduction only applies if there have been no such citations issued to the employer at any worksite in the country, including in states that operate a state plan OSH program.


During the last update to OSHA’s Field Operations Manual, the agency changed the “Clean History” penalty reduction in an important way. They used to just require a clean record. Now, they require that you have had an inspection that resulted in no violations during that time. In other words, now, you no longer benefit from having a clean record if OSHA has not had any reason to be at your facility during the past five years. Of course, it’s rare that OSHA leaves a facility without citing something.


Size adjustment. There is an automatic adjustment based on the size of your company. OSHA will reduce fines for companies with 25 or fewer employees by as much as 60 percent. Companies with 26 to 100 workers are eligible for a 30 percent reduction, and employers with 101 to 250 workers can get a 10 percent reduction.


It’s important to remember that the size of the employer shall be calculated on the basis of the maximum number of employees of an employer at all workplaces nationwide at any one time during the previous 12 months.

Limited exposure. If you can show few or no employees were exposed to the hazard, OSHA may reduce your penalty. The penalty amount is calculated in part on how many employees are exposed to the hazardous condition.


Good-faith effort. When a company can show that it has made a good-faith effort at safety compliance, fines may be reduced. A reduction of up to 25 percent for good faith normally requires a written safety and health management system.


To show good faith, you must have:

▪ Implemented a comprehensive workplace safety program, including a worksite analysis for the purpose of hazard identification, and hazard prevention and control measures.

▪ Conducted the required safety training.

▪ Maintained up-to-date, accurate records.

▪ Enforced safety rules consistently, and have the disciplinary records to back up that claim.


OSHA factors in employers’ good faith during the inspection itself. This includes cooperation with the inspecting officer, prompt responses to document and information requests, and addressing the inspector’s recommendations.

Employers can also qualify for OSHA’s “quick-fix” 15 percent reduction if hazards uncovered during inspections were fixed within 24 hours. The quick-fix reduction applies to violations classified as other-than-serious, “low-gravity serious” or “moderate-gravity serious.” These corrective actions must be permanent and substantial, not temporary or cosmetic.


Additionally, if the employer can demonstrate financial hardship, which is undefined, OSHA is often more willing to further reduce the penalty and consider penalty payment plans.


There’s also the option of “Enhanced Abatement.” If employers agree to implement abatement “corporate-wide” or agree to bring in a third-party auditor, OSHA often will be more flexible on penalty reductions.


Lastly, sometimes OSHA will negotiate penalty reductions in exchange for safety improvements. However, these can include expensive engineering controls that go well beyond OSHA standards.


If you would like more information about how we can help you reduce your OSHA fines, contact us today.

© 2017 Costello Safety Consulting, LLC.

Costello Safety Consulting, LLC.

8133 Jackrabbit Rd. Houston, TX 77095

Office: (832) 786-8814

Email: info@costellohse.com

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