OSHA term · Glossary
Good Faith Reduction
A reduction of up to 25% that OSHA may apply to a proposed penalty when an employer demonstrates a genuine, effective commitment to safety — chiefly a documented, implemented safety and health management program. It's one of three serial penalty reductions (size, good faith, history) OSHA applies to the Gravity-Based Penalty.
Also known as: good faith credit, good-faith penalty reduction
Good Faith Reduction at a glance
- Up to 25% off the Gravity-Based Penalty (15% with minor program deficiencies).
- Primarily earned through an effective, documented safety & health program.
- One of three serial reductions: size, good faith, and history.
- Not available for willful violations (which reflect a lack of good faith).
In plain English
A discount on your OSHA fine for having a real, working safety program. Show OSHA you take safety seriously — written program, training, self-inspections — and they can knock up to 25% off the penalty.
What the source says, in summary
A penalty reduction of up to 25 percent may be applied based on the employer's good faith, primarily reflected in an effective written safety and health management system; a reduced credit (e.g., 15 percent) may apply where the program has deficiencies.
In context
An enforcement, recordkeeping, or general-duty concept under the Occupational Safety and Health Act and 29 CFR. These terms define how OSHA inspects, cites, and penalizes employers.
Example
A contractor cited for a serious violation shows OSHA its written safety program, training records, and self-audit logs at an informal conference. Because the program is effective, OSHA applies a 25% good-faith reduction — one of the credits (alongside size and history) that brings the proposed penalty well below the maximum.
Why it matters
Good faith is where a documented safety program pays for itself: the same program that prevents injuries also cuts the penalty when a citation happens. It rewards proactive employers and is a concrete reason to keep written programs, training records, and self-inspection logs current and producible.
Good faith isn't automatic
The good-faith credit isn't given just for saying you care about safety — it requires evidence of an effective, implemented program (written policies, training, self-inspections, corrective action). A binder that isn't followed won't earn it, and willful violations get no good-faith credit at all.
What earns the good-faith penalty credit
| Factor | Evidence OSHA looks for |
|---|---|
| Written program | A documented safety & health management program |
| Training | Records of employee hazard training |
| Hazard identification | Self-inspections, audits, corrective-action logs |
| Effectiveness | The program is actually implemented and works |
Good Faith Reduction: frequently asked questions
- How much is the OSHA good-faith reduction?
- Up to 25% off the Gravity-Based Penalty, based on an effective written safety and health management system. A smaller credit (around 15%) may apply where the program has minor deficiencies.
- How do I earn a good-faith reduction?
- By demonstrating an effective, implemented safety program — written policies, training records, self-inspections, and corrective action — typically presented at an informal conference. Willful violations receive no good-faith credit.
- Is good faith the only penalty reduction?
- No. OSHA applies three serial reductions to the Gravity-Based Penalty: employer size, good faith (up to 25%), and inspection history (a 20% credit for a clean 5-year record).
Related terms
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More OSHA terms
The action an employer takes to fix a cited violation or eliminate a hazard OSHA identified during an inspection. The citation sets an abatement date, the deadline to correct the hazard, and within 10 calendar days after that date the employer must certify to OSHA that the violation was abated. Failure to abate accrues additional penalties of up to $16,550 per day.
Area DirectorThe senior OSHA official in charge of a specific OSHA Area Office — the local unit that runs inspections and enforcement in its geographic territory. The Area Director has the authority to issue citations, propose penalties, hold informal conferences with employers, and approve settlement agreements. When a Compliance Safety and Health Officer (CSHO) completes an inspection, it's the Area Director who ultimately issues the citation.
Bureau of Labor Statistics (BLS)The federal statistical agency within the U.S. Department of Labor that collects, analyzes, and publishes data on workplace injuries, illnesses, and fatalities. BLS conducts the annual Survey of Occupational Injuries and Illnesses (SOII) — compiled from employer OSHA 300 logs — and the Census of Fatal Occupational Injuries (CFOI). SOII data drives OSHA's Site-Specific Targeting (SST) program: establishments whose DART rates significantly exceed their BLS industry average are placed on the SST inspection list.
Competent PersonUnder OSHA's construction standards, a person who is capable of identifying existing and predictable hazards in the surroundings or working conditions, and who has the authorization to take prompt corrective measures to eliminate them. The role requires both knowledge and the authority to act, and is mandated by name in many specific standards — excavations, scaffolds, fall protection, asbestos, and more.
CitationThe formal written notice OSHA issues to an employer after an inspection, describing each alleged violation, the standard cited, the proposed penalty, and the date by which the hazard must be corrected (abated). OSHA must issue a citation with reasonable promptness and no later than six months after the violation occurred.
Closing ConferenceThe meeting at the end of an OSHA inspection where the compliance officer confers with the employer and informally advises them of any apparent violations found. Importantly, the closing conference discusses what was observed and the employer's rights — but it does NOT state final citations or penalties, which come later in the written Citation and Notification of Penalty.
Compliance Officer (CSHO)An OSHA Compliance Safety and Health Officer — the inspector who conducts workplace inspections. A CSHO presents credentials (a photo ID and a serial number), holds the opening conference, performs the walkaround, collects evidence, interviews employees, and recommends citations. CSHOs are either safety specialists or industrial hygienists.
ContestAn employer's formal challenge to an OSHA citation, penalty, or abatement date. To contest, the employer must file a written Notice of Contest with the OSHA Area Director within 15 working days of receiving the Citation and Notification of Penalty. Filing sends the case to the independent Occupational Safety and Health Review Commission (OSHRC); missing the deadline makes the citation a final, un-appealable order.
Sources & verification
Reviewed by HazComFast against eCFR, OSHA.gov, NIOSH, and the Federal Register. Last reviewed 2026-10-05. This glossary is general information, not legal advice; OSHA State-Plan states (e.g. California, Michigan) may adopt stricter requirements.
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