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OSHA term · Glossary

Penalty

Verified vs OSHA sources · 2026-10-05

The monetary fine OSHA proposes for a violation. In 2026, maximums are $16,550 per serious or other-than-serious violation and $165,514 per willful or repeated violation — unchanged from 2025 (no CPI adjustment). The proposed amount starts from a Gravity-Based Penalty (severity × probability) and is then reduced for employer size, good faith, and inspection history.

29 CFR 1903.1529 CFR 1903.15(b)

Also known as: OSHA fine, civil penalty

Penalty at a glance

  • 2026 maximums: $16,550 (serious / other-than-serious); $165,514 (willful / repeated).
  • 2026 amounts are unchanged from 2025 — there was no CPI inflation adjustment.
  • Starts from a Gravity-Based Penalty (severity × probability), then serial reductions apply.
  • Reductions: size (by employee count, up to 70% for 1–25 employees), good faith (up to 25%), history (20% for a clean 5-yr record).

In plain English

The dollar fine attached to an OSHA citation. It's not a flat number — OSHA starts from a base set by how dangerous the violation is, then discounts it for small size, a good safety program, and a clean past record.

What the rule says

“The Area Director shall determine the amount of any proposed penalty, giving due consideration to the appropriateness of the penalty with respect to the size of the business of the employer being charged, the gravity of the violation, the good faith of the employer, and the history of previous violations, in accordance with the provisions of section 17 of the Act and paragraph (d) of this section.”
29 CFR 1903.15(b)

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.

29 CFR Chapter XVII

Where this is written in OSHA's rules

Example

A serious violation might carry a $12,000 Gravity-Based Penalty. For a small employer with an effective written program and no serious citations in five years, size plus a 25% good-faith credit and a 20% history credit can cut that well below the $16,550 maximum.

Why it matters

The sticker-shock maximums are rarely the final number — the reductions are where penalties are actually negotiated. Knowing that the Gravity-Based Penalty is the starting point, and that size, good faith, and history each cut it, is how employers (and their advisors) turn a proposed penalty into a much smaller final one.

Maximum penalty vs. proposed penalty

The published maximums (e.g., $16,550 serious) are ceilings, not the typical charge. OSHA builds the proposed penalty up from a Gravity-Based Penalty and then discounts it for size, good faith, and history — so most proposed penalties are well below the maximum.

How OSHA reduces a proposed penalty (FOM Ch. 6)

ReductionBasisCredit
SizeFewer employees (Table 6-2)Graduated — largest for small employers
Good faithEffective written safety & health programUp to 25%
HistoryNo serious citations in the prior 5 years10% (or +10% for a poor record)

Penalty: frequently asked questions

What are OSHA's maximum penalties in 2026?
Up to $16,550 per serious or other-than-serious violation and up to $165,514 per willful or repeated violation. These are unchanged from 2025 — there was no CPI inflation adjustment for 2026.
How does OSHA calculate a penalty?
It starts from a Gravity-Based Penalty set by the severity and probability of the hazard, then applies serial reductions for employer size, good faith (up to 25%), and inspection history (a 20% credit for a clean 5-year record).
Can penalties be reduced?
Yes — substantially. Small employer size, a documented and effective safety program, and a clean history each reduce the proposed penalty, and an informal conference can further settle the amount and abatement.

Related terms

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More OSHA terms

Abatement

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 Director

The 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 Person

Under 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.

Citation

The 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 Conference

The 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.

Contest

An 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.

Put Penalty into practice

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