Michigan OSHA has plans to implement a new settlement process this month called the Penalty Reduction Agreement. Previously known as the Informal Settlement Agreement, the new process allows employers to receive a 50% reduction in citation penalties, as long as they do not appeal the citation, agree to pay the reduced penalty within 15 business days, and make necessary hazard corrections.
Once an inspection or audit has been conducted, employers have five business days from receiving a citation to apply for the Penalty Reduction Agreement. Incidents involving workplace fatalities, willful citations, or companies in the Severe Violator Enforcement Program, are not qualified for the Penalty Reduction Agreement.
This new settlement process is a step in the right direction for health and safety professionals. Monetary fines associated with OSHA violations are not the reason that OSHA set safety standards to be followed. In an ideal world, there would be zero safety violations. However, in our flawed reality, mistakes are made and there are consequences to mistakes. This new settlement process allows companies to own up to their mistakes and focus on improving for the future instead of focusing on the dollar amount per fine.
At the end of the day, business executives should understand that OSHA is not out to get them. OSHA inspections should be seen as an opportunity to improve upon worker safety. Download our free infographic “Tips to Avoid the Top 10 Most Violated OSHA Citations in 2015” and prepare your company for upcoming OSHA inspections. Safety software such as Quantum’s Q-Safety Inspection and Audit Module, lets you document, track, and use inspection related information. The information logged into the system will allow companies to know how to fix violations found during inspections as well as prove compliance in future inspections.
