Understanding the penalty calculation methodology tells you exactly what your exposure looks like before an inspector finds it. Four violation types. Four adjustment factors. One number that determines what you owe.
OSHA's penalty structure has four violation types. The type determines the maximum possible penalty. Everything else — gravity, good faith, history, size — adjusts within that ceiling.
| Violation Type | Definition | Minimum | Maximum |
|---|---|---|---|
Willful Highest |
Employer knew of the violation and intentionally chose not to comply, or was plainly indifferent to compliance. OSHA does not need to prove intent — plain indifference is sufficient. | $15,625 | $156,259 |
Repeat Highest |
Previously cited for a substantially similar violation of any OSHA standard within the past 5 years (any OSHA region, any federal or state-plan jurisdiction). Same penalty range as willful — no good faith reduction available. | $15,625 | $156,259 |
Serious Common |
There is a substantial probability that death or serious physical harm could result, and the employer knew or should have known of the hazard. The most common PSM citation type — most PSM violations qualify given the chemical hazards involved. | $1,036 | $15,625 |
Other-than-Serious Rare |
A violation with direct relationship to job safety and health, but not likely to cause death or serious physical harm. Uncommon in PSM enforcement given the nature of the standard — few PSM violations are low-consequence. | $0 | $15,625 |
Failure to Abate Per Day |
Employer failed to correct a cited violation by the abatement date in a prior citation. Assessed as a daily penalty until the violation is corrected — compounds quickly on extended abatement failures. | — | $15,625/day |
After violation type sets the ceiling, OSHA applies four adjustment factors. The gravity of the violation sets the base amount; the remaining three factors reduce it. Willful violations receive no Good Faith reduction.
Gravity reflects the severity of the hazard and the probability of an injury or illness. OSHA rates gravity on a 1–4 scale. Most PSM violations are gravity 3 or 4 given the catastrophic-consequence chemicals involved.
Credit for a demonstrated good-faith effort toward safety and health. Requires a comprehensive, documented, implemented safety program. Willful and Repeat violations receive zero Good Faith reduction.
Credit for having no prior OSHA citations within the past 3 years at any establishment in the corporate family. Any citation — even a minor one — eliminates this reduction for 3 years.
Small employers receive significant reductions. Based on total number of employees in the entire organization, not just the cited facility. Large corporations receive no size reduction regardless of individual facility size.
The initial citation amount is rarely the final amount. The informal conference — a meeting with the OSHA Area Director — is where most reductions are negotiated. Understanding the process helps you navigate it.
You have 15 working days from receipt of the citation to request an informal conference with the OSHA Area Director. This is typically the most productive opportunity to reduce penalties — before formal contest proceedings.
If informal conference doesn't resolve the citations, you can file a Notice of Contest within 15 working days of receiving the citation. The case is transferred to the Occupational Safety and Health Review Commission (OSHRC) for adjudication.