Member of OSHA’s $40K+ club socked with $4.3M fine
One motor vehicle parts manufacturer could wind up with the highest OSHA penalty in the last 10 years. That figure could also be within the top 20 stiffest penalties in the agency’s history! The recent initial mega-penalty amount is in part thanks to a longstanding OSHA “instance-by-instance” citation policy.
That policy multiplies penalties by the number of “instances” of the alleged violation. An instance may be per machine, employee, location, entry, etc. Let’s say the maximum penalty for one violation is $165,514. That can quickly climb to $1,655,140 if the violation impacts 10 employees, for example. Read more about the policy in our article, “OSHA carves out time for THREE more inspection memos.”
What did OSHA find in the record-breaking penalty case?
Last July, two Nevada OSHA follow-up inspections on the same day found 70 alleged violations at the parts manufacturing site. All but six of them were considered serious, repeat, or willful violations. A health inspection amounted to $4,137,482 in initial penalties. The safety inspection came in at $176,593. Alleged per-instance violations included:
- 10 instances for 1910.132(d)(1)(i) — Failure to select and have affected employees use personal protective equipment (PPE) that will protect them from hazards identified in a hazard assessment.
- 6 instances for 1910.133(a)(1) — Failure to ensure affected employees use appropriate eye or face protection when exposed.
- 4 instances for 1910.133(a)(3) — Failure to ensure that affected employees use eye protection that incorporates or can be worn over prescription lenses.
- 8 instances for 1910.134(f)(2) — Failure to ensure employee fit testing prior to initial use of tight-fitting facepiece respirators and annual fit testing thereafter.
- 8 instances for 1910.134(k)(1) — Failure to ensure employees demonstrate knowledge of respirator training elements.
- 3 instances for 1910.303(b)(7)(iv) — Having damaged electrical equipment.
- 6 instances for 1910.305(g)(1)(iv)(a) — Posing a hazard by using flexible cords and cables as a substitute for fixed wiring.
- 12 instances for 1910.1200(f)(6)(ii) — Failing to provide hazardous chemical container labeling that has the required in-house label elements.
- 2 instances for Nevada Revised Statute 618.375(1) — Failure to keep a workplace free of recognized, serious hazards.
The “extra” instances amounted to over $3.6 million in penalties. Remaining “one-off” citations and penalties went to various standards. Those included injury and illness recordkeeping and reporting, general PPE, machine guarding, and electrical standards.
The manufacturer has contested all the citations in the two cases. We won’t know the final penalty amounts until the cases are settled or closed.
What is the $40K+ club?
The auto parts maker is not alone. Employers cited $40,000 or more in a single inspection since January 1, 2015, are posted on OSHA’s website. After freezing the data for a few months, the agency just updated the list. Now that list of high-penalty inspections has surpassed the 15,000 mark.
We calculate there were about 125 high-penalty cases per month on average through April 2025. That’s a span of 10 years and four months. The average is about 1,500 high-penalty cases per year.
OSHA’s total penalty amounts can and have pushed into the tens of millions of dollars for a single inspection. However, the highest initial penalty figures for a single inspection since 2015 include:
- $4.14 million for an auto parts manufacturer in Nevada;
- $2.89 million for an auto parts manufacturer in Ohio;
- $2.81 million for a frozen food manufacturer in Illinois;
- $2.52 million for an auto parts manufacturer in Alabama; and
- $2.47 million for a sawmill in Alabama.
The majority (78 percent) of inspections on the list are under $100,000 in initial penalties. To learn more, search OSHA’s “Enforcement Cases with Initial Penalties of $40,000 or Above” tool by:
- Initial penalty amount,
- Date,
- State,
- City,
- Inspection case number, and
- Employer name.
“Initial penalty” amounts are not necessarily the final or current penalty amounts. Not all cases are final. Some cases might have even ended up with a final total penalty under $40,000. Also, some employers are listed in the tool more than once. It just depends on how many penalty cases at or over $40,000 they had.
A disclaimer on the tool explains that it is updated weekly. There’s also a short posting delay to ensure the parties are notified.
Key to remember
A recent Nevada OSHA case illustrates OSHA’s use of its instance-by-instance citation policy. The initial total penalty amount in the case is the highest we’ve seen in 10 years. OSHA tracks all cases with initial penalty amounts over $40,000 and posts them on its website.