U.S. Court of Appeals rejects grouping of willful recordkeeping violations

Abstract

A steel pipes manufacturer in Baytown, Texas was cited for 59 separate recordkeeping violations, as a result of an OSHA inspection which occurred on July 27, 2000. The Secretary of Labor proposed a penalty of $8,000 for each of the violations. Although an administrative law judge affirmed the 59 separate violations as willful, he grouped them for penalty purposes and assessed a single penalty of $70,000.

On appeal, the U.S. Court of Appeals for the Fifth Circuit sent the case back to the judge for further proceedings. The court found that the judge erred in grouping separate willful violations and ruled that the penalty assessed was below the range mandated by the Occupational Safety and Health Act of 1970.

Question: Did the steel pipes manufacturer understand OSHA's reporting requirements?

Evidence shows that the safety manager, through his education and previous work experience, was familiar with OSHA standards and recordkeeping regulations, as well as the contents of a U.S. Department of Labor's "Recordkeeping Guideline for Occupational Injuries and Illnesses" publication. The judge also determined that the safety manager had first-hand knowledge of most incidents, as well as access to redundant sources of employee illness and injury information. This evidence nullified the safety manager's claim that inadequate information prevented him from properly maintaining the OSHA 200 logs.

Furthermore, the judge noted that the human resources and labor relations director, to whom the safety manager reported to, inherited a pre-existing reporting system in which procedures were added. This should have increased reporting accuracy, according to the judge. However, despite an increase in the number and expertise of safety personnel, the judge observed that the timeliness and accuracy in recording injuries plummeted after the director took over management of the safety department. And, reporting did not improve when the safety manager became responsible for the logs in May 1998.

These facts — combined with unrebutted testimony that the human resources and labor relations director attempted to control medical information — shows that they fully understood the recordkeeping requirements and knowingly failed to comply with the applicable regulations.

Conclusion:

The judge affirmed 59 separate violations for the recordkeeping errors cited by the Secretary on a per-instance basis and the parties did not contest upon review. However, the judge rejected the Secretary's proposal of $8,000 for each willful violation and assessed a single, grouped penalty of $70,000 — a ruling that was ordered back to the judge for further review by the U.S. Court of Appeals for the Fifth Circuit.

Full text decision

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