Higher Fines for Federal Safety, Environmental Law Violations Starting this Summer

OSHA, EPA and FWS Finalize New Maximum Civil Penalties
The financial penalties that federal agencies may impose on the regulated community as restitution (or a deterrent) for any violation of statutes/regulations or permit requirements are about to go way up, some by as much as 150 percent. The U.S. Occupational Safety and Health Administration (OSHA), the U.S. Environmental Protection Agency (EPA), and the Fish and Wildlife Service (FWS) – to name a few – all have finalized penalty increases that take effect this summer.  Most notable, OSHA’s maximum penalties have increased by approximately 80 percent across the board.  Similarly, EPA published more than 65 penalty increases across the various environmental statutes that it administers.

The impending higher fines stem from recent legislation requiring federal agencies to adjust their civil penalties in two significant ways.  First, the agencies must make initial “catch up” adjustments with the higher penalty levels to take effect no later than Aug. 1, 2016 – as previously reported by AGC (click here and here).  Second, looking ahead, federal agencies must make adjustments for inflation every year — a change from the prior frequency of once every 4 years. OSHA and EPA will apply the new higher fines to all civil penalties assessed on or after Aug. 1, 2016, for violations that occurred after Nov. 2, 2015 (when the 2015 Adjustment Act was enacted).

Here’s the full story.

Here’s the OSHA news release.

New Contractor Requirements Effective After June 30

The following new contractor requirements take effect for state and local public works contracts awarded after June 30, 2016. Exceptions include Build/Operate/Transfer, P3, Design-Build and Construction Manager as Constructor contracts.

A contractor of any tier with 10 or more employees must provide its workers with access to a training program applicable to the tasks performed by those workers. Training can be accomplished through an apprenticeship program offered by Ivy Tech or Vincennes University, a program established by or for the contractor, a program offered by an entity sponsored by the U.S. Department of Labor, Bureau of Apprenticeship and Training (US DOL-BAT), a program that results in the award of an industry recognized portable certification, or a program approved by the Federal Highway Administration (FHWA) or INDOT.

A prime or general contractor (G.C.) or a subcontractor, contracting with a prime/G.C., employs 50 or more journeymen, the contractor must also participate in an apprenticeship or training program meeting standards established by or approved by US DOL-BAT, Indiana Department of Labor, FHWA or INDOT.

A contractor in any tier must preserve payroll and related records for three years after completion of the project and make those records open to inspection by the Indiana Department of Workforce Development.

Prime/G.C. and subcontractors, contracting on local public works contracts of $150,000 or more, must now adhere to drug testing requirements that were only applicable on state contracts prior to July 1, 2016.

The new statutes also require public owners to follow new procedures regarding possible contractor violations and in contractor responsibility determinations. For violations involving E-Verify, federal or state minimum wage laws, workers compensation or unemployment compensation, the public agency will be required to refer the matter to the appropriate agency. For other violations involving the new requirements, the public agency shall require the contractor to remedy the violation within 30 days of notification. If the violation continues, the agency shall find the contractor not responsible for up to 48 months. A finding that a contractor is not responsible is subject to judicial review. However, a finding that a contractor is not responsible due to a violation of the new requirements may not be used by another public agency as the basis for finding that contractor not responsible.

Overtime rule doubles salary threshold; increases burden

AGC plays vital role in attempting to limit burden – will continue to pursue corrective action

On May 18, the U.S. Department of Labor released its final rule implementing changes to the Fair Labor Standards Act (FLSA) overtime regulations.  The most significant change is a doubling of the standard salary threshold for exempt employees – from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).  The rule takes effect on Dec. 1, 2016. In 2015, AGC sent both individual comments and signed onto coalition comments on the proposed rule. Read more on AGC.org.