Annual inflation adjustments to penalties for workplace injuries in the U.S. were announced in a memo issued last week by the Occupational Safety and Health Administration (OSHA).

As required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to improve the effectiveness of civil monetary penalties and maintain their deterrent effect, agencies are required to adjust the level of civil monetary penalties for inflation, and do so no later than January 15 of each year.

The cost-of-living adjustment multiplier for 2024, based on the Consumer Price Index for All Urban Consumers for October 2023 (not seasonally adjusted), is 1.03241.

To compute the 2024 annual adjustment, the government workplace safety agency multiplied the most recent penalty amount for each applicable penalty by the multiplier, 1.03241, and rounded to the nearest dollar.

The gravity of a violation is defined by the Gravity Based Penalty (GBP).

• A high gravity violation is one with a GBP of $16,131.
• A moderate gravity violation is one with the GBP ranging from $9,218 to $13,828.
• A low gravity violation is one with a GBP of $6,913.

States that operate their own Occupational Safety and Health Plans are required to adopt maximum penalty levels that are at least as effective as Federal OSHA guidelines.

State Plans are not required to impose monetary penalties on state and local government employers.