Authority: IC 22-1-1; IC 22-8-1.1-27.1

Affected: IC 22-8-1.1

Sec. 1. (a) The penalty structure described in this rule is part of IOSHA's general enforcement policy and shall normally be applied as set forth in this rule. A division director can exercise discretion to depart from the penalty policy in cases where penalty adjustments do not advance the deterrent goal of the Act. The application of penalty adjustments can therefore result in safety orders issued with all applicable adjustments or no adjustments. Except as provided in subsection (b), an inspection must maintain consistent penalty adjustments throughout the recommended safety orders.

(b) A decision not to apply the penalty adjustments is normally based on consideration of at least one (1) of the factors listed in this subsection. However, this list is not intended to be exhaustive. If the decision not to apply penalty adjustments is based on considerations other than the factors listed in this subsection, the decision must be fully explained in the case file and approved by the deputy commissioner or their designee. The factors to be considered include the following:

1. (1) The proposed safety orders are related to a fatality or catastrophe.
2. (2) The employer has received a knowing or repeat violation within the past three (3) years related to a fatality.
3. (3) The employer has failed to report a fatality, an inpatient hospitalization, an amputation, or the loss of an eye under the requirements of 29 CFR 1904.39.
4. (4) The employer is currently on the Severe Violator Enforcement Program (SVEP) list.
5. (5) The proposed safety orders meet the requirements for inclusion in the SVEP.
6. (6) The proposed safety orders are being considered for an egregious case.
7. (7) The employer has numerous record keeping violations related to a large number or rate of injuries and illnesses at the establishment.
8. (8) The proposed failure to correct notification is based on a previous safety order for which the employer failed to submit abatement verification.
9. (9) The employer has been referred to debt collection for past unpaid IOSHA penalties.

(c) Minimum penalties are applied as follows:

1. (1) The proposed penalty for an alleged violation that could have reasonably contributed to a fatal incident is seven thousand dollars ($7,000) without reduction.
2. (2) When the proposed penalty for a serious violation amounts to less than one hundred dollars ($100), a one hundred dollar ($100) penalty is proposed for that violation.
3. (3) When the proposed penalty for a nonserious violation, or a regulatory violation other than a posting violation, amounts to less than one hundred dollars ($100), no penalty is proposed for that violation. If, however, there is a safety order for a posting violation, a penalty may be proposed even if it is less than one hundred dollars ($100) since penalties for those violations are mandatory.
4. (4) In no case may the proposed penalty for a knowing violation, either serious or nonserious, after reductions be less than five thousand dollars ($5,000) or nine thousand four hundred seventy-two dollars ($9,472) depending on applicability.

(Department of Labor; 610 IAC 9-4-1; filed May 19, 2025, 10:19 a.m.: 20250618-IR-610250159FRA)