Closing Conference

• The compliance officer shall confer with the general contractors and all appropriate subcontractors or their representatives, together or separately

• Employee representatives participating in the inspection shall also be afforded the right to participate in the closing conference(s).

Closing Conference

• Attempt to advise each employer of all the apparent violations disclosed by the inspection to which each one's employees were exposed, or violations which the employer created or controlled.

Assessment of Civil Penalties

• Section 35(1) of the Act provides that any employer who receives a citation for an alleged violation which is determined to be of a serious nature shall be assessed a civil penalty of not more than $7,000 for each violation.

Reduction of Civil Penalties

• Section 36(1) of the Act provides that the civil penalties can be reduced taking into consideration:– Size of the business– Good faith efforts– History of previous citations

Probability Assessment

Severity Assessment

Gravity-based Penalty

Gravity-based Penalty

SEVERITY PROBABILITY GBP GRAVITY

High Greater $5,000 (or $7,000)

High*

Medium Greater $3,500 Moderate

Low Greater $2,500 Moderate

High Lesser $2,500 Moderate

Medium Lesser $2,000 Moderate

Low Lesser $1,500 Low

Reduction for Size of Business

Reduction for Size of Business

EMPLOYEES (nationwide)

PERCENT REDUCTION

1-10 80

11-25 60

26-100 40

101-250 20

251 or more None

Reduction for Good Faith

Reduction for (no) History

Adjusted Penalty

General Policy for Penalties

• Penalties are not designed to be punitive.

• The legislature has made clear its intent that penalty amounts should be sufficient to serve as an effective deterrent to violations.

Post-citation Procedures

• Appeal not pursued

• Appeal

• Informal settlement agreement (ISA)

Informal Settlement Agreement(ISA)

• This informal agreement is a way to reach correction of hazards at the earliest possible opportunity and reduce the need for appeals.

• The employer must sign the ISA within 15 working days after receiving the citation.

• Penalty can be reduced up to 60%.

Reduction in Penaltywith

Informal Settlement Agreement

• 60% reduction of $6,600 = $2,640.

• 60% reduction of $14,000 = $5,600

• Employer must provide proof of correction to obtain 60% reduction.

• Otherwise, 50% reduction is the standard reduction.

Appeal

• Within 15 working days after receipt of a citation and proposed penalty (if any), an employer may petition the department for a grant of additional time for compliance, modification, or dismissal of the citation or proposed penalty.

Proof of Correction(Abatement Documentation)

• Abatement documentation may be submitted in electronic form.

• The abatement documentation will be evaluated by MIOSHA for adequacy.

• A MIOSHA representative will contact employer, if additional documentation is need to prove correction.

Payment of Penalty

• Monies from penalties are deposited into the State of Michigan General Fund.

• Payment plans are available.

• The Michigan Department of Treasury handles debt collection on behalf of MIOSHA.