Presented by Andrea Raso Amer at FMC's Employment and Labour Seminar on Occupational Health and Safety, this presentation looks at orders and financial penalties that employers could face for non-compliance. Addressing what types of administrative penalties can be imposed, "high risk" scenerios, as well as what you can do if you are faced with a penalty.
3. Orders
• “Inspection Report”
– Officer’s observations
– Steps to achieve compliance
– Stoppage of any unsafe activity
– Stop work order
– Any further orders arising from compliance report
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7. When will an administration penalty be imposed?
• Section 196(1) of the Workers Compensation Act:
1. Employer has failed to take sufficient precautions for the prevention
of injuries or illness;
2. Employer has not complied with orders; or
3. Employer’s workplace or working conditions are not safe.
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8. When will an administration penalty be imposed? Cont’d
• Policy:
1. Violation resulting in high risk or serious injury, serious illness or
death;
2. One or more violations of the same section;
3. One or more different violations which show a lack of commitment to
compliance;
4. Failure to comply with a previous order; or
5. Employer violation either knowingly or with reckless disregard.
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9. When will an administration penalty be imposed?
Cont’d
• Policy (cont’d):
If yes to any of the above, then consider:
1. Employer’s overall H & S program;
2. Employer exercised due diligence;
3. Independent action of workers;
4. Compliance history;
5. Need for an incentive to motivate compliance; and
6. “Other relevant circumstances”.
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13. How is the amount of penalty determined? Cont’d
• Basic amount is based on payroll
Example:
Category A
‐ Payroll 1,500,001 – 2,000,000
‐ $33,750 + 1.75% of payroll over 1.5 m
Category B
‐ Payroll 1,500,001 – 2,000,000
‐ $8,400 + .28% of payroll over 1.5 m
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14. How is the amount of penalty determined? Cont’d
• Basic amount may be varied – up or down – by 30%, taking
into account:
1. Nature of violation;
2. Nature of hazard;
3. Degree of actual risk;
4. Measures taken to comply;
5. Employer history;
6. Whether the financial impact would be unduly harsh;
7. Any other relevant factors.
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15. How is the amount of penalty determined? Cont’d
• Repeat penalties for:
– Same or substantially similar violation(s) within a 3‐year time frame
and notice of a potential penalty had been given for a prior violation.
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19. Take Aways
1. Keep track of orders.
2. Review orders where reviewable.
3. Due diligence must be exercised from top to bottom.
4. Re‐assess and reinforce your health and safety programs.
5. The US national debt is really really really high …
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