Construction companies are responsible for ensuring their job sites are safe for workers and visitors. This includes posting compliant signs to warn of potential hazards. Failure to do so can result in significant fines, penalties, and lawsuits.
Penalties for Non-Compliance
Penalties for failure to post compliant signs range from warning letters from the Occupational Safety and Health Administration (OSHA) to fines of up to $14,502 per violation. Companies may also be required to shut down their job site until the violation is corrected.
Repeat violators may be subject to more severe penalties, including criminal charges. In 2017, a construction company in New York was fined $1.5 million after pleading guilty to criminal charges related to the death of a worker who fell from an unsecured ladder. The company had been cited previously for similar violations.
Here is a rundown of the penalties as of 2022 which companies can expect to pay for OSHA violations:
- Serious: $14,502 per violation
- Other-Than-Serious: $14,502 per violation
- Posting Requirements $14,502 per violation
- Failure to Abate: $14,502 per day beyond the abatement date
- Willful or Repeated: $145,027 per violation
Lawsuits
In addition to facing fines and penalties, construction companies who fail to post compliant signs may also be sued. After an on-the-job injury, it’s not unusual for an injured worker or the family of a deceased worker to file a lawsuit against the employer. These lawsuits are costly, even if the company is ultimately not at fault. In some cases, companies may be required to pay punitive damages designed to punish the company for its negligence.
For example, in 2008, a construction company in California was ordered to pay $11.3 million to a worker who fell through an unsecured maintenance hole not labeled with proper signs. The jury found the company had been negligent in its safety practices.
While signs may not always prevent accidents from happening, they help to mitigate the damages a company may be liable for.
The Impact of OSHA Violations on Construction Companies
The cost of fines, penalties, and lawsuits is high and can put a company out of business. In addition, the negative publicity associated with such incidents can damage a company’s reputation, making it difficult to win new contracts. It is common for companies to declare bankruptcy after an OSHA shutdown order.
For these reasons, construction companies must comply with all safety regulations, including those related to posting compliant signs. This helps to protect their workers, the public, and their own business.
Make sure your company has compliant signs. Call FASTSIGNS® of Boise, ID, today.
