Penalties And Debt Collection - Chapter 11

AS 18.60.095 provides AKOSH with statutory authority to propose civil penalties for violations of AS 18.60.010 $sect; 18.60.105. Civil penalties encourage compliance and deter violations. Proposed penalties are the penalty amounts AKOSH issues with citation(s). 8 AAC 61.140(j) sets the initial maximum and minimum penalties for all violations and requires the department to publish subsequent changes by February 1 of each year in the pamphlet, "Alaska Occupational Safety and Health Civil Penalties." This pamphlet is the official document that defines the current maximum and minimum penalties for AKOSH violations and is updated annually on the AKOSH website: https://labor.alaska.gov/lss/oshhome.htm

In providing funding for OSHA and its state plans, Congress has placed restrictions on enforcement activities regarding two categories of employers: small farming operations and small employers in low-hazard industries. The Appropriations Act contains annual limits for occupational safety and health activities and may be found here: https://www.osha.gov/enforcement/appropriations-act . AKOSH may conduct industries falling in the exemption category; however, only State of Alaska funds may be utilized.

The following policies apply:

1. AS 18.60.095(a) provides that the minimum proposed penalty for any willful violation (serious or other than serious) shall not be less than the amount annually published by OSHA in accordance with the Consumer Price Index. The amount can also be found in Table S-1 of the Penalties Supplement. This minimum penalty applies to all willful violations, regardless of whether they are serious or other-than-serious.
2. When the proposed penalty for a serious violation (citation item) would amount to less than the minimum in Table S-1 of the Penalties Supplement, the minimum shall be proposed.
3. When the proposed penalty for an other-than-serious violation (citation item), or a regulatory violation other than a posting violation, would amount to less than $100, no penalty shall be proposed for that violation.
4. When the proposed penalty for a posting violation (citation item) would amount to less than $250, a $250 penalty shall be proposed for that violation if the company was previously provided a poster by AKOSH.

The maximum civil penalty amounts included in the pamphlet "Alaska Occupational Safety and Health Civil Penalties" (and Table S-1 of the Penalties Supplement) are generally maximum amounts before any permissible reductions are taken.

The gravity of the violation is the primary consideration in determining penalty amounts. It shall serve as the basis for calculating the basic penalty for serious and non-serious violations. To determine the gravity of a violation, the following two assessments shall be made:

• The severity of the injury or illness that could result from the alleged violation.
• The probability that an injury or illness could occur as a result of the alleged violation.
  1. Severity Assessment.

     The first step in classifying an alleged violation as serious or other-than-serious is based on the severity of the potential injury or illness. The following categories shall be considered in assessing the severity of potential injuries or illnesses:

     1. For Serious:
        • High Severity: Death from injury or illness; injuries involving permanent disability; or chronic, irreversible illnesses.
        • Medium Severity: Injuries or temporary, reversible illnesses resulting in hospitalization or a variable but limited period of disability.
        • Low Severity: Injuries or temporary, reversible illnesses not resulting in hospitalization and requiring only minor supportive treatment.
     2. For Other-Than-Serious:

        Minimal Severity: Although such violations reflect conditions which have a direct and immediate relationship to the safety and health of employees, the most serious injury or illness that could reasonably be expected to result from an employee's exposure would not be low, medium, or high severity and would not cause death or serious physical harm.

  2. Probability Assessment.

     The probability that an injury or illness will result from a hazard has no bearing on determining the classification of a violation, but it does affect the amount of the proposed penalty.

• Greater Probability: Results when the likelihood that an injury or illness will occur is judged to be relatively high.
• Lesser Probability: Results when the likelihood that an injury or illness will occur is judged to be relatively low.

• The following factors shall be considered, as appropriate, when violations are likely to result in injury or illness:
• Number of employees exposed;
• Frequency and duration of employee exposure to hazardous conditions, including overexposure to contaminants;
• Employee proximity to the hazardous conditions;
• Use of appropriate personal protective equipment;
• Medical surveillance program;
• Youth and inexperience of employees, especially those under 18 years old;
• Training in the recognition and avoidance of the hazardous condition;
• Other pertinent working conditions.

EXAMPLE 11-1: Greater probability may include an employee exposed to the identified hazard for four hours a day, five days a week. Lesser probability may be present when an employee is performing a non-routine task with two previous exposures within the previous year and no injuries or illnesses are associated with the identified hazard.

All the factors outlined above will be considered in determining the final probability assessment. When adherence to the probability assessment procedures would result in an unreasonably high or low gravity, the assessment may be adjusted at the discretion of the Assistant Chief of Enforcement as appropriate. Such decisions shall be fully explained in the case file.

1. Gravity-Based Penalty (GBP).
   1. The gravity-based penalty (GBP) for each violation shall be determined by combining the severity assessment and the final probability assessment.
   2. GBP is an unmodified penalty and is calculated in accordance with the procedures below.

      NOTE: When the term "unmodified penalty" is used, it is the same as GBP.

2. Serious Violation & GBP.
   1. The gravity of a violation is defined by the GBP. Find the gravity of a violation in Table S-2, "Violation Gravity Definitions" in the Penalties Supplement.
   2. The highest gravity classification (high severity and greater probability) shall normally be reserved for the most serious violative conditions, such as those situations involving danger of death or extremely serious injury or illness.
   3. If the Chief of Enforcement determines that it is appropriate to achieve the necessary deterrent effect, a GBP of the maximum penalty may be proposed instead of the moderate gravity amount listed in the Penalties Supplement. Such discretion should be exercised based on the facts of the case, and the reasons should be adequately explained in the case file.
   4. For serious violations, the GBP shall be assigned based on the scale in Table S-3, "GBP for Serious Violations" of the Penalties Supplement.
3. Other-Than-Serious Violations & GBP.
   1. For other-than-serious safety and health violations, there is only minimal severity. See Table S-4, "GBP for Other-Than-Serious Violations" in the Penalties Supplement.
   2. If the Chief of Enforcement determines that it is appropriate to achieve the necessary deterrent effect, a GBP of the maximum statutory amount may be proposed. Such discretion should be exercised based on the facts of the specific case, and the reasons should be adequately explained in the case file.

In some cases, a GBP may be assigned without using the severity and probability assessment procedures outlined in this section when these procedures cannot be applied appropriately. In such cases, the assessment assigned and the reasons for doing so shall be fully explained in the case file.

In egregious cases, penalties are applied violation by violation. Penalties calculated under this policy shall not be proposed without the concurrence of the Commissioner of the Alaska Department of Labor and Workforce Development.

Combined or grouped violations will be treated as a single violation, with a single GBP. The following procedures apply to the calculation of penalties for combined and grouped violations:

NOTE: Multiple violations of a single standard may be combined into one citation item. When a hazard involves interrelated violations of different standards, the violations may be grouped into a single item.

The severity and probability assessments for combined violations shall be based on the instance with the highest gravity. It is not necessary to complete the penalty calculations for each instance or sub-item of a combined or grouped violation once the instance with the highest gravity is identified.

The following shall be adhered to:

• Grouped Severity Assessment

  There are two considerations for calculating the severity of grouped violations:

  • The severity assigned to the grouped violation shall be no less than the severity of the most serious reasonably predictable injury or illness that could result from the violation of any single item; AND
  • If the injury or illness that is reasonably predictable from the grouped items is more serious than that from any single violation item, the more serious injury or illness shall serve as the basis for the calculation of the severity factor.
• Grouped Probability Assessment

  There are two factors for calculating the probability of grouped violations:

  • The probability assigned to the grouped violation shall be no less than the probability of the item which is most likely to result in an injury or illness; AND
  • If the overall probability of injury or illness is greater with the grouped violation than with any single violation item, the greater probability of injury or illness shall serve as the basis for the calculation of the probability assessment.

1. General.
   1. Penalty will vary depending upon the employer's "size" (maximum number of employees), "good faith," and "history of previous violations."
      • A 20 percent reduction or increase for history.
      • A maximum of 25 percent reduction for good faith; and
      • A maximum of 70 percent reduction is permitted for size

      Since these reduction factors are based on the general character of an employer's safety and health performance, they shall be calculated only once for each employer.

      After the classification (as serious or other-than-serious) and the gravity-based penalty have been determined for each violation, the penalty reduction factors (for size, good faith, history) shall be applied subject to the following limitations:

      • Penalties proposed for violations classified as repeated shall be reduced only for size.
      • Penalties proposed for violations classified as willful shall be reduced only for size and history.
      • Penalties proposed for serious violations classified as high severity/greater probability shall be reduced only for size and history.
2. History Adjustment
   1. Allowable Percent Reduction

      Employers who have been inspected by AKOSH in the previous five years, and who were found to be in compliance or the employer received only other-than-serious violations.

      Employers who have never been inspected by AKOSH. If the inspected employer is owned by, closely related to, or a successor to another employer, this policy may not be applicable.

   2. Allowable Percent Increase

      A 20 percent increase should be applied to employers who have been issued citations in AKOSH jurisdiction and have had them become a final order within the past five years. The penalty shall not exceed the statutory maximum.

3. No Reduction or Increase
   • To employers who are being cited for failing to adequately certify abatement.
   • To employers who have been issued citations that have become a final order for serious violations within the last five years that were not classified as high gravity.

   NOTE: In summary, an employer who has been inspected by AKOSH or OSHA within the previous five years and has no serious, willful, repeat, or failure-to-abate violations will receive a 20% reduction for history.

4. Time Limitation and Final Order

   The five-year history of no prior citations (both federal and state) shall be calculated from the date of the opening conference of the current inspection. Only citations that have become a final order within the five years immediately before the opening conference date shall be considered.

5. Good Faith Reduction.

   A penalty reduction is permitted in recognition of an employer's effort to implement an effective safety and health management system in the workplace. The following apply to reductions for good faith:

• No reduction shall be given for high gravity serious violations.
• No reduction shall be given if a willful violation is found. Additionally, where a willful violation has been documented, no reduction for good faith can be applied to any of the violations found during the same inspection.
• No reduction shall be given for repeated violations. If a repeated violation is found, no good-faith reduction can be applied to any violations found during the same inspection.
• No reduction shall be given if a failure to abate violation is found during an inspection. No good-faith reduction shall be given for any violation found during the inspection in which the FTA was found.
• No reduction shall be given to employers being cited for failure to certify abatement.
• No reduction shall be given to employers being cited under abatement verification for failure to notify employees.
• No reduction shall be given if the employer has no safety and health management system, or if there are major deficiencies in the program.
• No reduction shall be given if the employer has failed to report a fatality, amputation or paralysis of hand, foot or limb, or loss of an eye.

Twenty-Five Percent Reduction

A 25 percent reduction for "good faith" normally requires a written safety and health management system. In exceptional cases, CSHOs may recommend a full 25 percent reduction for employers with 1-25 employees who have implemented an effective safety and health management system but have not reduced it to writing.

To qualify for this reduction, the employer's safety and health management system must provide for:

• Leadership and worker participation;
• Hazard identification and assessment;
• Hazard prevention and control measures;
• Safety and health education and training;
• Program evaluation and improvement; And:
• When young people (i.e., those under 18 years old) are employed, the CSHO's evaluation must consider whether the employer's safety and health management system adequately addresses the particular needs of these employees, relative to the types of work they perform and the potential hazards to which they may be exposed.
• When persons who speak limited or no English are employed, the CSHO's evaluation must consider whether the employer's safety and health management system appropriately addresses the particular needs of such employees, relative to the types of work they perform and the potential hazards to which they may be exposed.

NOTE: One example of an effective safety and health management system is given in Safety and Health Program Management Guidelines; Issuance of Voluntary Guidelines (Federal Register, January 16, 1989 (54 FR 3904)).

Fifteen Percent Reduction.

A 15 percent reduction for good faith shall normally be given if the employer has a documented and effective safety and health management system, with only incidental deficiencies.

EXAMPLE 11-2: An acceptable program should include minutes of employee safety and health meetings, documented employee safety and health training sessions, or any other evidence of measures advancing safety and health in the workplace.

• AKOSH may provide an additional 10 percent reduction for good faith, in addition to the normal available reductions, for employers at AKOSH Strategic Partnership (ASP) sites.
• Employers in ASP sites must have taken specific, significant steps beyond those mentioned in the Twenty-Five Percent Reduction and have achieved a high level of employee protection.
• For the employer to qualify for the reduction, the Assistant Chief or Chief of Enforcement shall consult with the Chief of Consultation and Training to determine if the employer is in good standing with the partnership agreement. The reduction will not be allowed to strategic partner employers found not to be in good standing.
• This is an additional good-faith reduction; it will not apply unless the employer first qualifies for the 25 percent reduction.
• In cases where the total penalty reduction is 100 percent or more, the minimum penalty provisions shall apply.
  1. Size Reduction.
     1. A maximum penalty reduction of 70 percent is permitted for small employers. "Size of employer" shall be calculated on the basis of the maximum number of employees of an employer at all workplaces nationwide, including Federal and State Plan States, at any one time during the previous 12 months.
     2. The rates of reduction to be applied are as follows, except for alleged violations that resulted in or contributed to a fatality, amputation, or paralysis of a hand, foot, or limb, which must be calculated under paragraph (d) of this section.

        Table 11-1: Size Reduction

        Employees	Percent reduction
        1-25	70
        26-100	30
        101-250	10
        251 or more	None

     3. When an employer with 1-25 employees has one or more serious violations of high gravity or a number of serious violations of moderate gravity indicating a lack of concern for employee safety and health, the CSHO may recommend that only a partial reduction in penalty shall be permitted for size. If the Chief of Enforcement approves the partial reduction, the justification is to be fully explained in the case file.
     4. The rates of reduction for citations related to accidents resulting in or contributing to a fatality, amputation, or paralysis of a hand, foot, or limb, or loss of an eye are as follows.

        Table 11-2: Size Reduction for Fatalities, Certain Injuries

        Employees	Percent reduction
        1-25	70
        26-100	30
        101-250	10
        251 or more	None

  2. Penalty Adjustment Application

     The penalty adjustment shall be applied in the following order for each factor: History, Good Faith, Quick Fix, and Size. The penalty adjustment factors will be applied serially to the GBP (e.g., 10%, then 20%, etc., instead of 30%). The OSHA Information System (OIS) will process the calculations automatically upon entering the adjustment factors.

Table 11-3: Sample of Moderate Gravity Penalty Comparison Summed versus Serial Calculation

*2025 GBP amount used for this example

The Quick-Fix penalty reduction is an abatement incentive program designed to encourage employers to immediately abate hazards identified during an inspection, thereby preventing potential employee injury, illness, and death. Quick-Fix does not apply to all violations.

1. All general industry, construction, and agriculture employers.
2. All sizes of employers in all Standard Industrial Classification (SIC) codes and North American Industry Classification System (NAICS) codes.
3. Both safety and health violations, provided that the hazards are immediately abated during the inspection (e.g., on the day the CSHO pointed out the hazard to the employer, or within 24 hours of being discovered by the CSHO).
4. Violations classified as "other-than-serious", "low gravity serious", or "moderate gravity serious."
5. Individual violations, i.e., not to the citation or penalty as a whole.
6. Corrective actions that are permanent and substantial, not temporary or cosmetic (e.g., installing a guard on a machine rather than removing an employee from the zone of danger).

1. Violations classified as "high gravity serious," "willful," "repeated," or "failure-to-abate."
2. Violations related either to a fatal injury or illness, or to any incidents resulting in serious injuries to employees.
3. Blatant violations that are easily corrected (e.g., turning on a ventilation system to reduce employee exposure to a hazardous atmosphere, or putting on hard hats that are readily available at the workplace).

CSHOs may exercise discretion in what is a reasonable amount of time required for correction of apparent violations; however, the following guidelines should generally be followed:

1. For apparent violations that can be abated immediately, such as through application of existing controls (e.g., replacement or adjustment of a machine guard), abatement must be completed at the time the CSHO identifies the hazard or shortly afterward during the walkaround. The CSHO must observe abatement onsite to be eligible for Quick-Fix reduction.
2. For apparent violations that require more complex abatement actions, such as the purchase of materials, fabrication of parts, training, etc., abatement should be completed within 5 days of the condition being discovered by the CSHO.
   1. In extenuating circumstances, such as where items are required to be ordered and shipped, an additional 10 days can be permitted for abatement completion. In no case shall Quick-Fix credit be provided for abatement actions exceeding 15 days after the CSHO discovered the condition. Where more than 5 days are needed for abatement completion, the employer must provide information to the CSHO within 5 days of the condition being discovered that describes the actions they have taken, and why an additional 10 days is necessary.
   2. Abatement completion will be established through CSHO review of documentation provided by the employer. Documentation must be provided to AKOSH either electronically (e.g., email) or by mail (e.g., USPS, FedEx, etc.), and must be postmarked no later than the 5th day (or 15th day, where applicable) after the condition was identified by the compliance officer. Abatement documentation for Quick-Fix credit must include sufficient information to show full correction of the apparent violation (e.g., photos or video of abated physical hazards; copies of the written program, procedures, or other required documents for programmatic violations; copies of training rosters and training materials for training violations).
   3. Where the CSHO determines that sufficient documentation of abatement has not been provided within a timely manner, or that the apparent violation has not been fully abated, Quick-Fix credit shall not be applied.
   4. In all cases, the employer must prevent employee exposure to the hazard until the condition is abated to receive Quick-Fix credit.
   5. All Quick-Fix credits are subject to review and concurrence by the Chief of Enforcement.

1. The adjustments to an individual violation's GBP for history, good faith, quick fix, and size will be applied serially. Table 11-4, below, provides an overview of the program.
2. A Quick-Fix penalty reduction of 15 percent shall be applied after the adjustments for history and good faith, before size reduction.

Table 6-4: Quick-Fix Penalty Reduction Factor

General.

1. Each repeated violation shall be evaluated as serious or other-than-serious, based on current workplace conditions, and not on hazards found in the prior case.
2. A Gravity-Based Penalty (GBP) shall then be calculated for repeated violations based on facts noted during the current inspection.
3. Only the reduction factor for size, appropriate to the facts at the time of the reinspection, shall be applied.

The 20 percent-plus penalty increase, as described in V.B.2 will be applied to the final calculated repeat proposed penalty, but not to exceed the statutory maximum.

The amount of any increase to a proposed penalty for repeated violations shall be determined by the size of the employer's business.

1. Small Employers.

   For employers with 250 or fewer employees nationwide, the GBP shall be multiplied by a factor of 2 for the first repeat violation and by 5 for the second repeat violation. The GBP may be multiplied by 10 in cases where the Assistant Chief of Enforcement, after consultation with the Chief of Enforcement, determines that it is necessary to achieve the deterrent effect. The reasons for imposing a high multiplier factor shall be documented in the case file.

2. Large Employers.

   For employers with more than 250 employees nationwide, the GBP shall be multiplied by a factor of 5 for the first repeated violation and by 10 for the second repeated violation.

For a repeated other-than-serious violation that otherwise would have no initial penalty, see Table S-5, "Repeat Other-Than-Serious, No Initial Penalty" in the Penalties Supplement.

NOTE: These penalties shall not be subject to the Penalty Increase factors as discussed in Paragraph III.B. of this chapter.

1. For calculating the GBP for regulatory violations, see Paragraph III.A.5 and Section X.
2. For repeated instances of regulatory violations, the initial penalty shall be multiplied by 2 for the first repeated violation and multiplied by 5 for the second repeated violation. If the Chief of Enforcement determines that it is necessary to achieve the proper deterrent effect, the initial penalty may be multiplied by 10.

An employer may be assessed a civil penalty of not more than the maximum listed in Table S-1 of the Penalties Supplement for each willful violation. See Minimum Penalties at Paragraph II.C. of this chapter.

1. Each willful violation shall be classified as serious or other-than-serious.
2. There shall be no reduction for good faith.
3. In no case shall the proposed penalty for a willful violation (serious or other-than-serious) after reduction be less than the minimum in Table S-1 of the Penalties Supplement.

Unless an alleged violation resulted or contributed to a fatality, amputation or paralysis of at least one hand, foot, or limb, the reduction factors for size for serious willful violations shall be applied as shown in the following chart. This chart helps minimize the impact of large penalties for small employers with 50 or fewer employees.

However, in no case shall the proposed penalty be less than the statutory minimum for these employers.

Table 6-5: Serious Willful Penalty Reduction

For an alleged serious willful violation resulting in or contributing to a fatality, amputation, paralysis, or loss of an eye, the following penalty reduction schedule shall be used:

Table 6-6: Serious Willful Penalty Reduction – Fatalities or Certain Serious Injuries

• The reduction factor for history shall be applied.
• The proposed penalty shall then be determined from Table S-6 in the Penalties Supplement.

1. For calculating the GBP for regulatory violations, see Paragraphs III.A.3 and III.A.5 for other-than-serious violations.
2. In the case of regulatory violations that are determined to be willful, the GBP penalty shall be multiplied by 10. In no event shall the penalty, after reduction for size and history, be less than the statutory minimum.

1. Failure to Abate penalties shall be proposed when:
   1. A previous citation issued to an employer has become a final order of the Review Board; and
   2. The condition, hazard, or practice found upon re-inspection is the same for which the employer was originally cited and has never been corrected by the employer (i.e., the violation was continuous).
2. The citation has to have become a final order.

1. Unabated Violations.

   A GBP is to be calculated for unabated violations resulting from failure to abate a serious or other-than-serious violation, based on the facts noted during reinspection. This recalculated GBP, however, shall not be less than that proposed for the item when originally cited.

   EXCEPTION: When the CSHO believes and documents in the case file that the employer has made a good faith effort to correct the violation and had an objective, reasonable belief that it was fully abated, the Chief of Enforcement may reduce or eliminate the daily proposed penalty.

2. No Initial Proposed Penalty.

   In instances where no penalty was initially proposed, an appropriate penalty shall be determined after consulting with the Chief of Enforcement. In no case shall the GBP be less than $1,000 per day.

3. Size Only Permissible Reduction Factor.

   Only the reduction factor for size — based upon the circumstances noted during the reinspection — shall be applied to arrive at the daily proposed penalty.

4. Daily Penalty Multiplier.

   The daily proposed penalty shall be multiplied by the number of calendar days that the violation has continued unabated, except as provided below:

   1. The number of days unabated shall be counted from the day following the abatement date specified in the citation or the final order. It will include all calendar days between that date and the date of reinspection, excluding the date of reinspection.
   2. Normally, the maximum total proposed penalty for failure to abate a particular violation shall not exceed 30 times the amount of the daily proposed penalty.
   3. At the discretion of the Chief of Enforcement, a lesser penalty may be proposed. The reasoning for the lesser penalty shall be fully explained (e.g., achievement of an appropriate deterrent effect) in the case file.
   4. If a penalty in excess of the normal maximum amount of 30 times the amount of the daily proposed penalty is deemed necessary by the Chief of Enforcement to deter continued non-abatement, the case shall be treated pursuant to violation-by-violation (egregious) penalty procedures.

1. When a citation has been partially abated, the Chief of Enforcement may authorize a reduction of 25 to 75 percent of the proposed penalty amount, calculated as outlined above.
2. When a violation consists of multiple instances and the follow-up inspection reveals that only some instances of the violation have been corrected, the additional daily proposed penalty shall take into account the extent of the abatement efforts.

EXAMPLE 11-3: Where three out of five instances have been corrected, the daily proposed penalty (calculated as outlined above, without regard to any partial abatement) may be reduced by 60 percent.

Each instance of noncompliance shall be considered a separate violation, with individual proposed penalties assigned for each instance. This procedure is known as the egregious or violation-by-violation penalty procedure.

Such cases shall be handled in accordance with the most recent compliance directive addressing violations on an instance-by-instance basis.

Penalties calculated using the violation-by-violation policy shall not be proposed without the concurrence of the Commissioner of Labor and Workforce Development.

Penalties for violation of posting requirements shall be proposed as follows:

1. Failure to Post the AKOSH Notice (Poster) A citation for failure to post the AKOSH Notice is warranted if:
   1. The pattern of violative conditions for a particular establishment demonstrates a consistent disregard for the employer's responsibilities under AKOSH laws; AND
   2. Interviews show that employees are unaware of their rights under Alaska's occupational safety and health laws; OR
   3. The employer has been previously cited or advised by AKOSH of the posting requirement. If the criteria above are met and the employer has not displayed (posted) the notice furnished by AKOSH, an other-than-serious citation shall normally be issued. The GBP for this alleged violation shall be $1,000.
2. Failure to Post a Citation - AS 18.60.091(c).
   1. If an employer received a citation that was not posted as prescribed in AS 18.60.091(c), an other-than-serious citation shall normally be issued. The GBP shall be the amount for a low gravity violation in Table S-3 of the Penalties Supplement.
   2. For information regarding the OSHA-300A form, see the most current recordkeeping compliance directive.

1. General.
   1. The penalty provisions of AS 18.60.095 apply to all citations issued under this regulation.
   2. No "Good Faith" or "History" reduction shall be given to employers when proposing penalties for any 8 AAC 61.142 (29 CFR 1903.19) violations. Only the reduction factor for size shall apply when assessing penalties.
   3. See Chapter 7, Post-Citation Inspection Procedures and Abatement Verification, for detailed guidance.
2. Penalty for Failing to Certify Abatement.
   1. A penalty for failing to submit abatement certification documents, 29 CFR 1903.19(c)(1), as adopted in 8 AAC 61.142, shall be $1,000, reduced only for size.
   2. A penalty for failure to submit abatement verification documents will not exceed the penalty for the entire original citation.
   3. No "Good Faith" or "History" reductions shall be given to employers cited for failure to certify abatement.
3. Penalty for Failing to Notify and Tagging.
   1. Penalties for not notifying employees and tagging movable equipment 29 CFR 1903.19 [paragraphs (g)(1), (g)(2), (g)(4), (i)(1), (i)(2), (i)(3), (i)(5) and (i)(6)].
   2. as adopted in 8 AAC 61.142(a) will follow the same penalty structure as for Failure to Post a Citation (GBP equal to the amount for a low gravity violation in Table S-3 of the Penalties Supplement).
   3. No "Good Faith" or "History" reductions shall be given to employers for failure to notify employees and tagging movable equipment.

1. Part 1904 violations are always other-than-serious.
2. Repeated and Willful penalty policies in paragraphs V.D. and VI.A., respectively, of this Chapter may be applied to recordkeeping violations.
3. AKOSH's egregious penalty policy may be applied to recordkeeping violations.

If an employer is cited for failing to provide access to records as required under 29 CFR 1910.1020 for inspection and copying by any employee, former employee, or authorized representative of employees, the GBP listed in Table S-7, "Failure to Provide Access to Medical and Exposure Records," in the Penalties Supplement shall normally be proposed for each record (i.e., either medical record or exposure record, on an individual employee basis).

EXAMPLE 11-4: If the evidence demonstrates that an authorized employee representative requests both exposure and medical records for three employees and the request was denied by the employer, a citation would be issued for six instances (i.e., one medical record and one exposure record (total two) for each of three employees) of a violation of 29 CFR 1910.1020.

The above policy does not preclude the use of violation-by-violation or per-employee penalties where higher penalties are appropriate.

1. The willful violation of an AKOSH standard, rule, or order causing the death of an employee; AS 18.60.095(e);
2. Giving unauthorized advance notice; AS 18.60.085; and
3. Knowingly giving false information; AS 18.60.095(f).

Criminal penalties are the sole jurisdiction of the Alaska court system and must be pursued in conjunction with the Department of Law.

Pursuant to its statutory authority, AKOSH's policy is to collect all penalties owed to the government. The Project Assistant is responsible for:

1. Informing employers of AKOSH's debt collection procedures; Collecting assessed penalties from employers;
2. Reporting penalty amounts collected and those due;
3. Referring cases with uncollected penalties to the contracted collection agency;
4. Transferring selected cases to the Assistant Attorney General for legal action and subsequently tracking such cases;
5. Mailing collected monies in accordance with the State of Alaska revenue procedures; and
6. Reviewing bankruptcy filings and initiating debt cancellation proceedings when necessary.

The Project Assistant shall be guided by the following with regard to penalty payments:

1. Methods of Payment.

   Employers assessed penalties shall remit the total payment by certified check, personal check, company check, postal money order, cashier's check, ACH, interdepartmental transfer (for other State of Alaska Departments), or bank money order, payable to AKOSH. Payment in cash shall not be accepted. Upon the employer's request and for good cause, alternate methods of payment, such as payments in installments, are permissible.

2. Adjustment to Payments.

   The following adjustments shall be made prior to transmitting the payment instrument to the depository. See Paragraph XIII.B.5. of this chapter, Depositing Payments.

   1. If the payment instrument is not dated, the date received shall be entered as the date of payment.
   2. If the payment instrument has differing numeric and written amounts, the written amount shall be credited and the instrument deposited. If the written amount is obviously incorrect or differs from the amount referenced in the accompanying correspondence, the payment instrument shall be returned to the employer via certified mail for correction.
   3. If the payment instrument does not include the establishment name, the name shall be inserted on the face of the payment instrument.
   4. If the payment instrument includes the notation, "Payment in Full," whether or not the notation is incorrect, the payment shall be deposited.
   5. If the payment instrument is unsigned, the payment shall be deposited.
   6. If an employer mistakenly makes the payment payable to an official of AKOSH by name, it shall be endorsed as follows:
      1. Postal Money Orders — follow instruction on reverse of the money order.
      2. All others — enter on reverse:

         Pay to the order of AKOSH

         ______________________________________
         (Signature) (Typewritten name of payee)

3. Incorrect, Un-honored, or Foreign Payments.
   1. Incorrectly dated payments shall be handled as follows:
      1. If the payment instrument is dated 10 days or more after the date of receipt, it is to be returned to the employer.
      2. If the payment instrument is dated less than 10 but more than 3 days after the date of receipt, it is to be held for deposit on the day it is dated.
      3. Payment instruments dated 3 or fewer days after the date of receipt are to be deposited under AKOSH procedures.
      4. If the payment instrument is dated more than six months prior to the current date, it is to be returned to the employer via certified mail.
   2. Payment instruments which have been returned without payment, due to insufficient funds, shall be offered to be returned to the employer via certified mail.
   3. Payments drawn on non-U.S. banks are to be deposited.
   4. Endorsing Payments.

      All payment instruments shall be endorsed as follows:

      Pay to the Order of:
      Key Bank Alaska For: Deposit Only To:
      State of Alaska, Alaska Occupational Safety and Health

4. Depositing Payments.

   All payments shall be kept in a safe place and, unless otherwise indicated, deposited regularly.

5. Records.

   A copy of the penalty payment instrument shall be included in the case file. Additional accounting records shall also be included in the case file in accordance with current procedures.

In cases of later penalty modifications by AKOSH, the Review Board, or a court, refunds to the employer shall be made by the Department of Labor and Workforce Development.

When citations and/or proposed penalties are uncontested, the penalties are due and payable 30 working days following the employer's receipt of the Citation and Notification of Penalty or, in the case of Informal Settlement Agreements, 30 days after the date of the last signature, unless a later due date for payment of penalties is agreed upon in the settlement.

When citations and/or proposed penalties are contested, the date penalties are due and payable will depend upon whether a settlement agreement, an administrative law judge decision, a Board decision, or a court judgment resolves the case.

When only part of a citation and/or a proposed penalty is contested, the due date for payment as stated in paragraph XIV.1., Uncontested Penalties, shall be used for the uncontested items and the due date stated in Paragraph XIV.2., Contested Penalties, for the contested items.

NOTE: This provision notwithstanding, formal debt collection procedures will not be initiated in partially contested cases until a final order for the outstanding citation items has been issued.

It is AKOSH's policy to notify employers (the "Notice") that debts are payable and due, and to inform them of AKOSH's debt collection procedures prior to assessing any applicable delinquent charges. A copy of the "Notice" stating AKOSH's debt collection policy, including assessment of interest, additional charges for nonpayment, and administrative costs, shall be included with each Citation and Notification of Proposed Penalty, sent to employers. A copy of the "Notice" shall be retained in the case file.

The Chief of Enforcement shall send a demand letter to the employer when the debt has become delinquent and shall retain a copy of the demand letter in the case file. A debt becomes delinquent 30 calendar days after the due date, which is also the final order date.

1. Uncontested Case with Penalties.

   If payment of any applicable penalty is not received within 30 calendar days after the date of the expiration of the 15 working day contest period, or 15 working days after the date of the last signature (unless a later due date for payment of penalties is agreed upon in the settlement) if an Informal Settlement Agreement has been signed, a demand letter shall be mailed.

2. Contested Case with Penalties.

   If payment of any applicable penalty is not received within 30 calendar days after the Review Board's Order approving a Formal Settlement Agreement, 60 calendar days after the Notice of Docketing, 90 calendar days after the Notice of Board Decision, or 120 calendar days after date of the judgment of the Alaska Superior Court, and no appeal of the case has been filed by either AKOSH or the employer, the Chief of Enforcement shall either send a demand letter or a letter notifying the employer that the AKOSH fine is past due (without assessing late fees and updating the OIS as if a default letter had been sent).

3. Exceptions to Sending the Demand Letter.

   The demand letter will not be sent in the following circumstances:

   1. The employer is currently making payments under an approved installment plan or other satisfactory payment arrangement. Such plans or arrangements shall be set forth in writing and signed by the employer and the Chief of Enforcement.

      NOTE: If the employer enters into a written plan establishing a set payment schedule within one calendar month of the due date but subsequently fails to make a payment within one calendar month of its scheduled due date, a payment default letter shall be sent to the employer. If the employer fails to respond satisfactorily to that letter within one month, the unpaid portion of the debt shall be handled in accordance with Paragraph XIV.D., Assessment Procedures.

   2. The employer has partially contested the case (even if the penalty has not been contested). In such circumstances, a demand letter shall not be sent until a final order has been issued.

If the penalty has not been paid by the delinquent date (i.e., within one calendar month of the due date), the Chief of Enforcement shall implement the following procedures:

1. The demand letter shall be sent to the employer requesting immediate payment of the debt. The demand letter shall show the total amount of the debt, including the unpaid penalty amount, interest, and administrative costs.
2. Employers may respond to the demand letter in several ways:
   1. The entire debt may be paid. In such cases, no further collection action is necessary.
   2. A repayment plan may be submitted or offered after a set payment schedule has been approved by the Chief of Enforcement. If payments are not made on schedule, the unpaid portion of the debt shall be treated in accordance with Paragraph XIV.D.
   3. A partial payment may be made; the unpaid portion of the debt shall be treated in accordance with Paragraph XIV of this chapter.
3. If any portion of the debt remains unpaid after one calendar month from the time the demand letter was sent to the employer, the Chief of Enforcement shall institute one of the following:
   1. Outstanding debts less than $100 may be written off.
   2. If the employer made a payment after receiving the demand letter, AKOSH may:
      1. Send a receipt letter or contact the employer to request the balance due on the debt.
      2. Refer the case to collections.
   3. Outstanding debts with a current debt of $100 or more shall be referred to collections.
4. After a case has been referred for collections, the Project Assistant has no further responsibilities with regard to penalty collection related to that case, except to track the successful collection of the penalty.
5. If, after a case has been referred to collections, the employer sends a payment to AKOSH, the case is subsequently contested or new information regarding the debt or employer is obtained, the Project Assistant shall contact the collection agency to avoid further action.
6. The responsibility for closing the case remains with the Chief of Enforcement. Once final collection action has been completed, the case may be closed whenever appropriate.