<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".12" citation="COMAR 09.12.20.12" title_num="09" subtitle_num="12" chapter_num="20" heading="Penalties.">
  <paragraph num="A.">
    <text>Scope. This regulation applies to the assessment of civil penalties by the Commissioner under Labor and Employment Article, §§5-809 and 5-810, Annotated Code of Maryland, in all cases arising from inspections conducted on and after the effective date of this regulation.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Definition. In this regulation, “Commissioner” means:</text>
    <paragraph num="(1)">
      <text>The Commissioner of Labor and Industry;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The  Commissioner's authorized representative; or</text>
    </paragraph>
    <paragraph num="(3)">
      <text>A person acting pursuant to a delegation of authority from the Commissioner of Labor and Industry.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>In assessing a penalty for a violation of the law, a regulation, or an order, the Commissioner shall consider the following factors in accordance with this regulation:</text>
    <paragraph num="(1)">
      <text>Gravity of the violation for which the penalty is to be assessed;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Good faith of the employer;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Existence and quality of a safety and training program;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Injury and illness experience of the employer;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>The extent to which the existence of the violation was known to the employer, but remained not corrected;</text>
    </paragraph>
    <paragraph num="(6)">
      <text>History of violations by the employer;</text>
    </paragraph>
    <paragraph num="(7)">
      <text>Extent to which the current violation is part of a recurrent pattern of the same or similar type of violation;</text>
    </paragraph>
    <paragraph num="(8)">
      <text>Size of the business of the employer against whom the penalty is to be assessed; and</text>
    </paragraph>
    <paragraph num="(9)">
      <text>Actual harm to human health, including injury or illness.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>Gravity-Based Penalty.</text>
    <paragraph num="(1)">
      <text>Gravity.</text>
      <paragraph num="(a)">
        <text>Based on the gravity of a violation, the Commissioner shall assess up to $5,000.</text>
      </paragraph>
      <paragraph num="(b)">
        <text>The Commissioner shall determine the amount to assess for the gravity of the violation by considering the:</text>
        <paragraph num="(i)">
          <text>Severity of the most serious injury or illness that is reasonably predictable from the hazard; and</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Probability that an injury or illness will arise from a hazard.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>The Commissioner shall assign each hazard a severity assessment and a probability assessment in accordance with this regulation.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(2)">
      <text>Severity Assessment. The Commissioner shall assign the most serious injury or illness which is reasonably predictable from the safety or health hazard cited, a severity assessment of 1 to 10 as follows:</text>
      <paragraph num="(a)">
        <text>Death, injuries, or illness involving permanent disability or a chronic, irreversible condition—severity factor of 8 to 10;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Injuries or temporary, reversible illnesses resulting in hospitalization, or a variable but limited period of disability—severity factor of 5 to 7;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Injuries or temporary, reversible illnesses not resulting in hospitalization and requiring only minor supportive treatment—severity factor of 2 to 4; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Hazard violation characterized as other-than-serious—severity factor of 1.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>Probability Assessment.</text>
      <paragraph num="(a)">
        <text>Probability for Safety or Health Hazards When Samples are not Taken. For a safety or health hazard when samples are not taken, the Commissioner shall determine the probability that an injury or illness will arise from the apparent violation by assigning a value of 1 to 10 to each of the following factors:</text>
        <paragraph num="(i)">
          <text>The number of employees exposed, with a value of 1 being the lowest number of employees exposed;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The frequency of exposure, with a value of 1 being the lowest frequency;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The proximity of the employee to the zone of danger, with a value of 1 being the lowest proximity; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Working conditions, with a value of 1 being conditions least likely to contribute to injury or illness.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>Probability for Safety and Health Hazards When Sampling is Conducted. For a safety or health hazard when sampling is conducted, the Commissioner shall determine the probability that an injury or illness will arise from the hazard by considering:</text>
        <paragraph num="(i)">
          <text>The number of employees exposed with a value of 1 being the lowest number of employees exposed;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>The duration of exposure with a value of 1 being the lowest duration of exposure;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>The use of appropriate personal protective equipment with a value of 1 being the lowest; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>If applicable, an evaluation of the medical surveillance program.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(c)">
        <text>Probability Assessment. The Commissioner shall total factors assigned pursuant to §D(3)(a) or (b) of this regulation and divide by the number of factors considered to determine the probability assessment.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>Gravity Assessment. The Commissioner shall determine the gravity-based penalty for each violation by adding the severity assessment and the probability assessment, dividing by 2, and multiplying the quotient by $500.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>Penalty Adjustment Factors.</text>
    <paragraph num="(1)">
      <text>The Commissioner may reduce the gravity-based penalty on the basis of an employer's good faith, size of business, and history in accordance with §§F—H of this regulation.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commissioner shall calculate the penalty adjustment factor only once for each employer, after the gravity-based penalty has been determined for each violation and the general character of the employer's performance is apparent.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>Good Faith.</text>
    <paragraph num="(1)">
      <text>Based on the degree of employer good faith, the Commissioner may reduce the gravity-based penalty by a maximum of 25 percent.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commissioner shall consider the following in determining whether to reduce the gravity-based penalty based on an employer's good faith factor:</text>
      <paragraph num="(a)">
        <text>The existence and quality of a safety and health program and a training program, that:</text>
        <paragraph num="(i)">
          <text>Provides for appropriate management commitment and employee involvement,</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Provides for worksite analysis for the purpose of hazard identification,</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Provides for hazard prevention and control measures,</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Provides for employee training and instruction relative to the hazards of the work being performed, including hazard communication, lockout-tagout, hazardous materials and emergency responses, safety and health programs for construction, and trenching and excavation, and</text>
        </paragraph>
        <paragraph num="(v)">
          <text>Has deficiencies that are only incidental;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>The injury and illness experience of the employer;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>The level of supervision and of employer concern and knowledge about safety and health requirements;</text>
      </paragraph>
      <paragraph num="(d)">
        <text>The extent to which the employer knew of the violation and failed to take action to correct it; and</text>
      </paragraph>
      <paragraph num="(e)">
        <text>Employer action to abate an apparent violation or mitigate exposure during the inspection.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>History.</text>
    <paragraph num="(1)">
      <text>Based on an employer's history of violations, the Commissioner may reduce the gravity-based penalty by a maximum of 10 percent.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commissioner shall consider the following in determining whether to reduce the gravity-based penalty based on an employer's history:</text>
      <paragraph num="(a)">
        <text>Nature and extent of the employer's history of prior MOSH violations; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Extent to which the violation at issue is part of a recurrent pattern of the same or similar type of violation.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>Size.</text>
    <paragraph num="(1)">
      <text>“Size” means peak employment at all of an employer's establishments and work locations during the 12-month period preceding a violation.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Based on the size of an employer, the Commissioner may reduce a gravity-based penalty by a maximum of 60 percent in accordance with the following schedule:</text>
      <paragraph num="(a)">
        <text>1 to 25 employees, maximum 60 percent reduction;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>26 to 100 employees, maximum 40 percent reduction;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>101—250 employees, maximum 20 percent reduction; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>251 or more employees, no reduction.</text>
      </paragraph>
    </paragraph>
  </paragraph>
  <paragraph num="I.">
    <text>Actual Harm to Human Health, Including Injury or Illness.</text>
    <paragraph num="(1)">
      <text>Based on the actual harm to human health or well-being, arising from a hazard, the Commissioner shall assess up to $2,000.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The Commissioner shall determine the amount to assess for the actual harm factor by considering the degree and nature of actual harm to an employee.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>The Commissioner may not apply an adjustment factor to a penalty assessed for actual harm.</text>
    </paragraph>
  </paragraph>
  <paragraph num="J.">
    <text>Penalty Assessment.</text>
    <paragraph num="(1)">
      <text>In determining the total penalty to assess for a violation, the Commissioner shall comply with this section.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>For a serious violation, the Commissioner shall:</text>
      <paragraph num="(a)">
        <text>Determine the gravity-based penalty;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Reduce the gravity-based penalty by the penalty adjustment factor; and</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Add to the adjusted gravity-based penalty any assessment for actual harm.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(3)">
      <text>For an other-than-serious violation, when the Commissioner determines to issue a penalty, the Commissioner shall assess the penalty by first determining the gravity-based penalty and adjusting it by the appropriate penalty adjustment factor, and then adding any assessment for actual harm.</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Willful Violation.</text>
      <paragraph num="(a)">
        <text>When an employer willfully violates the law, a regulation, or an order, the Commissioner shall:</text>
        <paragraph num="(i)">
          <text>Determine the gravity-based penalty;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>Reduce the gravity-based penalty by the penalty adjustment factor determined for the employer;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>Add any assessment for actual harm; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>Multiply the sum by 10.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(b)">
        <text>If the penalty determined under §J(4)(a) of this regulation is less than $5,000, the Commissioner shall propose a penalty of $5,000.</text>
      </paragraph>
    </paragraph>
    <paragraph num="(5)">
      <text>When an employer repeatedly violates the law, a regulation, or an order, the Commissioner shall:</text>
      <paragraph num="(a)">
        <text>Determine the gravity-based penalty;</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Reduce the gravity-based penalty by the penalty adjustment factor established for the employer;</text>
      </paragraph>
      <paragraph num="(c)">
        <text>Add any actual harm assessment; and</text>
      </paragraph>
      <paragraph num="(d)">
        <text>Multiply the total by:</text>
        <paragraph num="(i)">
          <text>2, for the first repeat;</text>
        </paragraph>
        <paragraph num="(ii)">
          <text>4, for the second repeat;</text>
        </paragraph>
        <paragraph num="(iii)">
          <text>6, for the third repeat; and</text>
        </paragraph>
        <paragraph num="(iv)">
          <text>10, for the fourth repeat.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="(6)">
      <text>In negotiating a bona fide settlement of a citation, the Commissioner may adjust a penalty assessed in accordance with this regulation in a manner appropriate under the relevant statutory factors and the facts and circumstances of the case.</text>
    </paragraph>
  </paragraph>
</regulation>