Summary of Dye & Wash Technology - Denial of Petition After Reconsideration

Employer, who agreed to an order disposing of its appeals, seeks reconsideration on the ground that its business cost increases in the months after the order issued made paying the reduced penalties a hardship. The Board denied the petition because Employer failed to state the grounds as required by Labor Code section 6616, then sets out the rules regarding penalty reduction. Employer must prove that the payment of any penalty would force it out of business in order to have penalties set aside entirely. Penalties may be reduced if: (1) assessment of the full amount would jeopardize Employer’s ability to continue operating and maintaining an effective safety program; (2) the employer has abated all violations and demonstrated its employee safety and health commitment; and, (3) the employer can't pay the full amount even in installments. Factors to be considered in determining the amount of the reduction include the extent of the hardship, the size of the penalty, and the use of installments to curb the reduction. The foremost factor is the adverse effect that granting unjustified reductions can have on achieving the Act's goal of inducing compliance and deterring violations.

Dye & Wash Technology 00-2327

July 11, 2001