Consultation Policies and Procedures Manual, Chapter 8: OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP | Occupational Safety and Health Administration

Record Type:

OSHA Notice
Current Directive Number:

06-06 (CSP 02)
Old Directive Number:

TED 3.6
Title:

Consultation Policies and Procedures Manual, Chapter 8: OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP
Information Date:

12/14/2006

NOTICE: This is an OSHA Archive Document, and may no longer represent OSHA Policy. It is presented here as historical content, for research and review purposes only.

OSHA NOTICE

DIRECTIVE NUMBER: 06-06 (CSP 02)	EFFECTIVE DATE: December 14, 2006
SUBJECT: Consultation Policies and Procedures Manual, Chapter 8: OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP

ABSTRACT

Purpose:	This Chapter provides polices and procedures for Consultation Projects and OSHA personnel relating to OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP. This Notice cancels Chapter 7 of the Consultation Policies and Procedures Manual (CPPM) and replaces Chapter 8 entitled: "Monitoring of Consultation Projects." The content of the former Chapter 8 is located in Chapter 10 of this Manual, OSHA Instruction CSP 02-00-001 [TED 3.6].
Scope:	This Notice applies OSHA-wide.
References:	The IMIS Consultation Data Processing Manual [IRT 01-00-0013]; Inspection Reference Manual (FIRM) [CPL 02-00-103]; Safety and Health Program Management Guidelines [FR 54:3904-3916]; Standard Element Paragraph (STEP) Manual [CNS3.6]; 29 Code of Federal Regulations 1908, Cooperative Agreements.
Cancellations:	Chapter 7: Recognition and Exemption Programs, of OSHA Instruction CSP 02-00-001 [TED 3.6], Chapter 7, August 6, 2001.
Expiration Date:	This notice will expire on December 31, 2007.
State Impact:	This Notice is a Federal program change requiring State implementation; see Chapter 1 of this manual.
Action Offices:	National, Regional, and Area Offices
Originating Office:	Directorate of Cooperative and State Programs
Contacts:	Office of Small Business Assistance Frances Perkins Building, Room N-3700 200 Constitution Avenue, NW Washington, DC 20210 202-693-2220

By and Under the Authority of

Edwin G. Foulke, Jr.
Assistant Secretary

Executive Summary

This Chapter provides polices and procedures for Consultation Projects and OSHA personnel relating to OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP.

Significant Changes

In accordance with the Compliance Assistance Authorization Act of 1998 (CAAA), OSHA has eliminated the size requirements for SHARP participation. Priority for consultation services, including for SHARP and Pre-SHARP, shall remain for those employers with 250 or fewer employees onsite. However, if a Consultation Project has available resources and no conflicting priority requests, Projects may provide complete safety and health hazard surveys for larger employers (251 or more employees onsite and/or 501 or more corporate-wide). Accordingly, those employers with more than 250 employees onsite are assigned a lower priority for On-site Consultation services. Chapter 3 of this manual provides a schedule for prioritizing On-site Consultation services for employers seeking such services.
All employers, whether they are in high-hazard industries or not, will be considered for participation in SHARP and Pre-SHARP.
The term Total Case Incidence Rate (TCIR) has been changed to Total Recordable Case (TRC) rate, and the term Lost Workday Injury and Illness (LWDII) rate has been changed Days Away from work, days of Restricted work activity or job Transfer (DART) rate, to allow for consistency with the terms used on the OSHA Form 300.
An alternative rate calculation method and an override provision have been adopted for calculating eligibility for participation in SHARP, which will impact both new and renewal SHARP sites, See X.D of this Chapter.
Consultation Project Managers will now submit an employer's request for SHARP participation via the web-based application for SHARP approval, See X.E.2 of this Chapter.
The duration of SHARP exemptions from OSHA programmed inspections both for initial approval and for the first renewal, is being increased from one year to up to two years. Thereafter, SHARP renewal exemptions will be for a period of up to three years, See X.G (1) of this Chapter.
Employers at SHARP sites seeking renewal of their SHARP status must now request a renewal visit within 180 days of the expiration of their exemption status, See X.H of this Chapter.
This Chapter provides policies and procedures for State Consultation Projects and OSHA personnel relating to OSHA's Pre-SHARP program.
The term Inspection Deferral status has been replaced by the term Pre-SHARP status.

TABLE OF CONTENTS

Purpose
Scope
References
Cancellations
Significant Changes
Expiration Date
Action Information
State Impact
OSHA's On-site Consultation Program
Safety and Health Achievement Recognition Program (SHARP)
1. Employer Eligibility
2. Program Requirements
3. 1989 Safety and Health Program Management Guidelines
4. Injury/Illness Rates
5. Consultation Project Responsibilities
6. Regional Responsibilities
7. Duration of SHARP Status
8. Renewal Requirements
9. Renewal Approval
10. OSHA Inspection(s) at SHARP Worksites
Pre-SHARP Status
1. Employer Eligibility
2. Pre-SHARP Requirements
3. Post Pre-SHARP Status requirements
4. Deferral Time Frame
5. Consultation Project Responsibilities
6. Regional Responsibilities
7. OSHA Inspection(s) at Pre-SHARP Worksites
General Employer and Consultation Obligations
1. Fatalities or Catastrophes at a SHARP or Pre-SHARP Site
2. Changes that May Affect a SHARP or Pre-SHARP Employer's Eligibility
3. Failure to Maintain Program Requirements
Appendix
1. Rate Calculations
2. Alternative Rate Calculation for Smaller Employers
3. Interim-Year SHARP Site Self-Evaluation Template

Purpose. This Chapter provides polices and procedures for Consultation Projects and OSHA personnel relating to OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP.
Scope. This Notice applies OSHA-wide.
References. The IMIS Consultation Data Processing Manual [IRT 01-00-0013]; Field Inspection Reference Manual (FIRM) [CPL 02-00-103]; Safety and Health Program Management Guidelines [FR 54:3904-3916]; Standard Element Paragraph (STEP) Manual [CNS3.6]; 29 Code of Federal Regulations 1908, Cooperative Agreements.
Cancellations. Chapter 7: Recognition and Exemption Programs, of OSHA Instruction CSP 02-00-001 [TED 3.6], Chapter 7, August 6, 2001.
Significant Changes.
1. In accordance with the Compliance Assistance Authorization Act of 1998 (CAAA), OSHA has eliminated the size requirements for SHARP participation. Priority for consultation services, including for SHARP and Pre-SHARP, shall remain for those employers with 250 or fewer employees onsite. However, if a Consultation Project has available resources and no conflicting priority requests, Projects may provide complete safety and health hazard surveys for larger employers (251 or more employees onsite and/or 501 or more corporate-wide). Accordingly, those employers with more than 250 employees onsite are assigned a lower priority for On-site Consultation services. Chapter 3 of this manual provides a schedule for prioritizing On-site Consultation services for employers seeking such services.
2. All employers, whether they are in high-hazard industries or not, will be considered for participation in SHARP and Pre-SHARP.
3. The term, Total Case Incidence Rate (TCIR) has been changed to Total Recordable Case (TRC) rate, and the term Lost Workday Injury and Illness (LWDII) rate has been changed Days Away from work, days of Restricted work activity or job Transfer (DART) rate, to allow for consistency with the terms used on the OSHA Form 300.
4. An alternative rate calculation method and an override provision have been adopted for calculating eligibility for participation in SHARP, which will impact both new and renewal SHARP sites, See X.D of this Chapter.
5. Consultation Project Managers will now submit an employer's request for SHARP participation via the web-based application for SHARP approval, See X.E.2 of this Chapter.
6. The duration of SHARP exemptions from OSHA programmed inspections both for initial approval and for the first renewal, is being increased from one year to up to two years. Thereafter, SHARP renewal exemptions will be for a period of up to three years, See X.G (1) of this Chapter.
7. Employers at SHARP sites seeking renewal of their SHARP status must now request a renewal visit within 180 days of the expiration of their exemption status, See X.H of this Chapter.
8. This Chapter provides policies and procedures for State Consultation Projects and OSHA personnel relating to OSHA's Pre-SHARP program.
9. The term Inspection Deferral status has been replaced by the term Pre-SHARP status.
Expiration Date. This notice will expire on December 31, 2007.
Action Information.
1. Responsible Office. Directorate of Cooperative and State Programs (DCSP), Office of Small Business Assistance (OSBA).
2. Action Offices. National, Regional and Area Offices.
3. Information Offices. National Office Directorates and State Designees.
State Impact. This Notice is a Federal program change requiring State implementation. States operating Cooperative Agreements under Section 21(d) of the OSH Act are required to follow the instructions outlined in this Notice. States operating private sector consultation programs under State plans with 23(g) funding must have requirements at least as effective as those outlined in this notice. [Reserve -- State Plan Language, CPPM Chapter 1]

Chapter 8
OSHA's Safety and Health Achievement Recognition Program (SHARP) and Pre-SHARP
OSHA's On-site Consultation Program. OSHA's On-site Consultation Program is a free and confidential consultation service largely funded by Federal OSHA. The On-site Consultation Program is delivered by state governments using highly qualified occupational safety and health professionals to help employers detect potential hazards at their worksite and to establish and maintain a safe and healthful workplace. SHARP is an exemption and recognition program administered by the On-site Consultation Program. Pre-SHARP is a deferral program granted to employers actively progressing toward the achievement of SHARP status and is also administered by the On-site Consultation Program.
Safety and Health Achievement Recognition Program (SHARP). SHARP is designed to provide incentives and support to those employers that implement and continuously improve effective safety and health management system(s) at their worksite. SHARP participants are exempted from OSHA programmed inspections, see 29 CFR 1908.7(b)(4).
1. Employer Eligibility. Employers who request a consultation visit may be considered for participation in SHARP, priority for SHARP and Pre-SHARP participation will be given to those employers with 250 or less employees onsite. Employers with 251 or more employees, should be encouraged to participate in OSHA's Voluntary Protection Programs (VPP). In order to begin this process, Consultation Projects must inform employers that they must:
  1. Request a consultation visit that involves a full service safety and health hazard identification survey, including a comprehensive assessment of the worksite's safety and health management system.
  2. Have at least one year of operating history at the particular worksite for which the employer is seeking SHARP participation.
2. Program Requirements. Consultation Projects should inform employers seeking SHARP approval that their worksites must:
  1. Receive a full service safety and health consultation visit, and a comprehensive review of their safety and health management system. In addition, all hazards found by the consultant(s) must be corrected;
  2. Receive a score of at least "two" on all fifty basic attributes of the Form 33. Additionally, all "stretch items" of the Form 33 must be scored. "Stretch items" are those safety and health attributes above the basic attributes of a foundational safety and health management system, such as employee participation in hazard prevention and control activities within the worksite;
  3. Agree to notify the Consultation Project Manager (CPM) and request a subsequent on-site consultation visit when changes in working conditions or work processes occur that may introduce new hazards into the workplace;
  4. Have an injury/illness rate for the preceding year that meets the requirements outlined at paragraph X.D. of this chapter; and
  5. Submit a request for SHARP participation to CPM.
3. 1989 Safety and Health Program Management Guidelines. Consultation Projects reviewing SHARP applicants should ensure that applicants implement, demonstrate and maintain a safety and health management system. At a minimum, consultants should ensure that the major elements of the 1989 Safety and Health Program Management Guidelines (as measured by the Form 33) have been addressed. Although not a requirement for participation in SHARP, a written safety and health management system as described in the 1989 Safety and Health Program Management Guidelines should be recommended by consultants.
4. Injury/Illness Rates. In order to establish the DART and TRC rates at their worksite, SHARP applicants must have at least one year of operating history at the particular worksite for which SHARP approval is requested. This section establishes the methods for calculating DART and TRC rates as well as the rate requirements for SHARP participants.
  1. For all applicants, DART and TRC calculations will be based on the OSHA Form 300 information for the last full calendar year preceding the on-site evaluation. The calculated DART and TRC rates will be compared against the most recently published Bureau of Labor Statistics (BLS) rates for that industry. To qualify for SHARP, the applicant's DART and TRC rates must be below the published BLS industry average. See Appendices A.I.A and B of this Chapter for rate calculation formulas and examples.
  2. The following alternative calculation methods are available for those applicants whose calculated injury and illness rates are above the published BLS average if the calculation method in X.D.1 is used.
    1. Where the applicant has at least three (3) years of operating history, the DART and TRC rate calculations may be based on the OSHA Form 300 information for the most recent three (3) full calendar years preceding the on-site evaluation. The calculated average DART and TRC rates for the last three years will be compared to the most recently published BLS national average for that industry. To qualify for SHARP, the applicant's average DART and TRC rates must be below the most recently published BLS industry averages. See Appendices A.I.B.1 and B for rate calculation formulas and examples.
    2. For those SHARP applicants for whom a single or a relatively small number of incidents would cause the applicant to be disqualified from SHARP when using the three year rate calculation described above at X.D.2 (a), DART and TRC rates may be calculated using the best three out of the most recent four full calendar year injury and illness data preceding the on-site evaluation. See Appendices A, I.B.2 and B for requirements and examples.
      - In determining whether an employer qualifies for the best three out of four year calculation method, Consultation Projects must do the following:
      - Using the most recent employment statistics (hours worked at the site in the most recent calendar year, including overtime hours), calculate a hypothetical TRC rate for the employer assuming that the employer had two cases during the year;
      - Compare that hypothetical rate to the three most recently published years of BLS combined injury/illness rates for the industry; and
      - If the hypothetical rate (based on two cases) is equal to or higher than the BLS average for the employer's industry for any of the most current BLS published rates, the employer qualifies for the best three out of four years calculation method. See Appendix B of this Chapter for the calculation formula.
  3. CPMs may propose, and Regional Administrators (RA) may approve, SHARP status in those rare instances where an applicant has rates equal to or slightly greater than the industry average after using the calculations above at X.D.1-2. In determining whether to grant an employer approval, the RA must consider the following factors:
    1. Employer is currently a SHARP participant; and
    2. Employer has a score of at least "2" on all 50 basic attributes of the Form 33, and the employer's score on all "stretch items"; and
    3. Employer qualifies for the rate calculation at X.D.2(b) above, but, fails to meet either the DART or TRC rate requirements; and
    4. The employer's history with the On-site Consultation Program.
  4. Employers who meet all of the SHARP requirements, with the exception of the rate requirements, may be recommended for Pre-SHARP status. See XI-XII of this Chapter for Pre-SHARP eligibility and requirements.
5. Consultation Project Responsibilities.
  1. Verification of Employer's Eligibility. The Consultation Project must ensure that the employer satisfies all SHARP participation criteria as described at paragraph X.B above, and that all elements of an effective safety and health management system are fully operational. If hazards are found during the on-site evaluation, which reflect significant deficiencies resulting in a rating of 0-1 on the Form 33 evaluation of the employer's safety and health management system, the site cannot be recommended for SHARP approval. CPMs may not recommend SHARP approval until the deficiencies have been corrected and the CPM is confident that a worksite's safety and health management system will operate effectively.
  2. Submission of SHARP Requests for Approval. After ensuring that the employer has met all of the requirements at paragraph X.B above, the CPM must confirm the employer's interest in SHARP participation. The CPM must then submit the request to the Region via the web-based application for SHARP approval and provide verification of the employer's request for SHARP participation. If the web-based application is unavailable, the CPM must submit the following to the Region:
    1. The CPM's recommendation for SHARP approval;
    2. The site's DART and TRC rates, and the BLS national averages for that industry;
    3. The date and type of each consultation visit conducted during the time the employer was working toward SHARP approval or renewal;
    4. A copy of the completed Form 33 for the worksite's full service safety and health visit;
    5. A copy of a mutually agreed-upon Achievement Plan, which will provide an outline for the continuous improvement of the employer's safety and health management system; and
    6. Verification of the employer's request for SHARP participation.
  3. Notification of Approval. If the SHARP request is approved, the CPM must inform the employer of the duration of the exemption period.
6. Regional Office Responsibilities. Upon receipt of written verification that the employer has met all of the SHARP program requirements, the Regional Office will:
  1. Provide the SHARP certificate to the employer. The certificate will include the company's name, location, and period of exemption;
  2. Notify the appropriate OSHA area office of the worksite's status and facilitate the removal of the worksite from OSHA's Programmed Inspection Schedule for the approved exemption period;
  3. Provide a copy of the certificate and the transmittal letter to the CPM for the case file; and
  4. Submit a monthly update of SHARP activities to the National Office to ensure the employer is added or removed from the national database appropriately.
7. Duration of SHARP Status.
  1. All initial approvals and the first initial renewal of SHARP status will be for a period of up to two (2) years, commencing from the date the Regional Office approves an employer's SHARP application. After the initial approval and renewal periods, all SHARP renewals will be for a period of up to three (3) years.
  2. The exemption period from OSHA programmed inspections will begin on the date that the Regional Office approves the employer's participation in SHARP;
  3. During the interim years, participating employers must submit the following to the CPM:
    1. A copy of the worksite's OSHA 300 log;
    2. A copy of the worksite's Injury and Illness incident reports; and
    3. Information regarding the completion of item(s) set forth in the achievement plan, See X.E.2 (e) of this Chapter.
      - NOTE: A site self-evaluation template is available at Appendix C of this chapter; worksites will find this template a useful tool for documenting their progress in meeting their achievement plan.
8. Renewal Requirements. Consultation Projects must inform employers at SHARP sites seeking renewal of SHARP status that they must request a renewal visit within 180 days of expiration of the exemption status. The CPM may begin to process the employer's request for SHARP renewal provided that the steps outlined at paragraph X.E above, and the following steps have been taken:
  1. The Consultation Project has provided a full service safety and health visit, and conducted a comprehensive program assessment to ensure that the safety and health management system has been effectively maintained or improved;
  2. The Consultation Project has verified that the employer continues to meet all eligibility and program requirements described at paragraph X.B. of this chapter; and
  3. The Consultation Project has received the employer's interim-year self-evaluation (see Appendix C) and OSHA 300 log data. The employer's interim-year self evaluation is required as verification of the employer's continued eligibility, during renewal years.
9. Renewal Approval. Renewal for SHARP participation must be approved by the Regional Office prior to the expiration of SHARP status to assure continued eligibility for exempt status. It is the responsibility of the CPM to ensure that renewal of SHARP status occurs before expiration of exempt status.
10. OSHA Inspection(s) at SHARP Worksites. As noted above, employers that meet all the requirements for SHARP status will have the names of their establishments deleted from OSHA's Programmed inspection Schedule. However, pursuant to 29 CFR 1908.7(b)(4)(ii), the following types of incidents can trigger an OSHA enforcement inspection at SHARP sites:
  1. Imminent danger;
  2. Fatality/Catastrophe; or
  3. Formal complaints.
Pre-SHARP Status. Those employers who do not meet the SHARP requirements, but who exhibit a reasonable promise of achieving agreed-upon milestones and time frames for SHARP participation, may be granted Pre-SHARP status. Upon achieving Pre-SHARP status, employers may be granted a deferral from OSHA programmed inspections.
1. Employer Eligibility. Employers who request a consultation visit may be considered for participation in Pre-SHARP. In order to begin this process, Consultation Projects must inform employers that they must:
  1. Request and receive a consultation visit that involves a full service safety and health hazard identification survey, including a comprehensive assessment of the worksite's safety and health management system.
  2. Have at least one year of operating history at the particular worksite for which the employer is seeking Pre-SHARP participation.
2. Pre-SHARP Requirements. Consultation personnel shall inform employers that the following criteria must be met prior to and following the granting of Pre-SHARP status.
  1. Initial Requirements.
    1. Receive a full service, comprehensive consultation visit that involves a complete safety and health hazard identification survey, including a comprehensive assessment of the worksite's safety and health management system;
    2. Post the List of Hazards identified by the consultant(s);
    3. Provide information regarding all hazards identified by the consultant(s) to employees;
    4. Correct all hazards identified by the consultant(s);
    5. Submit hazard correction verification to the Consultation Project;
    6. Inform employees of hazard correction(s); and
    7. Provide evidence of having the foundation of a safety and health management system.
  2. Post Pre-SHARP Status Requirements.
    1. Implement the Action Plan developed with the consultant outlining the necessary achievements and time frames required for the employer to achieve SHARP status. The employer must provide timely progress reports to the Consultation Project Manager;
    2. Upon receipt of an approval letter from the Regional Administrator or CPM granting Pre-SHARP status, the employer must post the letter in a conspicuous area. At sites having recognized employee representative(s), the employer must notify the employee representative(s) of the employer's intention to participate in Pre-SHARP and involve the recognized employee representative in the process;
    3. Involve employees in the safety and health management system, including the implementation of the Action Plan;
    4. Agree to notify the Consultation Project Manager prior to making any changes in working conditions or work processes that might introduce new hazards into the workplace; and
    5. Agree to a full service, comprehensive consultation visit for safety and health at the end of the Pre-SHARP deferral period, which initiates the SHARP application process.
3. Deferral Time Frame. The deferral time frame recommended by the Consultation Project Manager must not exceed a total of 18 months from the expiration of the latest hazard correction due date(s), including extensions.
4. Consultation Project Responsibilities. The Consultation Project personnel must:
  1. Assure verification of hazard correction of all hazards and compliance with requirements to post the List of Hazards and other employee information;
  2. Assist the employer in the development of an Action Plan to be implemented by the employer. The Action Plan must outline a goal, recommended method of correction, and an expected completion date for the 50 basic attributes of the Form 33 that received a score of less than "two;"
  3. Determine if the employer is capable of meeting all SHARP requirements within the deferral period, including DART rate and TRC requirements;
  4. Provide a signed notice of intent to participate in Pre-SHARP, to be posted by the employer;
  5. Provide to the Regional Office a letter or e-mail certifying that the employer exhibits reasonable promise of achieving the agreed-upon milestones within the deferral period;
  6. Provide to the Regional Office a copy of the employer's Form 33 evaluation, including an Action Plan;
  7. Recommend a deferral period (not exceeding a total of 18 months, including extensions, from the end of the latest hazard correction due date) to the Regional Office; and
  8. Request that the Regional Office terminate the employer's Pre-SHARP status if the employer fails to maintain Pre-SHARP requirements, or fails to meet SHARP requirements within the established time frame.
5. Regional Responsibilities. The Regional Administrator may grant a deferral from OSHA programmed inspections for the period recommended by the Consultation Project Manager and notify the appropriate Area Office of the deferral. Prior to granting a deferral, the Regional Administrator must concur that:
  1. The worksite has meet or is likely to meet the applicable DART and TRC rate requirements;
  2. The employer has in place the foundation of a safety and health management system; and
  3. The Action Plan adequately outlines the goal, recommended method of correction, and an expected completion date for each attribute of the Form 33 that received a score of less than "two."
6. OSHA Inspection(s) at Pre-SHARP Worksites: As noted above, employers that meet all the requirements for Pre-SHARP status may be granted a deferral from OSHA programmed inspections; however, the following types of incidents can trigger an OSHA enforcement inspection at Pre-SHARP sites:
  1. Imminent danger;
  2. Fatality/Catastrophe; or
  3. Formal complaints.
General Employer and Consultation Project Obligations
1. Fatalities or Catastrophes at SHARP or Pre-SHAPR sites. Consultants should advise employers that in the case of a fatality or catastrophe at a SHARP/Pre-SHARP site, the employer must notify the OSHA Area Office within eight (8) hours of the incident as required in 29 CFR 1904.39. Consultants must also inform employers that they must notify the CPM as soon as possible after notification of the incident. Until all citations have been issued, Consultation personnel are not permitted to discuss with the employer any issues related to the fatality or catastrophe or an OSHA enforcement inspection. After the enforcement investigation is concluded and/ or all citations have been issued, the CPM must evaluate the SHARP/ Pre-SHARP status of the worksite using the following criteria:
  1. If no citation is issued, an onsite visit must be conducted to ensure that all elements of the safety and health management system continue to be effective.
  2. If a serious or repeat citation is issued, a consultant must conduct an onsite visit to ensure that the alleged hazardous condition(s), which amounted to violation(s), have been corrected and that the safety and health management system is operating effectively.
    1. If the CPM believes that a serious or repeat citation is connected to a diminution in the effectiveness of the company's safety and health management system, the CPM will recommend the employer's withdrawal from SHARP/Pre-SHARP.
    2. If the CPM believes that there is no connection between the serious or repeat citation and the effectiveness of the employer's safety and health management system, the employer must be counseled on how to prevent a recurrence.
  3. If a willful citation is issued or there is evidence that the site's application or interim self-evaluation is inaccurate, the employer will be asked to withdraw from the program. If the employer does not withdraw voluntarily within 5 working days, participation must be terminated. The employer may re-apply to the program 12 months after withdrawal or termination.
2. Changes that May Affect a SHARP or Pre-SHARP Employer's Eligibility.
  1. Relocation. Consultants must inform employers planning to relocate their facilities that they must notify the Consultation Project sixty (60) days in advance of the move. Consultants must also visit the new site within thirty (30) days after the new site becomes operational to ensure that an effective safety and health management system is in place and that the employer still meets all the requirements for exemption or deferral. If this is not the case, the CPM must ask the employer to withdraw from the SHARP or Pre-SHARP program.
  2. Change in Ownership and/Organizational Changes. Whenever ownership or major organizational changes occur that may impact the effectiveness of the company's safety and health management system, the employer or employer representative must notify the consultation project. The CPM must then discuss the changes with the employer and schedule an onsite visit, if necessary.
3. Failure to Maintain SHARP or Pre-SHARP Requirements. If an employer fails to maintain the participation criteria outlined in this chapter, the CPM should give the employer the opportunity to voluntarily withdraw from the program.
  1. Voluntary Withdrawal from the Program. Any approved SHARP/Pre-SHARP participant may withdraw at any time. Withdrawal may occur as a result of plant closing, economic difficulty, change in management, or at the request of the employer or CPM. To withdraw, the employer must send a letter explaining the withdrawal and/or return the SHARP certificate to the CPM. The withdrawal is effective immediately upon receipt of the letter. The CPM will notify the Regional Office of the employer's withdrawal from SHARP/Pre-SHARP.
  2. Termination of Exemption or Deferral. If an employer fails to maintain the participation criteria outlined in this chapter and refuses the opportunity to voluntarily withdraw from the program, the CPM must request that the Regional Administrator terminate the employer's participation in SHARP/Pre-SHARP. The employer and the Area Office must be notified in writing when SHARP/Pre-SHARP participation is terminated. The written notice to the employer must contain the reason(s) for the termination and outline the requirements for re-entry into the program.

Appendix A

Rate Calculations

Rate Calculations
1. Annual Rate Formula.
  
  Annual rates are calculated by the formula (N/EH) x 200,000 where:
  
  N = Sum of the number of recordable injuries and illnesses in the year.
  
  EH = total number of hours worked by all employees in the year.
  
  200,000 = equivalent of 100 full time employees working 40 hours per week, 50 weeks per year.
  1. For the TRC, use the total number of cases listed on the OSHA 300 Log in columns:
    
    - Column H (Days away from work),
    
    - Column I (Job transfer or restriction), and
    
    - Column J (Other recordable cases).
    
    N = H + I + J
  2. For the DART, use the total number of cases resulting in days away from work, restricted work activity, and/or job transfer listed on the OSHA 300 Log in columns:
    
    - Column H (Days away from work) and
    
    - Column I (Job transfer or restriction).
    
    N = H + I
2. Alternate Calculation Methods
  1. 3-Year Rate Formula
    1. 3-Year TRC Rate Formula
      
      ((Year 1 OSHA Log columns H+I+J) + (Year 2 OSHA Log columns H+I+J) + (Year 3 OSHA 300 Log columns H+I+J) / (Year 1 hours + Year 2 hours + Year 3 hours)) x 200,000.
    2. 3-year DART Rate Formula
      
      ((Year 1 OSHA Log columns H+I) + (Year 2 OSHA Log columns H+I) + (Year 3 OSHA 300 Log columns H+I) / (Year 1 hours + Year 2 hours + Year 3 hours)) x 200,000.
  2. Best 3 out of 4 years Rate Calculation Method. To determine whether an employer qualifies for the best 3 out of 4 year calculation method, do the following:
    1. Using the most recent employment statistics (hours worked at the site in the most recent calendar year, including overtime hours), calculate a hypothetical TRC rate for the employer assuming that the employer had two cases during the year;
    2. Compare that hypothetical rate to the 3 most recently published years of BLS combined injury/illness rates for the industry; and
    3. If the hypothetical rate (based on two cases) is equal to or higher than the national average for the employer's industry for any of the most current BLS published rates, the employer qualifies for the best 3 out of 4 years calculation method. The DART and TRC rates may be calculated using the best 3 out of the most current 4 full calendar years of OSHA Form 300 data.
3. Rounding Instructions. You must round the rates to the nearest tenth following traditional mathematical rounding rules. For example, round 5.88 up to 5.9; round 5.82 down to 5.8; round 5.85 up to 5.9.
4. Comparison to National Averages. Compare the 3-year TRC and DART rate to the most recently published Bureau of Labor Statistics (BLS) national average (available online at http://www.osha.gov/oshstats/work.html) for the NAICS code for the industry in which the applicant is classified.
  
  These national averages, currently broken down by NAICS code, are found in "Table 1. Incidence rates of non-fatal occupational injuries and illnesses by industry" that BLS publishes each year.
  1. In the "multi-year" calculations, both the DART and TRC have to be below the BLS rates for the same year.
  2. If BLS rates are not available for both the DART and TRC, then use the next smallest NAICS code (i.e., six digit NAICS to a five digit NAICS).
  3. If BLS rates are available for either the DART or TRC, then use the BLS data that is available.

Appendix B

Sample Calculations

A safety and health consultant visited XYZ Machine Shop ( NAICS ¿ 33271; SIC ¿ 3599) and recorded the following OSHA 300 Log Information:

Year	# Employees	Hours Worked	Column H	Column I	Column J
2005 2004 2003 2002	5 7 6 8	10,000 14,000 12,000 16,000	0 0 0 0	1 0 0 0	0 0 1 0

***Note: The data above is used throughout the examples that follow.

1 Year Calculations

   DART

DART = [(Column H)2005 + (Column I)2005]   x   [200,000 Hours]*
              [Hours-Worked 2005]

DART =       [(0)+(1)]     x     [200,000 Hours]
          [10,000 Hours]

DART =        [(1)]     x     [200,000 Hours]
          [10,000 Hours]

DART =       [20.00]


   TRC

TRC = [(Column H)2005 + (Column I)2005 + ( Column J)2005]   x   [200,000 Hours]
                      [Hours Worked 2005]

TRC =        [(0)+(1)+ (0)]    x     [200,000 Hours]
             [10,000 Hours]

TRC =        [(1)]    x    [200,000 Hours]
          [10,000 Hours]

TRC =   [20.00]

Conclusion

The employer's 2005 DART and TRC rates of 20.0 are above the 2004 BLS DART and TRC data shown below.

YEARS

DART

TRC

2005 Employer's Rates 20.00 20.00

2004 BLS DATA 2.9 6.9

Alternate Rate Calculations

3-Year Calculations (Years 2005, 2004, & 2003):

  DART

DART = [(Columns H + I)2005 + (Columns H + I)2004 + (Columns H + I)2003]  x  [200,000 Hours]
       [(Hours-Worked)2005 + (Hours-Worked)2004 + (Hours-Worked)2003]

DART =    [(0 + 1) + (0 + 0) + (0 + 0)]    x    [200,000 Hours]
        [(10,000) + (14,000) + (12,000)] Hours


DART =        [(1)]     x      [200,000 Hours]
            [36,000] Hours


DART =    [5.56]


  TRC

TRC =    [(Columns H + I + J)2005 + (Columns H + I + J)2004 + (Columns H + I + J)2003]  x  [200,000 Hours]
         [(Hours-Worked)2005 + (Hours-Worked)2004 + (Hours-Worked)2003]

TRC =  [(0 + 1 + 0) + (0 + 0 + 0) + (0 + 0 + 1)]    x    [200,000 Hours]
  	      [(10,000) + (14,000) + (12,000)]


TRC =      [(2)]     x      [200,000 Hours]
         [36,000] Hours


TRC =    [11.11]

Conclusion

Using the 3-Year Calculation, the employer's DART and TRC rates of 5.56 and 11.11, respectively, are above the most recently available BLS data shown below.

YEARS	DART	TRC
2005, 2004 & 2003 Employers Rates	5.56	11.11
2004 BLS DATA	2.9	6.9

Where an employer's DART and/or TRC rates exceed the most recently published BLS data for these two measures, consultants should determine if the employer would qualify for SHARP participation by using the best 3 out of 4 year calculation method. To determine if the employer is eligible to use this option: use the formula for the 3 year calculation as stated above and use an arbitrary value of "2" for the sum of Columns H + I for the last three years. See, Appendix I.B.2 a-c.

Determining Eligibility to Use the Best Three out of Four Year Rate Calculations

  Calculate Hypothetical TRC

TRC hypothetical = [(sum of (2) for Columns H + I + J for 2005 ]  x  [200,000 Hours]
                               [(Hours-Worked)2005 ]


TRC hypothetical =       	[(2)]               x      [200,000 Hours]
                       [(10,000)] Hours

TRC hypothetical =        [40.00] = [40.0]

2004 BLS TRC rate = [6.9]
2003 BLS TRC rate = [7.5]
2002 BLS TRC rate = [7.5]

Employer's hypothetical TRC rate of 40.0 is equal to or higher than the BLS industry average for at least one of the past 3 published rates; therefore, the employer would be eligible for the "best 3 out of 4 year rate" calculations. Best Three out of Four Year Rate Calculations

Years 2005, 2004, & 2002 Data:

  DART

DART = [(Columns H + I )2005 + (Columns H + I)2004 + (Columns H + I)2002]  x  [200,000 Hours]
       [(Hours-Worked)2005 + (Hours-Worked)2004 + (Hours-Worked)2002]


DART =     [(0 + 1) + (0 + 0) + (0 + 0)]    x    [200,000 Hours]
        [(10,000) + (14,000) + (16,000)] Hours


DART =     [(1)]    x     [200,000 Hours]
         [40,000] Hours

DART =        [5.00]

  TRC

TRC = [(Columns H + I + J)2005 + (Columns H + I + J)2004 + (Columns H + I + J)2002]  x  [200,000 Hours]
      [(Hours-Worked)2005 + (Hours-Worked)2004 + (Hours-Worked)2002]


TRC = [(0 + 1 + 0) + (0 + 0 + 0) + (0 + 0 + 0)]       x     [200,000 Hours]
         [(10,000) + (14,000) + (16,000)]


TRC =         [(1)]      x      [200,000 Hours]
           [40,000] Hours


TRC =        [5.00]

Conclusion

The employer's DART rate of 5.00 is above the 2004 BLS DART rate of 2.9. The employer's TRC rate of 5.00 is below the 2004 BLS TRC rate of 6.9. Because at least one of the employer's injury and illness rates are above the BLS data, this combination of years would not make the employer eligible for SHARP. (See Table on next page.)

YEARS	DART	TRC
2005, 2004 & 2002 Employer's Rates	5.00	5.00
2004 BLS DATA	2.9	6.9

Years 2005, 2003, & 2002 Data:

  DART

DART = [(Columns H + I )2005 + (Columns H + I)2003 + (Columns H + I)2002 ]  x  [200,000 Hours]
       [(Hours-Worked)2005 + (Hours-Worked)2003 + (Hours-Worked)2002]


DART =    [(0 + 1) + (0 + 0) + (0 + 0)]    x    [200,000 Hours]
        [(10,000) + (12,000) + (16,000)] Hours


DART =     [(1)]    x     [200,000 Hours]
        [38,000] Hours

DART =     [5.26]


  TRC

TRC = [(Columns H + I + J)2005 + (Columns H + I + J)2003 + (Columns H + I + J)2002]    x   [200,000 Hours]
      [(Hours-Worked)2005 + (Hours-Worked)2003 + (Hours-Worked)2002]


TRC = [(0 + 1 + 0) + (0 + 0 + 1) + (0 + 0 + 0)]     x     [200,000 Hours]
        [(10,000) + (12,000) + (16,000)]


TRC =      [(2)]     x      [200,000 Hours]
         [38,000] Hours


TRC =      [10.53]

Conclusion

The employer's DART and TRC rates of 5.26 and 10.53 respectively, are both above the most recently available BLS Data. Therefore, this combination of years would not make the employer eligible for SHARP. (See Table below.)

YEARS	DART	TRC
2005, 2003 & 2002 Employer's Rates	5.26	10.53
2004 BLS DATA	2.9	6.9

Years 2004, 2003, & 2002 Data:

  DART


DART = [(Columns H + I )2004 + (Columns H + I)2003 + (Columns H + I)2002 ]  x  [200,000 Hours]
       [(Hours-Worked)2004 + (Hours-Worked)2003 + (Hours-Worked)2002]


DART =     [(0 + 0) + (0 + 0) + (0 + 0)]      x      [200,000 Hours]
         [(14,000) + (12,000) + (16,000)] Hours


DART =        [(0)]     x      [200,000 Hours]
            [42,000] Hours

DART =       [0.00]

  TRC

TRC = [(Columns H + I + J)2004 + (Columns H + I + J)2003 + (Columns H + I + J)2002]    x   [200,000 Hours]
      [(Hours-Worked)2004+ (Hours-Worked)2003 + (Hours-Worked)2002]


TRC = [(0 + 0 + 0) + (0 + 0 + 1) + (0 + 0 + 0)]     x     [200,000 Hours]
        [(14,000) + (12,000) + (16,000)]


TRC =      [(1)]     x      [200,000 Hours]
         [42,000] Hours


TRC =   [4.76]

Conclusion

The employer's DART and TRC rates are both below the most recently published BLS data. This combination of years would make the employer eligible for SHARP.

YEARS	DART	TRC
2004, 2003 & 2002 Employer's Rates	0.00	4.76
2004 BLS DATA	2.9	6.9

**Footnote: 200,000 hours = base for 100 equivalent full-time employee (working 40 hours per week, 50 weeks per year).

Appendix C

Interim-Year SHARP Site Self-Evaluation Template

Safety and Health Management System Recommendations and Status: When you qualified for SHARP and received your approval, the consultant provided specific recommendations to assist you in continuing to improve your safety and health management system. Please outline those recommendations, their present status, and the steps you have taken to implement them.
1. Recommendation:
  Status:
2. Recommendation:
  Status:
3. Recommendation:
  Status:
4. Recommendation:
  Status:
Significant Events: Please discuss below any significant events that have occurred over the past year and the steps that you have taken to ensure that your safety and health management system is operating effectively. (Include any fatalities, catastrophes, imminent danger incidents, recordable serious injuries and illnesses, complaints, OSHA inspections, and the results of all investigations and program changes made.)
1. Event:
  Correction:
2. Event:
  Correction:

DART Rate and TRC Requirements:

DART Rate Calculation
Year	Hours Worked	Sum of Columns H and I*	Rate




Employer's Two-Year or Three-Year Rate BLS Average for NAICS ________ Percent Below the BLS Rate:

________________________________
*Form OSHA FORM 300

TRC Calculation
Year	Hours Worked	Sum of Columns H,I and J*	Rate




Employer's Two-Year or Three-Year Rate BLS Average for NAICS ________ Percent Below the BLS Rate:

Other Safety and Health Management System Improvements: Please outline improvements that you have made or activities you have engaged in to improve your safety and health management system.

________________________________
*Form OSHA FORM 300