1219-0040 Supporting Statement 2025

Independent Contractor Registration and Identification

OMB Control Number 1219-0040

OMB Expiration Date: 3/31/2025

Supporting Statement for

Independent Contractor Registration and Identification

Paperwork Reduction Act Submission

This information collection request (ICR) seeks to extend, without change, a currently approved information collection.

OMB Control Number: 1219-0040

Information Collection Request Title: Independent Contractor Registration and Identification

Type of OMB Review: Extension

Authority:

Part 45 - Independent Contractors

Subpart G—Filing and Other Administrative Requirements

30 CFR 45.2 - Definitions

30 CFR 45.3 - Identification of independent contractors

30 CFR 45.4 - Independent contractor register

Collection Instrument(s): MSHA Form 7000-52, Contractor Identification (IN) Request

General Instructions

A Supporting Statement, including the text of the notice to the public required by 5 CFR 1320.5(a)(i)(iv) and its actual or estimated date of publication in the Federal Register, must accompany each request for approval of a collection of information. The Supporting Statement must be prepared in the format described below and must contain the information specified in Section A below. If an item is not applicable, provide a brief explanation. When the question “Does this ICR contain surveys, censuses or employ statistical methods” is checked "Yes", Section B of the Supporting Statement must be completed. OMB reserves the right to require the submission of additional information with respect to any request for approval.

Specific Instructions

A. Justification

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section statute and regulation mandating or authorizing the collection of information.

Section 103(h) of the Federal Mine Safety and Health Act of 1977 (Mine Act) as amended, 30 U.S.C. 813(h), authorizes the Mine Safety and Health Administration (MSHA) to collect information necessary to carry out its duty in protecting the safety and health of miners. Further, section 101(a) of the Mine Act, 30 U.S.C. 811(a), authorizes the Secretary of Labor (Secretary) to develop, promulgate, and revise as may be appropriate, improved mandatory health or safety standards for the protection of life and prevention of injuries in coal, metal, and nonmetal mines.

In order to fulfill the statutory mandates to promote miners’ health and safety, MSHA requires the collection of information entitled Independent Contractor Registration and Identification. The information collection addressed by this notice is intended to ensure that MSHA can identify independent contractors in metal and nonmetal (MNM) mines and have records where they have worked.

Independent contractors perform services or construction at a mine. They may be engaged in any type of work performed at a mine, including activities such as clearing land, excavating ore, processing minerals, maintaining or repairing equipment, or constructing new buildings or new facilities, such as shafts, hoists, conveyors, or kilns.

Independent contractors vary in the number of employees, the type of work performed, and the time spent working at mine sites. Some independent contractors work only at mines while others may work one time at a mine and never return to MSHA jurisdiction. Independent contractors may also move from mine to mine or may be present at several mines at once.

The work performed at mines can pose serious dangers to independent contractors’ employees. From January 1, 2018, through December 31, 2023, 212 workers were fatally injured in mining accidents; 48 of those were employed by independent contractors. Under 30 CFR 45.3, independent contractors may follow the specified requirements to obtain an MSHA identification number and procedures for service of documents upon independent contractors. The purpose of this rule is to facilitate implementation of MSHA's enforcement policy of holding independent contractors responsible for violations committed by them and their employees.

1. Obtaining Contractor Identification Numbers (MSHA Form 7000-52)

In order to ensure that independent contractors are responsible for any employee violations while working at mines, contractor identification numbers (INs) are given to employees, either voluntarily, or issues during the first citation of that employee.

Under 30 CFR 45.2, an independent contractor is defined as “any person, partnership, corporation, subsidiary of a corporation, firm, association or other organization that contracts to perform services or construction at a mine.”

Under 30 CFR 45.3, independent contractors may voluntarily obtain a permanent identification number by submitting to MSHA District Manager in writing the following information:

1. The trade name and business address;

2. An address of record for service of documents;

3. A telephone number where they can be contacted; and

4. The estimated annual hours worked by the independent contractor on mine property for the previous calendar year.

MSHA assigns an identification number (IN) to an independent contractor if the contractor requests one or, if not requested, the Agency issues an IN the first time the independent contractor is cited for a violation of either a mandatory standard or the Mine Act. An independent contractor applying for IN numbers must submit MSHA Form 7000-52.

2. Independent Contractor Register Disclosure

Information on all independent contractors working at a mine must be available to the production-operator at all times. Therefore, contractors must submit information to the production-operator.

Under 30 CFR 45.2, a production-operator is defined as “any owner, lessee, or other person who operates, controls or supervises a coal or other mine.” Under 30 CFR 45.4(a), each independent contractor must provide to the production-operator in writing the following information:

1. The trade name, business address, and business telephone number;

2. A description of the nature of the work and a location at the mine where the work is to be performed;

3. MSHA independent contractor IN, if any; and

4. The independent contractor's business address of record for service of citations, or other documents involving the independent contractor.

III. Recordkeeping of Independent Contractors

Once independent contractors send the correct information to the production-operator, it is the production-operators’ responsibility to keep the information, in writing at the mine, for each independent contractor at the mine.

Under 30 CFR 45.4(b), the production-operator must maintain certain information, provided by the independent contractor as required by 30 CFR 45.4(a), concerning each independent contractor at the mine. The information must be made available by the production-operator to any MSHA inspector upon request.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection.

MSHA uses the information to issue a permanent MSHA identification number to an independent contractor. MSHA inspectors review the information collected during mandatory inspections that are required four times a year at underground mines and twice a year at surface mines.

MSHA relies on this information for inspection and enforcement purposes. This identification number allows MSHA to keep track of an independent contractor's violation history so civil penalties can be assessed for violations of the Mine Act and mandatory health and safety standards. MSHA uses these records to determine the appropriate responsibility for compliance with safety and health standards and to be able to serve documents to the appropriate entity, either the independent contractor or the production-operator.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g., permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also describe any consideration of using information technology to reduce burden.

Independent contractors applying for IN numbers must use the electronic MSHA Form 7000-52 found on MSHA’s website. Independent contractors need apply only one time for an identification number. This form may be completed on the website and submitted electronically, or be printed, filled out, and mailed in. No improved information technology has been identified that would reduce the existing burden.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Item 2 above.

No similar or duplicate information is available or submitted to MSHA.

5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.

MSHA's enforcement policies are applied uniformly to production-operators/mine-operators and independent contractors, regardless of size. However, 30 CFR 45.3 considers small businesses by making the application for an identification number voluntary.

The information collection provisions apply to all mine operations, both large and small. Congress intended that the Secretary enforce the law at all mining operations within the Agency’s jurisdiction regardless of size and that information collection and recordkeeping requirements be consistent with efficient and effective enforcement of the Mine Act. [See Rep. No. 181, 95th Cong., 1st Sess. 28 (1977)]. Section 103(e) of the Mine Act directs the Secretary not to impose an unreasonable burden on small businesses when obtaining any information under the Mine Act. MSHA considered the burden on small mines when developing the collection. Hence, MSHA believes that these information collection requirements are imposed on all mining operations and do not have a significant impact on a substantial number of small businesses or other small entities.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

Under 30 CFR 45.4(b), production-operator are required to maintain certain information about each independent contractor working at the mine. Less frequent collection of information would mean that necessary information on some independent contractors performing work at mines would not be available to MSHA inspectors during their inspections. This would not be consistent with the Mine Act’s requirement to protect the safety and health of miners.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• Requiring respondents to report information to the agency more often than quarterly;

• Requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

• Requiring respondents to submit more than an original and two copies of any document;

• Requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

• In connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

• Requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

• That includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

• Requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

This collection of information is consistent with the guidelines in 5 CFR 1320.5.

8. If applicable, provide a copy and identify the data and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments. Specifically address comments received on cost and hour burden.

Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting format (if any), and on the data elements to be recorded, disclosed, or reported.

Consultation with representatives of those from whom information is to be obtained or those who must compile records should occur at least once every 3 years -- even if the collection of information activity is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These circumstances should be explained.

In accordance with 5 CFR 1320.8(d), MSHA will publish the proposed information collection requirements in the Federal Register, notifying the public that these information collection requirements are being reviewed in accordance with the Paperwork Reduction Act of 1995, and providing 60 days for the public to submit comments. MSHA published a 60-day Federal Register notice on October 4, 2024 (89 FR 80949). MSHA received no comments.

9. Explain any decision to provide any payments or gifts to respondents, other than remuneration of contractors or grantees.

MSHA does not provide payment or gifts to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

There is no assurance of confidentiality provided to respondents; however, the records that are submitted to MSHA are covered by a Privacy Act Systems of Records Notice (SORN), DOL/MSHA-1, Mine Safety and Health Administration Standardized Information System (MSIS) (81 FR 25766) published on April 29, 2016. The records must be stored in locked file cabinets and accessible only to authorized personnel during working hours.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

There are no questions of a sensitive nature.

12. Provide estimates of the hour burden of the collection of information. The statement should:

• Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. Unless directed to do so, agencies should not conduct special surveys to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potential respondents is desirable. If the hour burden on respondents is expected to vary widely because of differences in activity, size, or complexity, show the range of estimated hour burden, and explain the reasons for the variance. Generally, estimates should not include burden hours for customary and usual business practices.

• If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens.

• Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 13.

Respondents

All information related to quantities and inspection rates are estimated by MSHA’s Headquarters Enforcement Division based on field experience with different types of mining operations, sizes of mines, and the frequency of inspections dictated by statute. Mine operators provide MSHA Headquarters Enforcement Division the number of mines and employment, and from this information MSHA Headquarters Enforcement Division tracks the number of active and inactive mines and mine types throughout the United States.

Based on the MSHA Report Center-Reporting Services and MSHA Centralized Application Services (MCAS), there were 1,661 new independent contractors that applied for IN, 8,905 independent contractors reporting hours for their employees working at mine, and 12,780 MNM and/or coal mines in CY 2023 affected by this information collection request.

Wage Rate Determination¹

MSHA used data from the May 2023 Occupational Employment and Wage Statistics (OEWS) published by the Bureau of Labor Statistics (BLS) for hourly wage rates² and adjusted the rates for benefits³, wage inflation,⁴ and overhead costs⁵ . The occupations listed below in Table 12-1 are those that were determined to be relevant for the cost calculations.

Table 12-1. Hourly Wage Rates

Occupation	NAICS Code	Average Wage Rate	Benefit Multiplier	Inflation Multiplier	Overhead Cost Multiplier	Loaded Hourly Wage Rate
		A	B	C	D	A x B x C x D
Contract Miner[a]	213100	$25.84	1.470	1.018	1.01	$39.06
Contractor Clerical Worker[b]	213100	$23.62	1.470	1.018	1.01	$35.70
Clerical Worker[c]	212100, 212200, 212300	$24.63	1.470	1.018	1.01	$37.22

Notes: MSHA uses the latest 4-quarter moving average 2023Q1-2023Q4 to determine that 32.0 percent of total loaded wages are benefits for private industry workers in construction, extraction, farming, fishing, and forestry occupations. The benefit multiplier is 1.470= 1 + (0.320/(1-0.320)). The inflation multiplier was determined by using the employment price index from the most current quarter, 2023Q4, divided by the base year and quarter of the OEWS employment and wage statistics, 2023Q2, for private industry workers in construction, extraction, farming, fishing, and forestry occupations, current dollar index. The inflation multiplier is 1.018 = 160.1/157.3. MSHA used the overhead multiplier of 1.01.

[a] The Standard Occupation Codes (SOC) used for this occupation are (47-2011), (47-2031), (47-2061), (47-2071), (47-2073), (47-2111), (47-2141), (47-2151), (47-2221), (47-2152), (47-3013), (47-3015), (47-3019), (47-4011), (47-5013), (47-5041), and (47-5081).

[b] The SOCs used for this occupation are (43-3021), (43-3031), (43-3051), (43-4171), (43-4199), (43-6011), (43-6014), (43-9061), and (43-9199).

[c] The SOCs used for this occupation are (43-3031), (43-3051), (43-3061), (43-4171), (43-5061), (43-5071), and (43-9061)

Hours Burden

1. Obtaining Contractor INs (MSHA Form 7000-52)

The information for voluntary submittal to MSHA to obtain a contractor IN consists of the required information listed 30 CFR 45.3(a). In addition, the electronic MSHA Form 7000-52 incorporates information required under 30 CFR 45.4(a). The required information is readily available (company letterhead, invoice, etc.) and requires little or no research by the contractor.

MSHA Enforcement Division's records show that there were 1,661 identification numbers issued to independent contractors in 2023. MSHA assumes one independent contractor will obtain an identification number at 1 response per respondent. Among the 1,661 new independent contractors, 554 contractors reported working hours under 30 CFR 45.4(a) for their employees, and 1,107 contractors did not report working hours.

MSHA estimates that it takes approximately 8 minutes for a contractor clerical worker earning $35.70 per hour to complete the application for either mail or online filing to MSHA. MSHA assumes that completing the form electronically is the same time burden as completing a printed copy and mailing it in.

Table 12-2. Estimated Annual Respondent Hour and Cost Burden, Obtaining Contractor INs (30 CFR 45.3)

Activity (Occupation)	Number of Respondents (Independent Contractors)	Number of Responses per Respondent	Total Responses (INs)	Average Burden (Hours)	Total Burden (Hours)	Hourly Wage Rate	Total Burden Cost
Obtaining Contractor INs (Contractor Clerical Worker)	1,661	1	1,661	0.13	221.47	$35.70	$7,906.36
Subtotal (Rounded)	1,661		1,661		221		$7,906

2. Independent Contractor Register Disclosure

In 2023 there was 8,905 independent contractors reporting hours for their employees working at mines. Each independent contractor must provide the production-operator in writing the information listed in 30 CFR 45.4(a). MSHA estimates that on average, contractor work at mines will result in approximately 6.5 reporting instances per mine each year. Table 12-3 shows MSHA’s estimation on how many total records and how many records there will be per independent contractor. In total there will be 83,070 total records.

Table 12-3 Estimated Annual Respondent Hour and Cost Burden, Number of Register Disclosure

Number of Mines	Number of reporting Instances Per mine	Total Records	Number of Independent contractors	Number of Reporting Instances per Independent Contractors (Rounded)
12,780	6.5	83,070	8,905	9.33

For each time an independent contractor reports MSHA estimates that it will take a contract worker about 5 minutes to comply with this standard and provide the required information to the mine operators. On average, these contract workers earn wages of $39.06 per hour.

Table 12-4. Estimated Annual Respondent Hour and Cost Burden, Independent contractor register disclosure Request (30 CFR 45.4(a))

Activity (Occupation)	Number of Respondents (Independent contractor)	Number of Responses per Respondent	Total Responses (Records)	Average Burden (Hours)	Total Burden (Hours)	Hourly Wage Rate	Total Burden Cost
Independent contractor register disclosure (Contractor Worker)	8,905	9.33	83,070	0.08	6,922.50	$39.06	$270,392.85
Subtotal (Rounded)	8,905		83,070		6,923		$270,393

3. Recordkeeping of Independent Contractors

Under 30 CFR 45.4(b), production-operators must maintain in writing at the mine records for each independent contractor at the mine. The mine operator will have to maintain a record of the information each time the contractor submits information. MSHA estimates that, on average, it takes a mine clerical employee, earning $37.22 per hour, 8 minutes per reporting instance to maintain the required information provided by the contractor. In 2023, there were 12,780 mines. MSHA estimates that on average, contractor work at mines will result in approximately 6.5 reporting instances per mine each year.

Table 12-5. Estimated Annual Respondent Hour and Cost Burden, Independent contractor recordkeeping (30 CFR 45.4(b))

Activity (Occupation)	Number of Respondents (Mines)	Number of Responses per Respondent	Total Responses (Records)	Average Burden (Hours)	Total Burden (Hours)	Hourly Wage Rate	Total Burden Cost
Independent contractor recordkeeping (Mine Clerk)	12,780	6.5	83,070	0.13	11,076	$37.22	$412,248.72
Subtotal (Rounded)	12,780		83,070		11,076		$412,249

Hour Burden Summary

The annual respondent hour and cost burden is summarized in Table 12-6.

Table 12-6. Estimated Annual Respondent Hour and Cost Burden, Summary Totals

Activity	Number of Respondents	Number of Responses per Respondent	Total Responses	Average Burden (Hours)	Total Burden (Hours)	Hourly Wage Rate	Total Burden Cost
Obtaining Contractor INs	1,661	1.0	1,661	0.13	221.47	$35.70	$7,906.36
Independent contractor register disclosure	8,905	9.33	83,070	0.08	6,922.50	$39.06	$270,392.85
Independent contractor recordkeeping	12,780	6.5	83,070	0.13	11,076.00	$37.22	$412,248.72
Total (Rounded)	22,792		167,801		18,220		$690,548

Note: The total number of respondents do not correspond to the sum of correspondents from each cost item because the same respondents carry out both activities. Total number of respondents is calculated by taking the number of new independent contractors who applied for IN but did not report hours, independent contractors reporting hours, and mines.

13. Provide an estimate of the total annual cost burden to respondents or recordkeepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14.)

• The cost estimate should be split into two components: (a) a total capital and start-up cost component (annualized over its expected useful life); and (b) a total operation and maintenance and purchase of service component. The estimates should take into account costs associated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including system and technology acquisition, expected useful life of capital equipment, the discount rate(s), and the time period over which costs will be incurred. Capital and start-up costs include, among other items, preparations for collecting information such as purchasing computers and software; monitoring, sampling, drilling and testing equipment; and record storage facilities.

• If cost estimates are expected to vary widely, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of purchasing or contracting out information collection services should be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60-day pre-OMB submission public comment process and use existing economic or regulatory impact analysis associated with the rulemaking containing the information collection, as appropriate.

• Generally, estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory compliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government, or (4) as part of customary and usual business or private practices.

MSHA estimates that the postage cost for those contractors that choose to mail their information is $1. In 2023, 989 contractors filed through the mail. There are no postage costs associated with online filing or identification numbers being assigned as a result of citations being issued by MSHA inspectors.

Table 13-1. Estimated Annual Respondent Recordkeeping Cost Burden, Independent Contractor Registration and Identification (30 CFR 45.3)

	Number of Responses (Contractor)	Unit Cost	Cost to Recordkeepers
Mail-in MSHA Form 7000-52	989	$1.00	$989
Total (Rounded)			$989

14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of information. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table.

No federal inspection costs have been associated specifically for this information collection. The review/inspection of independent contractors working on mine property is just one aspect of a mandatory inspection. Under section 103(a) of the Mine Act, 30 U.S.C. 813(a), complete inspections are required at least four times a year for underground mines and at least twice a year for surface operations. MSHA estimates that costs associated with processing MSHA Form 7000-52 that are received by mail are de minimis.

However, if during an inspection a contractor is cited for a violation of safety or health regulations, or the Mine Act, the contractor must obtain an identification number. The cost to the Government to assign an identification number is estimated to be negligible.

15. Explain the reasons for any program changes or adjustments.

Respondents: The estimated annual number of respondents increased from 21,602 to 22,792 due to an increase in the number of contractors and mines.

Responses: The estimated annual number of responses increased from 157,314 to 167,801 due to an increase in the number of respondents.

Time Burden: The estimated annual time burden increased from 17,080 to 18,220 due to an increase in the number of responses.

Burden Costs: The estimated annual burden costs increased from $555,318 to $690,548 due to an increase in the number of responses and an increase in wages.

Other Burden Costs: The estimated annual other burden costs increased from $806 to $989 due to an increase in the number of respondents.

Table 15-1. Summary of Changes

	Previous ICR	Current ICR	Difference
Number of Respondents	21,602	22,792	1,190
Number of Responses	157,314	167,801	10,487
Annual Time Burden	17,080	18,220	1,140
Annual Burden Costs	$555,318	$690,548	$135,230
Annual Other Burden Costs	$806	$989	$183

16. For collections of information whose results will be published, outline plans for tabulation, and publication. Address any complex analytical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions.

The results of this information collection will not be published.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

MSHA will display the expiration date on any instruments.

18. Explain each exception to the certification statement.

There are no certification exceptions identified with this information collection.

B. Collections of Information Employing Statistical Methods.

This information collection does not employ statistical methods.

1 For all wage rates, MSHA uses the relevant precision throughout the calculation to avoid compound rounding errors and rounds at the final rate value. Displayed intermediate calculation values are presented to explain the calculation and are representative, but the final rate value reflects the correct rounding and final estimate.

2 To obtain OEWS data, follow BLS’s directions in its Frequently Asked Questions: “E. How to get OEWS data. 4. What are the different ways to obtain OEWS estimates from this website?” at https://www.bls.gov/oes/oes_ques.htm. The average wage rate is calculated as the employment-weighted average of hourly mean wages for the occupation.

3 The benefit multiplier comes from BLS Employer Costs for Employee Compensation accessed by menu at http://data.bls.gov/cgi-bin/srgate or directly at http://download.bls.gov/pub/time.series/cm/cm.data.0.Current. Insert the data series CMU2030000405000D and CMU2030000405000P, Private Industry Total benefits for Construction, extraction, farming, fishing, and forestry occupations, which is divided by 100 to convert to a decimal value. MSHA used the latest 4-quarter moving average to determine what percent of total loaded wages are benefits. MSHA computes the benefit multiplier with a number of detailed calculations, but it may be approximated with the formula 1 + (benefit percentage/(1-benefit percentage)).

4 Wage inflation is the change in Series ID: CIS2020000405000I; Seasonally adjusted; Series Title: Wages and salaries for Private industry workers in Construction, extraction, farming, fishing, and forestry occupations, Index. (https://data.bls.gov/cgi-bin/srgate ; Inflation Multiplier = (Current Quarter Cost Index Value / OEWS Wage Base Quarter Index Value).

5 MSHA uses an overhead rate of 1 percent. The mining environment generally involves very little overhead, especially costs associated with workers engaged in administrative or clerical tasks.

1