U.S. OSHA: Lower Penalties for Small Businesses Support Entrepreneurs Who Drive Economy

The U.S. Department of Labor has adjusted its penalty guidelines in its Field Operations Manual (FOM) to reduce fines for small employers. The move should make it easier for small businesses to invest resources in compliance and hazard abatement, according to the U.S. Occupational Safety and Health Administration (OSHA). For example, the 70% penalty reduction — previously limited to businesses with 10 or fewer employees — will now be extended to include those with up to 25 employees.

The revisions also include new guidelines for a 15% penalty reduction for employers of all sizes who take immediate steps to address or correct a hazard. This “quick fix” option also was outlined in OSHA’s previous FOM, requiring employers to remedy the hazardous condition during the inspection or on the same day. The revised FOM expands the definition of “immediately” from the day of the inspection to up to 15 days if the fixes “require more complex abatement actions such as purchase of materials, fabrication of parts, training, etc.” In order to receive the quick fix credit, employers must prevent employee exposure to the hazard until it is abated.

“All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment,” said Deputy Secretary of Labor Keith Sonderling. “Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources. By lowering penalties on small employers, we are supporting the entrepreneurs that drive our economy and giving them the tools they need to keep our workers safe and healthy on the job while keeping them accountable.”

The new policy is outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual.

Additionally, the updated policy expands the penalty reduction for employers without a history of serious, willful, repeat, or failure-to-abate OSHA violations. Under OSHA’s revised policy, employers who have never been inspected by federal OSHA or an OSHA State Plan, as well as employers who have been inspected in the previous five years and had no serious, willful, or failure-to-abate violations, are eligible for a 20% penalty reduction.