New OSHA Policy to Improve Safety Penalties for Small Businesses

To lessen the burden on small businesses, the U.S. Department of Labor has updated how penalties and debt collection are handled under the Occupational Safety and Health Administration’s (OSHA) Field Operations Manual. The revised policy expands penalty reductions for small businesses, allowing them to put more money toward safety improvements and meeting compliance requirements. For instance, the 70% penalty that previously applied only to businesses with 10 or fewer workers will now also apply to companies with up to 25 employees. Additionally, the update introduces a 15% penalty reduction for employers who act quickly to fix a jobsite safety hazard.

“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.”