The U.S. Department of Labor has announced updates to its penalty and debt collection procedures in the Occupational Safety and Health Administration's (OSHA) Field Operations Manual. The changes aim to reduce the burden on small businesses while encouraging quicker resolution of workplace hazards.
Deputy Secretary of Labor Keith Sonderling emphasized the importance of allowing all employers the chance to comply with regulations that ensure a safe working environment. "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," he stated. By lowering penalties for small employers, he believes it will support entrepreneurs and provide them with tools necessary for maintaining worker safety and health, while ensuring accountability.
The revised policy includes increased penalty reductions for small businesses, facilitating resource allocation towards compliance and hazard mitigation. Notably, a 70% penalty reduction previously limited to businesses with up to 10 employees will now extend to those employing up to 25 people. Additionally, new guidelines offer a 15% penalty reduction for employers who promptly address or correct hazards.
Further provisions expand penalty reductions for employers without serious violations history. Employers either uninspected by federal OSHA or an OSHA State Plan or inspected within five years without serious violations can receive a 20% reduction.
These new policies take effect immediately; however, penalties issued before July 14, 2025, will adhere to the former structure. Open investigations without issued penalties will follow the updated guidance.
OSHA maintains discretion over withholding penalty reductions if they do not align with Occupational Safety and Health Act objectives.
