The U.S. Department of Labor has updated its penalty and guidance collection procedures in OSHA’s Field Operations Manual to increase prompt hazard abatement while minimizing the cost for small businesses. These new policies, outlined in the Penalties and Debt Collection Section of the Field Operations Manual, will go into effect immediately. While penalties issued before July 14, 2025 will remain subject to the prior procedures, open investigations where penalties have not been issued yet will be covered by the new guidelines. OSHA reserves the right to not give penalty reductions where they do not advance the objectives of the Occupational Safety and Health Act.
Deputy Secretary of Labor Keith Sonderling has said that both large and small employers should have the chance to comply with regulations that foster a safe working environment. And, that by lowering the penalties on small businesses who have less resources, we can support those who drive the economy by giving them more resources to keep workers safe and healthy and still keep them accountable.
implications for small employers
The new policy increases penalty reductions for small employers, giving small businesses more resources to invest in compliance and hazard abatement. For example, the penalty reduction level of 70%, previously only available to businesses who had employed up to 10 employees, will now include businesses who have employed up to 25 employees. Further, employers who immediately take steps to address or correct a hazard are eligible for a 15% penalty reduction under the new guidelines. Small employers should re-evaluate whether they are now eligible for a penalty reduction.
implications for All employers
The new policy also expands the penalty reduction for employers with no history of serious, willful, repeat, or failure-to-abate OSHA violations. Now, employers who have never been inspected by federal or state OSHA, and employers who were inspected in the last five years but had no serious, willful, or failure-to-abate violations, can receive a 20% penalty reduction. All employers should re-evaluate whether they are now eligible for a penalty reduction based on inspection history.