The Department of Labor updated its guidance regarding penalty and debt collection procedures in the Occupational Safety and Health Administration's Field Operations Manual to minimize the burden on small businesses and reduce the number of workplace hazards, according to an OSHA news release.
Outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, the new policy increases penalty reductions for small employers, reportedly making it easier for small businesses to invest resources in compliance and hazard abatement. For example, a penalty reduction level of 70% applicable to businesses with 10 or fewer employees has been expanded to include businesses who employ up to 25 employees. Additionally, there are new guidelines for a 15% penalty reduction for employers who immediately take steps to address or correct a hazard.
The policy also states employers who have never been inspected by federal OSHA or an OSHA State Plan—as well as employers who have been inspected during the previous five years and had no serious, willful or failure-to-abate violations—now are eligible for a 20% penalty reduction.
The new guidelines take effect immediately. Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not yet been issued are covered by the new guidance.
“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.”
