07/15/2025
OSHA penalty reductions are here for smaller employers. The new policy, outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, increases penalty reductions for small employers, so a penalty reduction level of 70%, which was previously only applicable for businesses with 10 or fewer employees, will now be expanded to include businesses who employ up to 25 employees. The revisions also include new guidelines for a 15% penalty reduction for employers who immediately take steps to address or correct a hazard.
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.
The new policies are effective 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. OSHA can withhold penalty reductions where penalty adjustments do not advance the goals of the agency.
For more information, contact me at [email protected].