The U.S. Department of Labor has updated its penalty guidelines to support small businesses and eliminate workplace hazards. This new guidance on penalty and debt collection procedures has been published in the Occupational Safety and Health Administration’s (OSHA) Field Operations Manual in an effort to minimize the burden on small businesses and increase prompt hazard abatement.

The Field Operations Manual (FOM) is a reference document that provides current information and guidance to the national, regional, and area offices concerning OSHA’s policy and procedures for enforcement matters including conducting inspections, issuing citations, and proposing penalties for OSHA field offices and State Plan States. The FOM is designed to be updated on a regular basis by amending chapters or sections thereof to embody modifications and clarifications to OSHA’s general enforcement policies and procedures.

“All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment,” says 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.”

PENALTY REDUCTIONS

The new policy, outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, increases penalty reductions for small employers, making it easier for small businesses to invest resources in compliance and hazard abatement. For example, a penalty reduction level of 70 percent, 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-percent 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-percent 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 retains the right to withhold penalty reductions where penalty adjustments do not advance the goals of the Occupational Safety and Health Act. 

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OSHA, the Occupational Safety and Health Administration, is a U.S. federal agency that ensures safe and healthy working conditions by setting and enforcing standards and providing training and assistance. For more, visit www.osha.gov.