OSHA watch

Greater penalty reductions for small businesses, quick fixes, and employers with no past violations

Updated guidance, effective July 14, increases penalty reductions for small employers and expands the penalty reduction for employers without a history of serious, willful, repeat, or failure-to-abate violations. A penalty reduction of 70 percent, which was previously only applicable for businesses with 10 or fewer employees, is now available to businesses that employ up to 25 employees.

There are also new guidelines for a 15 percent penalty reduction for employers of any size that immediately take steps to address or correct a hazard. Immediate is defined as "during the inspection or the same day," up to 15 days if the "immediate" fixes "require more complex abatement actions such as purchase of materials, fabrication of parts, training, etc." For employers without a history of serious, willful, repeat, or failure-to-abate violations (never had an inspection or had an inspection in the previous five years and had no serious, willful, or failure-to-abate violations), there will be a 20 percent penalty reduction.

These reductions can be combined, meaning small, proactive, and historically compliant employers could see significant penalty reductions. However, there are situations where these reductions will not be applied. These include fatality-related citations, employers on the Severe Violator Enforcement Program List, willful or repeat violations within five years related to fatalities, and employers referred to debt collection for unpaid penalties.

Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not been issued are covered by the new guidance. State plan adoption may vary, and not all states will implement these changes immediately.

To take advantage of these reductions, employers should monitor staffing levels, clearly document the timing and details of the abatement, and review and document inspection history.

25 proposed rules rolling back existing obligations published on July 1

On July 1, the Department of Labor launched one of the most sweeping deregulatory efforts in recent history, including 25 new safety and health initiatives. The first article in this Advisory, OSHA takes unprecedented action with 25 proposed rules rolling back existing obligations, details the proposals impacting workplace safety compliance.

Next steps for heat standard

The public hearing on the proposed standard, Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings, concluded on July 2, 2025. According to the law firm, Conn Maciel Carey LLP, the overwhelming sentiment from industry speakers was that the rule, as proposed, is too inflexible and prescriptive, and inappropriately one-size-fits-all. Union reps and worker advocates believe the proposal does not go far enough and should include additional elements, such as lower heat triggers and mandatory rest breaks at the initial heat trigger.

Those who registered for the hearing can submit post-hearing comments and legal briefs until September 30, 2025. Then the comments, data, and hearing transcripts will be reviewed and analyzed. Based on the analysis, the proposed rule could be approved as submitted, modified, or withdrawn. It's also possible that significant changes could lead to a new Notice of Proposed Rulemaking for further comment, although pundits suggest this is less likely.

If it's decided to move forward with a final rule, with or without modifications, it will undergo review by the White House's Office of Information and Regulatory Affairs (OIRA), which assesses the regulatory action, including economic impacts. This process can be lengthy, and stakeholders can request public 12866 meetings.

VPP and On-Site Consultation program expanding

Encouraging employers to comply with federal labor laws voluntarily is a cornerstone of the DOL's new approach to reducing violations. This effort includes expanding the Voluntary Protection Programs (VPP) to help businesses evaluate and improve workplace safety programs. It's also scaling up the On-Site Consultation Program, which provides no-cost, confidential assistance to small and medium-sized businesses to identify and correct safety hazards without the threat of penalties.

Court decision: Hospital and Management Company both liable for same violation

In HS of Delaware, Inc. v. Secretary of Labor, No. 23-11327), the 11th Circuit U.S. Circuit Court of Appeals ruled that a Florida psychiatric hospital and a hospital management company operated as a "single employer" for liability purposes and, therefore, both entities can be cited for the same violation related to workplace violence under the General Duty Clause. Although they are separate entities, they have employees working at a common worksite (the hospital) and are owned by the same parent company. This is a typical arrangement in the healthcare industry.

Courts use several factors to determine "single employer" status, including interrelation of operations, such as share a common worksite, equipment, administrative services, common ownership and management, and control of labor.

Construction supervisor sentenced to prison for obstructing investigation

Richard Zagger, a construction supervisor for Northridge Construction Corp. in New York, was sentenced to one year in prison and two years of supervised release for obstructing an investigation into a 2018 workplace fatality. A worker died after falling from an improperly secured shed roof during construction. Zagger made false statements, conspired with others to mislead investigators, and pleaded guilty to conspiracy and obstruction charges. Northridge Construction was earlier fined $100,000 and placed on five years' probation for related safety violations and false statements.

Fifth Circuit clarifies employer duties under Machine-Guarding Standard

This case involved the death of a worker who was pulled into an unguarded eviscerator carousel at Mar-Jac Poultry's Hattiesburg, Mississippi facility. The Occupational Safety and Health Review Commission (OSHRC) affirmed citations and imposed penalties of $13,653 for each violation, and the company petitioned for review.

In Mar-Jac Poultry MS, L.L.C. v. Secretary, U.S. Department of Labor, the Fifth Circuit unanimously denied the petition. Notably, it rejected Mar-Jac's argument that the Secretary must show deviation from industry custom and practice to establish a violation. The ruling means employers in the Fifth Circuit can no longer argue that absence of industry consensus or accident history excuses them from §1910.212 compliance where the hazard is explicit in the regulation or manufacturer's literature.

MSHA
Mine Safety and Health Administration proposes 18 rule changes

As part of the DOL's deregulation efforts, on July 1 the MSHA proposed 18 rule changes. Three that have already been reviewed by OIRA would eliminate district managers' roles in making changes or requiring additions to training and retraining programs for miners, approval criteria for roof control plans, and approval criteria for ventilation plans. The deadline for comments on these proposals was extended to Sept. 2.

Other proposals relate to aerial tramways, approval of conveyor belts in underground coal mines, blacksmith shops at surface metal and nonmetal mines, diesel emission limits for equipment in underground coal and metal/nonmetal mines, inspections of drilling equipment and drilling areas in surface metal and nonmetal mines, mining of pillars, permissible electric equipment in coal seams above the water table, permissible lamps and flame safety lamps in underground coal mines, photometers, trolleys, electronic access to hazard communication information, the use of electronic surveying equipment in high-hazard areas of underground coal mines and non-permissible powered air-purifying respirators in specific areas of underground mines.

State Plans

Federal Annual Monitoring and Evaluation (FAME) Reports

Federal Annual Monitoring Evaluation (FAME) reports are formal assessments of each state-run occupational safety and health program. Every two to three years, a comprehensive report, including site visits and audits is prepared. In the interim years, a follow-up report tracks progress on resolving prior findings. It looks at how well the plan has met its goals regarding injury/fatality reductions, hazard abatement effectiveness, outreach and training, assesses the scope, quality, and timeliness of inspections and investigations, reviews standards and program equivalency, and staffing and resource allocation.

Each report includes formal deficiencies requiring corrective action, observations that may become findings if not addressed, and recommendations. For individual state reports.

Cal/OSHA
No extension for new rules on residential fall protection
New rules for residential construction on fall protection trigger heights became effective July 1. The new regulations lower the trigger height from 15 feet to 6 feet for most residential construction and roofing activities.

State auditor finds major deficiencies
The state auditor found major problems and deficiencies with inspection and enforcement efforts, including closing complaints and accident reports without conducting on-site inspections, carrying out inadequate inspections, failing to ensure problem resolutions, and assessing inadequate fines. Severe understaffing was cited.

MIOSHA
Upcoming events
Webinars on workplace mistreatment
The current webinar series focuses on how to recognize, respond to and prevent workplace mistreatment. The first program, Building respectful and inclusive organizations: Combating mistreatment at work, took place in July and is available online. Future webinars include Witnessing Workplace Mistreatment on August 21 and Conducting Respectful and Effective Workplace Investigations on Sept 18. More information.

Coffee with MIOSHA
In concert with American Society of Safety Professionals (ASSP) Greater Detroit Chapter, along with Kelly Services, employers and employees are invited to join us for an informal networking event focused on workplace safety and health. Aug. 28, 9 to 11 a.m., 999 W. Big Beaver Rd. Troy, MI 48084. To register.

Training calendar

MNOSHA
Safety lines published
Safety Lines, the quarterly occupational safety and health newsletter, is available. Highlights include:

• Dangers of working in hot conditions: Steps, tools to prevent heat illness
• Walz signs bill to protect Minnesota commercial scuba divers in lakes
• Results from federal annual audit of Minnesota OSHA program
• Minnesota OSHA rulemaking updates
• Dates announced: 2025/2026 Construction Seminar series
• Be a part of Workplace Rights Week 2025
• MNOSHA Compliance signs safety, health partnerships

NCDOL
2025 Construction Safety Forum to focus on precast concrete and tilt-up construction
On September 25, the Construction Safety Forum will be held at the Statesville Fitness and Activity Center. Registration is free but required.

Standout among state plans on OSHA's annual FAME evaluation
The 2024 FAME report cites significant achievements, including:

• A 33 percent reduction in workplace fatalities, dropping from 72 in FY 2023 to 48 in FY 2024
• Injury and illness rates 19 percent lower than the national private-sector average
• 1,675 inspections completed, reaching 98.5 percent of the annual target
• A penalty retention rate of 84.44 percent, well above the national average
• Launch of a new Heat Illness Prevention Campaign, which included bilingual outreach efforts and 190 related inspections

Training calendar

TNOSHA
Newsletter provides important information for employers
The July newsletter includes:

• Employers must be proactive to prevent heat illness
• Fall arrest equipment: use it right or risk the consequences
• Youth Employment Program
• TOSHA consultative services: a proactive approach to workplace safety

Fall 2025 training seminar schedule now available

Recent fines and awards

California

• A foreman for Solv Energy, Llc / Sehv Solutions of Lost Hills, died from Valley Fever (coccidioidomycosis), which resulted from inhaling airborne fungal spores (Cocci) from dust generated at the construction site. The company faces $78,500 in fines.
• Westminster-based Bragg Investment Co., a union contractor, faces $55,000 in penalties after a 50-foot, 3,182-pound power pole crushed a truck driver.
• The Labor Commissioner's Office fined the Ritz-Carlton Hotel Company LLC and three contractors more than $2 million for reportedly misclassifying 155 janitors as independent contractors at its Half Moon Bay hotel. The citations include $1.9 million in wages and penalties payable to affected workers.

Florida

• Aerojet Rocketdyne Coleman Aerospace Inc., an Orlando-based target-missile manufacturer, faces fines totaling $262,451 for one willful and six serious violations. Two employees were severely burned and another sustained injuries from burns and smoke inhalation while they worked on a missile component.

Georgia

• Brazilian Stone Design in Powder Springs, a countertop maker, faces fines of $33,000 for allegedly exposing workers to high levels of silica dust by failing to require workers to use respirators, failing to perform fit testing and training, and not conducting air monitoring. It also did not have a hearing protection program.
• Keystone Foods, a distributor for Tyson Foods, was cited under the General Duty Clause for allegedly failing to protect employees against fire and explosion hazards at its Camilla poultry plant. Proposed penalties are $16,550.

Illinois

• Zimmerman Feed & Grain, Inc. of Chatsworth is facing $82,258 in penalties, including one willful citation for exposing workers to amputation hazards.
• CCS Contractor Equipment & Supply, LLC dba Surebuilt of Melrose Park has been fined $88,905 for three serious and one willful citation involving violations of the lockout/tagout standard.

Massachusetts

• Clean Harbors, an environmental and hazardous waste management service provider, is facing $602,938 in penalties, including three willful violations related to confined spaces. It failed to properly ventilate a confined space containing organic chemical residue at a customer's facility in Twinsburg, Ohio, resulting in a worker fatality.

Minnesota

• Linco Fab Inc of Hugo is contesting $79,400 in penalties related to site preparation and structural steel assembly after a falling steel column fatally crushed an employee.

Pennsylvania

• Mechanicsburg-based Daran General Carpentry, LLC is facing $249,922 in penalties, including three willful violations related to fall protection in residential construction, eye or face protection for employees using pneumatic nail guns, and violations of training requirements.

Virginia

• The Dollar Tree store in Alexandria is facing $284,225 in penalties for repeat violations of exit routes and material handling.

Wisconsin

• Progressive Converting Inc., an Appleton paper products manufacturer, was cited for allegedly exposing employees to dangerous energy and machine guarding hazards after an employee suffered two finger-tip amputations. Citations included three repeat, 13 serious, and three other-than-serious violations, with proposed penalties totaling $280,110.

For more information and other enforcement cases with penalties above $40,000, visit https://www.osha.gov/enforcement/toppenalties .