The U.S. Department of Labor announced Monday it has updated penalty and debt collection procedures for the Occupational Safety and Health Administration, significantly expanding relief for small businesses while encouraging prompt hazard correction.
The revised guidance in OSHA's Field Operations Manual increases penalty reductions for small employers and creates new incentives for immediate compliance with workplace safety regulations.
"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," said Deputy Secretary of Labor Keith Sonderling.
Under the new policy, businesses with up to 25 employees now qualify for a 70% penalty reduction, a significant expansion from the previous threshold of 10 or fewer employees. The change aims to help smaller companies invest resources in correcting safety issues rather than paying fines.
The updated guidance also introduces a new 15% penalty reduction for employers who take immediate action to address workplace hazards, regardless of company size.
Additionally, employers without a history of serious violations now receive greater consideration. Companies that have never been inspected by OSHA or have had no serious violations in the past five years can receive a 20% penalty reduction.
"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," Sonderling said.
The changes take effect immediately, but only apply to new penalties issued after July 14, 2025. Penalties already issued will remain under the previous structure, while open investigations without issued penalties will follow the new guidelines.
OSHA maintains the authority to withhold penalty reductions in cases where adjustments would not advance the goals of the Occupational Safety and Health Act.
The agency emphasized that the changes are designed to balance enforcement with supporting businesses that demonstrate good-faith efforts to maintain safe workplaces.
