OSHA Announces Penalty and Debt Collection Procedures

On Monday, July 14th, OSHA announced it has updated its guidance on penalty and debt collection procedures in OSHA’s Field Operations Manual (FOM). The updates are intended to “minimize the burden on small businesses and increase prompt hazard abatement.”  Under the new policies, employers with up to 25 employees can access a penalty reduction of 70%. Previously, this was only reserved for businesses with 10 or fewer employees.  Additionally, OSHA is providing a 15% penalty reduction for employers who immediately take steps to address or correct a hazard. Lastly, the changes include a 20% penalty reduction for employers who have never been inspected by either the federal OSHA or an OSHA state plan as well as employers who have been inspected in the past 5 years and had no serious, willful, or failure-to-abate violations. These new policies are effective immediately. They apply to open investigations in which penalties haven't yet been issued as well as any new investigations that arise. The new penalty structure, however, does not apply to any penalties issued before July 14, 2025.