OSHA announces new small business penalty relief measures
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On July 14, OSHA announced changes to its enforcement policy that aim to reduce the regulatory burden on small businesses and encourage faster correction of jobsite hazards. These updates are now reflected in OSHA’s Field Operations Manual (FOM) and are effective immediately.
Under the revised guidelines:
- Employers with up to 25 employees may now qualify for a 70% penalty reduction — an expansion from the previous limit, which capped eligibility at 10 employees.
- Employers who take prompt action to correct a hazard can receive an additional 15% penalty reduction.
- OSHA is also offering a 20% reduction for businesses that have never been inspected or were inspected in the past five years without serious, willful, or failure-to-abate violations.
These new penalty policies apply to:
- Any open OSHA investigations where penalties have not yet been issued
- New investigations launched after today
Important: The new structure does not apply to any penalties issued before July 14, 2025.
This is a step in the right direction for small contractors seeking fair treatment and incentives for timely compliance. ACCA will continue to monitor OSHA’s enforcement updates and advocate for commonsense compliance policies that work in the real world.
Posted In: OSHA, Workplace Safety
