Companies that have risks and liability of worker injury should take notice. The Occupational Safety and Health Administration (also called ‘OSHA’), which regulates worker protections and business liabilities and responsibilities, changed some rules.
Most of these were administrative changes, but the effects are real to businesses with worker safety liability.
Increasing Penalties
In the Field Operations Manual, used by OSHA agents to assess risks and penalties for businesses, penalties for specific violations were increased significantly.
If an OSHA inspection occurs and you are found to have a “Serious or Other Than Serious Posting Requirement” violation, you will no longer face a maximum penalty of $7,000. You will now face a maximum of $12,471 per violation. Talk with a business law firm that knows your industry and operations so you know which notices you need to post, and where.
The Manual also raised consequences for “Failure to Abate.” These citations can be given if you were given notice to address or make corrections to an unsafe situation, and you either made no action or were deemed to have made insufficient corrections or redress. These can be daily penalties, where the maximum used to be a maximum of $7,000 per day. Now, you could face $12,471 per day. (To be clear, you are usually given a deadline to abate/address whatever specific safety concern, and these penalties apply for every day you are in violation beyond that deadline.)
Finally, if OSHA officials come to believe that your company willfully or repeatedly violated safety rules, the penalties are certainly notable. They used to be a crushing $70,000 per violation. Now, they are set to a maximum of $124,709 per violation.
Certainly, every business is different. Every business cares about the safety of its workers. However, these new penalties make it hard for any business to ignore their safety risks. One should comply with reasonable safety rules, and have a trusted business lawyer to help assess requirements imposed by OSHA on a business.
Record Keeping
In keeping with increased penalties, in 2017, businesses will also need to keep close compliance with work-related injury reporting.
It is already required for businesses to report work-related injuries to the Occupational Safety and Health Administration, and for good reason. Companies that have more than 250 employees at one establishment now need to submit injury data and illness data through new forms electronically. Forms 300 (including 300A) and 301 now need to be electronically reported.
OSHA also identifies high risk industries that need to comply even if they fall below 250 employees. Talking to an OSHA representative or a business lawyer familiar with those matters regarding your specific business might not be a bad idea.
This is part of a larger move to keep data more accessible, and easily searchable. It is a serious effort to make American work places safer.
We will continue to review OSHA changes in upcoming months, however, we want to leave you with a non legal story related to how focusing on safety changed the culture and profits of a company.
Your Company Habits
Have you ever heard the story of the large aluminum manufacturing firm, Alcoa and it’s radical approach to profits and safety?
Alcoa and it’s investors were sailing rocky waters in 1987, as a string of failed product lines shook up the corporate structure and it’s previously unchallenged profitability. A very unlikely candidate for CEO was appointed, Paul O’Neill. In his first address, he spent the whole speech pressing the importance of worker safety, and the risks workers face on the floor. Investors, who were nervous he was not business minded enough to lead the company back to profitability, were not comforted. They expected strategic talks of new markets, new innovation and the sort. Not worker safety.
As the weeks and months went on investors, managers, and employees at Alcoa came to realize it wasn’t just talk. O’Neill was lightning quick to fire long time, loyal managers who didn’t take safety as seriously as he did. Why? Was it because he really did care about worker safety?
Well, yes. However, there was more at play. Paul was using ‘keystone’ habits (as described in book “The Power of Habit”) which is the same strategy used to reduce New York crime by focusing on high visibility arrests on train ticket dodgers. By focusing on safety as one habit seriously, the effects were an avalanche of profitable and positive change within Alcoa.
Greater efficiencies in manufacturing, greater measurement and tracking of employee output, rules that were more objective, fair, and consistent, higher employee morale. In short, all things that contribute to a more profitable company.
The arguments and penalties that demand your attention to worker safety in 2017 are increasing. Use internal resources or safety experts to review your workplace safety, speak to a lawyer when appropriate or when you need more information on an OSHA requirement, and review your keystone habits.
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