Can An OSHA Penalty Be Reduced After a Violation?

Posted on 7/16/2025 by Lion Technology Inc.

Last week, the US Department of Labor announced an update to penalty and debt collection procedures “in an effort to minimize the burden on small businesses and increase prompt hazard abatement.”

Businesses who employ up to 25 employees are eligible for a penalty reduction level of 70%. Employers who immediately take steps to address or correct a hazard are eligible for a 15% penalty reduction.

The updated policy also expands the penalty reduction for employers that have a history of good behavior.

“…employers who have never been inspected by federal OSHA or an OSHA State Plan, as well as employers who have been inspected in the previous five years and had no serious, willful, or failure-to-abate violations, are eligible for a 20% penalty reduction.”
OSHA National News Release, July 14, 2025.

Penalties issued on or after July 14, 2025, will follow the new penalty structure.

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