OSHA Expands Penalty Reduction Program for Small Employers

Employers with up to 25 employees may now be eligible for greater penalty reductions (up to 70%) after being cited by OSHA for health and safety violations. The previous cut-off for a “small” business eligible for the maximum reduction was 10 employees. The change comes from the US Department of Labor, who updated the OSHA penalty and debt collection procedures “in an effort to minimize the burden on small businesses and increase prompt hazard abatement.”

The Department of Labor announced the policy update in a press release on July 14, 2025. 

How OSHA Calculates Penalties (4 Factors)

OSHA must consider four factors when calculating penalties for health and safety violations: 

• The gravity of the violation 
• The size of the employer’s business
• Good faith efforts by the employer
• The employer’s history of previous violations

[OSH Act §17(j)]

OSHA Penalties and Penalty Reductions 

Civil penalties for violations of OSHA regulations increase every year to keep pace with inflation. OSHA last increased civil penalties in January 2025. OSHA compliance officers have some leeway to reduce the penalty amount(s) assessed, sometimes substantially, based on the factors listed above. That said, there are several types of violations that do not qualify for penalty reductions under OSHA’s policy. 

Employers who show a “good faith effort” to implement a workplace health and safety management system can qualify for a penalty reduction of up to 25%, for example, but not high gravity violations, willful violations, repeated violations, failure to abate (FTA) a hazard. Employers without an adequate safety and health management system do not quality for “good faith” reductions, and neither do employers who fail to report a fatality, hospitalization, amputation, or loss of an eye per 29 CFR 1904.39.

Penalties issued by OSHA for workplace health and safety violations on or after July 14, 2025 will be subject to the new penalty assessment policy. The policies and procedures for calculating penalties (and penalty reductions) are outlined in the OSHA Field Operations Manual (Chapter 6—Penalties and Debt Collection). 

Workplace Safety Training for Frequently Cited Violations

Lion’s online OSHA safety training covers key requirements for employers and can help to satisfy employee training requirements found in many of OSHA’s most broadly applicable standards.

• Respiratory Protection
• Lockout/Tagout
• Confined Space Entry Awareness

Lion's 10 Hour Training for General Industry gives workers a sense of the most common hazards in general industry, and what OSHA requires from employers.
 

Tags: osha, OSHA penalties, penalties