Small and mid-sized employers now have a valuable opportunity to reduce penalties for workplace safety violations, thanks to recent updates from the U.S. Department of Labor. As of July 14, 2025, the Occupational Safety and Health Administration (OSHA) has revised its penalty framework to ease financial burdens on small businesses while continuing to hold them accountable for maintaining a safe working environment.
These updates not only provide significant savings potential for responsible employers, but also reinforce the importance of acting quickly and maintaining strong safety records.
What’s Changing in OSHA’s Penalty Policy?
Outlined in OSHA’s updated Field Operations Manual, the revised policy introduces three key opportunities for penalty reductions:
1. Quick Hazard Correction (15% Reduction)
Employers who immediately fix hazards identified during an inspection are eligible for a 15% penalty reduction. Immediate abatement must be thoroughly documented and verified by OSHA officials.
2. Expanded Small Business Relief (70% Reduction)
Previously, businesses with 10 or fewer employees could qualify for a 70% reduction in penalties. Now, that threshold has increased—employers with up to 25 employees may qualify. This change acknowledges the resource limitations often faced by smaller firms.
3. Clean Inspection History Credit (20% Reduction)
Employers can earn an additional 20% reduction if they:
- Have never been inspected by federal OSHA or a state plan, or
- Have had an inspection within the last five years with no serious, willful, or failure-to-abate violations
These reductions can be combined, offering eligible employers a total penalty reduction of more than 80%.
⚠️ Note: OSHA retains full discretion to deny reductions, particularly in cases involving egregious or repeated violations.
How Employers Can Take Advantage
To benefit from the revised OSHA policy, employers should take the following proactive measures:
- Track Workforce Size: Ensure you’re aware of your employee count. Businesses with 25 or fewer employees are now eligible for expanded relief.
- Train for Quick Response: Establish protocols so supervisors and safety managers can correct hazards immediately and provide proper documentation.
- Review Your Inspection Record: If your company has never been inspected, or hasn’t had serious citations in the past five years, you may qualify for the clean history credit.
- Be Prepared to Negotiate: If cited, consult a safety expert or legal advisor to confirm eligibility for all applicable reductions.
What This Means for Employers
The updated penalty framework reflects OSHA’s broader strategy: supporting small businesses without compromising on workplace safety. By rewarding prompt action and clean records, the agency encourages employers to stay ahead of safety issues rather than wait for enforcement.
Still, OSHA has made it clear: this isn’t a free pass. Employers who ignore hazards, demonstrate poor safety practices, or act in bad faith will continue to face serious consequences.
Need Help Navigating OSHA Compliance? Contact BGES Group
At BGES Group, we specialize in helping small and mid-sized businesses navigate complex regulatory landscapes, including OSHA compliance and risk management. With decades of experience in insurance, safety consulting, and employee benefits, our goal is to empower business owners to run safer, more efficient operations—without unnecessary penalties or interruptions.
What We Do:
- OSHA compliance consulting
- Workers’ compensation and general liability programs
- Risk management and safety training
- Affordable insurance solutions tailored to your industry
Contact Us Today:
📞 Call: (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
Let us help you take advantage of these new OSHA guidelines and keep your workplace safe and compliant.
BGES Group — Protecting Your People, Your Profits, and Your Peace of Mind.