URGENT WORKPLACE SAFETY ALERT
The U.S. Department of Labor has announced updates to OSHA’s penalty framework that could result in substantial savings for employers. This is the most employer-friendly shift in OSHA enforcement policy in years, placing an emphasis on fixing issues quickly and a history of hazard mitigation efforts. These changes became effective on July 14, 2025. Please email info@complyauto.com if you have any questions about this or our Safety products or services.
Definition Shift to Capture More Small Businesses
OSHA has reduced business size requirements and updated its sliding scale of penalty reductions for violations. Most notably, OSHA now allows businesses with 25 or fewer employees nationwide to receive a 70% penalty reduction. Before this update, this reduction was capped at 10 or fewer employees. Employer size is calculated on the basis of the maximum number of employees for an employer across all locations nationwide, regardless of whether the workplace falls under federal OSHA or a State Plan jurisdiction. This means you must aggregate employees across all locations, not just the number of employees at the site where a citation is issued.
OSHA Field Operating Manual
| Employees | % Reduction |
| 1-25 | 70 |
| 26-100 | 30 |
| 101-250 | 10 |
| 251 or More | None |
Incentives for “Quick-Fix” Hazard Corrections
OSHA has introduced a new “Quick-Fix” penalty reduction that offers a 15% decrease in penalties when employers promptly correct certain violations. To be eligible, the hazard must be fully abated within five calendar days of the inspection. In limited cases where immediate correction isn’t practical, OSHA may allow up to 15 days, so long as the employer notifies the agency within the first five days and ensures no employees are exposed to the hazard during that period. The correction does not need to happen while the inspector is present, but it must be properly documented and verified.
Getting Credit for a Clean History
OSHA is strengthening its incentive for employers with a strong compliance history by increasing the available “history” penalty reduction from 10% to 20%. To qualify, a business must either have never been inspected by OSHA or a State Plan, or must have undergone an inspection within the past five years without receiving any serious, willful, repeat, or failure-to-abate violations.
Quick Tips for Dealers Today
To capitalize on this recent change, dealers should review their safety processes to ensure that they can benefit from OSHA’s new stance on penalties.
1. AVOID A PENALTY ALTOGETHER
The best way to reduce OSHA penalties is to avoid them in the first place. While these new reductions can soften the financial blow, they don’t erase the cost of noncompliance, including operational disruption, reputational damage, and potential citations. Investing in proactive safety measures now is far cheaper than paying fines later.
2. STRENGTHEN SAFETY SYSTEMS
Update workplace safety protocols to ensure that all staff are trained in the various workplace safety requirements and empower them to be able to mitigate risks and correct potential violations as they observe them. Also, train them in accessing the database and other pertinent information should any of the documentation be required.
3. VERIFY YOUR EMPLOYEE COUNT
Determine whether you qualify for the 70% small business reduction by reviewing your total headcount. OSHA requires you to count employees across all locations nationwide. If you’re near the 25-employee threshold, track staffing changes closely throughout the year.
4. REVIEW YOUR INSPECTION HISTORY
Review your inspection history carefully for two key reasons:
- A clean record over the past five years may qualify you for a 20% penalty reduction.
- It allows you to proactively address any gaps before an OSHA inspector finds them.
Make sure you have documentation that reflects a strong safety record so you can demonstrate your commitment to workplace safety when an inspector arrives.
Some Other Important Details
State Plans May Vary
Not all states will implement these changes immediately, so check with your State Plan to receive the most up-to-date information.
Application of Changes
The new policies are effective immediately. Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not yet been issued are covered by the new guidance.
OSHA Still Has Discretion
Keep in mind: OSHA retains full discretion in enforcement decisions, especially in cases involving repeat or egregious violations.
The takeaway: Investing in safety today can significantly reduce the financial impact of future violations.
Questions?
Don’t have a process in place or wish your existing processes were more relevant to your dealership? Contact the experts at ComplyAuto to discuss how these changes impact you by sending an email to info@complyauto.com or by scheduling a demo.