OSHA Updates Penalty Guidelines To Provide Relief for Small Businesses

July 22, 2025

The Occupational Safety and Health Administration (OSHA) has updated its guidance on penalty and debt collection procedures in the Occupational Safety and Health Administration's Field Operations Manual in an effort to minimize the burden on small businesses and increase prompt hazard abatement.

The new policy, outlined in the Penalties and Debt Collection section of OSHA’s Field Operations Manual, increases penalty reductions for small employers. As an example, a penalty reduction level of 70%, which was previously only applicable for businesses with 10 or fewer employees, will now be expanded to include businesses that employ up to 25 workers. The revisions also include new guidelines for a 15% penalty reduction for employers who immediately take steps to address or correct a hazard.

Additionally, the updated policy expands the penalty reduction for employers without a history of serious, willful, repeat or failure-to-abate OSHA violations. Under OSHA’s revised policy, employers who have never been inspected by federal OSHA or an OSHA State Plan, as well as those inspected in the previous five years with no serious, willful or failure-to-abate violations, are eligible for a 20% penalty reduction.

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.