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Today, OSHA released updated guidance on penalty and debt collection procedures to make it easier for employers – especially small businesses – to fix hazards quickly and stay in compliance. The new policy increases penalty reductions for small employers, allowing them to invest in resources in hazard abatement to keep workers safe. For example, a penalty reduction level of 70%, which used to only apply to businesses with 10 or fewer employees, now extends to those with up to 25 employees. The update also adds a new 15% penalty reduction for employers who take immediate steps to correct a hazard after it’s identified.
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. ➡️ See the news release for more details.🌬️.
Does This Affect Minnesota Businesses?
Yes, the updated penalty and debt collection guidelines in the OSHA Field Operations Manual, which aim to reduce burdens on small businesses and promote prompt hazard abatement, do apply to State OSHA programs like Minnesota's. These guidelines were updated on July 14, 2025, and are effective immediately. They apply to penalties issued on or after that date, and also to open investigations where penalties haven't yet been issued, according to AIHA.
Here's why:
- Federal-State OSHA Relationship:
State OSHA programs operate under an agreement with the U.S. Department of Labor, and while they have their own specific regulations, they must be "at least as effective" as the federal OSHA program.
- Incorporation of Changes:
State plans are typically required to adopt changes to federal OSHA policies and procedures, including those related to penalties and debt collection, within a specified timeframe, says the National Roofing Contractors Association.
Minnesota has its own OSHA-approved state plan. While the exact details of how Minnesota implements these changes may vary, the core principles of the updated OSHA guidance, such as expanded small business relief and encouragement of prompt hazard correction, will apply to Minnesota's program, according to Littler.
- Impact on Minnesota Businesses:
Minnesota businesses, especially small businesses, will likely see similar benefits from the updated guidance, including potential reductions in penalties for certain violations and encouragement to address hazards quickly, says the American Society of Safety Professionals.
👉 Read the full article on our website and see how
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