Orlando Harmon
The Occupational Safety and Health Administration (OSHA) was created in 1971 to enforce requirements and standards that employers must follow to ensure their employees' safety. OSHA does not offer insurance, but it does require employers to keep records of work-related injuries and illnesses, and to report any workplace incidents that result in serious injuries or fatalities. Employers must also comply with OSHA standards to provide a safe workplace, which may include implementing engineering controls, administrative controls, and providing personal protective equipment. Compliance with OSHA standards helps lower the number of workplace injuries and creates a safer work environment, which in turn reduces Workers' Compensation (WC) insurance costs. WC insurance provides medical care for employees injured in the workplace, and is mandatory in Pennsylvania and many other states.
| Characteristics | Values |
|---|---|
| Purpose | To assure safe and healthful conditions for workers |
| Year of implementation | 1971 |
| Basis | Occupational Safety and Health Act of 1970 |
| Compliance requirements | Set in accordance with the hazards endemic to different industries and the unique nature of a workplace |
| Exemptions | Businesses with 10 or fewer employees, low-hazard industries, self-employed people, family farms, churches, and businesses already covered by other federal agencies |
| Compliance assistance | OSHA's On-Site Consultation Program offers free and confidential safety and occupational health advice to small and medium-sized businesses |
| Inspection | Conducted at random or triggered by an event such as an accident or employee complaint |
| Record-keeping | Employers must record all work-related fatalities, injuries, and illnesses that result in days away from work, restricted work, transfer to another job, loss of consciousness, or medical treatment beyond first aid |
| Violations | De minimis, other than serious, serious, and willful |
| Penalties | Fines, criminal prosecution referrals, and jail time |
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What You'll Learn
OSHA and Workers' Compensation Insurance
The Occupational Safety and Health Administration (OSHA) was created in 1971 as a result of the Occupational Safety and Health Act of 1970. Its purpose is to "assure safe and healthful conditions for workers". OSHA sets and enforces requirements and standards that employers are mandated to follow to ensure employee safety.
OSHA requirements are set by statute, standards, and regulations. Their interpretation letters explain these requirements and how they apply to particular circumstances. OSHA also provides training, outreach, education, and compliance assistance.
OSHA requires employers to keep records of work-related injuries and illnesses. Employers with ten or fewer employees and employers in specific low-hazard industries are exempt from this requirement. OSHA also grants exemptions to businesses that are already covered by other federal agencies.
Inspections may occur at random or be triggered by an event, such as an accident or employee complaint. Compliance officers may inspect the workplace, interview employees, and review documentation.
Workers' Compensation Insurance (WC) is a separate entity from OSHA. It is mandatory, employer-financed, no-fault insurance in Pennsylvania and many other states. It covers lost wages, medical expenses, disability payments, and death benefits related to work injuries or illnesses. It also protects employers from accident-related lawsuits.
Complying with OSHA standards helps lower WC costs by reducing the number of workplace injuries and resulting claims. Businesses typically see a return of $4-$6 for every dollar invested in workplace safety programs.
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OSHA inspections
Businesses with 10 or fewer employees are usually exempt from accident and injury reporting requirements and unannounced OSHA inspections. Exemptions are also granted to businesses in low-hazard industries, self-employed people, family farms, churches, and businesses already covered by other federal agencies.
Before an inspection, the safety and health inspector will be provided with all relevant information pertaining to the occupational safety and health of the workplace, including hazard reports, injury records, and previous inspection reports. The inspector will determine in advance the work procedures and conditions to be inspected, so they have the proper equipment to conduct an effective inspection.
During an inspection, the inspector may request employees to wear personal monitoring devices, such as noise dosimeters and air sampling pumps, to sample the work environment. If a danger is identified that could cause immediate death or serious harm, the inspector must inform the affected employees and officials in charge. At the conclusion of an inspection, the inspector will confer with the workplace official and employee representatives about any unsafe working conditions and advise them informally.
To prepare for OSHA inspections, businesses should maintain excellent records and documentation of their processes. They should also be aware of their industry-specific requirements and any additional state regulations.
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Recordkeeping requirements
OSHA collects work-related injury and illness data from establishments through the Injury Tracking Application (ITA). Businesses with 10 or fewer employees are exempt from accident and injury reporting requirements and unannounced visits from OSHA inspectors. However, many employers with more than 10 employees are required to keep a record of serious work-related injuries and illnesses. Exemptions are also granted to businesses in low-hazard industries, self-employed people, family farms, churches, and businesses already covered by other federal agencies.
The recording of occupational injuries and illnesses on the OSHA forms must be determined solely on the basis of the OSHA criteria. The records must be maintained at the worksite for at least five years. Each February through April, employers must post a summary of the injuries and illnesses recorded in the previous year. Copies of the records must be provided to current and former employees or their representatives upon request.
OSHA offers the OSHA #7845 Recordkeeping Rule Seminar course, which covers the requirements for maintaining and posting records of occupational injuries and illnesses and reporting specific cases to OSHA. The course includes hands-on activities associated with completing the OSHA Form 300 Log of Work-Related Injuries and Illnesses, OSHA Form 300A Summary of Work-Related Injuries and Illnesses, and the OSHA Form 301 Injury and Illness Incident Report.
Section 1904.4 of the final rule mandates that each employer who is required by OSHA to keep records must record each fatality, injury, or illness that is work-related, is a new case, and meets one or more of the general recording criteria in section 1904.7 or the additional criteria for specific cases found in sections 1904.8 through 1904.11. Paragraph 1904.5(a) states that an injury or illness must be considered work-related if an event or exposure in the work environment caused or contributed to the injury or illness or significantly aggravated a pre-existing injury or illness.
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Compliance requirements
To comply with OSHA, businesses should create a program with the following five elements:
- Management leadership and employee participation
- Workplace analysis
- Hazard implementation and control
- Safety and health training and education
- Program evaluation
Management must initiate a process that includes substantial input from employees. Together, they conduct an audit of safety issues, make modifications to the site as needed, and create rules for the training or credentials required to perform specific tasks that may be hazardous. The program should be evaluated regularly, with corrections and improvements made as needed.
Businesses should also maintain excellent records to show that they have done their best to maintain a safe and healthy workplace. Inspections can occur at any time and are often random, except for small businesses that are exempt. Inspections can also be triggered by events such as accidents or employee complaints.
OSHA provides a range of resources to assist businesses in complying with its requirements, including:
- Compliance Assistance Quick Start: Introductory step-by-step instructions to OSHA compliance assistance resources
- OSHA eTools: Links to e-tools and Expert Advisors
- OSHA Safety and Health Topics Pages: Information on specific safety and health hazards, and specific hazard information on different industries
- Help for Employers Page: A portal to OSHA's compliance assistance resources
- Frequently Asked Questions: A page highlighting topics and specific questions that are often asked of OSHA
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Compliance violations
There are six types of OSHA violations, each carrying a different penalty. When a business owner or manager knows a hazard can result in injury or death and does not resolve it, OSHA considers this a serious violation. Fines are based on the seriousness of the violation and can reach up to $16,550 for each. It is more cost-effective to have a workplace risk assessment consultant identify and resolve safety hazards before OSHA imposes a fine. Gravity-based penalties (GBP) are classified into three categories.
A violation that does not result in injury or death but compromises an employee's safety and health is considered an "other-than-serious-threat" by OSHA. The maximum penalty for this type of violation is the same as for a serious one. However, OSHA can issue a citation or reduce the penalty amount by 95%. OSHA classifies other-than-serious violations as safety or health issues that directly impact workplace safety but are unlikely to cause death or serious injury. Penalties for these violations can range from $0 to $16,550 per violation, depending on factors like the company's size, previous violations, and good faith efforts to comply. While some minor violations may result in only a warning, OSHA inspectors can still issue penalties if warranted.
Any employer who willfully or repeatedly violates the requirements of section 5 of the Act, any standard, rule, or order, or regulations prescribed, may be assessed a civil penalty of not more than $70,000 for each violation, but not less than $5,000 for each willful violation. Any employer who has received a citation for a serious violation of the requirements may be assessed a civil penalty of up to $7,000 for each such violation. Any employer who fails to correct a violation for which a citation has been issued within the permitted period may be assessed a civil penalty of up to $7,000 for each day the violation continues.
To avoid compliance violations, small businesses can take advantage of the Small Business Regulatory Enforcement Fairness Act (SBREFA), which assists small businesses in complying with OSHA regulations. OSHA also offers a range of compliance assistance options, including the On-Site Consultation Program, which provides free, individualized assistance to small businesses. Additionally, most of OSHA's 85 Area Offices have compliance assistance specialists who offer outreach and education programs for employers and workers.
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Frequently asked questions
OSHA inspections can occur at any time, at random, except for businesses that are small enough or generally deemed hazard-free, so they earn an exemption.
Complying with OSHA's standards and regulations helps lower the number of workplace injuries and creates a safer workplace. This, in turn, helps lower Workers' Compensation (WC) costs.
Yes, OSHA's On-site Consultation Program offers free and confidential safety and occupational health advice to small and medium-sized businesses in all states across the U.S. Employers can find out about potential hazards at their workplace and improve existing programs.
Failure to comply with OSHA's requirements and standards can lead to fines and even criminal prosecution referrals. The maximum penalty for violations is $15,625 per violation, and the maximum penalty for willful or repeated violations is $156,259 per violation.
