US OSHA Updates Penalty Reductions To Help Small Business

Written By: Atanu Das on Thursday, July 17, 2025

In the July 14 announcement the Deputy Secretary of Labor Keith Sonderling stated that "all employers should be offered the opportunity to comply with regulations that help maintain a safe working environment,”  and “Small employers who are working in good faith to comply with complex federal laws should not face the same penalties as large employers with abundant resources. By lowering penalties on small employers, we are supporting the entrepreneurs that drive our economy and giving them the tools they need to keep our workers safe and healthy on the job while keeping them accountable.”

The policy increases penalty reductions for small employers, making it easier for small businesses to invest resources in compliance and hazard abatement. For 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 who employ up to 25 employees. The revisions also include new guidelines for a 15% penalty reduction for employers who immediately take steps to address or correct a hazard.

Effective immediately, the impact should help alleviate the sting of a penalty for companies showing good faith efforts to abate any compliance issues at their facilities.