OSHA Cuts Penalties for Small Employers

The U.S. Occupational Health and Safety Administration (OSHA) announced new guidance reducing penalties for small employers and those with clean safety records, effective immediately as of July 14, 2025, according to commentary from Olgetree Deakins.

The big picture: The policy changes represent a significant shift in OSHA’s enforcement approach, offering financial relief to smaller businesses while maintaining incentives for workplace safety compliance. The move acknowledges the different compliance capabilities between large corporations and small businesses with limited resources.

By the numbers: The new penalty reduction structure includes:

• • • • 70 percent penalty reduction for businesses with up to 25 employees (previously only 10 or fewer).
      • 30 percent penalty reduction for employers with 26 to 100 workers.
      • 10 percent penalty reduction for employers with 101 to 250 workers.
      • 20 percent penalty reduction for employers with no inspection history or clean records over five years.
      • 15 percent reduction for employers that immediately address hazards.

Worth noting: OSHA will not apply penalty adjustments in several circumstances, including fatality-related citations, employers on the Severe Violator Enforcement Program List, willful or repeat violations within five years related to fatalities, and employers referred to debt collection for unpaid penalties.

The takeaway: Small businesses and safety-conscious employers now have stronger financial incentives to maintain compliance and quickly address workplace hazards when identified.