DOL Announces $12M Settlement Requiring Corporate-Wide Workplace Safety Compliance

On July 11th, 2024, the Department of Labor (DOL) announced that it entered into a corporate-wide workplace safety compliance settlement. Specifically, the Occupational Safety and Health Administration (OSHA) ordered a popular national discount retailer to significantly improve workplace safety. As part of the settlement, these improvements must happen in all stores nationwide. Earlier in May, OSHA announced a final rule updating the current Hazard Communication Standard (HCS).

Overview of the Settlement

In detail, the retailer agreed to pay $12 million in penalties and implement corporate-wide changes. Overall, these changes would prioritize the safety of its employees. These improvements include the following:

• Establishing and maintaining an expanded safety structure and a robust safety and health management system. Undoubtedly, the system would include hiring additional safety managers.
• Significantly reducing inventory and increasing stocking efficiency. This would prevent blocked exits and unsafe material storage.
• Providing safety and health training to both leadership and non-managerial employees.
• Developing a safety and health committee and encouraging employee participation.

Furthermore, to ensure workplace safety compliance, the company needs to avoid any future violations related to the following:

• blocked exits,
• access to fire extinguishers and electrical panels, and
• improper material storage.

The company must correct such hazards within 48 hours and submit proof of correction. Consequently, failure to do so will lead to monetary assessments of $100,000 per day of violation. This fine can reach up to $500,000, as well as further OSHA inspection and enforcement actions. All in all, this settlement agreement resolves existing contested and open federal OSHA inspections against the retailer. By and large, the inspections repeatedly found violations, including blocked emergency exits, blocked electrical panels, blocked fire extinguishers, and unsafe storage. Markedly, the company operates more than 19,000 stores nationwide. All 19,000 fall under OSHA’s workplace safety compliance settlement.

Employer Takeaways

In conclusion, OSHA enforces the Occupational Safety and Health Act’s (OSH Act’s) General Duty Clause. This regulation requires employers to ensure a healthy and productive work environment for all workers. To comply with the General Duty Clause, employers should familiarize themselves with six common workplace hazards and find out how to fix them if found. To assist employers in maintaining workplace safety compliance and prevent accidents and injuries, WorkWise Compliance offers the following:

• Slips, Trips, and Falls Prevention Training Program for Employees – This resource contains an online, interactive employee training module and a digital PDF compliance guide for employers. Overall, the program ensures compliance with OSHA’s Walking & Working Surfaces standards (29 CFR 1910, Subpart D). These regulations impose specific requirements on employers to prevent workplace slips, trips, and falls.

To assist businesses in staying compliant with workplace safety regulations, a workplace safety inspection form can be a valuable tool. This form helps employers systematically check for potential hazards, ensuring that issues like blocked exits and unsafe material storage are identified and corrected promptly to avoid penalties and enhance worker safety.