In a move to support small businesses and strengthen workplace safety, the U.S. Department of Labor has updated its penalty and debt collection guidelines under OSHA’s Field Operations Manual.
Announced on July 14, 2025, the changes are designed to help employers, especially those with limited resources, address workplace hazards more quickly, remain compliant with safety standards and avoid penalties that could threaten their operations.
Under the revised guidance, OSHA has broadened eligibility for penalty reductions. Businesses with up to 25 employees — previously capped at 10 — can now qualify for a 70% penalty reduction. Additionally, employers who take immediate, corrective action after a hazard is identified may receive a 15% penalty reduction under the new provisions. These changes give small employers greater flexibility to reinvest in safety solutions and protect their workforce without being overburdened by fines.
The policy also provides additional relief for employers with a clean safety record. Companies with no history of serious, willful, repeat or failure-to-abate violations — or those that have undergone inspections in the past five years without any such citations — are now eligible for a 20% penalty reduction. This update recognizes and rewards consistent safety performance and proactive hazard management.
"All employers should be offered the opportunity to comply with regulations that help maintain a safe working environment," said Deputy Secretary of Labor Keith Sonderling. "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 updated policies take effect immediately. Penalties issued prior to July 14will remain under the previous structure, but any open investigations — where penalties have not yet been finalized — will fall under the new guidelines. OSHA has emphasized that penalty adjustments will continue to align with its mission and may be withheld in cases where reductions do not advance the goals of OSHA.
This update is part of OSHA’s larger effort to create a more balanced enforcement approach — one that holds employers accountable while acknowledging the unique challenges faced by small businesses. By offering greater leniency to employers who demonstrate a commitment to compliance and safety, OSHA aims to drive meaningful changes in workplace culture and reduce preventable injuries and illnesses.
As OSHA sharpens its focus on both accountability and support, small businesses now have a clearer path to compliance without sacrificing operational stability. These policy updates go beyond financial relief — they signal a shift toward smarter, more strategic enforcement that encourages prompt hazard abatement and long-term safety improvements. Employers who act proactively will be better equipped to protect their teams, reduce liability and build a culture of safety that drives success across the organization.
For more information, visit osha.gov.
