OSHA Issues Updated Penalty and Debt Collection Guidelines to Support Small Businesses and Encourage Prompt Hazard Abatement

On July 14, 2025, the U.S. Occupational Safety and Health Administration (OSHA) issued significant updates to its penalty and debt collection guidelines, aimed at reducing burdens on small businesses and incentivizing swift correction of workplace hazards. These updates, reflected in Chapter 6 of OSHA’s Field Operations Manual, expand eligibility for penalty reductions and streamline debt collection procedures.

Notably, under the new guidelines, the threshold for small employer penalty reductions has been raised—businesses with up to 25 employees (previously 10) can now qualify for a 70% penalty reduction. 

Additionally, employers that promptly correct hazards may receive a new 15% reduction under OSHA’s “Quick-Fix” credit. To qualify, the hazard must be corrected within five days of discovery and employee exposure to the hazard must be prevented during that time. If more than five days is needed to abate the hazard, the employer must notify the OSHA Compliance Safety and Health Officer (CSHO) within the five-day window to explain the corrective actions taken and why up to an additional 10 days is necessary. However, no Quick-Fix credit will be granted if abatement takes more than 15 days.

The updated policy also expands the penalty reduction for employers without a history of serious, willful, repeat, or failure-to-abate OSHA violations. Employers may be eligible for a 20% history-based penalty reduction if they have either:

• Been inspected by federal OSHA or a State Plan within the past five years and were found in compliance or cited only for other-than-serious violations; or
• Never been inspected by OSHA or a State Plan.

These changes aim to reward good-faith compliance efforts while maintaining accountability for workplace safety.

The new policies are effective immediately. Penalties issued before July 14, 2025, will remain under the previous penalty structure. Open investigations in which penalties have not yet been issued are covered by the new guidance.

Employers with open OSHA investigations should consult experienced workplace safety counsel to determine how these changes may impact their case and to ensure they are taking full advantage of the updated policies.