OSHA released updated guidance on penalty and debt collection procedures to make it easier for employers – especially small businesses – to fix hazards quickly and stay in compliance. The new policy increases penalty reductions for small employers, allowing them to invest in resources in hazard abatement to keep workers safe. For example, a penalty reduction level of 70%, which used to only apply to businesses with 10 or fewer employees, now extends to those with up to 25 employees. The update also adds a new 15% penalty reduction for employers who take immediate steps to correct a hazard after it’s identified.
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
