Some small employers exempt from regular OSHA inspections

Small employers may not realize that they may be exempt from “programmed” OSHA inspections if they employ 10 or fewer employees and operate in a low-hazard industry.

Programmed OSHA inspections are those conducted by the agency on a regular basis. Under the 1999 Appropriations Act, smaller employers are exempt from those kind of inspections if the following requirements are met:

• The company must have had 10 or fewer employees currently and at all times in the previous 12 months.

• The lost workday case rate for its primary work activity, as defined by the Standard Industrial Classification system, must be below the all-industry national average. The lost workday case rate describes the number of recordable work-related injuries or illnesses per 100 full time employees that result in lost or restricted days or job transfer. When working in commercial or industrial building construction, the industry’s DART rate must be less than the all-industry national   average, which was 1.7 recently. The DART rate is the number of recordable work-related injuries or illnesses per 100 full time employees that result in lost or restricted days or job transfer.

If an employer is exempt because of working in a low-hazard industry, OSHA offices are allowed to investigate or schedule inspections in response to a complaint from a current employee. Citations may be issued for any violation found during a complaint inspection, but penalties may only be assessed when the violations are willful or failure to abate notifications and when those violations and failure to abate notifications are related to the original complaint.

Of course, all bets are off in situations where there is alleged imminent danger to workers or in cases of accidents involving fatalities or hospitalization of two or more employees. In those situations, OSHA is allowed to take any action authorized by the OSH Act.

If you have any questions, please feel free to call me at 513-317-5644 or email at jstanley@fdrsafety.com.