OSHA just rolled out new enforcement policies, and they come with a big win for small contractors: major penalty relief for those who are playing by the rules.
As of July 14, OSHA inspectors have new authority to reduce fines for businesses that are working in good faith to keep jobsites safe, even if they get flagged during an inspection. The updates are now part of OSHA’s Field Operations Manual and apply immediately to any open investigation where fines haven’t been issued yet.
Here’s the breakdown.
If your company has 25 or fewer employees, you’re now eligible for a 70% reduction in OSHA penalties. Previously, that break was only available to companies with 10 or fewer workers.
That’s a big shift. It means more small contractors can catch a break if they’re doing their best to follow the rules.
In addition to size-based relief, OSHA is rewarding quick hazard correction. If you take immediate steps to fix an issue once it’s flagged, you could qualify for an extra 15% penalty reduction.
The same goes for companies with a solid safety culture. Employers with a documented and effective safety and health management system are now eligible for that 15% discount.
What counts toward effective safety systems? Think:
OSHA is also expanding breaks for contractors with a clean inspection history. If your business has never been inspected by OSHA, or was inspected in the past five years and had no serious or repeat violations, you can qualify for an additional 20% penalty reduction.
This isn’t a free pass. If you’ve got repeat violations or willfully ignored hazards, these new policies won’t apply. But for small commercial contractors trying to do things right, these changes are a real opportunity.
The message is clear: OSHA wants to encourage compliance, not just punish mistakes. And they’re building in more flexibility to recognize effort, especially from small firms that don’t have legal teams and safety managers on speed dial.
It also means your jobsite safety practices can now directly support your bottom line, beyond just keeping your crew protected. Strong documentation, fast response to hazards, and a clean record can all help reduce the financial hit if OSHA shows up.
If you're running a tight crew and doing your best to keep jobsites safe, these new OSHA guidelines give you some room to breathe. They reward contractors who take safety seriously, even if they stumble.
Now’s a good time to tighten up your safety documentation and get your protocols in order. Because if you’re doing the right thing, OSHA’s ready to meet you halfway.
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