OSHA Compliance: What Businesses Need to Know

Life is good. Business is booming. And then it happens—an employee slips on a wet floor, or worse, gets their hand caught in a machine. Suddenly, you’re facing mounting medical bills, lost productivity and the looming specter of an OSHA inspection. Could this have been prevented? Are you prepared for this scenario? This guide will cover the steps business owners can take to safeguard their employees, protect their bottom line and stay on the right side of OSHA compliance.

What’s OSHA, anyway?

OSHA, or the Occupational Safety and Health Administration, is the regulatory body under the Department of Labor. They establish standard processes and provide resources to keep workplaces safe. Since its inception in 1971, OSHA has had a significant impact on workplace safety:

• Job place deaths have reduced by 60%
• Injuries and illness are down 75%—from 10.9 incidents per 100 workers in 1972 to 2.7 per 100 in 2022

That’s millions of people who made it home safely to their families.

Why should I care about OSHA compliance?

Simple: because a safe workplace is a productive workplace. OSHA compliance isn’t just about avoiding fines (though that’s a nice bonus). It’s about keeping your team safe and healthy, boosting productivity, protecting your business from costly lawsuits and insurance claims and building a reputation as a responsible employer.

Consider this: The National Safety Council estimated that workplace injuries and deaths cost the U.S. economy $167 billion in 2022. That’s about $1,040 per worker.

Do I need to comply with OSHA standards?

The short answer is probably, but the specifics can vary. Don’t assume you’re off the hook because you run a small office. Even seemingly “safe” workplaces need to comply with specific standards. OSHA covers most private sector employers and their workers and some public sector employers and workers in the 50 states and certain territories and jurisdictions under federal authority.

There are some exemptions, including:

• Self-employed individuals
• Farms that employ only immediate family members of the farm employer
• Working conditions regulated by other federal agencies (like mine safety or nuclear power)

But unless you fall into one of these narrow categories, odds are you need to comply.

Key OSHA compliance areas

OSHA regulations cover a wide range of industries and safety issues. Here are some of the most common infractions you might need to know about:

Recordkeeping

If your business has 10 or more employees, pending excluded industries, you must keep an OSHA 300 injury log. This log is to track injuries that go beyond first-aid treatment, result in a job transfer or restriction or require days away from work, among other types of situations. Keeping this information can protect your business from legal headaches or compliance issues and helps track risk patterns. Keep these records for five years; OSHA may request to see them during an inspection.

Reporting incidents

When an accident occurs, document what happened, when, where and who was affected. OSHA requires that any work-related incident resulting in hospitalization, amputation or loss of an eye be reported within 24 hours. Fatalities must be reported within eight hours. To report, call the nearest state OSHA office, the 24-hour hotline at 1-800-321-6742 (OSHA), or use the federal OSHA website.

Chemical hazard communication

If your company stocks chemicals (think hand sanitizer or flammable cleaners), you must have a written Hazard Communication program and provide employee training, regardless of your company’s size. Each chemical should have a Safety Data Sheet (SDS) containing details regarding proper storage, usage guidelines, disposal procedures and emergency measures. Ensure the sheets are readily accessible and regularly updated. Spill kits and eyewash stations are necessary only if the chemicals in use explicitly require them.

Equipment training

Identify which equipment requires training—typical examples are forklifts, cranes and power tools. Document all training. Include the trainer’s name, date and specific topics covered. Repeat training periodically and whenever you introduce new equipment. Don’t assume experienced workers don’t need training—refreshers benefit everyone.

Fall protection

The leading cause of workplace fatalities is falls. OSHA requires Fall Protection for work at heights of 4 feet or more in general industry and 6 feet in construction. Use guardrails or personal fall arrest systems (PFAS) where needed. Inspect this equipment regularly. Train workers on fall hazards and proper use of protection systems.

Respiratory protection

If your workplace contains harmful dust, fog, gasses or vapors, you might need a Respiratory Protection program. OSHA specifies a Permissible Exposure Limit (PEL) for many substances; if employees’ exposure is above the PEL, a respirator (or other control) is required. You’ll have to supply Personal Protective Equipment (PPE) at no cost to your workers and train them on proper use and maintenance. Have clear procedures for respirator selection, use and storage. Medical evaluations may be necessary for some workers who use respirators.

The price of noncompliance

Neglecting workplace safety and health processes or disregarding OSHA requirements isn’t just risky—it’s expensive. Here’s what’s at stake:

➤ Your reputation

In the age of social media, news of safety violations can spread quickly, and OSHA violations are public records. One serious incident can tarnish your company’s reputation for years. That means potential clients, employees and partners can see your safety track record. Violations can stay on record for five years or sometimes more.

And for companies that OSHA feels have “demonstrated indifference to their OSH Act obligations by committing willful, repeated or failure-to-abate violations,” they will be placed on a Severe Violator Enforcement Program (SVEP). 

➤ Your wallet

Fines are costly. As of 2024, the maximum penalties are $16,131 for serious or other-than-serious violations and $161,323 for willful or repeated violations.

Shocking example: OSHA fined a single company $15 million due to violations across numerous locations. Meanwhile, a construction company was fined more than $1.8 million for repeat violations.

But that’s just the beginning. You could also face:

• Higher insurance premiums due to perceived risk
• Costly workers’ compensation claims
• Potential civil lawsuits from injured employees

➤ Your business

Beyond the immediate financial hit, noncompliance can have long-lasting effects on your business:

• Difficulty hiring: In a tight labor market, workers have options. They’re less likely to choose a company with a poor safety record.
• Training and retraining: High turnover due to safety concerns means more time and money spent training new employees.
• Reduced productivity: Workplace injuries and illnesses result in lost workdays and diminished morale.
• Work stoppages: Serious accidents or fatalities might lead to work stoppages during investigations and repairs, causing delays in project timelines.

Steps to achieve OSHA compliance

Many businesses struggle to keep up with changing standards and implementing effective safety programs. Here are some steps you can take to improve your processes and meet OSHA compliance:

Conducting mock inspections

Don’t wait for OSHA inspectors to show up at your door. Hire a consultant or seek assistance from your insurance carrier or broker to conduct a mock inspection. This will help you identify and correct potential violations before they become real problems. This proactive approach can save you a lot of headaches (and money) down the road.

How to do it:

• Use OSHA’s inspection checklist as a guide
• Involve employees from different departments
• Document findings and create action plans for any issues identified
• Follow up to ensure corrective actions are implemented

Creating written safety programs

Put your safety procedures in writing. Document protocols, emergency procedures and training requirements. Make these documents easily accessible to all employees. Your written programs should cover all relevant OSHA standards for your industry. They need to be specific to your workplace and regularly updated.

Building a culture of safety

Foster an environment where safety is everyone’s responsibility. Encourage employees to report hazards without fear of retaliation. Celebrate safety milestones. Make safety a regular topic in meetings at all levels. When business owners consistently prioritize safety over shortcuts, employees will follow suit.

Leveraging external help

You’re an expert in your business, not necessarily in OSHA regulations. Don’t be afraid to bring in specialists. Safety consultants, legal advisors or your insurance broker can help you identify blind spots in your safety programs. Their knowledge can save you from costly mistakes and help you navigate the complex world of OSHA compliance.

The bottom line: Occupational safety pays

OSHA compliance isn’t always easy. It takes time, effort and sometimes significant investment, but it’s worth it. It’s about creating a workplace where your team can thrive. It’s about building a reputation as a company that cares. And yes, it’s about protecting your bottom line. But outside the numbers, there’s a human element here. Every injury prevented is a worker who goes home safely to their family. Every illness avoided is a life improved. And that is why OSHA compliance matters more than any regulation or fine.
So, take a hard look at your workplace. Are you doing everything you can to keep your team safe? The more you know about OSHA compliance, the better equipped you’ll be to create a secure and productive work environment. If you’d like to gain deeper insights into your organization’s safety practices, consider contacting Crane Agency for a mock inspection. When protecting your most valuable asset—your people—you can never be too prepared.