Legal ruling could lead to increased power for OSHA

January 26th, 2016 by Dakota Software Staff Industry News

The Occupational Safety and Health Administration has been a consistent presence in the news lately, thanks to the potentially massive changes to how the regulatory agency conducts inspections and significant increases to its fine schedule. OSHA seems to be gaining in power, and the changes to inspection and enforcement aren't the only reasons why. A recent court ruling may change a different aspect of OSHA's operations and increase the power to that organization. OSHA may now be able to instruct businesses to deal with and minimize or eliminate hazards in the workplace, whether or not the organization physically inspected a facility prior to issuing the order.

How did this shift occur?
News source Business Insurance highlighted a case that occurred in 2014, when OSHA fined a Michigan-based transport company approximately $330,000 due to a number of violations. Those safety issues included a dispute over the powered industrial truck standard. The transport company initially disputed the fines and penalties imposed by OSHA and worked with the Occupational Safety and Health Review Commission to contest them. Following a period of disagreement about the charges, the transport company eventually had a hearing in an administrative law court.

The transport company specifically asked that the administrative court judge strike an order from OSHA and the Department of Labor to follow the powered industrial truck standard at all of its facilities. This request came in part because OSHA only inspected the business's shipping facility in Billerica, Massachusetts,and not any of its other locations across the country. However, the administrative law court ruled in favor of OSHA, noting that the agency's mandate to institute appropriate relief in terms of worker safety and health could extend to work sites not specifically inspected by OSHA staff.

This change is a major one to say the least. While the decision is new and relatively untested as a precedent for deciding other cases, it's a first step that gives OSHA more power over businesses in terms of safety compliance and related issues. While the path the administration will take is unclear, this ruling could be the starting point for OSHA requiring businesses to make sweeping changes across all of their facilities and not only the one where an inspection took place. This major potential shift in OSHA's powers may soon lead to major changes.