DOJ, DOL plan to increase criminal penalties for workplace safety violations

March 8th, 2016 by Dakota Software Staff Industry News

While the Occupational Safety and Health Administration and the Environmental Protection Agency are often at the forefront of regulatory headlines, actions by the Department of Labor and Department of Justice have major impacts as well. A recent announcement from the two federal departments indicates an emphasis on stricter employee health and safety rule enforcement, along with stricter penalties for businesses found to have violated those rules. The key takeaway is criminal enforcement and felony prosecution - meaning not just financial or operational penalties but the potential for individuals to face trial and serve time in a correctional facility - are now on the table.

Broad federal cooperation
The decision to more strictly enforce workplace safety and health standards and introduce felony charges for some violators is the result of a wide-ranging agreement between a number of powerful federal departments and agencies. Law firm Baker Hostetler said the initiative includes the DOL, DOJ, OSHA, the DOJ's Environment and Natural Resources Division, the Mine Safety and Health Administration and the DOL's Wage and Hour Division. These agencies will work together in terms of inspections and investigations, passing along relevant information to organizational leaders for potential prosecution as appropriate.

The Yates memoranda
Forbes said the decision to enhance penalties and introduce felony charges in the EHS compliance realm stems from a decision made by Attorney General Sally Quillian Yates, one of two related to increased enforcement of regulations and laws as they relate to individual prosecution. The more-discussed of the two memoranda focused on the financial sector and associated questions about the effectiveness of previous enforcement efforts in that space. The second one, issued at the end of 2015, highlighted workplace safety and environmental issues.

The focus on EHS violations by Yates draws on environmental and criminal law to enhance existing regulatory penalties. The push for more severe consequences is based on the idea that employers that don't adhere to health and safety requirements are also more likely to turn blind eyes to other legal obligations, such as environmental law, according to Forbes. Dr. David Michaels, assistant secretary for occupational safety and health, told Forbes more sanctions can lead to safer, healthier work environments.

"[W]e know that strong sanctions are the best tool to ensure that low road employers comply with the law and protect workers lives," Michaels said. "More frequent and effective prosecution of these crimes will send a strong message to those employers who fail to provide a safe workplace for their employees."

The impact on operations
Baker Hostetler highlighted the practical impact of this decision for businesses, noting that felony charges are now on the table for individuals at businesses with routine worker safety violations. Additionally, issues with employee safety and health won't only be limited to the penalties and fines available to OSHA and other regulatory bodies. Businesses will have to contend with those fines as well as prosecution for company leaders. Combined with other developments, such as the impending and significant increase in OSHA fines expected to occur in summer 2016, the costs of non-compliance are increasing at a fast rate.

This major shift in enforcement highlights the need for organizations to take stock of current EHS efforts and make improvements as needed. EHS software solutions allow businesses to gain deeper insight and more consistency in the development and tracking of compliance efforts, while also providing organized and comprehensive information on relevant regulations. With so many moving parts in the world of EHS compliance and the significant increase in the costs of associated penalties, it's vital that companies take the needed steps to enhance those efforts and avoid the consequences.