How serious are you about your safety program? I often say that the loss of money and jail time are what gets the attention of executives, and rules that can result in either will get the most compliance. The future for executives in the building supply and construction industry will be affected greatly by enhanced employee welfare and safety regulations that are and will be mandated by government at all levels. Corporations have become public enemy No. 1 and politicians have campaigned on platforms decrying the neglect of these issues by employers. Safety issues are in the forefront, violations will be costly, and compliance is essential.
In November 2015, the Occupational Safety and Health Administration (OSHA) passed new guidelines for workplace safety penalties that raised maximum fines for serious violations from $7,000 to $12,471 and increased fines for failure-to-abate violations from $70,000 to $124,709. The new penalties went into effect on Aug. 1, 2016. This fall, a builder in Ocala, Fla., was fined $108,000 and a subcontractor was fined $27,000 for safety violations including no hard hats, no fall protection on the roof, improper use of a stepladder, and no safety glasses. That should get the attention of every leader in your organization.
The new OSHA penalties go hand in hand with the Obama administration’s 2009 Enhanced Enforcement Program, which added more inspectors and more teeth to enforcement. In a large company, major OSHA violations that deal in failure to abate will likely get an executive fired. For smaller dealers, it could mean financial ruin or bankruptcy. Following OSHA rules on the jobsite and at the store level is imperative, because there are no more free passes.
If penalties like this get your attention, then you better evaluate your company’s safety program. Canned safety programs will no longer work and your commitment to the program’s enforcement must be annunciated continuously. If you don’t have a safety manager, you need to put someone in charge who has been trained on what constitutes a serious or failure-to-abate OSHA penalty, and you need to institute real safety training. It is not about papering the file; it is about preventing accidents.
Workers’ compensation laws are compounding the situation, as these laws are under assault by trial lawyers who seek no limits on fees and judgments. Despite the perceived belief that employers are immune to litigation in workers’ compensation accidents, many trial lawyers are seeking damages for negligence if the employer fails to follow proper safety protocol. Their strategy is simple—force employers to defend themselves by demanding documentation of their safety programs, procedures, and accident histories. Any blemish in your record is an opportunity for a trial lawyer to bill additional fees and hassle you to the settlement table.
Something else to consider: How many of your builders, subcontractors, and remodelers can afford a huge OSHA fine? A failure-to-abate penalty could wipe out the majority of builders and subcontractors that are struggling to meet payroll. Does their safety compliance become a criterion in extending credit? It truly could be a huge risk.
Given the political environment, there is no doubt that government employee welfare and safety regulations will only increase and strengthen. Doing nothing is no longer a reasonable option.
Do I have your attention now?