Will OSHA Inspect a Small Business?

Yes, while in the past OSHA was understaffed and under funded, it posed only minimum danger to small businesses. Now, with the Democratic administration, an activist OSHA chief, William Reich and a tough director, John Dear, and new legislative proposals, OSHA inspectors can turn up at your site more often.  

Why are they Picking on Small Business?  

Whether you have just 2 employees or 250, OSHA believes that statistically, more injuries will occur in small businesses than in large ones. This conclusion is supported by a recent Wall Street Journal computer analysis of more than 500,000 federal and state safety inspection records, from 1988 to 1992 shows that 4,337 workers died at inspected workplaces with fewer than 20 employees, while only 127 died at those with more than 2,500.⁵ Of course, the study fails to correct for the fact that there are fewer workplaces in this country left with 2500 employees or more. The study did not report this figure as a percentage of total employees for small vs. large businesses. The fact is that as the economy has changed, so has the American workplace, with fewer manufacturing jobs and more service jobs and small businesses, the regulators are turning to small business to enforce safety.

What are the chances?  

Statistically, OSHA claims they have 2300 inspectors federally and that there are 6.1 million workplaces to inspect. If they inspect 1/2 million workplaces per year or an average of 217 inspections per inspector (1 per day), then your statistical chances are that you might be inspected once every 12 years. However, your chances are much higher than that. First, states carry out inspections of government and private workplaces, if they have an approved plan. Recently four more states got approval. Only New York and Connecticut limit inspections to government facilities. This means that OSHA counts with many more ad hoc inspectors (like a franchise). Some states inspect both government and business sectors and they add their own rules to OSHA. So, in some states like New York, you could be visited by both OSHA and the state labor department of health and even City inspectors get involved sometimes. Each agency cites separately. Federal fines go to the federal treasury and state fines go to the state. States keep their own records of inspections and the Federal Government their own. It is difficult to get hold of statistics that encompass all state and federal inspections and to determine how much money was actually collected in fines. 

In addition, inspecting small workplaces does not take all day and fines are much smaller. Inspectors could easily inspect several small businesses in a day, since they are only checking for a few items. 

They will concentrate on manufacturing places,auto shops and other targeted industries. This means that when it comes to smaller workplace inspections, inspectors can be much more efficient. If they inspected say 2 to 3 small businesses daily, and adjusting for the fact that state inspectors in some industrial areas do part of the work, it seems your chances are about maybe once every 2 years. Certainly if your businesses is within commuting distance of an OSHA field office, your chances are much higher. 

Construction firms, who are visible, are increasing their chances. Chances are that an OSHA inspector will show up at most construction jobs in a town. OSHA claims that the average fine is about $600. Yet, a computer analysis shows that is probably more like their minimum fines. Typically, they run in the thousands and it is our experience that even small construction firms are receiving fines in the tens of thousands.