Preparing for an OSHA Inspection
April 22, 2022

The Occupational Safety and Health Administration (OSHA) is the government agency that monitors and enforces compliance with workplace safety laws. Under the Occupational Safety and Health Act, Compliance Safety and Health Officers (CSHOs) have the authority to inspect the facilities of any employer subject to OSHA’s regulations. Employers have a right to request a warrant for inspection. Although it may buy time, it will likely broaden the inspection and give the CSHO a negative impression. 


Common Reasons for an OSHA Inspection

  • Imminent danger situations
  • Fatalities or severe injuries reported to OSHA
  • Worker complaints
  • Referral inspections (other agencies, third parties or media)


Preparing for an OSHA Inspection

  • Have principal contacts for the inspection. Document the list of designated employees and train them on all aspects of an OSHA audit. Ensure enough personnel are trained in case of a scheduling conflict.
  • Decide where the CSHO will be placed and where employee interviews will occur.
  • Have updated safety documentation prepared to be presented to the CSHO.
  • Train all managers on how to contact the proper personnel and where to place the CSHO while everyone is being notified.
  • Assemble an inspection kit.  This kit should include:
  • A camera for video and photography recording
  • Required personal protective equipment (PPE)
  • Labels or stamps to mark information that should be tagged as "confidential" or "trade secret"
  • Basic facility information (e.g., type of work performed, number of employees, names of management personnel and a list of contact information)
  • Contact information for the local OSHA office
  • Testing equipment (Check calibrations and expirations on equipment regularly)


Safety Documentation to Have

  • OSHA 300 Form for the current year and the previous five calendar years
  • OSHA 300A Form for the previous five calendar years
  • Injury and incident reports for the current year and the previous five calendar years
  • OSHA 301 Forms (Most state workers' compensation forms are acceptable substitutes.)
  • Completed training programs
  • Safety data sheets (SDSs)
  • Written safety compliance programs


When the OSHA Compliance Safety and Health Officer Shows Up

  • Be polite.  Greet the office and ask to see their credentials, if they do not offer to show them.  Confirm those credentials, or call your local OSHA office for any questions.
  • Place the CSHO in the pre-determined private conference room or office.
  • Notify the designated company employees who will need to take part in the inspection.


During the Opening Conference

  • Determine the purpose of the inspection.  If there has been a complaint, ask for a copy of the complaint. OSHA will protect the identity of any employee who has submitted a complaint.
  • Define the scope of the inspection, and limit consent only to the areas cited in the complaint. This is the time to configure a route for the walk-around, which should be as limited as possible.
  • Identify areas of the workplace or documents that might contain trade secrets. Confirm with the CSHO that photographs and/or documents containing information about trade secrets will remain confidential.
  • Discuss the process for conducting employee interviews and producing documents. If possible, schedule employee interviews so shifts are covered.
  • Ask the CSHO to make all requests for company information and document in writing. Your company’s legal counsel should review all requests for documents and information, as well as all information and documents provided.
  • Gather your inspection equipment. 


During the Walk-Around

  • Begin the walk-around. Make sure everyone has the required PPE and is following the proper safety protocols of the site.
  • Keep the route as limited as possible.
  • Understand the plain view doctrine. This means a CSHO can investigate any hazard observed while walking through the premise.
  • Document the CSHO’s findings and your own findings by taking detailed notes.
  • Make sure to take pictures, samples and measurements of anything the CSHO takes, and at the same time. Your company can request that samples and monitoring take place at a time when the company can conduct its own sampling and monitoring. 
  • Complete “quick fixes” right away. If you or the CSHO identifies any quick fix items, have them taken care of immediately. The CSHO will take these actions as proof of your company’s willingness to comply with safety and health laws.
  • Do not interfere with employee interviews. The CSHO has the right to conduct employee interviews in private. Employee interviews may involve labor representatives, rank and file employees, and management personnel. If there is an interview of a company decision-maker, then it is highly encouraged to have a representative present as any statements made are considered binding admissions on the employer.


During the Closing Conference

  • Request copies of all OSHA samples and monitoring reports from the CSHO.
  • Ask the CSHO to provide you with an acknowledgment of receipt for all documentation provided during the inspection.
  • Provide the CSHO with the name, title and contact information of the person(s) to whom all OSHA correspondence should be directed.
  • List out any alleged violations that have already been corrected. If directed by legal counsel, provide additional information and documentation relevant and supportive of the company’s position as well as any information which shows abatement of any alleged violation.
  • Do not make any impulsive commitments, for example corrective actions or dates.
  • Discuss possible violations. Understand that only the OSHA Area Director can issue citations, and this process can take up to six months after the inspection. The Area Director may rely on a CSHO’s recommendations to issue a citation, but CSHOs may be hesitant to address whether they will recommend a citation during their visit to your facility.


After the Closing Conference

  • Try to obtain all sample and monitoring reports from OSHA.
  • Provide the company’s legal counsel with copies of all of the documents provided to OSHA and all of the notes, photographs, videos, etc., taken during the inspection.
  • Reference an up-to-date copy of OSHA’s Field Operations Manual. Look this over to determine whether there were any issues during the audit. Any information found can be used as supporting documentation to negotiate a settlement.


Citations

If your facility receives citations from OSHA, you should:

  • Post the citation. Post citations in all areas in which the violation occurred. The citations must be posted for three working days or until the violation has been corrected, whichever is later.
  • Notify your legal counsel. Immediately notify the company’s legal counsel about the citation and send a copy of the citation to them.
  • Start the Abatement Process. Review all areas noted by the CSHO and all violations from previous inspections (if any), and correct any issues that were found within the time frame stated on the citation. Document the corrections to show that abatement was completed. It is important to make sure all hazards are corrected, or you may be assigned larger penalties during subsequent inspections.
  • Make note of all deadlines. This avoids creating a short turnaround time to complete abatement measures.


Violation Classifications and Penalty Amounts of OSHA Citations


  • De Minimis
  • Violation based on technical standards, and does not involve any threat to the safety and health of employees.
  • Typically, doesn't carry any penalty.
  • Other Than Serious
  • Classified as unlikely to cause serious physical harm or death.
  • $14,502 per violation.
  • Serious
  • Hazards that could cause serious bodily harm or death.
  • $14,502 per violation.
  • Willful
  • The employer committed the violation knowingly or with indifference.
  • $145,027 per violation.
  • Repeated
  • A hazard of a same or similar standard that the employer was aware of before, received a citation for and has not mitigated.
  • $145,027 per violation
  • Criminal
  • A violation that caused a death and was willful in nature.  A violation of this nature is punishable by a misdemeanor conviction and a significant monetary penalty.
  • Maximum Penalty:  Not more than $250,000 for an individual or $500,000 for an organization and up to six months in jail.


Appeals Process

Once you receive a citation, you have a few options for what to do. You can schedule an informal conference with the OSHA Area Director to discuss the violations and try to reach a settlement agreement. If you are unable to reach an agreement, then you can either pay the citation or file a Notice of Contest to pursue a formal hearing.


Informal Conference

You may request an informal conference with the OSHA Area Director to reach a settlement agreement. You are able to discuss citations, penalties, abatement dates or any other information pertinent to the inspection. Though they are informal, be prepared for the conference. Employers can present defenses to citations, and OSHA may agree to withdraw some citations or lower the penalty. Consider the following tips for productive informal conferences:


  • Schedule the informal conference promptly. The conference must be held before the end of the 15-day period for filing the Notice to Contest. Please note that there may be some differences in timelines and procedures between federal OSHA offices and agencies run by OSHA-approved state programs.
  • Discuss citations and remedial measures taken. If your goal is to have OSHA vacate the citation, be ready to explain why the citation is incorrect or unwarranted.
  • Use supporting documents. Even though this is informal, prepare and review your case with your company’s legal counsel. Use an evidence-based approach. Be sure that OSHA has objective evidence regarding each alleged violation. Explain any mitigating circumstances and showcase your company’s commitment to safety.
  • Keep track of all issues and their status. You want to make sure every item was resolved.


Remember, OSHA Area Directors want to reach a settlement. Their main goal is to make sure you rectify the identified hazards and are compliant. If you do not reach a settlement conference, then decide whether you should pay the fine or contest it. There may be a reduction in the penalty if the inspection went well; you may have to pay the penalty early in order to pay the discounted amount.


Formal Hearing

If you are contesting the citation, make sure to review timelines and dates for submitting requests and documentation. You must file a Notice of Intent to Contest within 15 working days. By filing a Notice of Contest, the file is transferred over to the Department of Labor to the Office of the Solicitor to begin litigation. A formal hearing will be scheduled and take place in front of an Administrative Law Judge. Formal hearings can be appealed in federal court.


For additional OSHA resources, contact Simco today.


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Top 5 HR Trends That Will Shape Businesses in 2025

January 7, 2025
As 2025 kicks off, the HR landscape is evolving faster than ever before. Technology, shifting workforce expectations, and the need for businesses to be agile in a dynamic global environment are all driving change. What worked yesterday may not be enough today, and companies must adapt to stay ahead. Here are the top five HR trends you’ll need to watch closely in 2025: 1. AI is Changing the Hiring Game Artificial intelligence is no longer just a buzzword in HR—it’s a game-changer. Tools that can scan resumes, match candidates to roles, and even conduct initial assessments are becoming staples for businesses aiming to save time and improve hiring outcomes. In 2024, many organizations began integrating AI to remove unconscious bias and make their hiring practices more inclusive, and this trend is expected to accelerate. 2. Flexibility Isn’t Just a Perk Anymore Hybrid and remote work models are here to stay, but the conversation has shifted. In 2025, it’s less about offering flexibility and more about making it work effectively. Companies are adopting sophisticated tools for remote collaboration, redefining performance metrics, and ensuring policies address the nuances of managing both in-office and remote teams. The focus is on maintaining productivity without compromising employee well-being. 3. Wellness Goes Beyond Gym Memberships In recent years, wellness programs have evolved beyond basic offerings like gym memberships to address a wider range of employee needs. As companies recognize the link between employee well-being and productivity, they’re broadening their focus to include mental health, financial stability, and holistic support. In 2023 and 2024, for example, Delta expanded its employee wellness initiatives by improving access to mental health care. The airline worked with Spring Health, a new EAP provider, to create a larger and more diverse network of mental health professionals, offering better support for both employees and their household members. Looking ahead to 2025, wellness will become more deeply integrated into company cultures. Expect companies to go beyond providing reactive support to fostering proactive wellness through personalized tools, such as mental health apps, financial coaching, and enhanced benefits like paid leave for caregiving. With these programs, businesses are not just addressing immediate health concerns but also empowering employees to manage their overall well-being in a more holistic way. The focus will be on creating a supportive, sustainable work environment that helps employees thrive both at work and in their personal lives. 4. Upskilling is a Competitive Necessity Technology is evolving faster than ever, and companies are racing to keep up. Upskilling employees in areas like data analysis, AI, and emerging tech became a priority in 2024, and it’s clear that this trend will only grow. Businesses that invest in continuous learning programs—whether through certifications, on-the-job training, or digital learning platforms—are better positioned to stay ahead in their industries. 5. Data is Driving HR Decisions HR is leaning heavily on people analytics to guide decision-making. Instead of relying on intuition, businesses are using data to understand employee engagement, pinpoint reasons for turnover, and improve productivity. The emphasis on metrics like employee sentiment and workforce utilization gained traction last year, and more organizations are embedding analytics into their HR strategies to tackle challenges proactively. Final Thoughts The HR landscape in 2025 will be shaped by these transformative trends. Businesses that embrace innovation and prioritize their people will find themselves not just adapting but thriving in the evolving workplace. As these trends unfold, staying proactive and flexible will be the key to turning challenges into opportunities.

IRS Announces 2025 PCORI Fee Update

January 6, 2025
The IRS has released the 2025 Patient-Centered Outcomes Research Institute (PCORI) fee , which will increase to $3.47 per covered life —a $0.25 increase from 2024. This fee applies to plan years ending on or after October 1, 2024 , and before October 1, 2025 . What is the PCORI Fee? The PCORI fee was introduced as part of the Affordable Care Act (ACA) to help fund the research conducted by the Patient-Centered Outcomes Research Institute (PCORI). This research focuses on improving healthcare outcomes by comparing different medical treatments. The fee is levied on insurers, as well as self-insured and level-funded health plans. The fee is calculated based on the average number of covered lives under a plan and is due once a year, with the filing occurring during the second quarter on Form 720 , the Quarterly Federal Excise Tax Return . The payment is due by July 31 each year. Key Details for Employers and Plan Sponsors Who is Affected? : The fee applies to health insurers, self-insured health plans, and level-funded health plans. When is it Due? : The fee must be reported on Form 720 and paid by July 31 each year. How is it Calculated? : The fee is based on the average number of covered lives during the plan year. The updated $3.47 per covered life fee will be in effect for health plans with policy years ending between October 1, 2024, and October 1, 2025. Employers should be prepared to account for this increase when filing for 2025. For more information on the PCORI fee and its reporting requirements, consult the IRS Bulletin 2024-49 , published on December 2, 2024, or visit the IRS PCORI Fee page . 

Federal DOL Restores Simplified Tip Credit Rule: Employer Guidance

January 6, 2025
In a move welcomed by many employers in the hospitality and service industries, the U.S. Department of Labor (DOL) has officially reinstated the pre-2021 tip credit rule. This change, effective December 17, 2024, follows a recent court of appeals decision that vacated the “80/20/30” tip credit rule that had been implemented under the Trump administration. If you’re wondering what this means for your business, don’t worry—this update doesn’t require any immediate action on your part. What Was the "80/20/30" Rule? Before we dive into the implications of the DOL’s latest rule change, let’s quickly review the "80/20/30" rule. This rule, introduced in 2021, placed specific restrictions on how much time tipped employees (such as waitstaff and bartenders) could spend on non-tip-generating duties (e.g., cleaning, setting up, and other side work). The rule essentially required that tipped workers spend at least 80% of their work hours on tip-generating activities to continue qualifying for the tip credit. Moreover, under the "80/20/30" rule, employers could no longer use the tip credit to offset wages for certain non-tip-producing activities, and they had to ensure that employees spent no more than 30 minutes at a time on side duties. This increased the burden on employers, as it required more careful tracking of employee duties and work hours to remain in compliance. Why Was the Rule Vacated? The court of appeals decision in August 2024 ruled that the "80/20/30" rule was too restrictive and inconsistent with the intent of the Fair Labor Standards Act (FLSA), which allows employers to take a tip credit for workers who perform both tipped and non-tipped duties. The court found that the new rule created unreasonable administrative burdens and restrictions that were not in line with past practices or legal precedents. In response to this ruling, the DOL moved quickly to restore the pre-2021 tip credit rule. What Does the Reinstatement of the Pre-2021 Rule Mean for Employers? With the reinstatement of the pre-2021 tip credit rule, the DOL has effectively simplified the way employers can apply the tip credit to their workers. Under the prior rule, employees who perform a combination of tipped and non-tipped duties can still qualify for the tip credit, as long as their primary job responsibility is related to tipped work. Employers no longer have to track the precise breakdown of time spent on tip-generating vs. non-tip-generating activities in the same way. This returns to the more flexible guidelines where as long as tipped employees perform "related" duties (e.g., cleaning their station, setting up for service), they can still receive the tip credit for those hours, provided those activities don’t dominate their workday. What Action Is Needed from Employers? For most employers, this change will not require any immediate action, as the final rule effectively restores the pre-2021 approach. The main thing to note is that employers should continue to comply with the broader requirements of the Fair Labor Standards Act (FLSA) and ensure they are properly paying employees at least the federal minimum wage (including tips) when they apply the tip credit. Here are a few things to keep in mind: Reassess Timekeeping Systems: While the rule change simplifies some aspects of record-keeping, employers still need to ensure they have a timekeeping system in place that accurately tracks the hours worked by tipped employees. It is essential to ensure that the wages (base pay plus tips) equal at least the federal minimum wage. No Need for Immediate Adjustments: If you were already applying the pre-2021 tip credit rule, no changes are necessary on your part. For those who had adjusted to the "80/20/30" rule, reverting back to the previous method should not require significant changes. State and Local Laws: Employers should still be mindful of any state or local laws that may have stricter requirements than federal law. Always check your state’s labor regulations to ensure full compliance. Why Is This Change Important? The reinstatement of the simplified tip credit rule provides relief to many employers, particularly in industries like restaurants, hotels, and other service-based businesses where tipping is common. The pre-2021 rule is seen as more employer-friendly, offering more flexibility in how tipped employees can spend their time without losing eligibility for the tip credit. For employers, this means less administrative burden, reduced risk of compliance issues, and potentially fewer legal challenges. This shift is a step toward simplifying labor law compliance for businesses already struggling with the complexities of wage and hour rules. Looking Ahead As we move further into 2025, it’s important for employers to stay informed of any future changes in federal labor regulations. While this change restores a previous rule, the DOL’s stance on tip credits and wage issues can continue to evolve. Employers in tip-dependent industries should continue to monitor updates from the Department of Labor and legal rulings to ensure ongoing compliance. The DOL’s restoration of the pre-2021 tip credit rule is a welcome change for many businesses, offering a return to simpler guidelines and less restrictive requirements. For most employers, no immediate action is required, but it’s always a good idea to review your practices to ensure they align with the updated rule. If you need further assistance in navigating these changes, reach out to Simco to ensure your business stays compliant in 2025 and beyond. 

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