Small and midsize business owners, take heed – a recent case involving an Oklahoma-based contractor serves as a stark reminder of the serious consequences that can befall companies for ignoring federal safety regulations, particularly those related to employee safety. The construction contractor, recently entered into a deferred prosecution agreement to avoid federal prosecution on charges stemming from a fatal workplace incident in 2019. This agreement requires them to pay a hefty penalty of $370,660 for their willful safety failures. 

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here. 

Employee Fatality After Employer Fails to Require Fall Protection 

The story began in 2019 when an employee tragically lost their life after falling more than 50 feet from the roof of a 56-foot soybean storage tank. The subsequent investigation by the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) found the construction contractor grossly negligent in ensuring the safety of their workers. They failed to require employees to use fall protection while working on the tank’s roof, and more alarmingly, they did not provide any fall protection training. 

To compound the negligence, OSHA discovered that the company misled its employees by falsely claiming that wearing fall protection gear was more hazardous than not wearing it. The seriousness of these violations is underscored by the fact that falls are the leading cause of workplace fatalities in the construction industry. 

OSHA took action by issuing civil citations, including willful violations for failing to provide fall protection and training, and proposed penalties amounting to hundreds of thousands of dollars. The severity of the situation led to a criminal referral to the U.S. Department of Justice under the criminal provisions of the Occupational Safety and Health Act of 1970. 

Compliance is Not Optional 

Christine Heri, the Regional Solicitor of Labor in Chicago, emphasized the significance of complying with federal safety regulations: “Compliance with the Occupational Safety and Health Act’s fall protection requirements is essential to prevent fatalities like the one that occurred here. To meet their legal obligations under the Act and protect their workers on the job, employers must follow the applicable federal safety and health regulations.” 

In the deferred prosecution agreement, which was filed in the U.S. District Court for the Western District of Missouri on September 5, 2023, the construction contractor is required to pay $175,000 to the United States Treasury and an additional $195,660 to OSHA. This substantial financial penalty serves as a reminder that OSHA will not hesitate to hold employers accountable for willful violations that seriously or fatally injure their workers. 

Billie Kizer, OSHA Region Administrator in Kansas City, Missouri, emphasized the ongoing issue of falls in the construction industry: “Each year, too many workers lose their lives from falls — the leading cause of workplace deaths in the construction industry — because employers fail to provide fall protection.” 

This case serves as a stark reminder to small and midsize business owners that safety regulations must be adhered to rigorously. Violating these regulations can result in severe financial penalties and, more importantly, the loss of employee lives. The lessons learned from the construction contractor case should inspire employers to prioritize safety in the workplace, ensuring that they follow the necessary safety protocols to protect their workforce. 

Conclusion 

The construction contractor case illustrates the high cost of neglecting employee safety. Business owners must take proactive steps to create a safe work environment, not only to avoid legal penalties but, most importantly, to safeguard the well-being of their employees. Compliance with safety regulations is not merely a legal obligation; it’s a moral imperative that ensures the lives and health of your workforce are protected. 

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here. 

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