The Occupational Safety and Health Administration (OSHA) has released new enforcement guidance that could significantly reduce financial penalties for small businesses. For members of the Automotive Industries Compensation Corporation (AICC), a program built exclusively for Massachusetts automotive, roads, fuel, and companies with fleets of 5 or more vehicles, these changes reinforce the importance of having proactive safety and compliance strategies in place.
Since its founding in 1995, the AICC has returned nearly $30 million in savings to its members through dividends and premium discounts. With OSHA’s updated enforcement approach, AICC’s dedicated safety programs and expert claims support can now offer even greater value.
Summary:
- Penalty Reductions for Small Employers:
- Businesses with 10 or fewer employees: Eligible for a 70% penalty reduction.
- Businesses with 11–25 employees: Now also eligible for a 70% penalty reduction (previously only for 10 or fewer).
- Businesses with 26–100 employees: Eligible for a 30% penalty reduction.
- Businesses with 101–250 employees: Eligible for a 10% penalty reduction.
- Penalty Reductions for Quick Action:
- Employers who immediately address a hazard: Eligible for a 15% penalty reduction.
- Penalty Reductions for Clean Records:
- Employers with no OSHA inspections or no repeat, serious, willful, or failure-to-abate violations in the past five years: Eligible for a 20% penalty reduction.
Key Changes In the New OSHA Guidance
The updated Field Operations Manual (FOM), Chapter 6, gives OSHA officers more discretion when assessing citations, offering more flexibility for small employers who demonstrate good-faith compliance efforts.
1. Business Size Now Plays a Bigger Role
OSHA officers can now recommend higher penalty reductions for businesses with fewer than 250 employees, making the guidance more favorable to the kinds of smaller employers that make up the AICC membership.
AICC Insight: Most AICC members fall under this category, meaning this update could translate to real cost savings during OSHA interactions, provided you have the right systems in place.
2. Good Faith Efforts Can Lessen Citations
Employers that proactively manage safety risks, such as maintaining training programs or correcting hazards before inspection, can now receive more leniency in citation classifications and penalties.
AICC Advantage: AICC’s customized safety training, pre-membership assessments, and ongoing loss control services help you demonstrate exactly this kind of good faith. Learn more about how our safety programs support compliance →
3. Alternatives For First-Time Violations
In certain cases, abatement or training may replace financial penalties, especially for first-time violations.
AICC Benefit: Our 24/7 claims reporting and proactive risk management strategies reduce the likelihood of violations, and membership in the AICC gives your business the support necessary for a serious, long-term commitment to safety.
4. Expanded Use of Informal Conferences
Employers can now negotiate citation abatement or penalty reductions in informal conferences, providing more flexibility and resolution options.
AICC Support: If a claim or inspection arises, AICC’s expert claims team provides real-time assistance and guidance through every step of the process.
What This Means For AICC Employers
AICC’s unique member-owned structure means your business isn’t just another policy; it’s part of a community with aligned interests, long-term stability, and shared success. With OSHA now rewarding good faith safety efforts and company size, AICC members are well-positioned to benefit.
Whether you operate an auto shop, trucking operation, car wash, fuel distribution company, or construction business with a fleet, this update enhances the value of the AICC’s already industry-specific programs.
Supporting Your Compliance Journey
- Dedicated Claims Support: Access to senior adjusters, medical case managers, and a dedicated claims manager
- Proactive Safety Programs: Tailored safety training, OSHA compliance support, and ongoing inspections
- Exclusive Benefits: Access to Modern Assistance Program services, including mental health and substance abuse support, financial counseling, and more
- Proven Results: Founding members still participating after 30 years, with consistent dividend returns
Take Action: Get Ahead of OSHA Changes With AICC
This new guidance presents an opportunity, but only if your business has the infrastructure, documentation, and training programs to show OSHA that you’re serious about safety. AICC gives you that framework and more.
- Protect Your Business.
- Demonstrate Compliance.
- Save Money Through Membership.
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