OSHA and Workplace Safety Laws: Benefits and Burdens

Introduction: The Regulatory Burden on American Business

As American business has grown over the past several decades, so too has the number of laws, rules, and regulations governing the operation of those businesses. These laws and regulations generally fall into two types: (1) those designed to promote market competition and keep the power of large corporations under control, and (2) those intended to mitigate the adverse effects of business activity on individuals and organizations. While these laws and regulations are often beneficial, they come at a cost. These costs are not always obvious, but they include the cost of compliance as well as the increased risk of litigation. They affect all businesses regardless of size, but they hit smaller businesses particularly hard. The purpose of this paper is to examine the various laws and regulations affecting employee safety in the United States and to assess their advantages and disadvantages.

Employment laws, regulations, and policies have become burdensome for American businesses. Whether it is the laws governing minimum wage, discrimination, workers' compensation, or unemployment, not everyone agrees on their benefits. The laws and regulations are obviously intended to protect both employers and employees, but the reality is that they also add costs for the employer. Theoretically, these laws and regulations are designed to balance costs and benefits, but there are strong arguments that this is not always the case.

Examining the full range of laws and regulations attached to doing business in the United States today is a formidable task. The sheer number of such requirements is burdensome in itself, and applying and complying with them is equally difficult. Whether it involves hiring employees, paying employees, or ensuring their safety, there are a plethora of laws and regulations governing every human resource concern.

Historical Development of Workplace Safety Law

Historically, the relationship between employer and employee was a personal one, and there was little or no government involvement. This situation began to change in the late 1800s, and the pace of change intensified in the mid-twentieth century as the rights of workers became a major social concern. From that modest beginning, laws and regulations have grown exponentially to the point where many employers argue they have become oppressive in their burden.

Although burdensome, workplace safety is a priority in today's business world, and stringent efforts are made to eliminate personal injuries and illnesses from occurring on the job. There are strict laws and regulations governing such matters on both the state and federal levels. Wherever there is an overlap or contradiction between the two levels of law, the federal laws and regulations preempt the state ones, unless the state has previously received permission from the Secretary of Labor to implement its own plan.

OSHA: Scope, Structure, and Enforcement

The most significant and far-reaching law governing employee safety is the Occupational Safety and Health Act (OSHA). This law was enacted by the U.S. Congress to regulate safety and health standards in any business engaged in interstate commerce, and it is enforced through the United States Department of Labor. The day-to-day operation of OSHA is overseen by the National Advisory Committee on Occupational Safety and Health and its collateral Review Commission, which reviews citations issued to employers for violations. Employers found to be in violation of OSHA standards have the right to seek court review of any Commission findings.

The OSHA rules and regulations are a classic example of the extensive nature of government involvement in the operation of American business. Currently, OSHA regulations fill five volumes of the Code of Federal Regulations, which is the official codification of the general and permanent rules published and in effect by the Federal Government.

In addition to the rules and regulations applied by the Federal Government, individual states are also authorized to promulgate laws and regulations to govern the operation of businesses within their borders. States, however, are not permitted — without approval from OSHA through the Secretary of Labor — to apply such regulations in areas already covered by federal law. Prior to enforcing any regulation, states must first apply for and receive federal approval. The volume of state regulation varies from state to state. Not surprisingly, states in the more industrialized portions of the country tend to have more regulations on their books, with California leading the way.

In practice, OSHA rules — and most state-enacted regulations as well — cover all workers regardless of their title or status within the company. This means the regulations apply to anyone working on a job site, whether that individual is a manager, supervisor, owner, or rank-and-file employee. The rules do not, however, cover those who would be legally classified as independent contractors or, in the case of farm operations, family members not separately employed by the farm.

The range of safety requirements covered by OSHA and state regulations is broad. The regulations apply to all situations that are known, or should be known, to cause death or serious physical injury. These situations, identified as "recognized hazards," require employers to maintain safe working conditions, properly train their employees, and provide them with proper tools and equipment. These duties apply not only at the employer's principal place of business but extend to off-site locations as well.

The reach of the safety regulations extends beyond the physical workplace. The regulations also place additional strict requirements on employers, including the obligation to self-report safety violations and injuries, post employee rights under OSHA regulations, and allow periodic inspections. These measures are enforced both to allow enforcement agencies to monitor the effectiveness of regulatory control more efficiently and to keep employees informed of their rights.

Conclusion: Balancing Compliance Costs and Worker Protection

Adherence to government safety regulation is burdensome, but the reality is that, as technology has improved and the use of hazardous materials has increased, the need for strict application of safety regulations has increased as well. Corporate profits cannot, and should not, take priority over the safety of workers. This is the philosophy that gave rise to workplace safety laws and regulations, and it remains the philosophy behind the promulgation of additional legislation.

Left to their own devices, the American business community has demonstrated a reluctance to self-monitor on the issue of employee safety, and the intervention of state and federal agencies entrusted with such authority has proven necessary. The rules and regulations may be burdensome, but the result — increased safety in the workplace — is recognized as an important public policy objective. This is an area of government regulation that is not likely to see any diminished involvement on either the state or federal level.