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The primary challenge small companies face is staying in business. According to the Small Business Administration (SBA), half of all new establishments survive 5 years or more, while only about a third make it 10 years or longer. The probability of survival increases with a firm’s age—and compliance. Costly violations can sink a small business. Keep reading for two resources that can help keep compliance costs to a minimum.
The Small Business Regulatory Enforcement Fairness Act
By law, the Occupational Safety and Health Administration (OSHA) is required to assist small businesses. The Small Business Regulatory Enforcement Fairness Act (SBREFA) requires that OSHA:
- Produce small entity compliance guides for OSHA rules with a significant impact on a substantial number of small businesses;
- Be responsive to small business inquiries about compliance with regulations;
- Submit final rules to Congress for review;
- Have a penalty reduction policy for small businesses; and
- Involve small firms in the development of some proposed rules through Small Business Advocacy Review Panels.
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SBREFA also gives small companies expanded authority to recover attorneys’ fees and costs when a federal agency has been excessive in enforcing regulations. The legislation establishes 10 Small Business Regulatory Fairness Boards to receive comments about federal compliance and enforcement. Small firms can participate in the regulatory process in various ways, including by calling the Small Business Ombudsman at 888-REG-FAIR.
OSHA’s Consultation Service
One of the most effective ways OSHA reaches out to small businesses is through its On-site Consultation Program. Funded by the federal government and run by the states (often through colleges and universities), this free service sends trained consultants to businesses to help identify potential hazards and improve safety management systems. It is primarily for small employers (250 or fewer on-site, or fewer than 500 corporatewide) in high-hazard industries.
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The program is confidential, completely separate from OSHA enforcement, and does not involve issuance of citations or penalties. Any information shared about the workplace—and any problems identified by the consultant—are not reported to OSHA inspection personnel. While there is no cost for the service, the employer must correct any serious hazards that are discovered.
You can find the OSHA’s On-site Consultation Program for your state at https://www.osha.gov/dcsp/smallbusiness/consult.html.
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