OSHA – Brief Overview

1. OSHA – Brief Overview “WHAT IS OSHA?”

2. OSHA: FEDERAL AGENCY • Part of the Department of Labor (“DOL”) • Enforces Occupational Safety & Health Act of 1970 (29 U.S.C. § 650 et seq.

3. NEW ADMINISTRATION Obama Administration intends to make OSHA compliance a top enforcement priority

4. Current OSHA enforcement trends: • Increased budget for OSHA inspectors/programs • More aggressive penalties • National emphasis program on injury/illness recordkeeping • Pending legislation: Protecting America’s Workers Act of 2009

5. Protecting America’s Workers Act (pending) • Amends OSH Act • Increases protections for whistleblowers • Increases penalties for certain violations • $50,000 per violation – fatalities or serious injuries • $250,000 max. penalty (increased from $70,000) • Felony sanctions for willful violations causing death or serious injury

6. STATE OSH AGENCIES Several states have similar agencies which enforce state safety laws, e.g. California (“Cal OSHA”)

7. WHAT OSHA DOES OSHA issues rules, regulations, safety standards and conducts workplace safety inspections.

8. HEALTH AND SAFETY STANDARDS Nearly all OSHA health and safety standards are located at 29 C.F.R. Parts 1910 (General Industry)

9. “General Duty Clause” Section 5(a)(1) of OSH Act • “catch-all” provision • prohibits employers from exposing employees to recognized hazards that can cause death or serious physical harm

10. OSH ACT CASE LAW “Multi-employer Worksite Doctrine”

11. OSHA: “WHO ARE THESE GUYS?”

12. OSHA: • Sect’y of Labor • Ass’t Sect’y of Labor • Occ. Safety & Health Review Commission • Regional Administrators • Area Office Directors • Compliance Safety & Health Officers • Solicitor of Labor (OSHA’s attorney) • Administrative Law Judges (“ALJs”) (decide contested cases)

13. TYPES OF INSPECTIONS “WHY ARE THEY HERE?”

14. Programmed Inspections • Targets “high hazard” industries • Site-Specific Targets (“SSTs”) (“high-incident” employers) • Enhanced Enforcement Program (employers who repeatedly ignore OSHA)

15. Non-Programmed Inspections • Employee complaint • Referral from another agency • Report of death or serious injury • “Drive-bys”: OSH detects imminent danger or condition

16. Other Targeting Programs • Alliances (e.g., AESC alliance): industry-wide standards • Consultations: small business/on-site compliance help • SHARP: recognition program for small-employers • Strategic Partnerships: agreements to prevent specific hazards • VPP: Voluntary Protection Program

19. SCOPE OF INSPECTION “WHAT ARE THEY LOOKING FOR?”

22. FIRE RESISTANT CLOTHING (FRC) 29 C.F.R. § 1910.132(a): PPE, including FRCs required when employee exposed to recognized fire hazard (usually welding, grinding, “hot work” in the presence of flammable or combustible liquids/gases)

23. FRC STANDARDS • See “Recommended Practices and Guidelines” for Oil and Gas Well Drilling, Servicing and Storage (www.osha.gov/SLTC/oilgaswelldrilling/drillingservicing.html) • Viewed as “industry standards” (not regulations) • Denim/cotton clothing recommended

24. WORK-SITE INSPECTIONS

25. WORK-SITE INSPECTIONS Usually involves six steps: • Compliance officer announces presence • Opening conference • “Walk around” tour of site • Employee interviews • Officer reviews employer’s records • Closing conference

26. CITATIONS • “De Minimus” • “Other Than Serious” • “Serious” • “Willful” • “Failure To Abate” Hazard

27. POSTING Citation must be posted near work-site at least 3 days or until violation abated whichever is later - $7,000 fine

31. INFORMAL CONFERENCE “Last chance” to settle before litigation Employer must request Must be held before notice of contest deadline (within 15 working days)

32. INFORMAL SETTLEMENT AGREEMENT Contains settlement terms reached at informal conference – request “no admission of liability” clause to prevent agreement from being used as an admission in subsequent litigation.

33. UNCONTESTED CITATIONS Uncontested citation becomes final order • Employer must abate the hazard cited • Employer must pay penalty assessed

34. FOLLOW-UP INSPECTIONS OSHA may check to verify violation has been corrected

35. CONTESTED CITATIONS • “Notice of Contest”: Within 15 business days • Solicitor of Labor will file complaint • Case will be assigned to ALJ

36. SIMPLIFIED PROCEEDINGS • Lesser citations involved • Penalties less than $20,000 • Fatality not involved • Small employer (less than 40 employees) • Not willful or repeat citation

37. SETTLEMENT • ALJ will encourage settlements • Settlement conference required • Citations/penalties are negotiable • Penalties: Up to $7,000/violation or 10x amount for repeat/willful violations

38. TRIAL • Conducted by ALJ (non-jury) • Similar to civil court trial procedures • Employer defenses are case specific

39. COMMON DEFENSES • Statute of Limitations (6 months) • Unpreventable employee misconduct • “Greater hazard” (if comply with standard) • Cited standard does not apply

40. RETALIATION/CRIMINAL CONSIDERATIONS • §11: Retaliation prohibited • Criminal penalties may apply

41. CRIMINAL PENALTIES (§17 OSH ACT) • Willful violation resulting in employee’s death • Giving advance, unauthorized notice of OSHA inspections • Making false statements or false records • Assaulting/killing OSHA investigator conducting an inspection

42. RESOURCES “Where Can We Find Help?”

43. RESOURCES • OSHA website: www.osha.gov • DOL website: www.dol.gov • American National Standards Institute: www.ansi.org • National Safety Council: www.nsc.org • Health and Safety regs.: 29 C.F.R. Part 1910 • OSHA “E-Tool” for Oil and Gas Well-Drilling and Servicing: www.osha.gov/SLTC/etools/oilandgas/generalsafety

44. CONCLUSION New enforcement emphasis + new laws + stiffer penalties = Greater $$ Risk