Do OSHA Inspections Cost Too Much? Researchers Say ‘No’
The Occupational Safety and Health Administration is the federal agency that enacts and enforces workplace safety rules and regulations. Some critics have argued that the expense to employers of complying with OSHA rules costs workers jobs in the long run. A recent study suggests otherwise.
OSHA detractors contend that the cost of OSHA inspections has hurt the bottom line for many companies and led them to hire fewer workers or hold down wages. This argument is part of a bigger argument against government interference in the private sector. But a study by a team of researchers led by a Harvard Business School professor concluded that the financial impact of OSHA inspections is negligent, while the benefits are quantifiable.
The study looked at 409 businesses in California that had been inspected by OSHA as well as a control group of 409 similar businesses that were not subjected to OSHA inspections. Lead researcher Michael Toffel summed up the results: “We found that workplace inspections worked pretty much the way they are supposed to. They improved safety, and they did not cost firms enough that we could detect it.”
High-hazard workplaces where OSHA inspections had been conducted had a 9.4 percent reduction in injury claims and a savings of 26 percent in workers’ compensation expenses compared with workplaces that were not inspected. In the long run, the companies in the sample study saved money as a result of OSHA’s presence.
Because the study looked only at high-hazard workplaces in one state, it is impossible to know whether the results apply to all states and all types of workplaces. For high-hazard work sites, such as construction sites, lowering the risk of injury to workers should remain a primary for everyone involved.
According to the Bureau of Labor Statistics, 4,609 workers were fatally injured in workplace accidents in 2011 and thousands more were injured. For those workers and their families, no cost is too high to improve safety in the workplace.
Talk to a New York/New Jersey Construction Accident Attorney
If you have been injured or lost a loved one in a New York or New Jersey construction accident, you may be entitled to compensation. Contact the New York/New Jersey construction accident attorneys at Ginarte Gonzalez & Winograd to discuss your legal options. With six offices conveniently located in the New York/New Jersey metropolitan area, we have an office near you. Contact the firm today by calling 888-446-2783 or fill out our online contact form for your free consultation.
