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Proactive Risk Management Ensures Survival During an OSHA Inspection

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Presentation on theme: "Proactive Risk Management Ensures Survival During an OSHA Inspection"— Presentation transcript:

1 Proactive Risk Management Ensures Survival During an OSHA Inspection
Presented by: Stephany Rockwell, Risk Manager, JBS USA Donna Lynch, CSP, Antea Group April 29, 2014

2 Session Presenters • Stephany Rockwell, JBS USA, Risk Manager Stephany is a licensed attorney with over 20 years of risk management experience at several Fortune 500 companies.

3 Session Presenters • Donna Lynch, CSP, Antea Group - Consultant Donna is an industrial engineer and Certified Safety Professional with over 17 years of experience in loss prevention, risk management and environmental, health & safety. She has worked for privately held manufacturing firms, an insurance company, a large privately held insurance broker, and currently a global EHS consulting firm. Currently she assists global clients with the management and implementation of their EHS programs.

4 Learning Objectives from the Presentation
Understand the OSHA Inspection Process and Your Rights as an Employer Identify actions to take and things to avoid during an OSHA inspection to minimize liability. Proactive Risk Management to mitigate your risk before, during and after an OSHA inspection. Participant’s Workbook

5 Agenda Housekeeping, safety, introductions
Overview of OSHA, inspection triggers and why manage the risk Inspection process, current trends Employer’s rights, managing the process Proactive measures to minimize citations and fines Multi-employer worksites Questions

6 OSHA Overview, What’s Changing?
New Direction New Legislation Aggressive enforcement and regulatory focus Major new directives not requiring rulemaking Direct final rulemaking Far-reaching penalty directives Less cooperation Almost everything…

7 Fully Funded OSHA Budget
Here are the highlights: $207.8 million will be earmarked for federal enforcement activities. This amount is similar to the FY 2013 final spending levels because OSHA shifted its funds towards enforcement from other programs during sequestration. $143.9 million will be used for compliance assistance, including federal assistance, state consultation grants, and training grants. $100 million will be available for grants to states that operate their own occupational safety and health agencies. $34.3 million will be used for safety and health statistics. $20 million will be available for safety and health standards. $24.3 million will go towards technical support. $17 million will fund whistleblower protection programs.

8 Enforcement Aggressive enforcement and regulatory focus
More inspectors Higher penalties and publicity More employers placed in the Severe Violators Enforcement Program (SVEP) The 2014 goal is to conduct 31,400 safety inspections, 2,200 fewer safety inspections than 2013. OSHA is going to focus more on the quality of inspections rather than quantity. OSHA enforcement has reached levels never seen before by every measure

9 What Triggers an Inspection?
Imminent danger Fatality or catastrophe Complaint or referral Programmed inspection 13 National Emphasis Program 140 Local/Regional Emphasis Programs Follow-up

10 OSHA Inspection Process
Opening conference Document review Walk around/inspection Closing conference Abatement period Informal conference

11 Opening Conference Type of inspection (present the complaint)
Identify purpose and scope of the inspection Take photographs Request 300 logs and safety program Present warrant (if requested)

12 The “Walk Around” Identify and document the hazards
Review records and programs Take photos, video, instrument readings Interview employees Establish employee exposure Establish employer knowledge of condition

13 Things to Know The inspection process is a legal matter and is subject to legal review and enforcement by the courts The employees interviewed are potential witnesses The photos and measurements taken are evidence that the hazards exist The questions asked of management are to determine employer knowledge of the condition OSHA must prove that the hazards exist, employees are exposed and the employer knew or could have known of the hazardous conditions

14 Closing Conference Review of inspection findings Abatement options
Citation/penalty Posting Informal conference- 15 working days Failure to correct- follow up inspections

15 Most Cited Standards Fall Protection (8,241 violations for Fiscal 2013) Hazard Communication (6,156) Scaffolding (5,423) Respiratory Protection (3,879) Electrical, Wiring Methods (3,452) Powered Industrial Trucks (3,340) Ladders (3,311) Lockout/Tagout (3,254) Electrical, General Requirements (2,745) Machine Guarding (2,701) The Top 10 list of most frequently cited standards and number of violations resulting from inspections of worksites by federal OSHA for Fiscal 2013 (Oct. 1, 2012 to Sept. 30, 2013).

16 The Proof is in the Penalties
Big Lots Stores Inc., $169,000 in fines for exit access, crushing, struck-by hazards at West Babylon, NY, store Trade Fair Supermarkets in Queens, NY, for laceration, eye, exit hazards; $128,000 in fines Duane Reade Inc., $71,500 in fines for exit access and fire safety hazards at 598 Broadway store in lower Manhattan Three New York contractors face over $465,000 in fines for electrocution and other hazards at Long Island work site Hawaii resort cited with 14 safety and health violations

17 Key Factors Impacting Severity of Penalties
Knowledge of OSHA standards Inspection of the worksite by a competent person Communication of the importance of safety to all supervisors and employees Development of written safety rules and procedures Adequate training Progressive discipline for violation of safety rules Safety record and accident history History of previous OSHA violations


Our job as Risk Managers is to prepare for, manage and mitigate incidents which may affect our business, operations, customers and brand.

Managing this process efficiently will manage adverse situations effectively Regularly train and exercise OSHA response teams Develops and maintain capabilities Validates plans and processes Prevents the situation from becoming a crisis Creates alignment within your organization and response

IDENTIFY What are the issues inherent in your industry? What are the current hot buttons for OSHA in your region and industry? What has been a focus in prior OSHA inspections and citations? How have we responded to these areas? INSPECTION PROTOCOL Organize information and records Appoint a primary OSHA contact and a backup Designate a meeting room Establish appropriate behavioral and interaction requirements POST INSPECTION MEETING Analyze the inspection, results and evidence within hours after inspection with safety, senior management, corporate counsel and public relations.

UTILIZE YOUR RESOURCES Broker Property Engineers Outside Counsel (invest some time in finding the right attorney) Carrier Partners (consult with your broker first) Safety Consultant Peers

RESPONSE PROTOCOL Correct any issues that can be immediately addressed Refute any issues you feel are not relevant Engage outside counsel to assist in the evaluation of the citation and preparation of your response Use Outside counsel to negotiate and attend any meetings or hearings with OSHA Don’t immediately accept a settlement Ensure you prepare AND EXECUTE a plan to address the concerns in the citation

DE-BRIEF Ensure the same or similar issue is addressed at all your other locations Discuss the process and response – what went well, what can be improved? Implement suggestions Schedule next mock inspection to test and re-enforce appropriate inspection and response protocol FOLLOW-UP Train, train, train Train management, safety, engineering and employees to ensure the issues does not occur again Conduct periodic OSHA Inspection Response drills CONDUCT MOCK OSHA INSPECTIONS



27 A Final Consideration My Safety Management Program is Awesome I Will Never have a Problem.

28 Multi-Employer Citation Policy
Controlling Employer - General supervisory authority over a worksite, including the power to correct safety and health violations itself or require others to correct. Creating Employer - Company that causes a hazardous condition that violates OSHA regulations. Exposing Employer - The one who exposes their own employees to a hazard. This exposure may result from placing their employees in a workplace where other employers have created a hazard or one where they create a hazard. Correcting Employer – The one that is engaged in a common undertaking at the same workplace as the exposing employer and is responsible for correcting a hazard.

29 Questions, Final Comments and Contact Information

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