Are OSHA fines tied to the business or the owner...?

Employment Law Forum
1

Quick question… if a company gets fined by OSHA, shuts down, and then starts a new business under a different name, are those fines still tied to the original business or do they follow the owner? I’m trying to figure out how this works.

2

From what I know, the fines stick with the business, unless there’s a settlement agreement that involves the owners personally.

3

Blaze said:
From what I know, the fines stick with the business, unless there’s a settlement agreement that involves the owners personally.

Wait, so if the owner opens a new business, they’re off the hook?

4

Blaze said:
From what I know, the fines stick with the business, unless there’s a settlement agreement that involves the owners personally.

Not exactly… if OSHA considers the new company a ‘successor’ of the old one, they might still go after the fines.

5

FYI, closing a business doesn’t automatically clear the fines. The owners could still be responsible under a settlement.

6

Toby said:
FYI, closing a business doesn’t automatically clear the fines. The owners could still be responsible under a settlement.

Makes sense. So the owners still have to pay even if they shut down the old company?

7

Toby said:
FYI, closing a business doesn’t automatically clear the fines. The owners could still be responsible under a settlement.

Yep. They can’t just start over with a new company name and dodge the settlement.

8

OSHA fines are serious. If the settlement is in place, the owners still have to pay it off, no matter what.

9

Scofield said:
OSHA fines are serious. If the settlement is in place, the owners still have to pay it off, no matter what.

So even if they open a new biz, they’re still liable?

10

Scofield said:
OSHA fines are serious. If the settlement is in place, the owners still have to pay it off, no matter what.

Yeah, unless they negotiate something new, the original agreement holds.

11

The new company won’t automatically inherit the fines unless it’s deemed a direct successor by OSHA.

12

LexieLawson said:
The new company won’t automatically inherit the fines unless it’s deemed a direct successor by OSHA.

What’s a ‘successor’ though? Like, same owners running the new biz?

13

LexieLawson said:
The new company won’t automatically inherit the fines unless it’s deemed a direct successor by OSHA.

Yeah, basically. If it’s the same people running it and doing the same type of work, OSHA might still go after them.