Friday, January 14, 2011

New California Safety Requirement AB 2774 – Employers Bane? Or Friend?

For those that don’t know, AB 2774 is now law in California. This gives the Division of Occupational Safety and Health (DOSH) the ability to more thoroughly issue fines. Said fines are nothing to scoff at either, they are potentially crippling; how would, say, a relatively small business handle a $25,000 fine? Ostensibly, this law seems to be a frightening thing to behold… But is it just another weight on the shoulders of an already over encumbered business market? Or does this law actually have some important benefits for employers? Let’s look a little more into what kind of power AB 2774 now gives DOSH.


"...how would, say, a relatively small business handle a $25,000 fine?"
Before AB 2774, not only did DOSH have the overwhelming task of proving that a violation had a 51% probability of actually causing harm or death, but these violations were difficult to maintain during the appeals process. Needless to say, in the eyes of DOSH, serious violations were not being treated as such. Injury & Illness Prevention Plans, or IIPPs, no longer protect an employer just because they have one on hand. In other words, the employers IIPP must be comprehensive and professional, if not, a $5,000 fine could ensue, and that is usually just a precursor for the even darker clouds rumbling off in the distance.

AB 2774 has established simple rules for DOSH and has given them a straightforward set of steps to follow in the process of issuing fines, this means eliminating ambiguities. A cookie-cutter IIPP is one of the aforementioned ambiguities. Employers must make sure that they have an IIPP that is not only relevant to their current situation, but one that closes any gaps in their safety plan. As long as employers do their best to have a clear IIPP, they have many opportunities that they may not have had otherwise. This brings us to how AB 2774 can actually benefit the employers.

Before AB 2774, a business’s safety record could be permanently marred from an allegation or violation issued by DOSH, regardless of the overall outcome. For some business’s this mar could have a devastating effect, but with AB 2774 this all changes. The employer now has the opportunity to have a discussion with DOSH, leaving the possibility open that DOSH could change their decision outside of court.

"...a business’s safety record could be permanently marred from an allegation or violation issued by DOSH, regardless of the overall outcome. "

Yes, reason is now involved in the process. Part of the steps DOSH must now take in issuing - or in this case not issuing - a violation, is to determine whether the employer’s process of determining hazards in the work environment and how they act to solve them, are up to standards. In other words, did the employer take all necessary steps possible to protect against these dangers, or was the management in some way lacking? If the employer can prove that it was the former, then their chances of dodging an unfair violation are in their favor. If DOSH still decides to issue the violation, there are even further steps the employer can take to prove their proficiency.

AB 2774 puts new standards on the table, but for the always watchful employer, these new rules can be to their benefit. Put simply, AB 2774 makes the process more fair for both sides, and allows the employer specifically the opportunity to show DOSH that they know what they are doing.

1 comment:

  1. This is one of the best explanations of the impact of AB2774 that I have seen. I think that many of us are missing the point that this new law actually helps both sides and that there is still room for negotiation. Before, everything was in OSHA's favor.

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