North Carolina Ends Penalty Reductions for Worker Fatalities

The North Carolina Department of Labor will no longer reduce employer penalties in cases involving worker deaths under a directive issued by Commissioner Luke Farley on April 29.

Directive Provisions

The directive states that penalties assessed for violations that are a proximate cause of a fatality shall not be adjusted. All other violations found during the inspection may be adjusted for size, good faith and history, unless prohibited by other exceptions. The change took effect immediately.

Reversal of Prior Practice

The directive reverses a decadeslong policy known as the death discount that mirrored a federal OSHA policy. Under the prior policy, penalties after a worker death were reduced depending on the size of the business. In some instances employer penalties were cut by as much as 70 percent according to an NCDOL press release, according to Safety+Health Magazine.

Agency Position on Penalties

The agency states that civil penalties reinforce workplace safety standards, deter negligence and ensure employers meet their legal obligations to keep workers safe. Commissioner Farley said when a fatality occurs due to workplace safety failures the response must reflect the gravity of that loss fully and without dilution.

Response to Small Business Concerns

Commissioner Farley acknowledged concerns from small businesses about the change. He stated that the right way to support small businesses is through education outreach and resources that help them operate safely and that discounting the value of a human life does not serve workers or employers, according to Safety+Health Magazine.