Department of Labor Updates Policies to Support Small Businesses

The Department of Labor is implementing new policies designed to make wage, hour, and workplace safety enforcement fairer for America’s employers, with a focus on supporting small businesses.

• Wage and Hour: The Wage and Hour Division (WHD) announced that liquidated damages will no longer be imposed when violations of the Fair Labor Standards Act (FLSA) are discovered. The new approach reserves liquidated damages for cases of willful or egregious conduct. This change means employees still receive the wages they are owed, but disputes are resolved faster, reducing costly challenges for employers.

• OSHA Penalties: OSHA is updating penalties for small businesses. The new policy increases reductions, allowing more resources for compliance and hazard prevention. Businesses with up to 25 employees can now receive the 70% reduction previously limited to smaller firms. Additional reductions apply for addressing hazards (15%) and for employers with clean inspection histories (20%).

WY It Matters

A strong workforce hinges on strong workforce policies. We commend the Department of Labor for reviewing and updating these policies. By lowering penalties on small employers, these changes support entrepreneurs and provide the tools they need to keep employees safe while maintaining accountability.