OSHA fines... do they follow the owner or just the business?

Law Discussions
1

Hey, quick question. If a company gets hit with OSHA fines, shuts down, and opens a new business with a different name, do those fines carry over to the new business? Or do they stay tied to the old one? I’m kinda lost on how this works.

2

I think the fines stay with the business, but if there’s a settlement agreement, the owners might still be liable.

3

Hollis said:
I think the fines stay with the business, but if there’s a settlement agreement, the owners might still be liable.

So if they close the old biz and start a new one, they can just avoid paying?

4

Hollis said:
I think the fines stay with the business, but if there’s a settlement agreement, the owners might still be liable.

Not really. OSHA could still treat the new company as a successor and enforce the fines.

5

If there’s already a settlement agreement, the owners are on the hook to pay it off, even if the business shuts down.

6

Olen said:
If there’s already a settlement agreement, the owners are on the hook to pay it off, even if the business shuts down.

Makes sense. So they can’t just restart under a new name and get out of it?

7

Olen said:
If there’s already a settlement agreement, the owners are on the hook to pay it off, even if the business shuts down.

Exactly. They’re still responsible under the original agreement.

8

FYI, OSHA fines don’t disappear just because a business closes. The owners might still be liable if OSHA sees them as successors.

9

Winslow said:
FYI, OSHA fines don’t disappear just because a business closes. The owners might still be liable if OSHA sees them as successors.

So what does OSHA consider a successor? Just curious.

10

Winslow said:
FYI, OSHA fines don’t disappear just because a business closes. The owners might still be liable if OSHA sees them as successors.

It’s when the new company is basically doing the same thing, run by the same people.

11

Even if they start a new business, OSHA might still come after them if they see it as the same operation under a different name.

12

Bevin said:
Even if they start a new business, OSHA might still come after them if they see it as the same operation under a different name.

Good to know. So, shutting down doesn’t really solve anything if OSHA can do that.

13

Bevin said:
Even if they start a new business, OSHA might still come after them if they see it as the same operation under a different name.

Yep, it’s more like a workaround, but it doesn’t fully clear their liability.