1-12. U.S. OSHA Standards: Key Requirements and Penalties Japanese Companies Need to Know

The U.S. Occupational Safety and Health Administration (OSHA) was established in 1970 to protect the safety and health of workers. OSHA standards apply to all companies doing business in the United States, and violations can result in heavy fines and legal action. Understanding and complying with OSHA standards is essential for Japanese companies operating in the United States or providing products and services to the U.S. market.

The first major requirement is the "General Duty Clause." This is a comprehensive provision that requires employers to protect workers from known hazards. Even if a specific regulation does not explicitly state a risk to worker health and safety, OSHA can cite it as a violation. Because this clause applies very broadly, Japanese companies should not think, "It's not a problem because it's not written in the regulations," but should instead take an approach of reducing the risks themselves.

The second requirement is detailed regulations for specific industries and work tasks. OSHA has established a wide range of specific standards for industries such as construction, manufacturing, and chemicals, including machine guarding, chemical labeling (HazCom regulations), the use of protective equipment, work environment measurements, and emergency response procedures. With regard to chemical substance management in particular, the provision of SDSs (Safety Data Sheets) and labeling in accordance with GHS are mandatory, which are also important requirements for Japanese companies exporting products to the United States.

The third requirement is worker education and training. OSHA requires employers to provide the necessary education to ensure workers can perform their work safely. Training must be provided in an understandable language, and multilingual support is essential for multinational companies. If a Japanese company employs local employees, failure to comply with this requirement could be a serious violation.

Penalties are classified according to the severity of the violation. Even minor violations can result in fines of around $10,000 per violation, serious violations can be more than $15,000 per violation, and repeated or willful violations can result in fines of up to $160,000 per violation. Furthermore, if a violation results in a serious accident such as a fatal accident, criminal liability may be pursued and management may be held personally liable.

The risks that Japanese companies are likely to face are: 1) a lack of understanding of the American safety culture, 2) oversights due to differences with Japanese domestic standards, 3) inadequate education and training, and 4) insufficient documentation and record-keeping.Since OSHA audits strictly check the actual work environment as well as the state of record keeping, a formal response is not sufficient.

Countermeasures include assigning safety personnel who are familiar with local laws and regulations, conducting regular self-audits, and introducing training programs based on OSHA standards. Furthermore, because the safety culture in the United States emphasizes prevention over reactiveness, it is important to always proactively conduct risk assessments and corrective measures.

In conclusion, OSHA standards are not just about the severity of penalties, but are also a system that fundamentally calls into question a company's safety culture. Rather than aiming to avoid penalties, Japanese companies should view OSHA as an international safety and health standard and use it as an opportunity to strengthen their own EHS management.