Crossover is underway, and tomorrow we begin again to bring you legislative summaries.  Until then, let’s explore some other possibilities for Business Owners

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What Happens If Federal Agencies Like OSHA Are Abolished? A Guide for Business Owners

For decades, federal agencies like the Occupational Safety and Health Administration (OSHA) have set workplace safety standards across the United States. But discussions about reducing federal oversight and shifting responsibilities to individual states are becoming more frequent. If agencies like OSHA are abolished, what does that mean for business owners?

The Shift to State-Level Oversight

If federal agencies like OSHA were to be eliminated, individual states would have to decide how to regulate workplace safety. Some states might create their own agencies with similar oversight, while others could adopt less stringent regulations—or none at all.

Currently, about half of U.S. states already run their own OSHA-approved workplace safety programs, meaning they could continue operations with little disruption. However, states that rely entirely on federal OSHA would need to develop new frameworks, which could take time and lead to regulatory uncertainty.

What This Means for Business Owners

Without federal OSHA, business owners would need to closely monitor their state’s response to workplace safety. Here’s what to expect:

• New State Regulations – States may adopt their own safety laws, meaning businesses operating in multiple states could face different rules in each location.
• Reduced Compliance Burden (or More Confusion) – If states loosen regulations, compliance costs may drop. However, businesses may still face liability concerns and insurance requirements.
• Private Industry and Insurance Standards – Without federal safety standards, insurance providers and industry groups may create their own best practices, requiring businesses to comply in order to maintain coverage or meet industry expectations.
• Potential for Increased Lawsuits – If workplace safety becomes less regulated, businesses might see a rise in lawsuits from employees or customers over unsafe conditions, leading to higher legal costs.

How to Prepare

Regardless of what happens at the federal level, business owners should stay ahead by:

• Following State and Local Developments – Track how your state plans to handle workplace safety regulations.
• Consulting Legal and Insurance Experts – Understand how changes might affect your business’s liability and insurance requirements.
• Maintaining Best Practices – Even if regulations are reduced, keeping high safety standards can prevent costly lawsuits and maintain employee morale.
• Collaborating with Industry Groups – Business associations may offer guidance and voluntary safety programs to help navigate changes.

The Bottom Line

If federal agencies like OSHA are abolished, workplace safety regulation will likely shift to the states, creating new challenges and opportunities for business owners. Proactive planning, industry collaboration, and a commitment to safety will be key to navigating this potential shift successfully.  Let’s keep that word “COLLABORATION” up front in our vocabulary.  We intend to make it the mainstay of projects going forward.  Ideas, comments, concerns?  Drop them in the reply space below.

Jan Wangler, Executive Officer