“Rule of 10”
One of the questions we are most frequently asked by small employers is about the so-called “Rule of 10”; i.e., the long-perpetuated myth that OSHA does not have jurisdiction over employers or workplaces with fewer than 10 employees. This is a commonly misunderstood policy, so let’s set the record straight.
The short answer is, unless you are a small farming operation (fewer than 10 employees), OSHA does have jurisdiction in almost every circumstance. There are some partial exemptions and exclusions from certain types of OSHA activity, such as maintaining Injury & Illness Recordkeeping logs and forms, and from certain types of inspections or citations, but those limitations rarely apply and really offer too little relief to small employers to be meaningful.
Generally, U.S. companies must meet Occupational Safety and Health Administration regulations. However, OSHA regulations that apply to specific industries can be quite different. The only general category of organizations not covered by OSHA regulations are federal and state government entities, along with some small businesses. However, all have similar obligations to maintain a safe workplace for their employees per OSHA guidelines and state regulations.
What Is OSHA?
OSHA stands for both the Occupational Safety and Health Administration and the Occupational Safety and Health Act, the federal law enacted in 1970 to ensure workplace safety. Administered by the U.S. Department of Labor, OSHA mandates general rules for employee safety, along with industry-specific regulations, called OSHA standards. The federal government also allows states to set their own standards, as long as their regulations are at least as thorough and protective as OSHA requirements.
Exemptions
Along with government agencies, OSHA exempts some specific businesses. Not covered by OSHA are self-employed persons, family farms, people employing domestic help in their homes, churches and employers who are not involved in interstate commerce. Although government entities are exempt, many states have similar workplace safety plans that cover public employees. In general, companies that have no employees need not adhere to OSHA reporting regulations.
Companies Covered by OSHA
Most companies that meet three basic conditions are required to adhere to OSHA regulations. Employers who control the actions of their employees, exercise command and power over their employees, and have the authority to fire employees are covered by OSHA. Even those companies that use independent contractors, who are not legally employees of the business, are typically covered by OSHA if the employers maintain control over workers' actions.
Small Business Exemption
Small businesses, with 10 or fewer employees, are exempt from some OSHA injury reporting requirements. Also, a small company in a defined "low-hazard industry" is exempt from regular OSHA inspection, if the agency has no knowledge of a serious personal injury at the workplace. Typical small businesses that receive this exemption are auto dealers, service stations, restaurants, security or commodity brokers, real estate firms, insurance agents and brokers, law firms and membership organizations
Workplace Safety Laws OSHA Standards
The federal Occupational Safety and Health Act (the “Act”) establishes safety and health standards for employees of private businesses. The Act covers farms that employ individuals other than the farmer’s immediate relatives. Although the Act technically applies to all farms with non-family employees, funding appropriations bills consistently prohibit the Occupational Safety and Health Administration (OSHA) from spending any funds on enforcement against small farms. Small farms are those with fewer than ten employees who have not had a temporary labor camp in the previous 12 months. Any housing provided for seasonal farm employees is considered to be a temporary labor camp, which means that OSHA may enforce the Act against a farm providing housing to an intern or seasonal employee.
OSHA’s farm regulations require workplace precautions to protect employees. The regulations require things such as rollover protective structures for tractors, protective frames and enclosures for wheel-type agricultural tractors, safety mechanisms for farming equipment and provision of bathrooms and hand washing facilities for field sanitation. Employers must communicate information to employees on hazardous chemicals, store and handle anhydrous ammonia safely, adhere to safety standards in logging operations, attach a “slow moving vehicle” sign on any equipment that travels at less than 25 miles per hour on public roads, and institute monitoring of and controls for employee’s exposure to cadmium. For a full list of requirements, farmers should read Part 1928 of the Act, available online. The regulations also establish minimum plumbing, sewage, laundry, trash, and first aid standards for any housing provided to seasonal farm workers. For a listing of all standards enforced against farm labor camps (meaning housing provided for one or more seasonal employees) search the OSHA webpage.
Agricultural employers
...are subject to OSHA provisions and regulations pertaining to signs, record keeping, injury reporting, and first aid training.
Employers must post signs in the workplace notifying employees of the protections OSHA provides.
Employers must keep records of all reportable workrelated injuries. An injury qualifies as reportable if it causes death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, or loss of consciousness, or if it involves a significant injury or illness diagnosed by a physician or other licensed health care professional.
Employers who never employ more than 10 employees at any given time do not need to keep OSHA injury and illness records, unless OSHA informs them in writing that they must keep such records.
However, these employers must report to OSHA within eight hours if an incident kills an employee or hospitalizes more than three employees. At the end of every year, employers must review their log of injuries, ensure and certify its accuracy, and provide a report to OSHA. Employers must keep these records for five years.
OSHA Enforcement When Farms Provide Housing Although OSHA cannot generally enforce farm safety standards against farms with fewer than 10 employees, OSHA is enforceable against any farm with a temporary labor camp. Although the phrase may conjure up images of something more extreme, the definition is much broader. If a farmer requires seasonal employees to live on the farm or if on-farm housing is a practical necessity because few other options exist, the farm may be running a temporary labor camp. In such a case, OSHA is enforceable and the housing must meet specific requirements. The regulations set specific standards for hygiene, security, privacy, and safety found in Standard Number 1910.142, available online.
In Summary
Farm operators, their family members, and hired workers can be exposed to activities and agents that can cause fatal, permanent, long-term, or short-term injuries and illnesses. Farm workers sometimes work under conditions that may limit their awareness of the dangers of operating equipment and handling livestock. The Federal government has enacted legislation and promulgated regulations that protect most non-farm workers, but provide only limited protection for hired farm workers and almost no protection for farm operators and their family members.
Farm Owners and family members are exempt from most Federal safety laws and regulations If the Farmer hired over 10 employees, He is then required to and obligated by the Federal Government to Comply to OSHA Standards.
However, raising the awareness of farm operators and family members to both the prohibited and the recommended safe practices would be an important goal.
