Thursday, July 28, 2016

New OSHA Regulations Jeopardize Post-Accident Drug Tests and Safety Incentive Programs

July 2016
By Alan E. Seneczko



On May 12, 2016, OSHA issued a Final Rule modifying its recordkeeping regulation, requiring employers in certain industries to electronically report illness and injury data that they are required to record in their OSHA logs. No big deal, right? Unfortunately, the big deal was buried deeper in the Rule, in comments relating to modifications to the regulation governing Employee Involvement (§1904.35).

Under the existing regulation, employers are required to establish a way for employees to promptly report work-related injuries and tell them how to do so. The amended regulation, which was scheduled to take effect on August 10, significantly expands this obligation in two ways. First, it requires employers to establish a “reasonable procedure” for employees to report injuries promptly and accurately, and goes on to state that “a procedure is not reasonable if it would deter or discourage a reasonable employee from accurately reporting a workplace injury.”

According to the interpretive comments that accompany this amendment, this means employers are prohibited from disciplining employees for delay in reporting a work injury in circumstances where the employee may not immediately realize that he has suffered an injury, such as in cases involving cumulative trauma. In those instances, in order for its reporting procedures to be considered “reasonable,” an employer must allow the employee to report an injury within a reasonable timeframe after realizing that he has suffered it.

Second, and even more significantly, the revised regulation contains new anti-retaliation provisions. It requires employers to inform employees of their right to report injuries free from retaliation, and prohibits them from discharging or discriminating against employees for doing so. It thus incorporates the existing statutory prohibition against retaliation found in Section 11(c) into the recordkeeping regulation, making retaliation an independent basis for a citation, which can then be “abated” through reinstatement and back pay – and effectively eliminates the 30-day statute of limitations that would otherwise govern such a claim.

Even more distressing is that, according to OSHA, this prohibition limits post-accident drug testing to only those situations “in which employee drug use is likely to have contributed to the incident, and for which the drug test can accurately identify impairment caused by drug use.” This last requirement is particularly interesting, and completely disingenuous, given that a drug test generally only reveals drug use, not impairment. OSHA contends that this regulation prohibits employers from testing employees who report repetitive motion injuries, back strains, bee stings, injuries caused by improper guarding, etc., since the requirement might “deter” employees from reporting their injuries, without contributing to an understanding of why the injury occurred or otherwise improving workplace safety. As a result, post-accident testing must be very narrowly drafted. [Note:  This does bring to mind a client situation several years ago, when an employee reported to his supervisor with a bloody, lacerated hand, claiming he did it at home hours earlier – presumably to avoid having to submit to a post-accident drug test.]

OSHA also uses this new regulation to attack safety incentive programs, such as drawings for employees who are injury-free, or bonuses to groups of employees who have not reported an injury over a specified period of time. According to OSHA:  “[I]t is a violation for an employer to use an incentive program to take adverse action, including denying a benefit, because an employee reports a work-related injury or illness, such as disqualifying the employee for a monetary bonus or any other action that would discourage or deter a reasonable employee from reporting the work-related injury or illness. In contrast, if an incentive program makes a reward contingent upon, for example, whether employees correctly follow legitimate safety rules rather than whether they reported any injuries or illnesses, the program would not violate this provision.” 

 Although these provisions of the Final Rule were scheduled to take effect on August 10, 2016, OSHA has pushed back the effective date to November 1, 2016, ostensibly to conduct “additional outreach” to employers, and to develop educational materials and enforcement guidance on the issue. In the meantime, a number of trade associations have joined together to file a lawsuit seeking to enjoin the new anti-retaliation provisions as they relate to post-accident drug testing programs. See, Texo ABC/AGC Inc. v. Perez, Case No. 3:16-cv-01998 (N.D. Tex.).

Stay tuned. If you would like more information, or have questions about the new regulation and/or how it may affect your post-accident drug testing or safety incentive programs, contact Attorney Alan E. Seneczko at (262) 560-9696, or alseneczko@wesselssherman.com.