OSHA Guide for Small Businesses: Workplace Safety Law
See who the Occupational Safety and Health Act covers, the injury reporting clocks and the 2026 penalty limits, in plain English slides and a short table.
Last reviewed October 29, 2026 · General information, not legal advice
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The Occupational Safety and Health Act of 1970, known as the OSH Act, is the federal workplace safety law. The agency that enforces it, the Occupational Safety and Health Administration (OSHA), sits inside the U.S. Department of Labor. This page explains OSHA requirements for small businesses, nonprofits and practices, and it is written for owners who want the basics in plain words.
Slide show: OSHA in seven slides
What the law does
The OSH Act requires employers to keep workplaces free of recognized hazards likely to cause death or serious physical harm.
Who it covers
Private employers with employees. In Illinois the state plan covers public employers only, so private firms answer to federal OSHA.
The rule
Follow the OSHA standards, post the free OSHA poster and keep injury records unless a size or industry exemption applies.
The key number
Report a work-related death within 8 hours. Report an in-patient hospitalization, amputation or loss of an eye within 24 hours.
The deadlines
Post the yearly injury summary (Form 300A) from February 1 to April 30. Covered sites also submit data online by March 2. Keep records 5 years.
The penalty
Up to $16,550 for a serious violation and up to $165,514 for a willful or repeated one. These are 2025 amounts, and the Department of Labor made no 2026 increase.
A practical tip
Illinois offers free, confidential on-site safety advice to small and medium-sized businesses through its On-Site Consultation Program.
Who is covered
Group
How federal OSHA treats it
Private employer with one or more employees
Covered, including in Illinois
Self-employed person with no employees
Not covered
Owners and partners of sole proprietorships and partnerships
Not counted as employees for injury recordkeeping
Illinois state and local government employers
Covered by the Illinois OSHA State Plan, not federal OSHA
Company with 10 or fewer employees at all times last calendar year
Fully covered, but exempt from routine injury and illness recordkeeping; severe-event reporting still applies
Business in a listed low-hazard industry
Partly exempt from recordkeeping only
Hazard that another federal agency regulates
The OSH Act does not apply to that condition
How it touches your taxes and payroll
OSHA penalties are civil penalties paid to the U.S. Treasury. Amounts paid to a government for breaking a law are generally not deductible under section 162(f) of the Internal Revenue Code, with narrow exceptions for restitution and for compliance costs that the order or settlement identifies and the taxpayer can establish. The cost of fixing hazards, such as guards, equipment and training, is generally ordinary business spending or depreciable property. The yearly summary needs average employees and hours worked, which usually come from payroll records, and headcount overlaps with the worker classification review. Pay rules sit in the FLSA guide, and workers' compensation is a separate Illinois system.
Next, read the rules and numbers page for requirements, penalties and pending changes, and the checklist and FAQs page for the Dock-to-Desk Safety Lap, our name for a yearly OSHA review. For Illinois tax and payroll context, see our Illinois overview.
