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Saturday, July 7, 2012

OSHA Saves Lives & Reduces Workers Compensation Costs 26%


Statement of Jordan Barab
Deputy Assistant Secretary for
Occupational Safety and Health
U.S. Department of Labor
Before the
Subcommittee on Workforce Protections
Committee on Education and the Workforce
U.S. House of Representatives
June 28, 2012

"Regarding the importance and effectiveness of OSHA's enforcement programs, recent studies confirm the effectiveness of enforcement in ensuring the safety and health of workers. We were very heartened by research from Michael Toffel and David Levine, business school economists at Harvard University and the University of California, respectively, which demonstrates OSHA workplace inspections not only improve safety, but also save billions of dollars for employers through reduced workers' compensation costs. The study, entitled "Randomized Government Safety Inspections Reduce Worker Injuries with No Detectable Job Loss1," reports that companies subject to random inspections by CAL/OSHA showed a 9.4 percent decrease in injury rates compared with uninspected firms in the four years following the inspection. With no evidence of a negative impact on jobs, employment, or profitability of the inspected firms, the decrease in injuries led to a 26 percent reduction in workers' compensation costs – translating to an average savings of $350,000 per company. Savings were observed among both small and large employers, and, if extrapolated to the full, nation-wide extent of OSHA inspection activities, would amount to savings of roughly $6 billion nationwide. These findings lend support to our belief that OSHA regulatory enforcement save lives while reducing workers' compensation costs for American businesses."


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For over 3 decades the Law Offices of Jon L. Gelman1.973.696.7900jon@gelmans.com have been representing injured workers and their families who have suffered work related accident and injuries.


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