Letter to The Honorable Julie A. Su and The Honorable Douglas L. Parker, U.S. Department of Labor (August 3, 2023)

Summary

The Committee on Small Business writes to Acting Secretary Su of the U.S. Department of Labor and Assistant Secretary Parker of the Occupational Safety and Health Administration to inquire about the recent rule change to tracking workplace injuries and illnesses. The letter states that OSHA estimates the rule will cost $7.7 million annually, or $136 per year for each impacted business, and that it is unclear how OSHA determined this figure. It states that OSHA did not host a SBREFA panel because OSHA certified the rule would not have a significant economic impact on a substantial number of small entities. The letter requests information no later than August 17, 2023, including how many small entities employing between 20 and 249 people will be impacted.

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Full text

                                             August 3, 2023

The Honorable Julie A. Su                                The Honorable Douglas L. Parker
Acting Secretary                                         Assistant Secretary of Labor
U.S. Department of Labor                                 Occupational Safety and Health Administration
200 Constitution Ave. NW                                 201 12th St. S. Suite 401
Washington, D.C. 20210                                   Arlington, VA 22202

Dear Acting Secretary Su and Assistant Secretary Parker:

        The House Committee on Small Business (the Committee) writes to inquire about the
recent rule change to tracking workplace injuries and illnesses. The rule requires employers with
more than 250 employees and employers with between 20 and 249 employees in certain
industries to electronically report data on workplace injuries and illnesses.1 The Occupational
Safety and Health Administration’s (OSHA) definition of “certain industries” broadly
encompasses 66 industries.2 It appears that OSHA may not have properly considered small
entities during this rulemaking process.

        OSHA estimates that the cost of the rule will be $7.7 million annually: $7.1 million cost
to the private sector to “become familiar with the rule’s requirements, update software, and
submit forms electronically,” and $0.6 million cost to the government.3 Broken down by
impacted business, OSHA estimates that each business will incur a cost of $136 per year.4 While
this may seem like a marginal cost at first glance it is unclear how OSHA determined this figure
and some comments to the rule details why the impact may be greater than estimated.

        Under the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA),
OSHA is required to conduct a SBREFA panel if a proposed rule would have a significant
economic impact on a substantial number of small entities.5 Despite an objection from the small
business community, OSHA did not host a panel because they certified it would not have a
significant economic impact on a substantial number of small entities.6

1
  News Release, Dep’t of Labor, Occupational Safety & Health Admin., Dep’t Of Labor Announces Rule Expanding
Submission Requirements For Injury, Illness Data Provided By Employers In High-Hazard Industries (Jul. 17,
2023).
2
  Id.
3
  Improve Tracking of Workplace Injuries, 29 C.F.R. § 1904 (2023).
4
  Id.
5
  Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104-12, § 244, 110 Stat.
867 (1996); SBREFA Panels, U.S. SMALL BUS. ADMIN., OFFICE OF ADVOCACY (last visited Jul. 25, 2023).
6
  Improve Tracking of Workplace Injuries, 29 C.F.R. § 1904 (2023) (comment from Marc Freedman, U.S. Chamber
of Commerce (Jun. 30, 2022)).
The Honorable Julie A. Su
The Honorable Douglas L. Parker
August 3, 2023
Page 2 of 3


       It is important for agencies to examine small businesses interests—which make up 99.9
percent of all businesses in the United States—when passing any new rule. America’s small
businesses deserve to have their voices heard and considered. We therefore request the following
information as soon as possible but no later than August 17, 2023:

   1. How many small entities, employing between 20 and 249 people, will be impacted by
      this rule?

   2. What are the exact calculations OSHA used to determine the cost would be $136 per
      business?

   3. Will regulatory compliance fall most heavily on the smallest entities which do not have
      the staff to comply with additional requirements?

   4. Where can small businesses go to examine your analysis on the impacts this rule will
      have on their operations?

   5. What alternatives have been considered to lessen the impacts on small businesses and
      why were the alternatives rejected?

       To schedule the delivery of your response or ask any related follow-up questions, please
contact Committee on Small Business Majority Staff at (202) 225-5821. The Committee on
Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.

                                       In God We Trust,




_________________________                           _________________________
Roger Williams                                      Jake Ellzey
Chairman                                            Member of Congress
Committee on Small Business                         Committee on Small Business



_________________________
Aaron Bean
Member of Congress
Committee on Small Business
The Honorable Julie A. Su
The Honorable Douglas L. Parker
August 3, 2023
Page 3 of 3



cc:   The Honorable Nydia M. Velasquez, Ranking Member
      Committee on Small Business


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