Successor Entity Liability for Violations of the Occupational Safety and Health Act
Anyone engaged in the buying and selling of businesses should be aware that acquiring a company that has been cited for health and safety violations could result in the assessment of increased penalties against the successor entity because of the prior owner’s violations. The Occupational Safety and Health Act of 1970 allows for the assessment of increased penalties against employers who repeatedly violate the standards promulgated under the Act . An employer may be cited for a so-called “repeat violation” if, at the time the subsequent violation occurs, the employer was previously cited for “the same or substantially similar condition or hazard” and the prior citation has become a final order of the Occupational Safety and Health Review Commission. Importantly, a violation can be categorized as “repeat” even if the first citation was issued to the predecessor company and not the successor entity. Repeat violations carry a fine of up to $165,514 per violation— about ten times that...