[Federal Register: January 19, 2001 (Volume 66, Number 13)]
[Rules and Regulations]               
[Page 5915-5964]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19ja01-21]                         
 

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Part IV





Department of Labor





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Occupational Safety and Health Administration



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29 CFR Parts 1904 and 1952



Occupational Injury and Illness Recording and Reporting Requirements; 
Final Rule


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DEPARTMENT OF LABOR

Occupational Safety and Health Administration

29 CFR Parts 1904 and 1952

[Docket No. R-02]
RIN 1218-AB24

 
Occupational Injury and Illness Recording and Reporting 
Requirements

AGENCY: Occupational Safety and Health Administration (OSHA), U.S. 
Department of Labor.

ACTION: Final rule.

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SUMMARY: The Occupational Safety and Health Administration (OSHA) is 
revising its rule addressing the recording and reporting of 
occupational injuries and illnesses (29 CFR parts 1904 and 1952), 
including the forms employers use to record those injuries and 
illnesses. The revisions to the final rule will produce more useful 
injury and illness records, collect better information about the 
incidence of occupational injuries and illnesses on a national basis, 
promote improved employee awareness and involvement in the recording 
and reporting of job-related injuries and illnesses, simplify the 
injury and illness recordkeeping system for employers, and permit 
increased use of computers and telecommunications technology for OSHA 
recordkeeping purposes.
    This rulemaking completes a larger overall effort to revise Part 
1904 of Title 29 of the Code of Federal Regulations. Two sections of 
Part 1904 have already been revised in earlier rulemakings. A rule 
titled Reporting fatalities and multiple hospitalization incidents to 
OSHA, became effective May 2, 1994 and has been incorporated into this 
final rule as Sec. 1904.39. A second rule entitled Annual OSHA injury 
and illness survey of ten or more employers became effective on March 
13, 1997 and has been incorporated into this final rule as 
Sec. 1904.41.
    The final rule being published today also revises 29 CFR 1952.4, 
Injury and Illness Recording and Reporting Requirements, which 
prescribes the recordkeeping and reporting requirements for States that 
have an occupational safety and health program approved by OSHA under 
Sec. 18 of the Occupational Safety and Health Act (the ``Act'' or ``OSH 
Act'').

DATES: This final rule becomes effective January 1, 2002.

FOR FURTHER INFORMATION CONTACT: Jim Maddux, Occupational Safety and 
Health Administration, U.S. Department of Labor, Directorate of Safety 
Standards Programs, Room N-3609, 200 Constitution Ave., NW, Washington, 
DC 20210. Telephone (202) 693-2222.

SUPPLEMENTARY INFORMATION:

I. Table of Contents

    The following is a table of contents for this preamble. The 
regulatory text and appendices follow the preamble. Documents and 
testimony submitted to the docket (Docket R-02) of this rulemaking 
are cited throughout this preamble by the number that has been 
assigned to each such docket entry, preceded by the abbreviation 
``Ex.,'' for exhibit.

II. The Occupational Safety and Health Act and the Functions of the 
Recordkeeping System
III. Overview of the Former OSHA Recordkeeping System
IV. OSHA's Reasons for Revising the Recordkeeping Rule
V. The Present Rulemaking
VI. Legal Authority
VII. Summary and Explanation of the Final Rule
A. Subpart A. Purpose
B. Subpart B. Scope
C. Subpart C. Recordkeeping Forms and Recording Criteria
D. Subpart D. Other OSHA Injury and Illness Recordkeeping 
Requirements
E. Subpart E. Reporting Fatality, Injury and Illness Information to 
the Government.
F. Subpart F. Transition From the Former Rule
G. Subpart G. Definitions
VIII. Forms
A. OSHA 300
B. OSHA 300 A
C. OSHA 301
IX. State Plans
X. Final Economic Analysis
XI. Regulatory Flexibility Certification
XII. Environmental Impact Assessment
XIII. Federalism
XIV. Paperwork Reduction Act of 1995
XV. Authority
Regulatory Text of 29 CFR Part 1904 and 29 CFR Section 1952.4

II. The Occupational Safety and Health Act and the Functions of the 
Recordkeeping System

Statutory Background

    The Occupational Safety and Health Act (the ``OSH Act'' or ``Act'') 
requires the Secretary of Labor to adopt regulations pertaining to two 
areas of recordkeeping. First, section 8(c)(2) of the Act requires the 
Secretary to issue regulations requiring employers to ``maintain 
accurate records of, and to make periodic reports on, work-related 
deaths, injuries and illnesses other than minor injuries requiring only 
first aid treatment and which do not involve medical treatment, loss of 
consciousness, restriction of work or motion, or transfer to another 
job.'' Section 8(c)(1) of the Act also authorizes the Secretary of 
Labor to develop regulations requiring employers to keep and maintain 
records regarding the causes and prevention of occupational injuries 
and illnesses. Section (2)(b)(12) of the Act states Congress' findings 
with regard to achieving the goals of the Act and specifically notes 
that appropriate reporting procedures will help achieve the objectives 
of the Act.
    Second, section 24(a) of the Act requires the Secretary to develop 
and maintain an effective program of collection, compilation, and 
analysis of occupational safety and health statistics. This section 
also directs the Secretary to ``compile accurate statistics on work 
injuries and illnesses which shall include all disabling, serious, or 
significant injuries and illnesses, whether or not involving loss of 
time from work, other than minor injuries requiring only first aid 
treatment and which do not involve medical treatment, loss of 
consciousness, restriction of work or motion, or transfer to another 
job.''
    After passage of the Act, OSHA issued the required occupational 
injury and illness recording and reporting regulations as 29 CFR part 
1904. Since 1971, OSHA and the Bureau of Labor Statistics (BLS) have 
operated the injury and illness recordkeeping system as a cooperative 
effort. Under a Memorandum of Understanding dated July 11, 1990 (Ex. 
6), BLS is now responsible for conducting the nationwide statistical 
compilation of occupational illnesses and injuries (called the Annual 
Survey of Occupational Injuries and Illnesses), while OSHA administers 
the regulatory components of the recordkeeping system.

Functions of the Recordkeeping System

    This revision of the Agency's recordkeeping rule is firmly rooted 
in the statutory requirements of the OSH Act (see the Legal Authority 
section of the preamble, below). OSHA's reasons for revising this 
regulation to better achieve the goals of the Act are discussed in the 
following paragraphs.
    Occupational injury and illness records have several distinct 
functions or uses. One use is to provide information to employers whose 
employees are being injured or made ill by hazards in their workplace. 
The information in OSHA records makes employers more aware of the kinds 
of injuries and illnesses occurring in the workplace and the hazards 
that cause or contribute to them. When employers analyze and review the 
information in their records, they can identify and

[[Page 5917]]

correct hazardous workplace conditions on their own. Injury and illness 
records are also an essential tool to help employers manage their 
company safety and health programs effectively.
    Employees who have information about the occupational injuries and 
illnesses occurring in their workplace are also better informed about 
the hazards they face. They are therefore more likely to follow safe 
work practices and to report workplace hazards to their employers. When 
employees are aware of workplace hazards and participate in the 
identification and control of those hazards, the overall level of 
safety and health in the workplace improves.
    The records required by the recordkeeping rule are also an 
important source of information for OSHA. During the initial stages of 
an inspection, an OSHA representative reviews the injury and illness 
data for the establishment as an aid to focusing the inspection effort 
on the safety and health hazards suggested by the injury and illness 
records. OSHA also uses establishment-specific injury and illness 
information to help target its intervention efforts on the most 
dangerous worksites and the worst safety and health hazards. Injury and 
illness statistics help OSHA identify the scope of occupational safety 
and health problems and decide whether regulatory intervention, 
compliance assistance, or other measures are warranted.
    Finally, the injury and illness records required by the OSHA 
recordkeeping rule are the source of the BLS-generated national 
statistics on workplace injuries and illnesses, as well as on the 
source, nature, and type of these injuries and illnesses. To obtain the 
data to develop national statistics, the BLS and participating State 
agencies conduct an annual survey of employers in almost all sectors of 
private industry. The BLS makes the aggregate survey results available 
both for research purposes and for public information. The BLS has 
published occupational safety and health statistics since 1971. These 
statistics chart the magnitude and nature of the occupational injury 
and illness problem across the country. Congress, OSHA, and safety and 
health policy makers in Federal, State and local governments use the 
BLS statistics to make decisions concerning safety and health 
legislation, programs, and standards. Employers and employees use them 
to compare their own injury and illness experience with the performance 
of other establishments within their industry and in other industries.

III. Overview of the Former OSHA Recordkeeping System

    The OSH Act authorizes OSHA to require employers to keep records 
and to report the recorded information to OSHA. However, the Agency 
only requires some employers to create and maintain occupational injury 
and illness records. Those employers who are required to keep records 
must report on those records only when the government specifically asks 
for the information, which occurs exclusively under limited 
circumstances that are described below.
    Employers covered by the recordkeeping regulations must keep 
records of the occupational injuries and illnesses that occur among 
their employees. To do so, covered employers must complete two forms. 
First, the employer must maintain a summary form (OSHA Form 200, 
commonly referred to as the ``OSHA Log,'' or an equivalent form) that 
lists each injury and illness that occurred in each establishment 
during the year. For each case on the Log, the employer also prepares a 
supplementary record (OSHA Form 101, or an equivalent), that provides 
additional details about the injury or illness. Most employers use a 
workers' compensation First Report of Injury in place of the 101 form. 
The Log is available to employees, former employees, and their 
representatives. A Summary of the Log is posted in the workplace from 
February 1 to March 1 of the year following the year to which the 
records pertain. The Log and summary, as well as the more detailed 
supplementary record, are available to OSHA inspectors who visit the 
establishment.
    The employer is only obligated to record work-related injuries and 
illnesses that meet one or more of certain recording criteria. In 
accordance with the OSH Act, OSHA does not require employers to record 
cases that only involve ``minor'' injuries or illnesses, i.e., do not 
involve death, loss of consciousness, days away from work, restriction 
of work or motion, transfer to another job, medical treatment other 
than first aid, or diagnosis of a significant injury or illness by a 
physician or other licensed health care professional.
    The language of the OSH Act also limits the recording requirements 
to injuries or illnesses that are ``work-related.'' The Act uses, but 
does not define, this term. OSHA has interpreted the Act to mean that 
injuries and illnesses are work-related if events or exposures at work 
either caused or contributed to the problem. Work-related injuries or 
illnesses may (1) occur at the employer's premises, or (2) occur off 
the employer's premises when the employee was engaged in a work 
activity or was present as a condition of employment. Certain limited 
exceptions to this overriding geographic presumption were permitted by 
the former rule.
    Although the Act gives OSHA the authority to require all employers 
covered by the OSH Act to keep records, two major classes of employers 
are not currently required regularly to keep records of the injuries 
and illnesses of their employees: employers with no more than 10 
employees at any time during the previous calendar year, and employers 
in certain industries in the retail and service sectors.
    Although the Act authorizes OSHA to require employers to submit 
reports on any or all injuries and illnesses occurring to their 
employees, there are currently only three situations where OSHA 
requires an employer to report occupational injury and illness records 
to the government. First, an employer must report to OSHA within eight 
hours any case involving a work-related fatality or the in-patient 
hospitalization of three or more employees as the result of a work-
related incident (former 29 CFR 1904.8, final rule 1904.39). These 
provisions were revised in 1994 to reduce the reporting time for these 
incidents from 48 hours to 8 hours and reduce the number of 
hospitalized employees triggering a report from five workers to three 
workers (59 FR 15594 (April 1, 1994)). Changes made to this section in 
1994 have largely been carried forward in the final rule being 
published today.
    Second, an employer who receives an annual survey form from the 
Bureau of Labor Statistics must submit its annual injury and illness 
data to the BLS. The BLS conducts an annual survey of occupational 
injuries and illnesses under 29 CFR 1904.20-22 of the former rule 
(1904.41 of the final rule). Using a stratified sample, the BLS sends 
survey forms to randomly selected employers, including employers who, 
under Part 1904, would otherwise be exempt from the duty to keep the 
OSHA Log and Summary. These otherwise exempt employers are required to 
keep an annual record of the injuries and illnesses occurring among 
their employees that are recordable under Part 1904 if the BLS contacts 
them as part of the annual survey. At the end of the year, these 
employers must send the results of recordkeeping to the BLS. The BLS 
then tabulates the data and uses them to prepare national statistics on 
occupational injuries and illnesses. The

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BLS survey thus ensures that the injury and illness experience of 
employers otherwise exempted from the requirement to keep OSHA 
records--such as employers with 10 or fewer employees in the previous 
year and employers in certain Standard Industrial Classification (SIC) 
codes--is reflected in the national statistics. In accordance with its 
statistical confidentiality policy, the BLS does not make public the 
identities of individual employers.
    Finally, OSHA may require employers to send occupational injury and 
illness data directly to OSHA under a regulation issued in 1997. That 
section of this regulation is entitled Annual OSHA Injury and Illness 
Survey of Ten or More Employers. It allows OSHA or the National 
Institute for Occupational Safety and Health (NIOSH) to collect data 
directly from employers. This section was published in the Federal 
Register on February 11, 1997 (62 FR 6434) and became effective on 
March 13, 1997. It has been included in this final rule as section 
1904.41 without substantive change; however, this section has been 
rewritten in plain language for consistency with the remainder of Part 
1904.

IV. OSHA's Reasons for Revising the Recordkeeping Rule

    OSHA had several interrelated reasons for revising its 
recordkeeping rule. The overarching goal of this rulemaking has been to 
improve the quality of workplace injury and illness records. The 
records have several important purposes, and higher quality records 
will better serve those purposes. OSHA also believes that an improved 
recordkeeping system will raise employer awareness of workplace hazards 
and help employers and employees use and analyze these records more 
effectively. In revising its recordkeeping rule, the Agency also hopes 
to reduce underreporting and to remove obstacles to complete and 
accurate reporting by employers and employees.
    A major goal of the revision has been to make the system simpler 
and easier to use and understand and to update the data on which the 
system is based. For example, OSHA has updated the list of partially 
exempt industries to reflect the most recent data available. The 
revisions to the final rule will also create more consistent statistics 
from employer to employer. Further, by providing more details about the 
system in the regulation itself and writing the rule in plain language, 
fewer unintentional errors will be made and the records will be more 
consistent. More consistent records will improve the quality of 
analyses comparing the injury and illness experience of establishments 
and companies with industry and national averages and of analyses 
looking for trends over several years.
    Another objective of the rulemaking has been to lessen the 
recordkeeping burden on employers, reduce unnecessary paperwork, and 
enhance the cost-effectiveness of the rule. The final rule achieves 
this objective in several ways. It updates the partially exempt 
industry list, reduces the requirement to keep track of lengthy 
employee absences and work restrictions caused by work-related injuries 
and illnesses and, above all, greatly simplifies the forms, regulatory 
requirements, and instructions to make the system easier for employers 
and employees to manage and use.
    In this rulemaking, OSHA has also addressed some of the objections 
employers have raised in the years since OSHA first implemented the 
injury and illness recordkeeping system. For example, the final rule 
includes a number of changes that will allow employers to exclude 
certain cases, eliminate the recording of minor illness cases, and 
allow employers maximum flexibility to use computer equipment to meet 
their OSHA recordkeeping obligations.
    OSHA is also complying with the President's Executive Memorandum on 
plain language (issued June 1, 1998) by writing the rule's requirements 
in plain language and using the question-and-answer format to speak 
directly to the user. OSHA believes that employers, employees and 
others who compile and maintain OSHA records will find that the plain 
language of the final rule helps compliance and understanding.
    Many of OSHA's goals and objectives in developing this final rule 
work together and reinforce each other. For example, writing the 
regulation in plain language makes the rule easier for employers and 
employees to use and improves the quality of the records by reducing 
the number of errors caused by ambiguity. In some cases, however, one 
objective had to be balanced against another. For example, the enhanced 
certification requirements in the final rule will improve the quality 
of the records, but they also slightly increase employer burden. 
Nevertheless, OSHA is confident that the final rule generally achieves 
the Agency's goals and objectives for this rulemaking and will result 
in a substantially strengthened and simplified recordkeeping and 
reporting system.

The Need To Improve the Quality of the Records

    The quality of the records OSHA requires employers to keep is of 
crucial importance for anyone who uses the resulting data. Problems 
with completeness, accuracy, or consistency can compromise the data and 
reduce the quality of the decisions made on the basis of those data. 
Several government studies, as well as OSHA's own enforcement history, 
have revealed problems with employers' injury and illness recordkeeping 
practices and with the validity of the data based on those records.
    A study conducted by the National Institute for Occupational Safety 
and Health (NIOSH) between 1981 and 1983 revealed that 25 percent of 
the 4,185 employers surveyed did not keep OSHA injury and illness 
records at all, although they were required by regulation to do so (Ex. 
15:407-P).
    A study of 192 employers in Massachusetts and Missouri conducted by 
the BLS in 1987 reported that an estimated 10 percent of covered 
employers did not maintain OSHA records at all, total injuries were 
underrecorded by approximately 10 percent (even though both 
overrecording and underrecording were discovered), lost workday 
injuries were undercounted by 25 percent, and lost workdays were 
undercounted by nearly 25 percent. Approximately half of the uncounted 
lost workdays were days of restricted work activity, and the other half 
were days away from work. Some of the underrecording was due to 
employers entering lost time cases on their records as no-lost-time 
cases (Exs. 72-1, 72-2).
    Through its inspections of workplaces, OSHA has also discovered 
that some employers seriously underrecord injuries and illnesses. In 
cases where the inspector has found evidence that the employer 
willfully understated the establishment's injury and illness 
experience, OSHA has levied large penalties and fines under its special 
citation policy for egregious violations. OSHA has issued 48 egregious 
injury and illness recordkeeping citations since 1986 (Ex. 74).
    As part of the OSHA Data Initiative (ODI), a survey allowing OSHA 
to collect injury and illness data from employers to direct OSHA's 
program activities, the Agency conducts Part 1904 records audits of 250 
establishments each year. The following table shows the results of the 
audits conducted to date.

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                              1996 Through 1998 OSHA Recordkeeping Audit Results *
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                                                                                  Data reference year  (percent)
                                   Error type                                   --------------------------------
                                                                                    1996       1997       1998
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Cases not entered on employers Log.............................................      13.56      10.49      12.91
Lost workday cases recorded as non-lost workday cases..........................       8.39       6.53       6.21
Non-lost workday cases recorded as lost workday cases..........................       (**)       2.10       1.94
                                                                                --------------------------------
    Total major recording errors...............................................      21.95      19.11      21.07
                                                                                --------------------------------
    Total cases recorded without major errors..................................      78.05      80.89     78.93
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* The results were tabulated using unweighted data and should not be used to draw broad conclusions about the
  recordkeeping universe.
** Data not calculated for 1996.
Source: OSHA Data Initiative Collection Quality Control: Analysis of Audits on 1996-1998 Employer Injury and
  Illness Recordkeeping.

Explicit Rules Are Needed To Ensure Consistent Recording

    When OSHA's recordkeeping regulation was first promulgated in 1971, 
many industry safety experts were concerned that the regulations and 
the instructions on the forms did not provide adequate guidance for 
employers. They requested that the Department of Labor provide 
additional instructions on employers' recordkeeping obligations and 
clarify several recordkeeping issues. The BLS responded in 1972 by 
publishing supplemental instructions to the recordkeeping forms, BLS 
Report 412, What Every Employer Needs To Know About OSHA Recordkeeping 
(Ex. 1). These supplemental instructions were designed to help 
employers by providing detailed information on when and how to record 
injury and illness cases on the recordkeeping forms. The supplemental 
instructions clarified numerous aspects of the rule, including the 
important recordability criteria that outline which injuries and 
illnesses are work-related and thus recordable. This BLS Report was 
revised and reissued in 1973, 1975, and 1978.
    In response to requests from labor and industry, and after 
publication in the Federal Register and a public comment period, the 
BLS 412 report series was replaced in April of 1986 by the 
Recordkeeping Guidelines For Occupational Injuries And Illnesses (the 
Guidelines) (Ex. 2). The Guidelines contained an expanded question-and-
answer format similar to that of the BLS 412 report and provided 
additional information on the legal basis for the requirements for 
recordkeeping under Part 1904. The Guidelines provided clearer 
definitions of the types of cases to be recorded and discussed employer 
recordkeeping obligations in greater detail. The Guidelines also 
introduced a number of exceptions to the general geographic presumption 
that injuries and illnesses that occurred ``on-premises'' were work-
related to cover situations where the application of the geographic 
presumption was considered inappropriate. Further, the Guidelines 
updated the lists that distinguished medical treatment from first aid 
and addressed new recordkeeping issues. The BLS also published a 
shortened version of the Guidelines, entitled A Brief Guide to 
Recordkeeping Requirements for Occupational Injuries and Illnesses (Ex. 
7).
    Although the 1986 edition of the Guidelines clarified many aspects 
of the recordkeeping regulation, concerns persisted about the quality 
and utility of the injury and illness data. In response to inquiries 
from employers, unions, employees, BLS, and OSHA staff, the Agency 
issued many letters of interpretation. These letters restated the 
former rule's regulatory requirements, interpreted the rules as they 
applied to specific injury and illness cases, and clarified the 
application of those requirements. A number of these letters of 
interpretation have been compiled and entered into the docket of this 
rulemaking (Ex. 70). OSHA has incorporated many of the prior 
interpretations directly into the implementation questions and answers 
in the regulatory text of the final rule, so that all affected 
employers will be aware of these provisions.

External Critiques of the Former Recordkeeping System

    Because of concern about the injury and illness records and the 
statistics derived from them, several organizations outside OSHA have 
studied the recordkeeping system. The National Research Council (NRC), 
the Keystone Center, and the General Accounting Office (GAO) each 
published reports that evaluated the recordkeeping system and made 
recommendations for improvements. OSHA has relied on these studies 
extensively in developing this final rule.
The NRC Report
    In response to concern over the underreporting of occupational 
injuries and illnesses and inconsistencies in the national data 
collected by the BLS, Congress appropriated funds in 1984 for the BLS 
to conduct a quality assurance study of its Annual Survey of 
Occupational Injuries and Illnesses. The BLS asked the National 
Research Council (NRC) to convene an expert panel to analyze the 
validity of employer records and the BLS annual survey, to address any 
problems related to determining and reporting occupational diseases, 
and to consider other issues related to the collection and use of data 
on health and safety in the workplace.
    In 1987, NRC issued its report, Counting Injuries and Illnesses in 
the Workplace: Proposals for a Better System (Ex. 4). The report 
contained 24 specific recommendations (Ex. 4, Ch. 8). In sum, the NRC 
panel recommended that BLS take the following steps to improve the 
recordkeeping system: (1) Modify the BLS Annual Survey to provide more 
information about the injuries and illnesses recorded; (2) discontinue 
the Supplementary Data System, replace it with a grant program for 
States and individual researchers, and develop criteria for the detail 
and quality of the data collected by the replacement system; (3) 
conduct an ongoing quality assurance program for the Annual Survey to 
identify underreporting by comparing the information on employers' logs 
with data from independent sources; (4) implement a system of 
surveillance for occupational disease, including the collection of data 
on exposure to workplace hazards; (5) improve the collection of 
national occupational fatality data; (6) implement an administrative 
data system that would allow OSHA to obtain individual establishment 
data to conduct an ``effective program for the prevention of

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workplace injuries and illnesses * * *''; and (7) thoroughly evaluate 
recordkeeping practices in individual establishments, using additional 
resources requested from Congress for that purpose to avoid diverting 
resources from OSHA inspections of workplace hazards (Ex. 4, p. 10).
The Keystone Report
    In 1987, The Keystone Center convened 46 representatives from labor 
unions, corporations, the health professions, government agencies, 
Congressional staff, and academia for a year-long dialogue to discuss 
occupational injury and illness recordkeeping. Two years later, 
Keystone issued its final report, Keystone National Policy Dialogue on 
Work-related Illness and Injury Recordkeeping, 1989 (Ex. 5). The report 
focused on four major topics: (1) Recordkeeping criteria; (2) OSHA 
enforcement procedures; (3) injury and illness data systems; and (4) 
occupational illnesses. The Keystone report recommended that: (1) OSHA 
and the BLS should revise various aspects of the recording criteria; 
(2) OSHA should use injury and illness data to target enforcement 
efforts; (3) the BLS should revise the Guidelines to make them easily 
and uniformly understood; (4) the BLS should develop a national system 
to collect and disseminate occupational injury and illness information; 
and (5) OSHA and the BLS should broaden the type of information 
collected concerning occupational illness and make the information 
available to employees and government agencies for appropriate purposes 
such as research and study.
The General Accounting Office (GAO) Study
    An August 1990 report by the GAO, Options for Improving Safety and 
Health in the Workplace (Ex. 3), discussed the importance of employer 
injury and illness records. The GAO noted that these records have 
several major uses. They help employers, employees and others 
understand the nature and extent of occupational safety and health 
problems. They help employers and employees identify safety and health 
problems in their workplaces so that they can correct the problems. 
They also enable OSHA to conduct research, evaluate programs, allocate 
resources, and set and enforce standards. The report focused on the use 
of the records in OSHA enforcement, particularly in targeting 
industries and worksites for inspections and determining the scope of 
inspections.
    The GAO report found that there was ``possibly significant injury 
and illness underrecording and subsequent underreporting'' (Ex. 3, p. 
3). The GAO report gave three main reasons for inaccurate recording and 
reporting: (1) Employers intentionally underrecord injuries and 
illnesses in response to OSHA inspection policies or management safety 
competitions; (2) employers unintentionally underrecord injuries and 
illnesses because they do not understand the recording and reporting 
system; and (3) employers record injuries and illnesses inaccurately 
because they do not place a high priority on recordkeeping and do not 
supervise their recordkeepers properly. The GAO report noted that 
OSHA's revised enforcement procedures, which included increasing its 
fines for recordkeeping violations and modifying its records-review 
procedures, would likely help to improve the accuracy of recordkeeping. 
The GAO recommended that the Department of Labor study the accuracy of 
employers' records using independent data sources, evaluate how well 
employers understand the revised Guidelines, and audit employers' 
records in selected enforcement activities.
OSHA's Strategy for Improving the Quality of Records
    OSHA has developed a four-part strategy to improve the quality of 
the injury and illness records maintained by employers. The first 
component is to provide information, outreach and training to employers 
to make them more aware of the recordkeeping requirements, thereby 
improving their compliance with these requirements. For example, 
information on injury and illness recordkeeping is included in many of 
OSHA's publications and pamphlets, on the OSHA CD-ROM, and on OSHA's 
Internet site. OSHA personnel answer thousands of recordkeeping 
questions each year in response to phone calls and letters. OSHA also 
trains employers at the OSHA Training Institute in recordkeeping 
procedures and provides speakers on this topic for numerous safety and 
health events.
    The second component is improved enforcement of the recordkeeping 
requirements. OSHA continues to review employer records during many of 
its workplace inspections. OSHA also audits the records of some 
employers who submit data to OSHA under former section 1904.17 
(recodified as section 1904.41 Requests from OSHA for Data in the final 
rule). Although OSHA does not issue citations for minor reporting and 
recording violations, the Agency does cite and fine employers when it 
encounters serious or willful injury and illness recordkeeping 
problems.
    The third component of OSHA's overall plan is this revision of the 
injury and illness recordkeeping rule. The revised final rule will 
streamline the recordkeeping system by simplifying the forms and the 
logic used to record an individual case. It will also consolidate the 
instructions that were formerly contained in the rule itself, in the 
Guidelines, and in many interpretative letters and memoranda. In 
addition, the final rule will improve the quality of the injury and 
illness records by changing several requirements to ensure that data 
are entered correctly. OSHA has simplified and streamlined the 
recordkeeping forms and processes to reduce errors. Other changes 
include: (1) Simplifying and clarifying the definitions of terms such 
as ``medical treatment,'' ``first aid,'' and ``restricted work'' to 
reduce recording errors; (2) providing specific recordkeeping guidance 
for specific types of injuries and illnesses; (3) including a detailed 
discussion of the process of determining whether an injury or illness 
is work-related; (4) giving employees greater involvement by improving 
their access to records and providing a longer posting period for the 
annual summary; (5) requiring higher level management officials to 
certify the records; (6) adding a falsification/penalty statement to 
the Summary; (7) adding a disclaimer to the Log to clarify that an 
employer who records an injury or illness is not admitting fault, 
negligence or liability for workers' compensation or insurance 
purposes; and (8) requiring the employer to establish a process for 
employees to report injuries and illnesses and to tell employees about 
it, and explicitly prohibiting the employer from discriminating against 
employees who report injuries and illnesses.

V. The Present Rulemaking

    In 1995, the Keystone Center reassembled a group of business, 
labor, and government representatives to discuss draft proposed changes 
to the recordkeeping rule. OSHA shared its draft proposed revision of 
the rule with the participants and the public. The draft was also 
reprinted in several national safety and health publications. Written 
comments generated by the on-going dialogue were used to help develop 
the proposal and the final rule, and they are in the rulemaking record 
(Ex. 12).
    OSHA consulted with the Advisory Committee on Construction Safety 
and Health (ACCSH) before issuing the

[[Page 5921]]

proposed rule. ACCSH made specific recommendations to OSHA for 
improving the recordkeeping system as it applied to the construction 
industry. OSHA gave the ACCSH recommendations careful consideration and 
responded by modifying the proposal in several areas. The ACCSH 
recommendations, OSHA's written briefing, and the relevant portions of 
the transcripts of the October and December 1994 ACCSH meetings are 
also part of the public record (Ex. 10).
    OSHA published a Notice of Proposed Rulemaking (NPRM) on February 
2, 1996 (61 FR 23), giving formal notice that the Agency proposed to 
revise the injury and illness recording and reporting regulations, 
forms, and supplemental instructions (Ex. 14). The proposed rule 
reflected a number of suggestions made by the Keystone participants and 
ACCSH.
    The NPRM invited all interested parties to submit comments on the 
proposal to the docket by May 2, 1996. In response to requests from 
members of the public, OSHA held two public meetings during the comment 
period and extended the comment period to July 1, 1996.
    OSHA received 449 written comments in response to the NPRM and 
compiled 1200 pages of transcripts from 60 presentations made at the 
public meeting. Comments and testimony were received from a broad range 
of interested parties, including corporations, small business entities, 
trade associations, unions, state and local governments, professional 
associations, citizens groups, and safety and health organizations. 
OSHA has carefully reviewed all of the comments and testimony in its 
preparation of the final rule.
    As described in greater detail below, the final rule revises OSHA's 
regulation for the recording and reporting of work-related deaths, 
injuries and illnesses. The rule is part of a comprehensive revision of 
the OSHA injury and illness recordkeeping system.
    The final rule becomes effective, on January 1, 2002. At that time, 
the following recordkeeping actions will occur:
    (1) 29 CFR Part 1904, entitled Recording and Reporting Occupational 
Injuries and Illnesses, will be in effect.
    (2) The State plan provisions in 29 CFR Part 1952, Section 1952.4, 
entitled Injury and Illness Recording and Reporting Requirements will 
be in effect.
    (3) Three new recordkeeping forms will come into use:
    (A) OSHA Form 300, OSHA Injury and Illness Log, and OSHA Form 300 A 
Summary, which will replace the former OSHA Form 200, Log and Summary 
of Occupational Injuries and Illnesses; and
    (B) OSHA Form 301, OSHA Injury and Illness Incident Record, which 
will replace the former OSHA Form 101, Supplementary Record of 
Occupational Injuries and Illnesses.
    (4) The following BLS/OSHA publications will be withdrawn:
    (A) Recordkeeping Guidelines for Occupational Injuries and 
Illnesses, 1986; and
    (B) A Brief Guide to Recordkeeping Requirements for Occupational 
Injuries and Illnesses, 1986.
    (5) All letters of interpretation regarding the former rule's 
injury and illness recordkeeping requirements will be withdrawn and 
removed from the OSHA CD-ROM and the OSHA Internet site.

Provisions Not Carried Forward From the Proposal

    Two proposed regulatory sections in OSHA's 1996 Notice of Proposed 
Rulemaking (NPRM) have not been carried forward in this rulemaking. 
They are: (1) Falsification of, or failure to keep records or provide 
reports (Proposed section 1904.16), and (2) Subcontractor records for 
major construction projects (Proposed section 1904.17).
    Paragraphs (a) and (b) of proposed section 1904.16, ``Falsification 
of, or failure to keep records or provide reports,'' were included in 
the proposal because they had been included in the former rule. The 
proposed section included a provision stating that employers may be 
subject to criminal fines under section 17(g) of the Act for falsifying 
injury and illness logs and may be cited and fined under sections 9, 
10, and 17 of the Act for failure to comply with the recordkeeping 
rule. Several commenters favored retention of this proposed provision 
in the final rule because, in their view, OSHA needs strong enforcement 
of the recordkeeping rule to make sure that employers keep accurate 
records (see, e.g., Exs. 15: 11, 289). Others, however, objected to the 
proposed provision (see, e.g., Exs. 15: 22, 335, 375). The views of 
this latter group were reflected in a comment from the American 
Petroleum Institute (Ex. 15: 375), which urged OSHA to delete this 
section from the rule in its entirety because nothing like it is found 
in any other OSHA regulation or standard. In the final rule, OSHA has 
decided that this section is not needed to enforce the final rule, and 
when need be, to issue citations and levy penalties.
    The Keystone report recommended, and OSHA proposed, to require 
construction employers to maintain ``site logs,'' or comprehensive 
injury and illness records, for major construction projects. The 
Keystone report noted that construction sites are normally composed of 
multiple contractors and subcontractors, each of whom may be present at 
the site for a relatively short period of time, and that no records of 
the safety and health experience of the site are readily available, 
either to OSHA or to employers and employees.
    In an attempt to address this problem, the proposed provision would 
have required site-controlling employers in the construction industry 
to maintain a separate record reflecting the overall injury and illness 
experience of employees working for sub-contract construction firms for 
any construction site having an initial construction contract value 
exceeding $1,000,000. The site-controlling employer would thus have 
been required to record the injuries and illnesses of subcontractor 
employees who were employed by construction employers with 11 or more 
employees working at the site at any time during the previous calendar 
year.
    Many commenters strongly favored the addition of a construction 
site log provision to the final rule (see, e.g., Exs. 20; 29; 35; 36; 
45; 15: 48, 110, 113, 129, 136, 137, 141, 181, 224, 266, 278, 310, 350, 
359, 369, 375, 394, 407, 413, 415, 418, 425, 438, 440). Several of 
these commenters urged OSHA to expand this ``multi-employer'' log 
concept to employers in other industries (see, e.g., Exs. 35; 15: 48, 
113, 129, 369, 415, 418, 438). For example, the AFL-CIO (Ex. 15: 418) 
encouraged OSHA to ``[e]xpand this recommendation to all industries. As 
the Agency is well aware, safety and health problems related to multi-
employer worksites and contract work are a major concern in many 
industries beyond construction. Many of the major chemical explosions 
and fatalities at steel mills, power plants and paper mills have been 
related to contract work. With more and more businesses contracting out 
services for on-site activities, the safety and health concern 
associated with these practices is growing.''
    Other commenters argued that the proposed site log provisions 
should be expanded to include injuries and illnesses to construction 
employees working for employers who would otherwise be exempt from OSHA 
recordkeeping requirements because they employ fewer than 11 workers 
(see, e.g., Exs. 20; 15: 350, 359, 369, 407, 425). Two of these 
commenters recommended adding a requirement to the final rule requiring 
the site-controlling employer to assist smaller

[[Page 5922]]

employers with their records (Exs. 15: 350, 359).
    Several commenters recommended adding provisions to the final rule 
that would provide greater access to the construction site log by 
employees (see, e.g., Exs. 15: 129, 310, 394) and by other employers 
(see, e.g., Ex. 15: 310). Others recommended that OSHA include in the 
final rule a requirement for the site-controlling employer to collect 
the number of hours worked by each subcontractor to make it easier to 
calculate each subcontractor's injury and illness rates (see, e.g., 
Exs. 15: 310, 369, 394), and some commenters recommended that the final 
rule contain a requirement for subcontractors to report work-related 
injuries and illnesses to the site-controlling employer (see, e.g., 
Exs. 15: 359, 369, 440).
    The Building and Construction Trades Department (BCTD), AFL-CIO 
discussed many of these issues while commenting in favor of site logs:

    On the project level, the fragmentation of employers on 
construction sites makes it impossible to assess fully safety and 
health on a particular project. Since the origins of OSHA, injury 
and illness recordkeeping has been the responsibility of each 
individual employer. Nevertheless, the hazards of construction 
activity are shared by employees across the site, and are not 
specific to a single employer. Employees are often injured or made 
ill by circumstances that are not under their own employer's full 
control. The balkanization of recordkeeping contributes to the 
failure of full and complete communication in construction.
    What is needed, at a national and the project level, is a way to 
record and count the injuries and illnesses that occur on specific 
projects. We need to know about illnesses and injuries that are 
associated with distinct types of construction activity, with the 
various phases of construction, and with the methods, materials, and 
hazards that are common to those types of work. Furthermore, we need 
to develop a measure of injury and illness that spans employers, to 
get a picture of the aggregate outcomes affecting all actors on a 
common site. Only with such a tool can the construction industry 
establish and meet performance benchmarks for safety and health.
    Site logs would be useful to all of the actors in the 
occupational safety and health arena. First, employers would benefit 
from the collection of this data. General contractors increasingly 
use safety and health information in selecting their subcontractors, 
and in evaluating projects. Site logs will give them a new tool for 
both self-evaluation and the evaluation of other contractors. 
Similarly, subcontractors are often ignorant of the safety and 
health performance of other contractors and the general contractor. 
Site logs will lead to better information for all contractors on the 
project.
    Second, employees will benefit from site logs. The site log will 
focus employers' attentions upon the risks and hazards that are 
encountered across the worksite. By concretely illustrating that 
hazards are everyone's problems, the site log will prompt employers 
and employees to minimize those hazards and to maximize site safety 
and health.
    Third, owners will benefit from site logs. Today, many owners 
are selecting contractors on the basis of the contractors' rates for 
lost work days and total recordables. In many cases, these rates are 
a poor measure for the owner's purpose. An owner's typical concern 
is with how well a general contractor manages safety and health on 
the entire site, not with how many injuries and illnesses occurred 
within that contractor's own workforce. Site logs can be used to 
measure the management performance of the general contractor, and 
will greatly assist the owners in their quest for construction 
safety.
    Finally, OSHA will find the site logs to be enormously useful in 
its efforts to become a ``data-driven'' agency. First, a project-
centric focus will allow OSHA to focus its enforcement and 
consultation resources. Site logs will be useful to OSHA in 
scheduling inspections during the phases of construction which 
appear, through this data, to present the most risks, and in 
focusing its inspections at construction sites, since the recent 
illness and injury history of the entire site can be assayed by 
examining a single document. By the same token, the information 
revealed by the logs will assist OSHA in reaching out to employers 
to provide consultative services. Site specific data will also aid 
OSHA in developing safety and health standards that are 
appropriately tailored to the risks and hazards of specific types of 
construction.
    The BCTD is convinced that private actors will use site logs to 
improve safety and health performance. If OSHA establishes a 
requirement that site logs be kept, the private marketplace will use 
this new tool to the betterment of employee safety and health (Ex. 
15: 394).

    Other commenters opposed the addition of a site log provision to 
the final rule (see, e.g., Exs. 43; 51; 15: 9, 17, 21, 38, 40, 43, 61, 
67, 74, 77, 97, 111, 116, 119, 121, 126, 151, 155, 163, 170, 194, 195, 
204, 213, 235, 242, 256, 260, 262, 263, 265, 269, 270, 281, 294, 298, 
304, 305, 312, 314, 341, 342, 351, 356, 364, 377, 389, 395, 397, 401, 
406, 412, 423, 433, 437, 443, 441). The most common argument presented 
by these commenters was that records should only be kept by the 
employer, and that one employer should not keep records for another 
employer's employees (see, e.g., Exs. 15: 9, 116, 126, 163, 195, 204, 
260, 262, 265, 281, 294, 304, 312, 314, 341, 342, 351, 364, 389, 395, 
396, 397, 401, 406, 423, 433). The Jewell Coal and Coke Company (Ex. 
15: 281) stated that:

[t]he sub-contractor should be responsible for keeping up with their 
own employee injury/illness records as they are the ultimate 
responsible party for their own employees under worker's 
compensation regulations and in all other legal issues. This 
proposal would appear to be trying to switch total responsibility to 
the site controlling employer for that record keeping purpose and 
taking the responsibility off the subcontractor with whom the 
responsibility should lie. It is, we feel, unfairly discriminatory 
against the site-controlling employer in this case and we are 
strongly opposed to the wording of this proposal. Even the 
alternative proposal in this section places the ultimate 
responsibility upon the project owner for collection of accident and 
illness information and send it to OSHA. Again we are strongly 
opposed to the wording of this proposal because it takes the 
responsibility for record keeping off the sub-contractor and places 
the ultimate responsibility on the project owner, a responsibility 
that we feel belongs to the sub-contractor irregardless of their 
size.

    Brown & Root, Inc. (Ex. 15: 423) added ``A site controlling 
employer cannot be held responsible for determining which injuries and 
illnesses of a subcontractor's employees are recordable. A contractor 
cannot become involved in the medical records of employees who do not 
work for him or her. The subcontractor employer has to be held 
accountable and responsible for his own employees, this responsibility 
cannot be delegated to another contractor. The number of employees or 
the value of the construction project is irrelevant.''
    Some of the commenters who generally opposed this provision agreed 
that site-specific data would be useful if it could be collected by a 
method that allowed each employer to keep its own records (see, e.g., 
Exs. 15: 9, 116, 195, 260, 262, 265, 304, 364, 401). Other commenters 
pointed out that there would be problems in getting accurate data from 
subcontractors (see, e.g., Exs. 15: 242, 263, 269, 270, 310, 314, 377, 
395, 397, 406) or suggested that the site-controlling employer should 
not be held responsible for the quality of the records received from 
subcontractors (see, e.g., Exs. 33; 15: 176, 195, 231, 273, 294, 301, 
305, 312, 351).
    The Alabama Branch of the Associated General Contractors of 
America, Inc. (AGC) cited difficulties associated with other regulatory 
requirements that could result from the proposed OSHA site log 
requirement:

    This could place an undue hardship on the site controlling 
employer far beyond his ability to appoint and manage independent 
contractors and subcontractors without there being other entangling 
both federal and state obligations, which would lead to the 
subcontractor's employees being declared employees of the 
controlling contractor. Many states use the common law to make a 
determination of the employer/employee relationship, as well as the 
Internal Revenue Service. This employee/employer relationship under 
the common law usually

[[Page 5923]]

says if a controlling contractor exercises any control as to time, 
place, method or result of a person's work that they are in fact 
defacto employees of the controlling contractor, for social security 
purposes and other state purposes. Therefore, I think it is shallow 
thinking to believe that the general contractor with 100 
subcontractors should have all 5,500 employees under their control 
and avoid other legal entanglements, without the ability to actually 
control the subcontractor.

    The National Federation of Independent Business (NFIB) expressed 
concern about the proposed site log provision as it would relate to 
OSHA's multi-employer citation policy (Ex. 15: 304), and the Small 
Business Administration (Exs. 51: 67, 437) argued that the proposed 
requirement would require competing employers to share sensitive 
business information.
    A number of commenters objected to the requirement because of the 
additional burden it would place on employers (see, e.g., Exs. 51; 15: 
40, 43, 67, 77, 97, 119, 121, 163, 194, 204, 235, 242, 256, 263, 269, 
270, 294, 298, 304, 312, 314, 356, 377, 389, 395, 397, 406, 412, 437, 
441), arguing that the proposed requirement would result in duplication 
(see, e.g., Exs. 51; 15: 9, 38, 67, 77, 119, 155, 204, 304, 312, 351, 
356, 364, 377, 395, 397, 437). For example, the American Iron and Steel 
Institute (Ex. 15: 395) stated that the proposed requirement would 
place a ``near impossible burden on the `site controlling employer' '' 
to determine the size of each subcontractor to decide which 
subcontractors would be required to keep records.
    A number of commenters also questioned the value of the statistical 
data that would be produced by a site log requirement (see, e.g., Exs. 
51; 15: 61, 62, 67, 74, 77, 97, 121, 151, 194, 312, 314, 351, 389, 395, 
433, 437, 433), and several participants were concerned that the 
records would not be useful for accident prevention purposes (see, 
e.g., Exs. 15: 121, 151, 312, 351, 389, 433) .
    OSHA received many comments addressing miscellaneous points related 
to the proposed construction site log requirement. For example, some 
commenters suggested limiting the scope of the project records required 
to be maintained (see, e.g., Exs. 15: 17, 21, 111, 116, 213, 155), 
while others argued that the proposed dollar threshold ($1 million) for 
a covered construction project was too low and should be raised (see, 
e.g., Exs. 15: 17, 111, 116, 441). Others suggested that the site log 
requirement should be triggered by the time duration of the project 
(Ex. 15: 116); the number of construction workers at the site (Ex. 15: 
111); or include only construction employers with more than 11 
employees (see, e.g., Exs. 15: 170, 213, 405). Some commenters urged 
the Agency not to expand the site log concept beyond the construction 
industry (see, e.g., Exs. 33; 15: 176, 231, 273, 301, 397). Finally, 
several commenters urged OSHA to make any site log provision in the 
final rule compatible with the corresponding provisions of the Process 
Safety Management Standard (29 CFR 1910.119), especially if the site 
log requirement in the recordkeeping rule was expanded beyond 
construction (see, e.g., Exs. 33; 15: 159, 176, 231, 273, 301, 335).
    Based on a thorough review of the comments received, OSHA has 
decided not to include provisions in the final that require the site-
controlling employer to keep a site log for all recordable injuries and 
illnesses occurring among employees on the site. OSHA has made this 
decision for several reasons. First, such a provision would not truly 
capture the site's injury and illness experience because many 
subcontractors employ 10 or fewer employees and are therefore exempt 
from keeping an OSHA Log. To require these very small employers to keep 
records under Part 1904 for the periods of time they worked on a 
construction site meeting the dollar threshold for this provision would 
be a new recordkeeping burden. This would create considerable 
complexity for these employers and for the site-controlling employer. 
Second, under the Data Initiative (section 1904.41 of the final rule), 
OSHA now has a means of targeting data requests for records of the 
safety and health experience of categories of employers and can 
therefore obtain the data it needs to establish inspection priorities 
in a less administratively complex and less burdensome way when the 
Agency needs such data. Third, OSHA was concerned with the utility of 
the data that would have been collected under the proposed site log 
approach, because of the time lag between collection of the data and 
its use in selecting employers for inspections or other interventions. 
In many cases work at the site would be complete before the data was 
collected and analyzed. Finally, a site log requirement is not 
necessary to enable general contractors to compare the safety records 
of potential subcontractors since they can require such information as 
a condition of their contractual arrangements without OSHA 
requirements. For these reasons, the final rule does not contain a site 
log provision.

The Use of Alternative Data Sources

    Several commenters suggested that the Agency use data from existing 
data sources, such as state workers' compensation agencies, insurance 
companies, hospitals, or OSHA inspection files, instead of requiring 
separate data for OSHA recordkeeping purposes (see, e.g., Exs. 15: 2, 
28, 58, 63, 97, 184, 195, 289, 327, 341, 374, 444). For example, Alex 
F. Gimble observed:

    Since similar data are readily available from other sources, 
such as the National Safety Council, insurance carriers, etc., why 
not use these statistics, rather than go through this duplication of 
effort at taxpayer expense? Another approach would be to utilize 
data collected by OSHA and State Plan compliance officers during 
site visits over the past 25 years (Ex. 15: 28).

    Several commenters suggested that OSHA use injury and illness data 
from the workers' compensation systems in lieu of employer records. The 
comments of the American Health Care Association (AHCA) are 
representative of the views of these commenters:

    AHCA encourages OSHA to consider the use of workers' 
compensation data in lieu of proposed OSHA 300 and 301 forms. 
Pursuing the enactment of legislation that would allow OSHA access 
to every state's workers' compensation data would eliminate the need 
for employers to maintain two sets of records, provide OSHA with 
necessary safety and health data, and ease administrative and cost 
burdens now associated with recordkeeping for employers in every 
industry across the country (Ex. 15: 341).

    Ms. Diantha M. Goo recommended the use of injury and illness data 
obtained from treatment facilities rather than the OSHA records:

    The accuracy and usefulness of OSHA's reporting system would be 
vastly improved if it were to shift responsibility from employers 
(who have a vested interest in concealment) to the emergency rooms 
of hospitals and clinics. Hospitals are accustomed to reporting 
requirements, use the correct terminology in describing the accident 
and its subsequent treatment and are computerized (Ex. 15: 327).

    In response to these comments, OSHA notes that the injury and 
illness information compiled pursuant to Part 1904 is much more 
reliable, consistent and comprehensive than data from any available 
alternative data source, including those recommended by commenters. 
This is the case because, although some State workers' compensation 
programs voluntarily provide injury and illness data to OSHA for 
various purposes, others do not. Further, workers' compensation data 
vary widely from state to state. Differing state workers' compensation 
laws and administrative systems have resulted in

[[Page 5924]]

large variations in the content, format, accessibility, and 
computerization of that system's data. In addition, workers' 
compensation databases often do not include injury and illness data 
from employers who elect to self-insure.
    Additionally, most workers' compensation databases do not include 
information on the number of workers employed or the number of hours 
worked by employees, which means that injury and illness incidence 
rates cannot be computed from the data. Workers' compensation data are 
also based on insurance accounts (i.e., filed claims), and not on the 
safety and health experience of individual workplaces. As a result, an 
individual account often reflects the experience of several corporate 
workplaces involved in differing business activities. Finally, as 
discussed below in the Legal Authority section of the preamble, the OSH 
Act specifically sets out the recordability criteria that must be 
included in the OSHA recordkeeping system envisioned by the Congress 
when the Act was passed. The Congress intended that all non-minor work-
related injuries and illnesses be captured by the OSHA recordkeeping 
system, both so that individual establishments could evaluate their 
injury and illness experience and so that national statistics 
accurately reflecting the magnitude of the problem of occupational 
injury and illness would be available.
    Although OSHA disagrees that any of the alternate sources of data 
are satisfactory substitutes for the information gathered under Part 
1904, the Agency recognizes that data from these sources have value. To 
the extent that information from workers' compensation programs, the 
BLS statistics, insurance companies, trade associations, etc., are 
available and appropriate for OSHA's purposes, OSHA intends to continue 
to use them to supplement its own data systems and to assess the 
quality of its own data. However, consistent with the Congressional 
mandate of the OSH Act, OSHA must continue to maintain its own 
recordkeeping system and to gather data for this system through 
recording and reporting requirements applicable to covered employers.

Section 1952.4  Injury and Illness Recording and Reporting Requirements

    The requirements of 29 CFR 1952.4 describe the duties of State-Plan 
states to implement the 29 CFR 1904 regulations. These requirements are 
discussed in Section IX of the preamble, State Plans, and in the 
preamble discussion for section 1904.37, State recordkeeping 
regulations.

General Issues Raised by Commenters

    In addition to the issues discussed above, three issues concerning 
recordkeeping warrant discussion: analysis of the data, training and 
qualifications of recordkeepers, and recordkeeping software.
Analysis of the Data
    During OSHA's public meetings, Eric Frumin of the Union of 
Needletrades, Industrial and Textile Employees, AFL-CIO (UNITE) urged 
OSHA to include a requirement for employers to analyze the OSHA 1904 
data in depth to discover patterns and trends of occupational injury 
and illness, stating that:

[y]ou're telling the employers to evaluate information that's coming 
to them, and I say that to stress the point that's a very logical, 
common sense requirement and you're not generally speaking asking 
them to do that once they compile a log. You stop short of asking 
employers to evaluate the log in toto, to look for the kinds of 
trends and comparisons and so forth that we've been discussing here. 
I think it's important for OSHA to consider some--making such a 
requirement, particularly in light of a fairly consistent pattern of 
testimony in this proceeding, wherein employers now do not analyze 
what's on the log in much depth. * * * But what has emerged at the 
end of the day is not a whole lot of use of the information on the 
log for--in terms of analyzing it for trends and various 
associations or conclusions about how to protect people, how to stop 
the injuries and illness (Ex. 58X, pp. 372--375).

    In the final rule, OSHA has not included any requirement for 
employers to analyze the data to identify patterns or trends of 
occupational injury and illness. OSHA agrees with Mr. Frumin that 
analysis of the data is a logical outgrowth of maintaining records. 
Employers and employees can use such analyses to identify patterns and 
trends in occupational injuries and illnesses, and use that information 
to correct safety and health problems in the workplace. OSHA encourages 
both employers and employees to use the data for these purposes. 
However, a requirement of this type would go beyond the scope of the 
recording and reporting rule, which simply requires employers to keep 
records of work-related injuries and illnesses, and report the data 
under certain circumstances. OSHA believes that requirements of this 
type are better addressed through an OSHA standard, rather than the 
1904 recordkeeping regulation.
Training of Recordkeepers
    The American Federation of Labor and Congress of Industrial 
Organizations (AFL-CIO) suggested that OSHA add requirements for the 
training of the individual who maintains the 1904 records for the 
employer, stating that:

[a]nother important issue relates to the qualifications and 
responsibilities of the individual filling out the 300 log and Form 
301. Most workplaces generally have a non-safety and health 
professional entering this information in the 300 log after the 
decision of a recordable injury or illness has been made. In our 
view it is important that these individuals have proper training 
about the recordkeeping rule and the employer's recordkeeping 
system. In order to assure the most accurate and complete recording 
of work-related injuries and illnesses, we encourage the Agency to 
consider developing guidelines for the qualifications and training 
of these individuals (Ex. 15: 418).

    OSHA has not included a training requirement for the person 
entering the information on the Part 1904 records in this final rule. 
The Agency believes that the Section 1904.32 provisions of the final 
rule calling for annual review of the records and certification of the 
annual summary by a company executive will ensure that employers assign 
qualified personnel to maintain the records and to see that they are 
trained in that task. Further, because OSHA did not include training 
requirements in its 1996 proposal, the Agency has not gathered 
sufficient information in the rulemaking docket about whether specific 
training provisions would have utility, as well as the appropriate 
qualifications and training levels that would assist in writing such 
provisions at this time.
    As part of its outreach and training program accompanying this 
rule, OSHA will be providing speeches and seminars for employers to 
help them train their recordkeeping staff. OSHA will also be producing 
materials employers can use to help train their recordkeeping staff, 
including free software employers can use to keep records, training 
programs, presentations, course outlines, and a training video. All of 
these materials will be available through OSHA's Internet home page at 
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.osha.gov.
OSHA-Produced Recordkeeping Software
    In its proposal (61 FR 4048), OSHA asked the public to comment on 
whether or not OSHA should develop computer software to make injury and 
illness recordkeeping easier for employers, and discussed the features 
that would be desirable for such software. Those features were:
    --decision-making logic for determining if an injury or illness is 
recordable;
    --automatic form(s) generation;

[[Page 5925]]

    --the ability to assist the employer in evaluating the entered data 
through several preset analytical tools (e.g., tables, charts, etc.); 
and
    --computer based training tools to assist employers in training 
employees in proper recordkeeping procedures.
    OSHA also suggested that any such software should be in the public 
domain and/or be available at cost to the public and asked the 
following questions: What percentage of employers have computers to 
assist them in their business? What percentage of employers currently 
use computers for tracking employee-related information (payroll, 
timekeeping, etc.)? Should the distribution be through the Government, 
public domain share-ware distribution, or other channels? Should OSHA 
develop the software or only provide specifications for its 
requirements?
    Several commenters said that most business establishments had 
computers (see, e.g., Exs. 15: 9, 95, 163, 281, 288, 375). The American 
Health Care Association (AHCA) estimated that 50% to 70% of their 
members used computers (Ex. 15: 341), and Raytheon Constructors, Inc. 
estimated that 60% of employers are using computers. OSHA agrees that 
computers are available in most businesses, although certainly not all 
of them. The agency also notes that these comments were made in 1996, 
and that businesses' computer usage has grown since that time.
    A number of commenters urged OSHA to produce and distribute 
software to help employers keep the Part 1904 records (see, e.g., Exs. 
35; 36; 51; 15: 9, 26, 32, 34, 67, 68, 76, 87, 95, 105, 109, 111, 129, 
154, 157, 170, 181, 182, 197, 225, 235, 239, 247, 272, 277, 281, 283, 
288, 303, 313, 327, 341, 347, 350, 352, 353, 356, 394, 405, 406, 409, 
418, 426, 437, 438). The commenters gave various reasons for favoring 
the provision of OSHA-provided software, including reducing the burden 
and cost of the rule for employers (see, e.g., Exs. 15: 87, 95, 111, 
170, 182, 197, 350), saving businesses programming costs (Ex. 15: 277), 
helping small businesses (Ex. 51; 15: 67), resulting in more uniform 
data (see, e.g., Exs. 36; 15: 32, 153, 170, 181, 347, 409, 418), and 
facilitating analysis of the data (see, e.g., Exs. 35; 15: 153, 418). 
For example, the Ford Motor Company stated that ``Ford feels that the 
development of recordkeeping software by OSHA, which will employ a 
decision-making logic, automatic form generation, the ability to assist 
the employer in evaluating the entered data, and a tutorial section to 
assist employers in training is necessary. This will enhance the 
uniformity of data collection amongst all users, which is currently 
lacking'' (Ex. 15: 347). The Muscatine Iowa Chamber of Commerce Safety 
Committee (Ex. 15: 87) added that:

``[e]very feature identified as a minimum requirement would be a 
great benefit to employers attempting to comply with the OSHA 
recordkeeping requirements. Prompts which would in any way aid in 
the determination of recordability would be appreciated by any 
person without a great deal of experience in filing OSHA reports. We 
feel these features are especially important now with the changes in 
forms and information to be collected.''

    Several of the commenters who urged OSHA to provide computer 
software tempered their support by asking that the use of such software 
should be optional and not mandatory (see, e.g., Exs. 15: 60, 109, 154, 
198, 225, 247, 272, 303, 394), and several other commenters recommended 
that OSHA provide both software and specifications so employers could 
use the OSHA product to build their own data systems (see, e.g., Exs. 
15: 170, 247, 283).
    A number of commenters told OSHA that the Agency should not produce 
software to help employers with their 1904 recordkeeping obligations 
(see, e.g., Exs. 15: 78, 82, 85, 156, 163, 324, 348, 359, 363, 374, 
375, 378, 402, 414). Several of these commenters suggested OSHA produce 
software performance specifications for the industry (see, e.g., Exs. 
15: 156, 163, 357, 387). The commenters had various reasons for 
opposing the production of software. Several stated that each employer 
wants different data in its own unique form (see, e.g., Exs. 15: 78, 
85, 375, 414). For example, the Central Vermont Public Service 
Corporation (Ex. 15: 85) stated that ``[b]usinesses using safety 
related software use programs that can perform OSHA recordkeeping and 
workers' compensation functions in one package. It is unlikely that 
software developed by OSHA will perform workers' compensation functions 
and therefore it will not be well received or utilized by business.'' 
Other commenters stated that OSHA should focus elsewhere, that the 
private sector could produce software more economically (see, e.g., 
Exs. 15: 357, 375, 387), and that OSHA software is not needed (see, 
e.g., Exs. 15: 363, 378). For example, the Synthetic Organic Chemical 
Manufacturers Association, Inc. (SOCMA) stated that ``[a]n outside 
organization with software development expertise should develop the 
software. OSHA's limited resources should go directly toward improving 
safety and health in the workplace'' (Ex. 15: 357). The Air Transport 
Association added: ``[m]ost major companies have developed their own 
software to support required OSHA recordkeeping, and others have taken 
advantage of commercially available programs. We see no need for OSHA 
to enter this market'' (Ex. 15: 378).
    OSHA has decided that the Agency will produce software for 
employers to use for keeping their OSHA 1904 records. There is 
obviously a need for the Agency to provide outreach and assistance 
materials for employers, particularly small employers, to help them 
meet their obligations in the least burdensome way possible, and 
software will clearly help achieve this goal. In addition, computer 
software will improve the consistency of the records kept by employers, 
and will assist them with analysis of the data. At this time, OSHA has 
not developed the software or its specifications, but will make every 
effort to produce and distribute software to assist employers by the 
time this final rule becomes effective. Use of the OSHA produced 
software will be optional; employers are not required to use this 
software and may keep records using paper systems. Employers are also 
free to produce their own software, or to purchase software.

VI. Legal Authority

A. The Final Recordkeeping Rule Is a Regulation Authorized by Sections 
8 and 24 of the Act

    The Occupational Safety and Health Act authorizes the Secretary to 
issue two types of final rules, ``standards'' and ``regulations.'' 
Occupational safety and health standards, issued pursuant to section 6 
of the Act, specify the measures to be taken to remedy known 
occupational hazards. 29 U.S.C. 652(8), 655. Regulations, issued 
pursuant to general rulemaking authority found, inter alia, in section 
8 of the Act, are the means to effectuate other statutory purposes, 
including the collection and dissemination of records on occupational 
injuries and illnesses. 29 U.S.C. 657(c)(2).
    OSHA is issuing this final recordkeeping rule as a regulation 
pursuant to the authority expressly granted by sections 8 and 24 of the 
Occupational Safety and Health Act, 29 U.S.C. 657, 673. Section 8 
authorizes the Secretary to issue regulations she determines to be 
necessary to carry out her statutory functions, including regulations 
requiring employers to record and report work-related deaths and non-
minor injuries and illnesses.1 Section 8(c)(1) of the Act requires 
each

[[Page 5926]]

employer to ``make, keep and preserve, and make available to the 
Secretary [of Labor] or the Secretary of Health [and Human Services], 
such records regarding his activities relating to this Act as the 
Secretary, in cooperation with the Secretary of Health and Human 
Services, may prescribe by regulation as necessary or appropriate for 
the enforcement of this Act or for developing information regarding the 
causes and prevention of occupational accidents and illnesses.'' 
Section 8(c)(2) further provides that the ``Secretary, in cooperation 
with the Secretary of Health and Human Services, shall prescribe 
regulations requiring employers to maintain accurate records of, and to 
make periodic reports on, work-related deaths, injuries and illnesses 
other than minor injuries requiring only first aid treatment and which 
do not involve medical treatment, loss of consciousness, restriction of 
work or motion, or transfer to another job.'' Section 8(c)(3) empowers 
the Secretary to require employers to ``maintain accurate records of 
employee exposures to potentially toxic materials or harmful physical 
agents which are required to be monitored or measured under Section 
6.''
---------------------------------------------------------------------------

    1 This rule excludes minor or insignificant injuries and 
illnesses from reporting requirements. The exclusion of minor 
illnesses represents a change from the former rule, and is discussed 
infra.
---------------------------------------------------------------------------

    Section 8(g)(1) authorizes the Secretary ``to compile, analyze, and 
publish, whether in summary or detailed form, all reports or 
information obtained under this section.'' Section 8(g)(2) of the Act 
empowers the Secretary ``to prescribe such rules and regulations as he 
may deem necessary to carry out his responsibilities under the Act.''
    Section 24 contains a similar grant of regulatory authority. It 
requires the Secretary to ``develop and maintain an effective program 
of collection, compilation, and analysis of occupational safety and 
health statistics * * * The Secretary shall compile accurate statistics 
on work injuries and illnesses which shall include all disabling, 
serious, or significant injuries and illnesses, whether or not 
involving loss of time from work, other than minor injuries requiring 
only first aid treatment and which do not involve medical treatment, 
loss of consciousness, restriction of work or motion, or transfer to 
another job.'' Section 24 also empowers the Secretary to ``promote, 
encourage, or directly engage in programs of studies, information and 
communication concerning occupational safety and health statistics.'' 
Finally, Section 24 requires employers to ``file such reports with the 
Secretary as he shall prescribe by regulation, as necessary to carry 
out his functions under this chapter.''
    Section 20 of the Act, 29 U.S.C. 669, contains additional implicit 
authority for collecting and disseminating data on occupational 
injuries and illnesses. Section 20(a) empowers the Secretaries of Labor 
and Health and Human Services to consult on research concerning 
occupational safety and health problems, and provides for the use of 
such research, ``and other information available,'' in developing 
criteria on toxic materials and harmful physical agents. Section 20(d) 
states that ``[i]nformation obtained by the Secretary and the Secretary 
of [HHS] under this section shall be disseminated by the Secretary to 
employers and employees and organizations thereof.''
    Two federal circuit Courts of Appeals have held that rules imposing 
recordkeeping requirements are regulations and not standards, and are 
thus reviewable initially in the district courts, rather than the 
Courts of Appeals. Louisiana Chemical Assn. v. Bingham, 657 F.2d 777, 
782-785 (5th Cir. 1981) (OSHA rule on Access to Employee Exposure and 
Medical Records); Workplace Health & Safety Council v. Reich, 56 F.3d 
1465, 1467-1469 (D.C. Cir. 1995) (OSHA rule on Reporting of Fatality or 
Multiple Hospitalization Incidents). These courts applied a functional 
test to differentiate between standards and regulations: standards aim 
toward correction of identified hazards, while regulations serve 
general enforcement and detection purposes, including those outlined in 
section 8. E.g., Workplace Health & Safety Council, 56 F.3d at 1468. 
See also United Steelworkers of America v. Reich, 763 F.2d 728, 735 (3d 
Cir. 1985) (Hazard Communication rule is a standard because it aims to 
ameliorate the significant risk of inadequate communication about 
hazardous chemicals). Clearly, the recordkeeping requirements in this 
final rule serve general administrative functions: They are intended to 
``aid OSHA's effort to identify the scope of occupational safety and 
health problems,'' to ``serve as the foundation for national statistics 
on the number and rate of workplace injuries and illnesses'' and ``to 
raise employers'' awareness of the kinds of injuries and illnesses 
occurring in their workplaces.'' See Functions of the Recordkeeping 
System, supra. Therefore, the final rule falls squarely within the 
mandate of sections 8 and 24 of the Act and is properly characterized 
as a regulation.

B. The Legal Standard: The Regulation Must Be Reasonably Related to the 
Purposes of the Enabling Legislation

    Under section 8, the Secretary is empowered to issue ``such * * * 
regulations as [s]he may deem necessary to carry out [her] 
responsibilities under this Act[,]'' including regulations requiring 
employers to record and to make reports on ``work-related deaths, 
injuries and illnesses other than minor injuries requiring only first 
aid treatment and which do not involve medical treatment, loss of 
consciousness, restriction of work or motion or transfer to another 
job.'' 29 U.S.C. 657(g)(2), (c)(2). Similarly, section 24 directs the 
Secretary to compile accurate statistics on ``all disabling serious, or 
significant injuries and illnesses, whether or not involving loss of 
time from work, other than minor injuries. * * *'' 29 U.S.C. 673(a). 
Where an agency is authorized to prescribe regulations ``necessary'' to 
implement a statutory provision or purpose, a regulation promulgated 
under such authority is valid ``so long as it is reasonably related to 
the enabling legislation.'' Mourning v. Family Publications Service, 
Inc., 411 U.S. 356, 369 (1973).
    Section 8(g)(2) is functionally equivalent to the enabling 
legislation at issue in Mourning; therefore a reviewing court must 
examine the final recordkeeping rule's relationship to the purposes of 
section 8. Cf. Louisiana Chemical Assn. v. Bingham, 550 F. Supp. 1136, 
1138-1140 (W.D. La. 1982), aff'd, 731 F.2d 280 (5th Cir. 1984) (records 
access rule is directly related to the goals stated in the Act and 
supported by the language of section 8).

C. The Final Recordkeeping Rule's Key Provisions Are Reasonably Related 
to the Purposes of the OSH Act

    The goal of this final rule, as stated in the Summary, is to 
improve the quality and consistency of injury and illness data while 
simplifying the recordkeeping system to the extent consistent with the 
statutory mandate. To achieve this purpose, the final rule carries 
forward the key elements of the existing recordkeeping scheme, with 
changes designed to improve efficiency, equity, and flexibility while 
reducing, to the extent practicable, the economic burden on individual 
establishments. The central requirements in the final rule may be 
summarized as follows: All non-exempt employers must record all work-
related, significant injuries and illnesses. As discussed below, OSHA's 
approach to each of these elements--the scope of the exemptions from 
recording requirements, the meaning of ``work-relationship,'' and the 
criteria for determining whether an injury or illness is 
``significant''--is reasonable and directly related to the statutory 
language and purpose.

[[Page 5927]]

1. Exemptions From Recordkeeping Requirements
    The final rule contains two categories of exemptions that, 
together, relieve most employers of the obligation routinely to record 
injuries and illnesses sustained by their employees. Section 1904.1 
contains a ``very small-employer'' exemption: Employers need not record 
injuries or illnesses in the current year if they had 10 or fewer 
employees at all times during the previous year, unless required to do 
so pursuant to Sections 1904.41 or 1904.42. Section 1904.2 contains a 
``low-hazard industry'' exemption: Individual business establishments 
are not required to keep records if they are classified in specific 
low-hazard retail, service, finance, insurance, or real estate 
industries.
    a. The size-based exemption. Section 8(d) of the Act expresses 
Congress' intent to minimize, where feasible, the burden of 
recordkeeping requirements on employers, particularly small businesses: 
``Any information obtained by the Secretary, the Secretary of [HHS], or 
a State agency under this Act shall be obtained with a minimum burden 
upon employers, especially those operating small businesses. 
Unnecessary duplication of efforts in obtaining information shall be 
reduced to the maximum extent feasible.'' 29 U.S.C. 657(d).
    Since 1972, the Secretary has exempted very small businesses from 
most recordkeeping requirements. On October 4, 1972, OSHA issued a 
provision, codified at 29 CFR 1904.15(a), exempting employers from 
routine injury and illness reporting requirements for the current year 
if they had no more than seven employees during the previous year. The 
exemption did not relieve these businesses from the obligation to 
report fatality and multiple hospitalization incidents to OSHA and to 
participate in the BLS annual survey when selected to do so. 37 FR 
20823 (October 4, 1972). In 1977, the Secretary amended section 1904.15 
to make it applicable to businesses having ten or fewer employees 
during the year preceding the current reporting year. 42 FR 38568 (July 
29, 1977). As support, the amendment cited the Department of Labor 
appropriations acts for fiscal years 1975 and 1976, which exempted 
employers having ten or fewer employees from most routine recordkeeping 
requirements, and Section 8(d) of the Act. Id. The Secretary determined 
that the amendment appropriately balanced the interest of very small 
businesses while preserving the essential purposes of the recordkeeping 
scheme:

    The [exemption] has been carefully designed to carry out the 
mandate of section 8(d) without impairing the Act's basic purpose. 
Thus, the [exemption] will not diminish the protections afforded 
employees under the Act because all employers * * * remain subject 
to the enforcement provisions of the Act. The [exemption] will 
continue to require * * * small employers * * * to report fatalities 
and multiple hospitalizations and to participate in the BLS annual 
survey when selected to do so.

42 FR 10016 (February 18, 1977).
    In the present rulemaking, the Secretary proposed to enlarge the 
scope of the exemption to include employers, in industries other than 
construction, having 19 or fewer employees during the entire previous 
calendar year. 61 FR 4057 (February 2, 1996). At the same time, the 
proposal asked for public comment on whether ``the small employer 
partial exemption [should] remain the same, be eliminated, or be 
expanded?'' 61 FR 4043. In reaching a final decision on this matter, 
the Secretary resolved two interrelated questions. First, she 
determined that there is no sound basis for departing from OSHA's prior 
interpretation that the Act permits a carefully crafted exemption for 
very small employers. Second, she determined that limiting the 
exemption to employers with ten or fewer employees effectuates 
Congress' intent with the minimum degree of impairment to the overall 
recordkeeping scheme. The first question is essentially one of 
statutory construction, and is therefore considered below. The second 
question calls for an analysis of the record and is addressed in the 
preamble explanation for section 1904.1 of the final rule.
    It is a fundamental principle of administrative law that an agency 
which chooses to reverse a previously held position must supply a 
``reasoned analysis'' of its decision. Motor Vehicle Mfgrs Assn. v. 
State Farm Mutual Automobile Insurance Co., 463 U.S. 27, 42 (1983). 
After careful consideration, the Secretary finds no persuasive basis 
for eliminating the small-employer exemption in this rule. As a 
threshold matter, nothing has changed the agency's long-held view that 
section 8(d) permits a carefully tailored exemption from recordkeeping 
requirements for very small businesses. 42 FR 10016 (February 18, 
1977). This interpretation is consistent with the literal wording of 
the statute and is further confirmed by the provisions in the 
Department's appropriations acts for FY 1975 and 1976, exempting 
employers with ten or fewer employees from routine recordkeeping and 
reporting requirements. See 42 FR 5356 (January 28, 1977) (noting 
restriction in FY 1975 and 1976 appropriations acts and stating OSHA 
would continue to treat firms of up to 10 employees as exempt pending 
permanent change in the regulations to expand the small-employer 
exemption).
    OSHA also concludes that a very small business exemption limited to 
the routine recording and reporting of non-fatal injuries and illnesses 
will not seriously undermine the recordkeeping system. OSHA explained 
in Section I. of the preamble that there are three primary purposes for 
recordkeeping and reporting requirements. First, the records are the 
foundation for national statistics published by the BLS on the number 
and rate of workplace injuries and illnesses, as well as their source, 
nature and type. Second, the records provide information useful to 
employers and employees in their efforts voluntarily to locate and 
eliminate workplace safety and health hazards. Finally, the records are 
useful to OSHA in targeting its enforcement efforts and in efficiently 
conducting its safety and health inspections.
    Exempting very small businesses from routine recordkeeping will not 
significantly compromise these goals. The exemption has no effect upon 
the obligation of these businesses to participate in the national 
statistical survey administered by the BLS. See the discussion of 
Sec. 1904.42 in Section V. Summary and Explanation. If a small business 
is selected for participation in the survey, it must keep a log of 
injuries and illnesses and make reports as required by the BLS. Id. 
Thus, even the smallest firms continue to be represented in the 
national injury and illness statistics.
    The second purpose is not seriously compromised by the exemption 
because injury and illness records are less necessary as an aid to 
voluntary compliance efforts by very small employers and their 
employees than they are for larger employers. OSHA's experience is 
that, in establishments with only a few employees, management and 
production personnel typically work in close concert. Because of their 
size, such establishments also tend to record fewer occupational 
injuries and illnesses. Accordingly, in very small firms, managers are 
likely to have first-hand knowledge of those occupational injuries and 
illnesses that occur in their workplaces. By the same token, it is 
reasonable to believe that employees in very small firms are generally 
aware of the injuries that occur in their workplaces and do not

[[Page 5928]]

rely heavily upon access to employer records to inform themselves about 
occupational hazards. In short, review and analysis of injury and 
illness records by very small business employers, or by their 
employees, may not be required for awareness of workplace conditions.
    Finally, routine injury and illness records are of limited 
usefulness to OSHA in targeting and conducting inspections. Many OSHA 
inspections are conducted in response to a specific complaint or 
referral alleging unsafe conditions, or in response to a workplace 
catastrophe or fatality. A large number of inspections are also 
conducted under special emphasis programs at the national and local 
level. The remaining inspections are conducted at specific worksites in 
the construction industry and in other non-construction industries 
selected under a planned schedule. Construction inspections are 
selected using an econometric model that predicts the best time to 
conduct an inspection at a specific construction project. The general 
industry scheduled inspections are targeted primarily toward employers 
with extremely high rates of occupational injury and illness, using 
data supplied by employers to the OSHA Data Initiative (ODI) under the 
requirements of former section 1904.17, Annual OSHA Injury and Illness 
Survey of Ten or More Employers (now section 1904.41). Due to budget, 
paperwork burden and logistical constraints, OSHA collects data only 
from employers in high hazard industries, and has generally not 
collected data from employers with fewer than 40 workers.
    OSHA is also prohibited from conducting scheduled inspections of 
employers with 10 or fewer employees in low hazard industries by an 
annual rider on OSHA's appropriations bills which has been renewed 
annually for many years. Thus, OSHA does not collect data from very 
small employers, and they are excluded from the general industry 
scheduled inspection program. Because very small firms have been wholly 
excluded from the general schedule inspection program, the routine 
injury and illness records of very small businesses have been of little 
use to OSHA in targeting inspections. Should OSHA wish to include very 
smaller employers in a special emphasis inspection program or other 
initiative, the agency may require any business, regardless of its 
size, to keep records and make reports as necessary. See 29 CFR 
1904.41.
    OSHA also finds that access to the Log and Incident Report would be 
of little value to compliance officers in conducting inspections of 
very small businesses initiated by a complaint or report of a fatality 
or an accident resulting in multiple hospitalizations. OSHA has long 
acknowledged that while injury and illness records are frequently 
useful in identifying hazardous areas or operations within larger 
establishments subject to programmed inspections, they are 
significantly less important in the conduct of inspections in the 
smallest businesses. As OSHA has stated, ``experience has shown that 
when dealing with small employers, the injury and illness records * * * 
are normally not needed by the CSHO to locate hazards during an 
inspection. In those cases where log information may be needed, the 
CSHO can easily obtain the information by interviewing the employees.'' 
42 FR 10016 (February 18, 1977). See also 47 FR 57699, 5700 (December 
28, 1982) (in conducting complaint or fatality inspections, the hazard 
information is usually provided by the complaint itself, or through 
prompt investigation.) For these reasons, the Secretary believes that 
an exemption for very small employers, reasonably tailored to the 
purposes served by recordkeeping requirements, is appropriate.
    b. The hazard-based exemption. Since 1982, OSHA has exempted from 
routine recordkeeping requirements certain industries classified in 
OMB's Standard Industrial Classification (SIC) Manual. The 1982 
exemption was limited to establishments in SIC Industry Groups that (1) 
were not subject to general schedule inspections, and (2) had average 
lost workday case injury rates, as published by the BLS, at or below 
75% of the national average. In 1982, the industry groups that met 
these criteria were those classified as retail trade, finance, 
insurance, real estate, and services--SIC codes 52-89, excluding 52-54, 
70, 75, 76, 79, and 80. 47 FR 57699-57,700 (December 28, 1982).
    The purpose of the exemption ``was to further OSHA's continuing 
effort under section 8(d) of the Act to reduce the paperwork burden on 
employers without compromising worker safety and health.'' 47 FR 57700. 
Exempting low-hazard industries from routine record-keeping was 
justified, OSHA explained, for the same reasons that warranted 
exempting very small businesses. Injury and illness records from 
establishments in the affected SIC codes were not of significant 
benefit to OSHA because these industry groups were not then targeted 
for general schedule inspections. Id. The records were not a 
significant source of information for employers and employees because 
BLS data showed that approximately 94% of all establishments in the 
affected industry groups could be expected to have fewer than two 
injuries per establishment on an annual basis. Id. Finally, the 
exemption would not affect the reliability of safety and health 
statistics because the affected establishments would continue to 
participate in the BLS annual survey of occupational injuries and 
illnesses. Id.
    OSHA continues to believe that a properly tailored exemption for 
low-hazard industries is appropriate. Congress intended in section 8(d) 
to minimize the recordkeeping burden on all employers, not only small 
businesses. Exempting from routine injury and illness reporting 
requirements those employers whose records are unlikely to be of 
significant benefit to OSHA, or to the employers and their employees, 
serves this important interest. However, OSHA recognizes that the 
balance between the interest of minimizing recordkeeping burdens and 
that of ensuring accurate, reliable and useful information is a 
delicate one. In the final rule, OSHA has substantially revised the 
list of exempt low-hazard industries based upon more reliable three-
digit industry classification data. See the discussion of Sec. 1904.1, 
in the following Summary and Explanation. With these changes, OSHA 
believes that the rule strikes the appropriate balance.
2. The Meaning of ``Work-Relationship''
    Section 8 of the Act directs the Secretary to prescribe regulations 
requiring employers to ``maintain accurate records of * * * work-
related deaths injuries and illnesses [of a non-minor nature]. 29 
U.S.C. 657(c)(2). The definition of work-relationship in section 1904.5 
of the final rule is consistent, in all but one respect, with the 
definition in the Guidelines to the former rule. The final rule states 
that an injury or illness is work-related ``if an event or exposure in 
the work environment either caused or contributed to [it] or 
significantly aggravated a pre-existing injury or illness. Work-
relatedness is presumed for injuries and illnesses resulting from 
events or exposures occurring in the work environment, unless an 
exception listed in section 1904.5(b)(2) specifically applies'' 
(emphasis added).
    The Guidelines state that, ``[i]f an event * * * occurred in the 
work environment that caused or contributed to the injury'', the case 
would be recordable, assuming it meets the other requirements for 
recordability. Ex. 2 at

[[Page 5929]]

p. 32 (original emphasis). Further instructions in the Guidelines 
provided that:

    The general rule is that all injuries and illnesses which result 
from events or exposures occurring to employees on the employer's 
premises are presumed to be work related. This presumption is 
rebuttable. * * * However, the nature of the activity which the 
employee is engaged in at the time of the event or exposure, the 
degree of employer control over the employee's activity, the 
preventability of the incident, or the concept of fault do not 
affect the determination.

Ex. 2 at p. 34 (original emphasis). The only significant difference 
between the final rule and the former rule is that the final rule 
requires that work ``significantly'' aggravate a pre-existing injury or 
illness before the case is recordable.
    OSHA's approach to work-relationship in both the former and the 
final recordkeeping rules reflects two important principles. The first 
is that work need only be a causal factor for an injury or illness to 
be work-related. The rule requires neither precise quantification of 
the occupational cause, nor an assessment of the relative weight of 
occupational and non-occupational causal factors. If work is a 
tangible, discernible causal factor, the injury or illness is work-
related. The second principle is that a ``geographic presumption'' 
applies for injuries and illnesses caused by events or exposures that 
occur in the work environment. These injuries and illnesses must be 
considered work-related unless an exception to the presumption 
specifically applies.
    The final rule's geographic presumption reflects a theory of 
causation similar to that applied by courts in some workers' 
compensation cases. Under the ``positional-risk'' test, an injury may 
be found to ``arise out of'' employment for compensation purposes if it 
would not have occurred but for the fact that the conditions and 
obligations of employment placed the claimant in the position where he 
or she was injured. See 1 Larson's Workers' Compensation Law section 
6.50 (1977). Accord, Odyssey/Americare of Oklahoma v. Worden, 948 P.2d 
309, 311 (Okla. 1997). Under this ``but for'' approach to work-
relationship, it is not necessary that the injury or illness result 
from conditions, activities or hazards that are uniquely occupational 
in nature. Accordingly, the presumption encompasses cases in which an 
injury or illness results from an event at work that is outside the 
employer's control, such as a lightning strike, or involves activities 
that occur at work but that are not directly productive, such as 
horseplay.
    The proposed rule asked for comment on whether OSHA should abandon 
its historic approach and adopt a new test for determining work-
relationship. 61 FR 4044, 4045. The proposal outlined three alternative 
tests in which the determination of work-relationship turned on the 
degree to which the injury or illness was linked to occupational 
causes, as compared with personal factors such as off-the job 
activities, aging, or pre-existing medical conditions. Two of these 
alternative tests required evidence of a high degree of work causation 
to establish work-relationship. Alternative 1 required that 
occupational factors be the ``sole cause'' of the injury or illness; 
any evidence of non-work related causal factors was sufficient to 
exclude the case. Alternative 2 required that occupational factors be 
the ``predominant cause'' before the case could be considered work-
related. See 61 FR 4044. Some commenters suggested a modification to 
Alternative 2 that would have involved substitution of the word 
``substantial'' or ``significant'' for ``predominant.''
    The third alternative test was significantly more expansive than 
that adopted in the final rule. Under Alternative 3, an injury or 
illness would be considered work-related if the work environment had 
any possibility of playing a causal role. 61 FR 4044.
    Some commenters favored a somewhat different test for work-
relationship that focused on the nature of the injury-causing event in 
the workplace. This test would include in the OSHA records only those 
cases resulting from uniquely occupational or job-related activities or 
processes. Supporters of this approach argued that it would exclude 
injuries and illnesses caused by factors at work that are unrelated to 
production tasks, or that are unpreventable by the employer's safety 
and health program.
    After careful consideration of the record, OSHA believes that the 
final rule's test for work-relationship is both more consistent with 
the Act's purpose and more practical than the ``quantified occupational 
cause'' tests or the ``unique occupational conditions'' test. The 
language of the statute itself indicates that Congress did not intend 
to give ``work-related'' a narrow or technical meaning, but rather 
sought to cover a variety of causal relationships that might exist in 
workplaces. Section 2 of the Act addresses injuries and illnesses 
arising out of ``work situations.'' Sections 2(b)(1), 2(b)(2), and 
2(b)(4) refer to ``places of employment,'' and to the achievement of 
safe and healthful ``working conditions.'' Section 2(b)(7) seeks to 
assure that no employee will suffer diminished health or life 
expectancy as a result of his ``work experience.'' Section 2(b)(12) 
states that one of the Act's purposes is to provide for reporting 
procedures which ``accurately describe the nature of the occupational 
safety and health problem.'' Section 2(b)(13) encourages joint labor-
management efforts to reduce injuries and disease ``arising out of 
employment.''
    This conclusion is further supported by the Act's stated purpose to 
promote research into the causes and prevention of occupational 
injuries and illnesses. Section 2 of the Act establishes Congress' 
intent to improve occupational safety and health, inter alia, by:

    Providing for research in the field of occupational safety and 
health, including the psychological factors involved, and by 
developing innovative methods, techniques and approaches for dealing 
with occupational safety and health problems. 29 U.S.C. 
Sec. 651(b)(5)
    [E]xploring ways to discover latent diseases, establishing 
causal connections between diseases and work in environmental 
conditions, and conducting other research relating to health 
problems. * * * 29 U.S.C. Sec. 651(b)(6).
    Providing for appropriate reporting procedures with respect to 
occupational safety and health which will help achieve the 
objectives of this Act and accurately describe the nature of the 
occupational safety and health problems. 29 U.S.C. Sec. 651(b)(12).

    The legislative history of the Act demonstrates Congress' awareness 
of the importance of developing information for future scientific use. 
The Committee Report accompanying the Senate bill reported to the floor 
noted that,

    [i]n the field of occupational health, the view is particularly 
bleak, and due to the lack of information and records, may well be 
considerably worse than we currently know. * * * Recent scientific 
knowledge points to hitherto unsuspected cause-and-effect 
relationships between occupational exposures and many of the so-
called chronic diseases--cancer, respiratory ailments, allergies, 
heart disease, and others. In some instances, the relationship 
appears to be direct: asbestos, ionizing radiation, chromates, and 
certain dye intermediaries, among others, are directly involved in 
the genesis of cancer. In other cases, occupational exposures are 
implicated as contributory factors. The distinction between 
occupational and non-occupational illnesses is growing increasingly 
difficult to define.

S. Rep. No. 1282, 91st Cong., 2d Sess. 2 (1970), reprinted in 
Subcommittee on Labor of the Senate Committee on Labor and Public 
Welfare, Legislative History of the Occupational Safety and Health Act 
of 1970 (Committee Print 1971) at

[[Page 5930]]

142 (Leg. Hist.). With this background in mind, the committee stated 
that it ``expects the Secretary of Labor and the Secretary of [HHS] 
will make every effort through the authority to issue regulations and 
other means, to obtain complete data regarding the occurrence of 
illnesses, including those resulting from occupational exposure which 
may not be manifested until after the termination of such exposure.'' 
Leg. Hist. at 157.
    Both the Senate and the House Committees expressed concern that the 
statute not be interpreted in a way that would result in under-
reporting of injuries and illnesses. The Senate report states:

    The committee recognizes that some work-related injuries or 
ailments may involve only a minimal loss of work time or perhaps 
none at all, and may not be of sufficient significance to the 
Government to require their being recorded or reported. However, the 
committee was also unwilling to adopt statutory language which, in 
practice might result in under-reporting. The committee believes 
that records and reports prescribed by the Secretary should include 
such occurrences as work-related injuries and illnesses requiring 
medical treatment or restriction or reassignment of work activity, 
as well as work-related loss of consciousness.

Leg. Hist. at 157. The House Report similarly noted that while some 
injuries and illnesses might not be of enough value to require 
recordation, ``the greater peril'' lay in allowing under reporting. 
Leg. Hist. at 860. Therefore, the report added, ``[the] language `all 
work-related injuries, [and illnesses]' should be treated as a minimum 
floor. * * *''
    In light of these purposes, it is apparent that Congress did not, 
in Section 8, mean to limit recordable ``work-related'' injuries and 
illnesses only to those caused primarily or substantially by work. It 
is evident from the statute that Congress wanted employers to keep 
accurate records of non-minor injuries and illnesses, in part, to serve 
as a basis for research on the causes and prevention of industrial 
accidents and diseases. This research is needed, among other reasons, 
to further examine and understand those occupational factors implicated 
as contributory causes in injuries and diseases. To serve this purpose, 
the records should include cases in which there is a tangible 
connection between work and an injury or illness, even if the causal 
effect cannot be precisely quantified, or weighed against non-
occupational factors.
    The first two alternative quantification theories outlined in the 
preamble would exclude important information from the records. These 
theories would eliminate cases in which the work environment is 
believed to have played a definite role in the accident or the onset of 
disease, but not enough is known to quantify the effect of work factors 
or to assess the relative contribution of work and non-work factors. 
However, the information provided by cases having a tangible, yet 
unquantifiable, connection with the work environment is useful to 
employers, employees and researchers and thus serves the recordkeeping 
purposes envisioned by Congress.
    On the other hand, the third alternative theory in the proposal 
would sweep too broadly. A work-relationship test that is met if work 
has ``any possibility of playing a role in the case'' would include 
virtually every injury or illness occurring in the work environment. 61 
Fed. Reg. 4044. Recording cases in which the causal connection to work 
is so vague and indefinite as to exist only in theory would not 
meaningfully advance research, or serve the other purposes for 
requiring recordkeeping. For these reasons, OSHA has rejected the three 
alternative theories outlined in the proposal.
    The ``unique occupational activity'' test, which some commenters 
favored instead of the geographic presumption, would limit recorded 
injuries and illnesses to those caused by an activity or process 
peculiarly occupational in nature. Supporters of this approach 
identified several types of cases that would be work-related under the 
geographic presumption, but not recordable under an activities-based 
approach. These include cases in which the injury or illness was not 
caused by the physical forces or hazards unique to industrial 
processes, cases in which the employee was not injured while performing 
an activity or task directly related to production, and cases in which 
the injury or illness was not preventable by the employer.
    The ``unique occupational activity'' test is unsuitable for 
essentially the same reasons that militate against the first two 
alternatives described in the proposal. The statutory language and 
purpose do not reflect a Congressional intent to limit recording only 
to those cases resulting from uniquely occupational hazards or 
activities. Rather, the statute shows that Congress knew that employees 
were being injured and made ill in a variety of ways and under a 
variety of circumstances, and wanted employers to record all cases 
causally related to the work environment. The ``but-for'' theory 
underlying the geographic presumption is a widely accepted legal test 
for causation and is consistent with the statutory language and 
purpose.
    The ``unique occupational activities'' test, like the 
``quantification'' tests, would likely result in exclusion of important 
information from the records. An activity-based test for work-
relationship could obscure the role of factors in the work environment 
not directly linked to production, such as violence perpetrated by 
employees and others or tuberculosis outbreaks. In addition, the 
precise causal mechanism by which an employee has been injured or made 
ill at work may not be known at the time of the accident, or may be 
misunderstood. To serve the statute's research purposes, the records 
must reflect not only those injuries and illnesses for which the 
precise causal mechanism is apparent at the time of recordation, but 
also those for which the mechanism is imperfectly understood. The 
alternative approaches to work-relationship would severely limit the 
usefulness of injury and illness data for research purposes, 
particularly research to uncover latent patterns of health impairment 
and disease and to establish causal connections between diseases and 
exposure to particular hazards.
    The Occupational Safety and Health Review Commission has affirmed 
the approach to work-relationship taken in the former rule. General 
Motors Corp., Inland Div., 8 O.S.H. Cas. (BNA) 2036, 2039-2040 (August 
29, 1980). The issue in General Motors was whether the employer was 
required to record respiratory ailments of three employees, based on 
notations from the employees' treating physicians that their ailments 
were probably related to exposure to a chemical substance at work. The 
Commission rejected the employer's argument that the recordkeeping rule 
required recording only of illnesses directly caused by work 
activities, stating:

    To accept Respondent's interpretation would impose a static view 
of scientific knowledge. Only illnesses in which the known cause was 
the occupational environment would be recorded. Unknown medical 
correlations between disease and the workplace would be obscured by 
this inadequate recording obligation. Under this interpretation of 
the statute and regulations, OSHA and NIOSH would be significantly 
restrained from fulfilling their statutory obligation of making the 
workplace healthier. * * * [T]he primary purpose of the recording 
obligation is to develop information for future scientific use.

8 O.S.H. Cas. at 2040. Accordingly, OSHA believes that there is a sound 
legal basis for the definition of work-relationship in the final rule.

[[Page 5931]]

    There are also sound policy justifications. The approach to ``work-
relationship'' adopted in the final rule is more cost-effective than 
the alternative approaches and will result in more accurate injury and 
illness data. OSHA expects that for each reported injury or illness, 
employers generally will be able to apply the geographic presumption 
more easily and quickly than a test requiring an assessment of the 
relative contribution of employment and personal causes. The 
incremental reduction in the time necessary to complete each entry, 
when multiplied by the total number of entries per year, will result in 
a substantial cumulative saving in paperwork burden in comparison to 
the burden that would be imposed by the alternatives.
    The geographic presumption will also produce more consistent and 
accurate reporting. OSHA believes that it would be difficult to measure 
the precise degree to which personal and occupational factors cause 
accidents or illnesses. Accordingly, any test requiring that job duties 
or tasks be ``significant'' or ``predominant'' causative factors would 
necessarily involve a high degree of subjective judgment. There is 
likely to be substantial inconsistency, both in the treatment of 
successive, similar cases by the same employer, and in the treatment of 
such cases among different employers. Moreover, such a test would fail 
to capture cases in which the workplace contribution to an injury or 
illness was imperfectly known or misunderstood at the time the case was 
reported. Recording all cases caused by events or exposures at work, 
with only limited exceptions, produces data that enables OSHA, 
employers and others to better understand the causal relationships 
present in the work environment. Although OSHA has not adopted a test 
for determining significant contribution by work, the final rule does 
include provisions to make sure that workplace aggravation of a pre-
existing injury must be significant before work relationship is 
established (see discussion of 1904.5(b)(4)).
    A number of commenters argued that because OSHA's mission is to 
eliminate preventable occupational injuries and illnesses, the 
determination of work-relatedness must turn upon whether the case could 
have been prevented by the employer's safety and health program. Dow 
expressed this view as follows:

    [T]he goal of this recordkeeping system should be to accurately 
measure the effectiveness of safety and health programs in the 
workplace. Activities where safety and health programs could have no 
impact on preventing or mitigating the condition should not be 
logged and included in the Log and Summary nor used by OSHA to 
determine its inspection schedule. If the event was caused by 
something beyond the employer's control, it should not be considered 
a recordable event that calls into question a facility's safety and 
health program. * * * Credibility in this regulation rests on 
whether the recorded data accurately reflects the safety and health 
of the workplace. Including events where the workplace had virtually 
no involvement undermines the credibility of the system and results 
in continued resistance to this regulation.

    Ex. 15-335B. The law firm of Constangy, Brooks and Smith, LLC, 
urged OSHA to adopt the second alternative definition in the proposal 
because cases that are ``predominantly caused by workplace conditions'' 
are the ones most likely to be preventable by workplace controls. They 
stated, ``[s]ince OSHA's ultimate mission is the prevention of 
workplace injuries and illnesses, it is reasonably necessary to require 
recording only when the injury or illness can be prevented by the 
employer.'' Ex. 15-345.
    OSHA believes that these comments reflect too narrow a reading of 
the purposes served by injury and illness records. Certainly one 
important purpose for recordkeeping requirements is to enable 
employers, employees and OSHA to identify hazards that can be prevented 
by compliance with existing standards or recognized safety practices. 
However, the records serve other purposes as well, including 
facilitating the research necessary to support new occupational safety 
and health standards and to better understand causal connections 
between the work environment and the injuries and illnesses sustained 
by employees. As discussed above, these purposes militate in favor of a 
general presumption of work-relationship for injuries and illnesses 
that result from events or exposures at the worksite, with exceptions 
for specific types of cases that can be safely excluded without 
significantly impairing the usefulness of the database.
3. The Criteria for Determining the Significance of an Injury or 
Illness
    Section 1904.7 of the final rule sets forth the criteria to be used 
by employers in determining whether work-related occupational injuries 
and illnesses are significant, and therefore recordable. Under 
Sec. 1904.7, a work-related injury or illness is significant for 
recordkeeping purposes if it results in any of the following: death, 
days away from work, restricted work or transfer to another job, 
medical treatment beyond first aid, or loss of consciousness. Employers 
must also record any significant injury or illness diagnosed by a 
physician or other licensed health care professional even if it does 
not does not result in the one of the listed outcomes. OSHA's 
definition of a ``significant'' injury or illness in this context is 
based on two key principles discussed below. The first is that the 
requirement for recording only significant cases applies equally to 
``injuries'' and ``illnesses'' for recordkeeping purposes. The second 
principle is that the criteria expressly mentioned in the Act, such as 
death, loss of consciousness or restriction of work, are mandatory but 
not exclusive indicia of significance; any significant injury or 
illness diagnosed by a physician or other licensed health care 
professional must also be recorded. These two principles are addressed 
below, while the definitions applicable to the specific criteria 
themselves, and related evidentiary issues, are discussed in the 
preamble explanation for section 1904.7.
    a. The significant case requirement applies equally to injuries and 
illnesses; employers are no longer to report insignificant illnesses. 
OSHA distinguishes between injuries and illnesses based on the nature 
of the precipitating event or exposure. Cases which result from 
instantaneous events are generally considered injuries, while cases 
which result from non-instantaneous events, such as a latent disease or 
cumulative trauma disorder, are considered illnesses. Id.
    Under the former recordkeeping regulations, occupational injuries 
had to be recorded if they were non-minor in nature; that is, if they 
resulted in loss of consciousness, or required medical treatment, time 
off work, restriction of work, lost time, or transfer to another job. 
61 FR 4036. However, all occupational illnesses had to be reported, 
regardless of severity. Id. This difference in the severity threshold 
for recording injuries and illnesses had, in the past, been based upon 
the particular phrasing of section 8(c)(2) of the Act:

    The Secretary * * * shall prescribe regulations requiring 
employers to maintain accurate records of, and to make periodic 
reports on, work-related deaths, injuries and illnesses, other than 
minor injuries requiring only first aid treatment and which do not 
involve medical treatment, loss of consciousness, restriction of 
work or motion, or transfer to another job.''

    29 U.S.C. 657(c)(2). Because the severity criteria appear in the 
clause defining ``minor injuries,'' OSHA had construed the section to 
require recordation of all work-related illnesses, even those that do 
not meet the severity

[[Page 5932]]

characteristics expressly applicable to ``injuries.''
    OSHA has reconsidered its position in this rulemaking, and has 
concluded that the former rule was inappropriate in several respects. 
First, although the severity characteristics listed in section 8(c)(2) 
of the Act apply expressly to ``injuries,'' the Act contains persuasive 
indications that Congress also meant to require recordation only of 
``significant'' illnesses, as determined by reasonable criteria. 
Section 24(a) states that ``[t]he Secretary shall compile accurate 
statistics on work injuries and illnesses which shall include all 
disabling, serious, or significant injuries and illnesses * * * other 
than minor injuries requiring only first aid treatment and which do not 
involve medical treatment * * * .'' 29 U.S.C. 673 (a). The legislative 
history also supports this view. The statement of the House managers on 
the resolution of conflicting House and Senate bills states that:

    A Senate bill provision without a counterpart in the House 
amendment permitted the Secretary to require an employer to keep 
records and make reports on ``all work-related deaths, injuries and 
illnesses.'' The House receded with an amendment limiting the 
reporting requirement to injuries and illnesses other than of a 
minor nature, with a specific definition of what is not of a minor 
nature.

    Leg. Hist. at 1190 (emphasis supplied). The former rule did not 
appropriately implement this intent. In the first place, OSHA's prior 
interpretation that section 8(c)(2) limits the applicability of the 
listed severity criteria only to injuries does not necessarily mean 
that illnesses must be recorded without regard to their significance. 
As a textual matter, such a reading simply leaves open the question of 
what, if any, severity criteria apply to illnesses.
    OSHA believes that the Act does not support a different severity 
threshold for injuries than for illnesses. OSHA is now persuaded that 
its prior reading of section 8(c)(2) placed too much emphasis on the 
fact that the severity criteria modify the word ``injuries'' in the 
clause, ``other than minor injuries requiring only first aid treatment 
and which do not involve medical treatment, loss of consciousness, 
restriction of work or motion or transfer to another job.'' 29 U.S.C. 
657(c)(2). Congress' failure to list specific severity criteria for 
illnesses, as it did for injuries, does not, in itself, compel the 
inference that two different sets of criteria must apply. Congress 
meant to limit recordation to significant injuries and illnesses alike, 
and absent strong indications to the contrary, it is reasonable to 
presume that Congress meant the same severity threshold to apply to 
both conditions.
    In addition, there are strong policy reasons for avoiding a 
distinction between injuries and illnesses based on severity. OSHA 
explained in the proposal that the current distinction between injuries 
and illnesses based on the nature of the precipitating event has caused 
some degree of confusion and uncertainty. Using one set of criteria for 
severity means that employers will not have to decide whether a case is 
an injury or an illness in determining its recordability. This 
simplifies the recordkeeping system, resulting in more accurate injury 
and illness data while reducing the recordkeeping burden for employers 
who are required to maintain records (61 FR 4036). Employers will 
continue to classify each recordable case as either an injury or an 
illness on the OSHA 300 Log, but the decision no longer has any effect 
on whether or not the case must be recorded.
    b. The criteria listed in the Act are mandatory but not exclusive 
indicia of significance. A final issue relating to significance is the 
effect to be given a finding that an injury or illness results in, or 
does not result in, one of the outcomes listed in the statute: death, 
days away from work, restricted work or transfer to another job, 
medical treatment beyond first aid, or loss of consciousness. The 
implication arising from the wording of section 8(c)(2) and section 24 
is that if an injury or illness results in one of the listed outcomes, 
it must be deemed significant for recordkeeping purposes. This 
position, which reflects OSHA's longstanding, consistent interpretation 
of the statute, was not seriously questioned in the rulemaking. 
Accordingly, the final rule requires that a work-related injury or 
illness be recorded if it results in one of the outcomes mentioned in 
the statute.
    The final rule also requires that a case be recorded, whether or 
not it results in one of the listed outcomes, if it involves a 
significant injury or illness diagnosed by a physician or other 
licensed health care professional. 29 CFR 1904.10(b). Nothing in the 
statute compels the conclusion that the criteria mentioned in sections 
8 and 24 are the exclusive indicia of severity for recordkeeping 
purposes. Congress directed the Secretary to collect data on ``all 
disabling, serious, or significant injuries and illnesses, whether or 
not involving loss of time from work,'' other than minor injuries * * * 
which [do not result in one of the listed outcomes]. 29 U.S.C. 673(a). 
A reasonable reading of this language is that while an injury that 
meets one of the listed criteria is non-minor and must be recorded, the 
converse does not necessarily follow. An injury or illness may 
reasonably be viewed as significant, and therefore recordable, even if 
it is not immediately followed by death, loss of consciousness, or job-
related disability. For example, an employee diagnosed with an 
unquestionably serious work-related disease, such as asbestosis or 
mesothelioma, may forego or postpone medical treatment and continue 
temporarily to perform his or her normal job duties. Focusing 
exclusively on the basic criteria listed in the statute in cases such 
as these could result in underrecording of serious cases. Accordingly, 
the final rule requires employers to record any significant injury or 
illness that is diagnosed. A thorough discussion of this requirement, 
including a definition of what constitutes a ``significant'' injury or 
illness for this purpose, is contained in the preamble discussion of 
section 1904.7.
    Because the provisions of the final recordkeeping rule, as 
explained above and in the subsequent sections of this preamble, are 
reasonably related to the statutory purposes, the Secretary finds that 
the rule is necessary to carry out her responsibilities under the Act. 
The rule is therefore a valid exercise of the Secretary's general 
rulemaking authority under Section 8. Cf. Mourning v. Family 
Publications Services, 411 U.S. 356.

VII. Summary and Explanation

    The following sections discuss the contents of the final 29 CFR 
Part 1904 and section 1952.4 regulations. OSHA has written these 
regulations using the plain language guidance set out in a Presidential 
Memo to the heads of executive departments and agencies on June 1, 
1998. The Agency also used guidance from the Plain Language Action 
Network (PLAN), which is a government-wide group working to improve 
communications from the Federal government to the public, with the 
goals of increasing trust in government, reducing government costs, and 
reducing the burden on the public. For more information on PLAN, see 
their Internet site at http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.plainlanguage.gov/.
    The plain language concepts encourage government agencies to adopt 
a first person question and answer format, which OSHA used for the Part 
1904 rule. The rule contains several types of provisions. Requirements 
are described using the ``you must * * *'' construction, prohibitions 
are described using ``you may not * * *'', and optional actions that 
are not

[[Page 5933]]

requirements or prohibitions are preceded by ``you may * * *.'' OSHA 
has also included provisions to provide information to the public in 
the rule.

Subpart A. Purpose

    The Purpose section of the final rule explains why OSHA is 
promulgating this rule. The Purpose section contains no regulatory 
requirements and is intended merely to provide information. A Note to 
this section informs employers and employees that recording a case on 
the OSHA recordkeeping forms does not indicate either that the employer 
or the employee was at fault in the incident or that an OSHA rule has 
been violated. Recording an injury or illness on the Log also does not, 
in and of itself, indicate that the case qualifies for workers' 
compensation or other benefits. Although any specific work-related 
injury or illness may involve some or all of these factors, the record 
made of that injury or illness on the OSHA recordkeeping forms only 
shows three things: (1) that an injury or illness has occurred; (2) 
that the employer has determined that the case is work-related (using 
OSHA's definition of that term); and (3) that the case is non-minor, 
i.e., that it meets one or more of the OSHA injury and illness 
recording criteria. OSHA has added the Note to this first subpart of 
the rule because employers and employees have frequently requested 
clarification on these points.
    The following paragraphs describe the changes OSHA has made to the 
Purpose provisions in Subpart A of the final rule, and discusses the 
Agency's reasons for these changes. Proposed section 1904.1 of Subpart 
A contained three separate paragraphs. Proposed paragraph (a) stated 
that the purpose of the recordkeeping rule (Part 1904) was ``to require 
employers to record and report work-related injuries, illness and 
fatalities.'' It also described several ways in which such records were 
useful to employers, employees, OSHA officials, and researchers 
evaluating and identifying occupational safety and health issues.
    Proposed paragraph (b) noted that the recording of a job-related 
injury, illness or fatality did not necessarily impute fault to the 
employer or the employee, did not necessarily mean that an OSHA rule 
had been violated when the incident occurred, and did not mean that the 
case was one for which workers' compensation or any other insurance-
related benefit was appropriate. The third paragraph in proposed 
section 1904.1, proposed paragraph (c), stated that the regulations in 
Part 1904 had been developed ``in consultation with the Secretary of 
Health and Human Services'' (HHS), as required by Section 24(a) of the 
Act.
    In the final rule, OSHA has moved much of this material, which was 
explanatory in nature, from the regulatory text to the preamble. This 
move has simplified and clarified the regulatory text. The final rule's 
Purpose paragraph simply states that: ``The purpose of this rule (Part 
1904) is to require employers to record and report work-related 
fatalities, injuries and illnesses.'' This final rule statement is 
essentially identical to the first sentence of the proposed Purpose 
section. It clearly and succinctly states OSHA's reasons for issuing 
the final rule.
    A number of commenters (see, e.g., Exs. 25; 15: 199, 305, 313, 346, 
348, 352, 353, 375, 418, 420) specifically addressed proposed section 
1904.1. The principal points raised by these commenters concerned: (1) 
Statements in proposed paragraph (a) about the quality of the data 
captured by the records; (2) proposed paragraph (b)'s discussion of the 
relationship between OSHA recordkeeping and employer/employee fault, 
violations of OSHA rules, and the workers' compensation system, and (3) 
the statement in proposed paragraph (c) that discussed OSHA's 
consultation with the Secretary of Health and Human Services in 
developing this rule. Each of these issues is discussed in detail 
below.
    Most comments on proposed paragraph (a) took issue with the 
language that OSHA used to describe the statistical use of the records 
(see, e.g., Exs. 25, 15: 305, 346, 348, 375, 420). Typical of these 
comments is one from the National Association of Manufacturers: ``We 
urge OSHA to remove the following unverified and conclusory statement 
from Sec. 1904.1(a): ``The records: * * * accurately describe the 
nature of occupational safety and health problems for the Nation, State 
or establishment'' (Exs. 25, 15: 305). OSHA did not intend this 
statement to attest with certainty to the validity of national 
occupational statistics. Proposed section 1904.1(a) merely paraphrased 
section 2(b) of the Act, which states that such records ``will help 
achieve the objectives of this Act and accurately describe the nature 
of the occupational safety and health problem.'' In response to 
commenters, OSHA has simplified the final rule by deleting the proposed 
listing of the functions of the records required by this rule.
    As discussed earlier, proposed paragraph (b) stated that the 
recording of a case did not ``necessarily mean that the employer or 
employee was at fault, that an OSHA standard was violated, or that the 
employee is eligible for workers' compensation or other insurance 
benefits.'' The last sentence of proposed paragraph (b) described the 
various types of workplace events or exposures that may lead to a 
recordable injury or illness.
    A number of commenters agreed with the proposed statements on 
fault, compliance, and the relationship between the recording of a case 
and workers' compensation or other insurance (see, e.g., Exs. 25, 15: 
305, 346, 420). Employers have frequently asked OSHA to explain the 
relationship between workers' compensation reporting systems and the 
OSHA injury and illness recording and reporting requirements. As NYNEX 
(Ex. 15: 199) noted,

    [t]he issue of confusion between OSHA recordkeeping and workers' 
compensation/insurance requirements cannot be totally eliminated as 
the workers' compensation criteria vary somewhat from state to 
state. There will always be some differences between OSHA 
recordability and compensable injuries and illnesses. The potential 
consequences of these differences can be minimized, however, if all 
stakeholders in the recordkeeping process (i.e., employers, 
employees, labor unions, OSHA compliance officials) are well 
informed that OSHA recordability does not equate to compensation 
eligibility. This can be facilitated by printed reminders on all of 
the OSHA recordkeeping documents (e.g., forms, instructions, 
pamphlets, compliance directives, etc.).

    As NYNEX observed, employers must document work-related injuries 
and illnesses for both OSHA recordkeeping and workers' compensation 
purposes. Many cases that are recorded in the OSHA system are also 
compensable under the State workers' compensation system, but many 
others are not. However, the two systems have different purposes and 
scopes. The OSHA recordkeeping system is intended to collect, compile 
and analyze uniform and consistent nationwide data on occupational 
injuries and illnesses. The workers' compensation system, in contrast, 
is not designed primarily to generate and collect data but is intended 
primarily to provide medical coverage and compensation for workers who 
are killed, injured or made ill at work, and varies in coverage from 
one State to another.
    Although the cases captured by the OSHA system and workers' 
compensation sometimes overlap, they often do not. For example, many 
injuries and illnesses covered by workers' compensation are not 
required to be recorded in the OSHA records. Such a situation would 
arise, for example, if an employee were injured on the job, sent to a 
hospital emergency

[[Page 5934]]

room, and was examined and x-rayed by a physician, but was then told 
that the injury was minor and required no treatment. In this case, the 
employee's medical bills would be covered by workers' compensation 
insurance, but the case would not be recordable under Part 1904.
    Conversely, an injury may be recordable for OSHA's purposes but not 
be covered by workers' compensation. For example, in some states, 
workers' compensation does not cover certain types of injuries (e.g., 
certain musculoskeletal disorders) and certain classes of workers 
(e.g., farm workers, contingent workers). However, if the injury meets 
OSHA recordability criteria it must be recorded even if the particular 
injury would not be compensable or the worker not be covered. 
Similarly, some injuries, although technically compensable under the 
state compensation system, do not result in the payment of workers' 
compensation benefits. For example, a worker who is injured on the job, 
receives treatment from the company physician, and returns to work 
without loss of wages would generally not receive workers' compensation 
because the company would usually absorb the costs. However, if the 
case meets the OSHA recording criteria, the employer would nevertheless 
be required to record the injury on the OSHA forms.
    As a result of these differences between the two systems, recording 
a case does not mean that the case is compensable, or vice versa. When 
an injury or illness occurs to an employee, the employer must 
independently analyze the case in light of both the OSHA recording 
criteria and the requirements of the State workers' compensation system 
to determine whether the case is recordable or compensable, or both.
    The American Federation of Labor and Congress of Industrial 
Organizations (AFL-CIO) urged OSHA to emphasize the no-fault philosophy 
of the Agency's recordkeeping system, stating:

    The AFL-CIO is encouraged by some provisions currently in the 
proposed rulemaking which indirectly address underreporting. But, we 
believe the Agency must take it one step further. To adequately 
address this problem, the Agency must encourage employers to adopt a 
``no fault system'' philosophy in the workplace and remove barriers 
which discourage the reporting of injuries and illnesses by 
employees. This philosophy will not only encourage workers to report 
injuries and illnesses, but also encourage those individuals (e.g., 
supervisors, safety personnel) responsible for recording this data 
to report all recordable incidents (Ex. 15: 418).

    OSHA believes that the note to the Purpose paragraph of the final 
rule will allay any fears employers and employees may have about 
recording injuries and illnesses, and thus will encourage more accurate 
reporting. Both the Note to Subpart A of the final rule and the new 
OSHA Form 300 expressly state that recording a case does not indicate 
fault, negligence, or compensability.
    The Workplace Health and Safety Council, the American Coke and Coal 
Chemicals Institute, and the National Oilseed Processors Association 
(Exs. 15: 313, 352, 353) all urged OSHA to improve on this paragraph of 
the proposed rule in two ways. First, these commenters asked OSHA to 
remove the word ``necessarily'' from the language of proposed paragraph 
(b), which stated that recording did not ``necessarily mean'' that 
anyone was at fault, that a standard had been violated, or that the 
case was compensable:

    The qualification ``necessarily'' robs the [proposed] sentences 
of their meaning and makes them inaccurate. Using the word 
erroneously implies that merely listing an injury sometimes does 
mean that the employer or employee was at fault, that an OSHA 
standard was violated, or that the employee is eligible for workers' 
compensation. Clearly, this is not what OSHA intended to convey. 
Indeed, the word ``necessarily'' may actually worsen the problem 
OSHA seeks to solve, for attorneys and consultants reading the 
proposed provision might well advise employers that the provision 
actually endorses some uses of a listing against an employer.
    OSHA should, therefore, delete the word ``necessarily. * * *'' 
Alternatively, the sentence in the regulation should read: ``That an 
injury or illness is recordable has no bearing on whether the 
employer or employee was at fault, an OSHA standard violated, or the 
employee is eligible for workers' compensation. * * *'' The legend 
in the form would be similarly changed (Exs. 15: 313, 352, 353).

    These three commenters (Exs. 15: 313, 352, 353) also suggested the 
following:

    (a) much preferred additional solution, would be for OSHA to 
promulgate in the final version a provision that makes inadmissible 
in all proceedings, both those under the OSH Act and those under any 
state or federal law, the entries in Form OSHA 300 and 301 as 
evidence of fault or culpability. Such a regulation would give 
employers the necessary assurance that their recordkeeping forms 
would not be used against them. Injured employees would lose nothing 
by this, for they could still be permitted to prove the fact of 
injury, its work-relatedness, and its consequence, with normal 
proof. They would simply not be permitted to introduce the forms as 
evidence of culpability. Such a rule would implement, be consistent 
with, and be authorized by Section 4(b)(4) of the Act, which 
prohibits the Act from affecting workers' compensation and tort 
schemes.

    OSHA agrees with the point made by these commenters about the 
proposed rule's use of the word ``necessarily.'' Accordingly, the word 
necessarily has been deleted from the Note to the Purpose paragraph of 
the final rule. However, OSHA has rejected the suggestion made by these 
commenters to limit the admissibility of the forms as evidence in a 
court proceeding. Such action is beyond the statutory authority of the 
agency, because OSHA has no authority over the courts, either Federal 
or State.
    In the proposal, the no-fault statement was followed by a listing 
of the various causes of recordable injuries and illnesses: 
``Recordable workplace injuries and illnesses result from a variety of 
workplace events or exposures, including but not limited to: accidents, 
exposure to toxic materials or harmful physical agents, intentional 
acts of violence, or naturally occurring events such as a tornado or 
earthquake.'' The American Petroleum Institute (API) (Ex. 15: 375) 
objected to this proposed sentence describing the various examples of 
injury and illness causality, stating:

    To help the system have much-needed credibility, ``regardless of 
fault or preventability'' should not be applied beyond reasonable 
limits. Specifically, it shouldn't mean ``tornado or earthquake'' or 
other sudden, unforeseen catastrophic events over which the employer 
clearly could not have any control. Employers can, however, exercise 
control to prevent injury from some types of naturally occurring 
events. The terms ``tornado or earthquake'' should be replaced with 
more reasonable examples.

    In the final rule, OSHA has decided to eliminate the sentence of 
examples to make the regulatory text clearer and more concise. However, 
OSHA notes that many circumstances that lead to a recordable work-
related injury or illness are ``beyond the employer's control,'' at 
least as that phrase is commonly interpreted. Nevertheless, because 
such an injury or illness was caused, contributed to, or significantly 
aggravated by an event or exposure at work, it must be recorded on the 
OSHA form (assuming that it meets one or more of the recording criteria 
and does not qualify for an exemption to the geographic presumption). 
This approach is consistent with the no-fault recordkeeping system OSHA 
has adopted, which includes work-related injuries and illnesses, 
regardless of the level of employer control or non-control involved. 
The issue of whether different

[[Page 5935]]

types of cases are deemed work-related under the OSHA recordkeeping 
rule is discussed in the Legal Authority section, above, and in the 
work-relationship section (section 1904.5) of this preamble.
    In a comment on proposed paragraph (a), the National Association of 
Manufacturers (NAM) (Exs. 25, 15: 305) argued that the OSHA 
recordkeeping system should only collect information on

``the most significant hazards, those that lead to the most 
significant injuries and illnesses * * *'' and that the purpose 
paragraph of the final rule be revised to state ``The purpose of 
this Part is to require employers to record and report disabling, 
serious and significant work-related injuries and illnesses, and 
work-related fatalities.''

    OSHA does not agree with this interpretation of the OSH Act. As 
discussed in the Legal Authority section, above, Congress stated 
clearly that the OSHA recordkeeping system was intended to capture 
``work-related deaths, injuries and illnesses, other than minor 
injuries requiring only first aid treatment and which do not involve 
medical treatment, loss of consciousness, restriction of work or 
motion, or transfer to another job'' (Sec. 8(c)(2)) (emphasis added). 
The words ``disabling, serious, and significant,'' suggested by NAM, 
are at variance with Congress' clear intent. OSHA concludes that the 
guidance given by Congress--that employers should record and report on 
work-related deaths, and on injuries and illnesses other than minor 
injuries, establishes the appropriate recording threshold for cases 
entered into the OSHA recordkeeping system.
    A few commenters recommended that OSHA delete paragraph (c) of the 
proposed Purpose section (see, e.g., Exs. 25, 15: 305, 346, 348, 420), 
and in the final rule, OSHA has done so because the paragraph merely 
attested to OSHA's cooperation with other agencies on this rule. 
Although the rule has, in fact, been developed in cooperation with the 
Department of Health and Human Services, and specifically with the 
National Institute for Occupational Safety and Health (NIOSH), there is 
no need to include this information in the regulatory text itself.

Subpart B. Scope

    The coverage and partial exemption provisions in Subpart B of the 
final rule establish which employers must keep OSHA injury and illness 
records at all times, and which employers are generally exempt but must 
keep records under specific circumstances. This subpart contains 
sections 1904.1 through 1904.3 of the final rule.
    OSHA's recordkeeping rule covers many employers in OSHA's 
jurisdiction but continues to exempt many employers from the need to 
keep occupational injury and illness records routinely. This approach 
to the scope of the rule is consistent with that taken in the former 
recordkeeping rule. Whether a particular employer must keep these 
records routinely depends on the number of employees in the firm and on 
the Standard Industrial Classification, or SIC code, of each of the 
employer's establishments. Employers with 10 or fewer employees are not 
required to keep OSHA records routinely. In addition, employers whose 
establishments are classified in certain industries are not required to 
keep OSHA records under most circumstances. OSHA refers to 
establishments exempted by reason of size or industry classification as 
``partially exempt,'' for reasons explained below.
    The final rule's size exemption and the industry exemptions listed 
in non-mandatory Appendix A to Subpart B of the final rule do not 
relieve employers with 10 or fewer employees or employers in these 
industries from all of their recordkeeping obligations under 29 CFR 
Part 1904. Employers qualifying for either the industry exemption or 
the employment size exemption are not routinely required to record 
work-related injuries and illnesses occurring to their employees, that 
is, they are not normally required to keep the OSHA Log or OSHA Form 
301. However, as sections 1904.1(a)(1) and 1904.2 of this final 
recordkeeping rule make clear, these employers must still comply with 
three discrete provisions of Part 1904. First, all employers covered by 
the Act must report work-related fatalities or multiple 
hospitalizations to OSHA under Sec. 1904.39. Second, under 
Sec. 1904.41, any employer may be required to provide occupational 
injury and illness reports to OSHA or OSHA's designee upon written 
request. Finally, under Sec. 1904.42, any employer may be required to 
respond to the Survey of Occupational Injuries and Illnesses conducted 
by the Bureau of Labor Statistics (BLS) if asked to do so. Each of 
these requirements is discussed in greater detail in the relevant 
portion of this summary and explanation.

Section 1904.1 Partial Exemption for Employers With 10 or Fewer 
Employees

    In Sec. 1904.1 of the final rule, OSHA has retained the former 
rule's size-based exemption, which exempts employers with 10 or fewer 
employees in all industries covered by OSHA from most recordkeeping 
requirements. Section 1904.1, ``Partial exemption for employers with 10 
or fewer employees,'' states that:

    (a) Basic requirement.
    (1) If your company had ten (10) or fewer employees at all times 
during the last calendar year, you do not need to keep OSHA injury 
and illness records unless OSHA or the BLS informs you in writing 
that you must keep records under Sec. 1904.41 or Sec. 1904.42. 
However, as required by Sec. 1904.39, all employers covered by the 
OSH Act must report to OSHA any workplace incident that results in a 
fatality or the hospitalization of three or more employees.
    (2) If your company had more than ten (10) employees at any time 
during the last calendar year, you must keep OSHA injury and illness 
records unless your establishment is classified as a partially 
exempt industry under Sec. 1904.2.
    (b) Implementation.
    (1) Is the partial exemption for size based on the size of my 
entire company or on the size of an individual business 
establishment?
    The partial exemption for size is based on the number of 
employees in the entire company.
    (2) How do I determine the size of my company to find out if I 
qualify for the partial exemption for size?
    To determine if you are exempt because of size, you need to 
determine your company's peak employment during the last calendar 
year. If you had no more than 10 employees at any time in the last 
calendar year, your company qualifies for the partial exemption for 
size.
The Size-Based Exemption in the Former Rule
    The original OSHA injury and illness recording and reporting rule 
issued in July 1971 required all employers covered by the OSH Act to 
maintain injury and illness records. In October 1972, an exemption from 
most of the recordkeeping requirements was put in place for employers 
with seven or fewer employees. In 1977, OSHA amended the rule to exempt 
employers with 10 or fewer employees, and that exemption has continued 
in effect to this day. All employers, however, have always been 
required to report fatalities and catastrophes to OSHA and to 
participate in the BLS survey, if requested to do so.
    As discussed in the Legal Authority section of this preamble, the 
10 or fewer employee threshold is consistent with Congressional intent: 
the 1977 Federal Register notice announcing the new exemption cited the 
Department of Labor appropriations acts for fiscal years 1975 and 1976, 
which exempted employers having 10 or fewer employees from most routine 
recordkeeping requirements, and Section 8(d) of the Act, as the major 
reasons for raising the exemption size threshold from seven to 10 
employees. The 1977 Notice stated that the new size

[[Page 5936]]

threshold appropriately balanced the interest of small businesses while 
preserving the essential purposes of the recordkeeping scheme:

    The [exemption] has been carefully designed to carry out the 
mandate of section 8(d) without impairing the Act's basic purpose. 
Thus, the [exemption] will not diminish the protections afforded 
employees under the Act because all employers * * * remain subject 
to the enforcement provisions of the Act. The [exemption] will 
continue to require * * * small employers * * * to report fatalities 
and multiple hospitalizations and to participate in the BLS annual 
survey when selected to do so (42 FR 38568 (July 29, 1977)).
The Size-Based Exemption in the Final Rule
    The final rule published today maintains the former rule's partial 
exemption for employers in all covered industries who have 10 or fewer 
employees. Under the final rule (and the former rule), an employer in 
any industry who employed no more than 10 employees at any time during 
the preceding calendar year is not required to maintain OSHA records of 
occupational illnesses and injuries during the current year unless 
requested to do so in writing by OSHA (under Sec. 1904.41) or the BLS 
(under Sec. 1904.42). If an employer employed 11 or more people at a 
given time during the year, however, that employer is not eligible for 
the size-based partial exemption.
The Size-Based Exemption in the Proposed Rule
    In the 1996 proposal, OSHA contemplated raising the threshold for 
the size-based exemption to 19 employees for all employers except those 
in the construction industry. In proposing this more extensive 
exemption, OSHA stated that BLS Annual Survey data appeared to indicate 
that small businesses in this size category had proportionately fewer 
injuries and illnesses and were thus safer places to work. However, 
since the proposal, OSHA has analyzed the record evidence on this point 
and now believes that small businesses are not generally likely to be 
less hazardous than larger businesses and, in fact, are likely, as a 
general matter, to be more hazardous than large businesses. OSHA's 
reasoning is described below.
    Comments to the record make clear that the recording of fewer 
injuries and illnesses by very small firms could have many causes other 
than a lower level of hazards. For example, the National Institute for 
Occupational Safety and Health (NIOSH) submitted a comment to the 
record that described numerous studies based on fatality and workers' 
compensation data that suggest that smaller businesses are at least as 
hazardous as larger businesses (Ex. 15: 407). NIOSH also argued that 
the BLS estimated injury and illness incidence rates for small 
employers may be erroneously low, i.e., may be the result of 
underreporting rather than a lower injury rate. The following comment 
from NIOSH explains these concerns:

    From a public standpoint, NIOSH does not support a partial 
exemption from recordkeeping requirements for employers in the 
construction industry with 10 or fewer employees, and non-
construction employers with 19 or fewer employees. Research 
indicates significant safety and health problems in ``small'' 
establishments which employ a substantial proportion of the 
workforce. One-quarter of the civilian, full-time workforce is 
employed in establishments with fewer than 25 employees (Oleinick et 
al. 1995).
    The Occupational Safety and Health Administration (OSHA) notes 
[in the proposal to the recordkeeping rule] that ``the Annual Survey 
data show that small employers generally experience much lower 
patterns of injuries and illnesses than medium size firms.'' 
However, recent literature comparing Annual Survey data and workers 
compensation data questions the validity of the estimated rates for 
small employers obtained through the Bureau of Labor Statistics 
(BLS) Annual Survey. Moreover, fatal and nonfatal work injuries are 
a significant risk among small businesses in hazardous industries 
and many industries with high fatal and nonfatal injury rates are 
comprised primarily of small companies. In addition, NIOSH research 
indicates that small companies have less access to safety and health 
programs that might reduce injuries and illnesses than larger 
companies [NIOSH 1988a].
    Though the Annual Survey of Occupational Injuries and Illnesses 
has consistently reported that employers with fewer than 20 
employees have significantly lower rates of injuries and illnesses, 
there is concern that these low incidence rates are an artifact of 
the reporting system. Analysis of compensable injuries with >7 
missed workdays in Michigan indicates that the pattern of lower 
injury rates among small employers is not consistent across industry 
divisions. Though the services and trade industry divisions show a 
marked decline in compensable injury rate for small size firms, the 
higher risk industries of construction and transportation/utilities 
show relatively little decline in the compensable injury rate for 
employers with fewer than 25 employees. Comparison of the 
demographic characteristics of the Michigan work force with the 
demographic characteristics of injured workers suggest that high 
risk groups (e.g., males, younger workers [35 years of age], 
construction, manufacturing, transportation, and blue collar 
workers) are over-represented among workers injured in small size 
firms (25 workers). Using cumulative lost work time as a surrogate 
for severity of injury, the Michigan study also found that with one 
exception (construction), compensable injuries to workers in small 
firms were at least as serious as compensable injuries in larger 
firms [Oleinick et al. 1995] (Ex. 15: 407).

    Since publication of the recordkeeping proposal, OSHA has done 
considerable research into the issue of fatality, injury, and illness 
rates in small companies. The results of this research also point to 
underreporting, rather than safer workplaces, as a likely reason for 
the lower-than-average injury and illness numbers reported by small 
employers. The most telling evidence that injury and illness 
underreporting is prevalent among small firms is the substantial 
discrepancy between the fatality rates in these firms and their injury 
and illness rates.
    Most professionals agree that occupational fatality data are more 
reliable than occupational injury and illness data, primarily because 
fatalities are more likely to be reported than injuries. The work-
related BLS fatality data appear to confirm this belief, showing that 
although businesses with fewer than 10 employees account for only 4% of 
the total workforce, they account for 28% of occupational fatalities. 
Furthermore, although businesses with fewer than 20 employees comprise 
only 26% of the total workforce, they account for 36% of all 
occupational fatalities (see Mendeloff, ``Using OSHA Accident 
Investigations to Study Patterns in Work Fatalities,'' J. Occup. Med 
32: 1117, 1119 (1990) (Ex. 15: 407 F)). These data strongly suggest 
that very small businesses are disproportionately hazardous places to 
work.
    Many safety and health professionals also believe that injuries and 
illnesses are substantially underreported by small employers (see, 
e.g., Exs. 4, 5, 15: 407). However, the occupational injury and illness 
data reported by employers to the BLS in connection with its Annual 
Survey of Occupational Injuries and Illnesses show lower rates of 
injuries and illnesses for firms in the smallest size classes than for 
those in larger classes. In an effort to understand why smaller firms 
might have lower injury and illness incidence rates, the authors of one 
study found that: (1) occupational fatality rates were highest in 
businesses with fewer than 50 employees; (2) businesses with fewer than 
50 employees were least likely to have occupational health services 
available; and (3) lost workday injury rates in several major industry 
categories are highest (i.e., the injuries are most severe) in these 
facilities. From these findings, the authors concluded:


[[Page 5937]]


    It is difficult to imagine a set of workplace conditions in 
small establishments that would lead simultaneously to lower injury 
rates, higher fatality rates, and equal, or greater, injury severity 
measured by missed work time, especially since these establishments 
were less likely to provide injury prevention and safety services 
(Oleinick et al., ``Establishment Size and Risk of Occupational 
Injury,'' Am. J. Med. 28(1): 2-3 (1995) (Ex. 15: 407 N)).

After considering a number of explanations that might explain this 
apparent incongruity, these authors rejected all explanations except 
one--underreporting by small firms:

    With the rejection of alternative explanations, there is a 
strong likelihood of underreporting as the explanation, and we 
estimate that the annual [BLS] survey substantially undercounts 
injuries in small establishments (Oleinick et al., 1995 (Ex. 15: 407 
N)).

    NIOSH agrees, noting that ``recent literature comparing Annual 
Survey data and workers compensation data questions the validity of the 
estimated rates for small employers obtained through the BLS Annual 
Survey'' (Ex.15: 407). Thus, the apparent discrepancy between the high 
fatality rate in the smallest firms (i.e., those with fewer than 20 
employees) and the low rates of injuries and illnesses reported by 
those same firms is likely to be the result of underreporting rather 
than lower relative hazards.
    A Wall Street Journal (Feb. 3, 1994) computer analysis of more than 
500,000 Federal and State safety-inspection records came to the same 
conclusions, i.e., that employees of small businesses are at greater 
risk of exposure to workplace hazards than employees of larger 
businesses, and that BLS data for small firms seriously understate 
injuries and illnesses in such firms. From 1988 through 1992, the 
analysis found an incidence of 1.97 deaths per 1,000 workers at 
workplaces with fewer than 20 employees, compared with an incidence of 
just 0.004 deaths per 1,000 workers at workplaces with more than 2,500 
workers. Thus, an employee's risk of death was approximately 500 times 
higher at the smallest businesses compared with the risk at the largest 
businesses. Similarly, while one in six employees at small businesses 
worked in an area cited for a serious safety violation, only one in 600 
did so at the largest businesses. This means that employees in small 
businesses are 100 times more likely to be exposed to a serious hazard 
at work than those in the largest businesses, a finding that is 
consistent with the higher fatality rates in very small workplaces 
(Wall Street Journal, February 3, 1994).
    In the final rule, OSHA has decided to continue the Agency's 
longstanding practice of partially exempting employers with 10 or fewer 
employees from most recordkeeping requirements, but not to extend the 
exemption to non-construction businesses with 19 or fewer employees, as 
was proposed. OSHA has determined that increasing the number of 
employers partially exempted is not in the best interests of the safety 
and health of their employees. First, as NIOSH's comments (Ex. 15: 
407), the Oleinick et al. study (1995), the Mendeloff article (1990), 
and the Wall Street Journal study (1994) all indicate, businesses with 
20 or fewer employees tend to be relatively hazardous places to work, 
and their employees have a disproportionately high risk of work-related 
death. Second, as NIOSH and others point out, there is reason to 
believe that these very small workplaces also experience 
disproportionately high numbers of injuries and illnesses, and that the 
BLS statistics for these workplaces substantially underreport the 
extent of job-related incidents at these establishments (Ex. 15: 407, 
Oleinick et al. 1995, Wall Street Journal 1994 (Ex. 15: 407 N). 
Finally, under the 10 or fewer employee partial exemption threshold, 
more than 80% of employers in OSHA's jurisdiction are exempted from 
routinely keeping records. Increasing the threshold for the size 
exemption would deprive even more employers and employees of the 
benefits of the information provided by these injury and illness 
records and reduce the number of establishments where the records can 
be of use to the government during an on-site visit. OSHA also believes 
that keeping the OSHA Log and Incident Report is important for national 
statistical purposes.
Size Exemption Threshold for Construction Companies
    The final rule also retains the former rule's size exemption 
threshold (10 or fewer employees) for construction employers. OSHA 
proposed separate size thresholds for construction and nonconstruction 
firms, i.e., the Agency proposed to exempt firms in construction with 
10 or fewer employees and non-construction firms with 19 or fewer 
employees from routine recordkeeping requirements. Comments on this 
aspect of the proposal were mixed. Some commenters agreed that OSHA 
should continue the exemption for construction employers with ten or 
fewer employees (see, e.g., Exs. 15: 145, 170, 197, 288). Other 
commenters urged that employers in the construction industry not be 
exempted from recordkeeping at all (see, e.g., Exs. 15: 62, 74, 414). 
For example, Robert L. Rowan, Jr. stated that:

[s]mall contractors often lack adequate safety knowledge, programs 
and safeguards to prevent injuries and illnesses. I believe that 
data obtained from these small contractors will point to a trend 
that these employees have a relatively high frequency of injuries 
that are related to tasks involving construction work such as 
excavations and fall hazards. I suggest that there be no exemptions 
for recordkeeping for any construction employer (Ex. 15: 62).

    Other commenters asked OSHA to use a single size threshold for 
employees in all industries and to raise the size exemption threshold 
to more than 19 employees across the board (see, e.g., Exs. 15: 67, 
304, 312, 344, 437). For example, the Sheet Metal and Air Conditioning 
Contractors' National Association (SMACNA) remarked:

    The recordkeeping standard is considered to be a horizontal 
standard, which by definition, means that it covers all industries. 
SMACNA members own and operate sheet metal fabrication shops where 
they design and create the products which are then installed in the 
construction process, including duct work and all types of specialty 
and architectural sheet metal. Sheet metal fabrication shops fall 
under the manufacturing classification and are therefore subject to 
general industry standards. SMACNA contractors also construct with 
the components that they fabricate. Therefore, as contractors they 
must also comply with the OSHA standards for construction.
    OSHA's arbitrary two tier record keeping requirement will cause 
confusion among SMACNA contractors as to which classification they 
are under and when they have to maintain records. With the volumes 
of regulations that contractors already must comply with, it is only 
logical that if OSHA truly wishes to simplify its recordkeeping 
requirements it would create a uniform standard for all industries. 
* * *
    SMACNA urges OSHA to create a uniform horizontal standard and 
increase the exemption for the construction industry to cover 
employers with 19 or fewer employees (Ex. 15: 116).

    After a review of the record and reconsideration of this issue, 
OSHA agrees that there should be only one size exemption threshold 
across all industries and finds that the threshold should be 10 or 
fewer employees. This threshold comports both with longstanding Agency 
practice and Congressional intent. Further, as discussed above, OSHA 
finds that extending this threshold to include firms with 11 to 19 
employees is not warranted by the evidence. Firms in this size range 
have a disproportionately large number of fatalities, and their

[[Page 5938]]

lower reported injury and illness rates are likely to be the result of 
underreporting rather than fewer hazards. Thus, companies in this size 
class need the information their OSHA records provide to improve 
conditions in their workplaces and to protect their employees from job-
related injuries, illnesses, and deaths. Likewise, OSHA does not 
believe that it would be appropriate to remove the partial exemption 
for construction employers with 10 or fewer employees, as some 
commenters suggested (see, e.g., Exs. 15: 67, 304, 312, 344, 437). 
Using the same size threshold for all OSHA-covered industries also 
makes the rule simpler and is more equitable from industry to industry.
Comments on Raising the Size-Based Exemption
    Many commenters supported raising the size-based exemption 
threshold (see, e.g., Exs. 27, 15: 26, 27, 67, 102, 123, 145, 170, 173, 
182, 198, 247, 288, 304, 359, 375, 378, 392, 401, 437). For example, 
the American Society of Safety Engineers (ASSE) remarked:

    ASSE supports exempting businesses under twenty (20) employees 
from the standard with some specific industry exemptions. Enforcing 
this regulation for businesses of less than twenty (20) employees 
would be detrimental to small business from the recordkeeping/
bureaucracy perspective, and may not generate any significant data. 
ASSE wishes to clarify, however, that this position should not be 
interpreted to mean that small businesses should be exempted from 
safety and health laws. We believe that all employees are entitled 
to an equal level of safety and health regardless of the size of 
their place of employment. Exempting a paperwork requirement does 
not change this level of commitment (Ex. 15: 182).

    Two commenters suggested that OSHA use an even higher threshold for 
determining the size-based exemption (Exs. 15: 357, 408). The Synthetic 
Organic Chemical Manufacturers Association (SOCMA) stated ``* * * SOCMA 
believes that OSHA should modify the small employer exemption by 
increasing it to 40 employees. This alternative approach would reduce 
the employer paperwork burden while improving the accuracy of injury 
and illness information'' (Ex. 15:357). Similarly, the American Dental 
Association (ADA) commented ``The ADA suggests that OSHA expand the 
proposed exemption from `fewer than 20 employees' to `fewer than 25 
employees.' This would bring the small-employer exception into 
conformity with many federal and state employment laws. It would also 
serve as a more reasonable dividing line between small employers and 
others'' (Ex. 15:408).
    Some commenters, however, objected to OSHA's proposed exemption of 
employers in the 11 to 20 employee size range (see, e.g., Exs. 15:62, 
369, 379, 407, 415, 418). Among these was the International Brotherhood 
of Teamsters (IBT), which stated:

    IBT maintains the importance of recording of all occupational 
injuries and illnesses. For that same reason, International 
Brotherhood of Teamsters does not support increasing the trigger for 
non-construction employers from ten to nineteen employees. Although 
injuries due to preventable causes occur in all types and sizes [of 
businesses], a disproportionately high number of fatalities occur in 
the smallest businesses. According to an analysis of BLS and OSHA 
data, then assistant secretary of labor, Joe Dear, told the House of 
Representative's Small Business Committee, ``Businesses with fewer 
than eleven workers account for 33 percent of all fatalities even 
though they account for less than 20 percent of employees.'' 
According to a study by the National Federation of Independent 
Businesses, ``generally businesses with fewer employees do less to 
improve safety than those with more.'' Large corporations can afford 
the full-time services of a safety engineer and industrial 
hygienist, whereas often small firms cannot. IBT contends that it is 
up to OSHA to protect the workers and institute prevention measures. 
The use of required recordkeeping of data helps to reach that aim by 
providing hard data. If the data is going to be used as a prevention 
tool, it must be collected from the entire workforce not just a 
subgroup (Ex. 15:369).

Reliance on a single size exemption threshold also addresses the point 
made by SMACNA: that many small employers perform construction work and 
also manufacture products and would therefore be uncertain, if the rule 
contained two size exemption thresholds, as to whether they are 
required to keep records or not.
    OSHA's proposed rule stated that the size exemption would apply to 
employers based on the number of employees employed by the employer 
``for the entire previous calendar year.'' The Office of Advocacy of 
the Small Business Administration (SBA) observed (Ex. 15:67, p. 4) that 
this statement could be interpreted in various ways, and expressed 
concern that it could be taken to refer to the total number of 
employees who had been employed at one time or another during the year 
rather than the total employed at any one time of the year. The SBA 
office recommended that OSHA provide clearer guidance. OSHA agrees with 
the SBA that the proposed regulatory language was ambiguous. 
Accordingly, the final rule clarifies that the 10 or fewer size 
exemption is applicable only if the employer had fewer than 11 
employees at all times during the previous calendar year. Thus, if an 
employer employs 11 or more people at any given time during that year, 
the employer is not eligible for the small employer exemption in the 
following year. This total includes all workers employed by the 
business. All individuals who are ``employees'' under the OSH Act are 
counted in the total; the count includes all full time, part time, 
temporary, and seasonal employees. For businesses that are sole 
proprietorships or partnerships, the owners and partners would not be 
considered employees and would not be counted. Similarly, for family 
farms, family members are not counted as employees. However, in a 
corporation, corporate officers who receive payment for their services 
are considered employees.
    Consistent with the former rule, the final rule applies the size 
exemption based on the total number of employees in the firm, rather 
than the number of employees at any particular location or 
establishment. Some commenters suggested that the size exemption should 
be based on the number of employees in each separate establishment 
rather than the entire firm (see, e.g., Exs. 15: 67, 201, 437). For 
example, Caterpillar Inc. (Ex. 15: 201) noted:

    We do object to the note to [proposed] paragraph 1904.2(b)(2) 
which bases size exemptions on the total number of employees in a 
firm rather than the establishment size. Size exemptions must be 
based upon individual establishment size. The factors that make 
recordkeeping difficult and unproductive for small facilities are 
not eliminated by adding small facilities together. Small facilities 
are usually unique and adding together the injury and illness 
experience of different small facilities will not produce a valid 
database for accident analysis or accident prevention planning. 
Injury and illness data collection is difficult because of small 
facility size and lack of recordkeeping expertise and resources. The 
benefits of collecting information in small facilities does not 
justify the costs. It is illogical to base the size exemption on 
anything other than the size of each separate establishment.

    OSHA does not agree with this comment because the resources 
available in a given business depend on the size of the firm as a 
whole, not on the size of individual establishments owned by the firm. 
In addition, the analysis of injury records should be of value to the 
firm as a whole, regardless of the size of individual establishments. 
Further, an exemption based on individual establishments would be 
difficult to administer, especially in

[[Page 5939]]

cases where an individual employee, such as a maintenance worker, 
regularly reports to work at several establishments.

Section 1904.2  Partial Exemption for Establishments in Certain 
Industries

    Section 1904.2 of the final rule partially exempts employers with 
establishments classified in certain lower-hazard industries. The final 
rule updates the former rule's listing of partially exempted lower-
hazard industries. Lower-hazard industries are those Standard 
Industrial Classification (SIC) code industries within SICs 52-89 that 
have an average Days Away, Restricted, or Transferred (DART) rate at or 
below 75% of the national average DART rate. The former rule also 
contained such a list based on data from 1978-1980. The final rule's 
list differs from that of the former rule in two respects: (1) the 
hazard information supporting the final rule's lower-hazard industry 
exemptions is based on the most recent three years of BLS statistics 
(1996, 1997, 1998), and (2) the exception is calculated at the 3-digit 
rather than 2-digit level.
    The changes in the final rule's industry exemptions are designed to 
require more employers in higher-hazard industries to keep records all 
of the time and to exempt employers in certain lower-hazard industries 
from keeping OSHA injury and illness records routinely. For example, 
compared with the former rule, the final rule requires many employers 
in the 3-digit industries within retail and service sector industries 
that have higher rates of occupational injuries and illnesses to keep 
these records but exempts employers in 3-digit industries within those 
industries that report a lower rate of occupational injury and illness. 
Section 1904.2 of the final rule, ``Partial exemption for 
establishments in certain industries,'' states:

    (a) Basic requirement.
    (1) If your business establishment is classified in a specific 
low hazard retail, service, finance, insurance or real estate 
industry listed in Appendix A to this Subpart B, you do not need to 
keep OSHA injury and illness records unless the government asks you 
to keep the records under Sec. 1904.41 or Sec. 1904.42. However, all 
employers must report to OSHA any workplace incident that results in 
a fatality or the hospitalization of three or more employees (see 
Sec. 1904.39).
    (2) If one or more of your company's establishments are 
classified in a non-exempt industry, you must keep OSHA injury and 
illness records for all of such establishments unless your company 
is partially exempted because of size under Sec. 1904.1.
    (b) Implementation.
    (1) Does the partial industry classification exemption apply 
only to business establishments in the retail, services, finance, 
insurance or real estate industries (SICs 52-89)?
    Yes. Business establishments classified in agriculture; mining; 
construction; manufacturing; transportation; communication, 
electric, gas and sanitary services; or wholesale trade are not 
eligible for the partial industry classification exemption.
    (2) Is the partial industry classification exemption based on 
the industry classification of my entire company or on the 
classification of individual business establishments operated by my 
company?
    The partial industry classification exemption applies to 
individual business establishments. If a company has several 
business establishments engaged in different classes of business 
activities, some of the company's establishments may be required to 
keep records, while others may be exempt.
    (3) How do I determine the Standard Industrial Classification 
code for my company or for individual establishments?
    You determine your Standard Industrial Classification (SIC) code 
by using the Standard Industrial Classification Manual, Executive 
Office of the President, Office of Management and Budget. You may 
contact your nearest OSHA office or State agency for help in 
determining your SIC.

    Employers with establishments in those industry sectors shown in 
Appendix A are not required routinely to keep OSHA records for their 
establishments. They must, however, keep records if requested to do so 
by the Bureau of Labor Statistics in connection with its Annual Survey 
(section 1904.42) or by OSHA in connection with its Data Initiative 
(section 1904.41). In addition, all employers covered by the OSH Act 
must report a work-related fatality, or an accident that results in the 
hospitalization of three or more employees, to OSHA within 8 hours 
(section 1904.39).
    In 1982, OSHA exempted establishments in a number of service, 
finance and retail industries from the duty to regularly maintain the 
OSHA Log and Incident Report (47 FR 57699 (Dec. 28, 1982)). This 
industry exemption to the Part 1904 rule was intended to ``reduce 
paperwork burden on employers without compromising worker safety and 
health.''
    The 1982 list of partially exempt industries was established by 
identifying lower hazard major industry groups in the SIC Divisions 
encompassing retail trade, finance, insurance and real estate, and the 
service industries (SICs 52-89). Major industry groups were defined as 
the 2-digit level industries from the SIC manual published by the U.S. 
Office of Management and Budget (OMB). Industries in these major 
industry groups were partially exempted from coverage by Part 1904 if 
their average lost workday injury rate (LWDI) for 1978-80 was at or 
below 75% of the overall private sector LWDI average rate for that 
year. Industries traditionally targeted for OSHA enforcement (those in 
SICs 01 through 51, comprising the industry divisions of agriculture, 
construction, manufacturing, transportation and public utilities, 
mining, and wholesale trade) remained subject to the full recordkeeping 
requirements. Although the 1982 Federal Register notice discussed the 
possibility of revising the exempt industry list on a routine basis, 
the list of partially exempt industries compiled in 1982 has remained 
unchanged until this revision of the Part 1904 rule.
    The proposed rule would have updated the industry exemption based 
on more current data, and would have relied on 3-digit SIC code data to 
do so. The only change from the former rule taken in the proposal would 
have been reliance on LWDI rates for industries at the 3-digit, rather 
than 2-digit, level.
    Evaluating industries at the 3-digit level allows OSHA to identify 
3-digit industries with high LWDI rates (DART rates in the terminology 
of the final rule) that are located within 2-digit industries with 
relatively low rates. Conversely, use of this approach allows OSHA to 
identify lower-hazard 3-digit industries within a 2-digit industry that 
have relatively high LWDI (DART) rates. Use of LWDI (DART) rates at the 
more detailed level of SIC coding increases the specificity of the 
targeting of the exemptions and makes the rule more equitable by 
exempting workplaces in lower-hazard industries and requiring employers 
in more hazardous industries to keep records.
    Under the proposal, based on their LWDI (DART) rates, the following 
industries would have been required to keep records for the first time 
since 1982:

SIC 553  Auto and Home Supply Stores
SIC 555  Boat Dealers
SIC 571  Home Furniture and Furnishings Stores
SIC 581  Eating Places
SIC 582  Drinking Places
SIC 596  Nonstore Retailers
SIC 598  Fuel Dealers
SIC 651  Real Estate Operators and Lessors
SIC 655  Land Subdividers and Developers
SIC 721  Laundry, Cleaning, and Garment Services
SIC 734  Services to Dwellings and Other Buildings
SIC 735  Miscellaneous Equipment Rental and Leasing
SIC 736  Personnel Supply Services
SIC 833  Job Training and Vocational Rehabilitation Services
SIC 836  Residential Care

[[Page 5940]]

SIC 842  Arboreta and Botanical or Zoological Gardens, and
SIC 869  Membership Organizations Not Elsewhere Classified

    The following industries would have been newly exempted by the 
proposal:

SIC 525  Hardware Stores
SIC 752  Automobile Parking
SIC 764  Reupholstery and Furniture Repair
SIC 793  Bowling Centers
SIC 801  Offices and Clinics of Doctors of Medicine
SIC 807  Medical and Dental Laboratories, and
SIC 809  Miscellaneous Health and Allied Services, Not Elsewhere 
Classified

    In the Issues section of the preamble to the proposed rule, OSHA 
asked the public to comment on the appropriateness of the proposed 
exemption procedure, and on whether or not OSHA should expand this 
approach to industries in SICs 01 through 51. The Agency also asked for 
alternative approaches that would reduce employer paperwork burden 
while retaining needed injury and illness information, and for 
estimates of the costs and benefits associated with these alternatives. 
OSHA notes that the final rule is based on the most recent data 
available (1996-1998). Although it has relied on the methodologies 
proposed (3-digit SIC codes, industries below 75% of the national 
average LWDI rate), there have been a few shifts in the industries 
proposed to be covered and those actually covered by the final rule. 
Thus this final rule will continue to exempt eating and drinking places 
(SICs 581 and 582) but will not exempt automobile parking (SIC 752).
Comments on the Proposed Industry Exemptions
    A number of commenters supported OSHA's proposal to apply the 1982 
exemption criteria to the service and retail industries at the three-
digit SIC level (see, e.g., Exs. 27; 15: 26, 199, 229, 247, 272, 299, 
359, 375, 378, 392). However, a number of commenters opposed any 
exemptions from the Part 1904 requirements on the basis of industry 
classification (see, e.g., Exs. 15: 9, 13, 31, 62, 78, 83, 129, 153, 
154, 163, 186, 197, 204, 234, 350, 379, 399, 414). The International 
Paper Company explained its reasons for opposing industry exemptions as 
follows:

    Exempting employers with low incidence rates is inconsistent 
with a major objective of the recordkeeping rules; specifically, 
measuring the magnitude of work-related injuries and illnesses. 
Exemption of specific industrial classifications or small employers 
may bias statistics which are used by OSHA for identifying 
industries for inspections. These exemptions may also impact 
statistics related to less traditional, but increasingly more 
frequent exposures such as bloodborne pathogens, tuberculosis, motor 
vehicle incidents or workplace violence.
    Exempting employers with low incidence rates does not provide 
any measurable relief from paperwork requirements. Time spent on 
recordkeeping is primarily dedicated to decision making regarding 
work relationship and recordability, not actual Log entries or 
completing supplemental reports. Simplifying the decision making 
process is the best way to reduce the burden of recordkeeping, not 
exempting employers (Ex. 15:399).

    The Service Employees International Union (SEIU) agreed:

    Injury and illness recordkeeping is the most basic step an 
employer must take in order to begin to address workplace hazards. 
Responsible employers recognize that injury and illness records are 
a useful tool for development of sound company safety and health 
programs. This information is also critical to the workers 
themselves, by raising awareness about how and where people are 
getting hurt, they in turn use this information to work to eliminate 
the causes of such injuries and illnesses. Therefore it is 
disturbing that in the proposed revised standard, there still exist 
industry exemptions for recordkeeping and reporting. Prior to 1983, 
all employers covered by OSHA with more than ten employees were 
required to maintain injury and illness records.
    * * * SEIU believes that such exemptions are unwarranted and 
violate the specific language of the Occupational Safety and Health 
Act. * * * The Act does not provide for excluding entire classes of 
occupationally injured and sick workers. Furthermore, little 
recordkeeping will be required for industries that are safe and 
experience low rates of injuries and illnesses. It is critical that 
OSHA require recordkeeping for all industries, especially since many 
previously exempt sectors now experience increasing rates of injury 
and illness. Many of these industry sectors are also dramatically 
expanding--therefore, continued recordkeeping is even more critical 
(Ex. 15:379).

    The National Safety Council (Ex. 15:359) cautioned:

    From the point of view of injury and illness prevention. * * * 
an establishment that does not track its injury and illness 
experience cannot effectively administer a prevention program. * * *

    Although OSHA encourages employers to track the occupational 
injuries and illnesses occurring among their employees and agrees that 
doing so is important for safety and health prevention efforts, OSHA 
has decided in the final rule to continue the long-established practice 
of exempting employers in industries with lower average lost workday 
incidence rates from most OSHA recordkeeping requirements but to tie 
the exemption as closely as possible to specific 3-digit SIC code data.
    Accordingly, non-mandatory Appendix A of the final rule identifies 
industries for exemption at the 3-digit SIC code level. Although this 
approach does make the list of exempt industries longer and more 
detailed, it also targets the exemption more effectively than did the 
former rule's list. For example, the final rule does not exempt firms 
in many of the more hazardous 3-digit SIC industries that are embedded 
within lower rate 2-digit SIC industries. It does, however, exempt 
firms in relatively low-hazard 3-digit SIC industries, even though they 
are classified in higher hazard 2-digit SIC industries. Where Days 
Away, Restricted, or Transferred (DART, formerly LWDI) rate 
calculations exempt all of the 3-digit SIC industries within a given 2-
digit industry, the exempt industry list in Appendix A displays only 
the 2-digit SIC classification. This approach merely provides a 
shorter, simpler list.
    For multi-establishment firms, the industry exemption is based on 
the SIC code of each establishment, rather than the industrial 
classification of a firm as a whole. For example, some larger 
corporations have establishments that engage in different business 
activities. Where this is the case, each establishment could fall into 
a different SIC code, based on its business activity. The Standard 
Industrial Classification manual states that the establishment, rather 
than the firm, is the appropriate unit for determining the SIC code. 
Thus, depending on the SIC code of the establishment, one establishment 
of a firm may be exempt from routine recordkeeping under Part 1904, 
while another establishment in the same company may not be exempt.
    Several commenters suggested that OSHA use an alternate method for 
determining exemptions (see, e.g., Exs. 15: 97, 201, 359). The National 
Safety Council (Ex. 15: 359), for example, urged OSHA to ``evaluate 
other exemption procedures before incorporating one into proposed 
section 1904.2.''
    OSHA has evaluated other approaches but has decided that the 3-
digit DART rate method is both simpler and more equitable than the 
former 2-digit method. By exempting lower-hazard industry sectors 
within SICs 52-89, OSHA hopes both to concentrate its recordkeeping 
requirements in sectors that will provide the most useful data and to 
minimize paperwork burden. No exemption method is perfect: any method 
that exempts broad classes of employers from recordkeeping obligations 
will exempt some more hazardous workplaces and cover some less 
hazardous workplaces. OSHA has

[[Page 5941]]

attempted to minimize both of these problems by using the most current 
injury and illness statistics available, and by applying them to a more 
detailed industry level within the retail, financial and service 
sectors than was formerly the case. OSHA has also limited the scope of 
the exemptions by using an exemption threshold that is well below the 
national average, including only those industries that have average 
DART rates that are at or below 75% of the national average DART rate. 
The rule also limits the exempt industries to the retail, financial and 
service sectors, which are generally less hazardous than the 
manufacturing industry sector.
    The Orlando Occupational Safety and Health Customer Council asked: 
``What is the criteria for exemptions? For example, large auto dealers 
who also perform auto repair work are exempt, while smaller auto repair 
shops are not exempt. Why not classify the organization by the most 
hazardous occupation [within that organization]?'' (Ex. 15: 97).
    In response to this query, OSHA notes that the exemption procedure 
is reasonably straightforward, as the following example illustrates: 
the automobile dealer industry is exempt because its DART rate, as 
indicated by its average over three years of BLS data, is below 75% of 
the national average rate. Automobile repair shops are not exempted, 
however, because their rate is higher than the 75% cutoff. If OSHA were 
to base its recordkeeping requirements on the most hazardous occupation 
within a given industry, assuming that occupation-specific within-
industry injury and illness data were available, as this commenter 
suggests, the number of establishments in individual industries that 
would have to keep records would greatly increase. This is because even 
relatively safe industries have some number of employees who engage in 
relatively hazardous occupations. For example, workers who transport 
currency, coins, and documents for banks and other financial 
institutions are engaged in a fairly hazardous occupation. They may be 
injured in many different ways, ranging from highway accidents, to 
lifting of heavy parcels, to robberies. However, the experience of 
these few employees within the industry does not accurately reflect the 
relative degree of hazard confronting the vast majority of employees in 
the financial industries. Although it is certainly not perfect, OSHA 
believes that the BLS lost workday injury rate (DART rate) is a better 
comparative statistic than the injury rate for a particular occupation 
because it reflects the risk to the average worker within the 
particular industry. Moreover, while it is relatively easy to classify 
employees according to occupation, it is unclear how to classify 
individual employers with regard to detailed occupation, and OSHA is 
also not aware of data that would permit such classification.
    The Caterpillar Corporation (Ex. 15: 201) suggested that OSHA 
adjust the formula used to determine which industries are exempted:

    You propose to base your exemption on achieving less than 75% of 
the average private sector lost workday injury rate; however, we 
would recommend expanding the size of the exemption to include all 
industries below the private sector average. We have no objection to 
your proposal to eliminate the ``nesting'' problem within 2-digit 
SIC code groups, as long as the exemption size is maximized. The 
recordkeeping paperwork burden for small and relatively safe 
industries is significant and not justified based upon the benefits 
received.

    OSHA has decided in the final rule to continue to use a formula 
that will exempt retail, finance and services industries from most 
recordkeeping requirements if they have a Days Away, Restricted, or 
Transferred (DART) rate that is at or below 75% of the national average 
rate. OSHA believes that the 75% threshold will ensure that only 
industries with relatively low injury and illness rates are exempted 
from these requirements. Using the national average DART rate, rather 
than 75% of the national DART rate, as the threshold for exemption 
purposes would exempt employers whose industries were merely average in 
terms of their DART rate.
    OSHA received many comments from firms in industries that have been 
exempt from most OSHA recordkeeping requirements since 1982 but that 
would have been required by the proposed rule to keep records. Most of 
these commenters opposed their industry's inclusion within the scope of 
the proposed rule. For example, several commenters from the restaurant 
industry objected to the fact that SICs 581 and 582, eating and 
drinking places, would have been covered (see, e.g., Exs. 15: 3, 4, 5, 
6, 7, 8, 12, 20, 22, 55, 96, 125, 202, 311). The National Restaurant 
Association remarked:

    The Association opposes elimination of this exemption on the 
bases that:
    --the proposal, if promulgated, will cost eating and drinking 
establishments an estimated $17 million in the first year alone;
    --the additional recordkeeping obligations under the proposed 
rule duplicate data already available to OSHA from other sources; 
and
    --the current data does not justify removal of the partial 
recordkeeping exemption for eating and drinking establishments (Ex. 
15: 96).

In the final rule, the exemption for eating and drinking places is 
retained, because the recent data indicate that these industries have 
DART rates that are below 75% of the national rate.
    Two commenters addressed the proposed removal of the exemption for 
SIC 553, auto and home supply stores (Ex. 15: 367, 402). For example, 
the Automotive Parts and Accessories Association (APAA) stated:

    The vast majority of auto parts stores are similar to other 
retailers which would still be exempt under this proposal. * * * 
[m]ore than three quarters of the automotive parts retailers which 
are proposed to be saddled with the full Log requirements would have 
little or no potential injury or illness experience to justify the 
added mandate (Ex. 15: 367).

    Several commenters discussed the proposed removal of the exemption 
for SIC 721, laundry, dry cleaning and textile rental services (see, 
e.g., Exs. 15: 183, 244, 326). Typical of the views expressed by these 
commenters was the comment of the Textile Rental Services Association 
of America (TRSA):

    TRSA is strongly opposed to OSHA's proposal to eliminate the 
partial exemption from recordkeeping and reporting requirements for 
laundry, cleaning, and garments services for Standard Industrial 
Classification (SIC) 721. TRSA believes that the proposed inclusion 
of the textile rental industry is unjustified. Because the textile 
rental industry has historically been proactive when it comes to 
workplace safety and has been 75% below the industry average for 
lost work days, we contend that OSHA's plan to eliminate the partial 
exemption from injury/illness recordkeeping requirements is 
unwarranted (Ex. 15: 183).

    The National Association of Home Builders (NAHB) commented on the 
proposed inclusion in the recordkeeping system of a variety of 
industries closely associated with the home building industry:

    As a result of using a 3 digit Standard Industrial 
Classification (SIC), ``Real Estate Offices'' (SIC 651) will now be 
required to report and record injury and illness data if they have 
more than 19 workers during the year. A cursory analysis of the 
hazards associated with real estate offices seems to indicate 
limited exposure to high hazards (Ex. 15: 323).

    The primary arguments put forth by these commenters are as follows: 
(1) The occupational injury and illness data collected under Part 1904 
are available to OSHA from other sources; (2) OSHA's data requirements 
are burdensome; (3) the use of even more current data would change the 
list of exempted industries;

[[Page 5942]]

and (4) some of the individual industries that would be covered are 
relatively safe.
    In response, OSHA notes that, although statistical information on 
average work-related injury and illness rates in industries is 
available from the BLS and other sources, information about the hazards 
present at specific workplaces is not available to OSHA from those same 
sources. OSHA recognizes that the maintenance of these records imposes 
some burden on businesses in the form of paperwork. However, the 
benefits of keeping records are also clearly substantial: informed 
employers can use the data to provide greater protection for their 
employees and to receive the benefits that accrue from prevention 
efforts in the form of fewer injuries and illnesses. In addition, the 
records are useful to OSHA in the inspection process. OSHA also 
believes that the process for selecting exempt industries must be as 
objective as possible, and that exemptions must rely upon timely and 
objective information about the safety and health experience of a given 
industry. The lost workday injury rates published by the Bureau of 
Labor Statistics provide the most consistent and reliable nationwide 
statistics available for this purpose, and OSHA is therefore relying on 
these data. The 75% of the national rate cutoff strikes a reasonable 
balance between collecting data likely to be useful and avoiding 
unnecessary burden. OSHA has used the most recent data available at 
this time in establishing the final list of partially exempt 
industries. OSHA also has used data from a three-year period (1996-
1998) rather than a one-year period to reduce year-to-year variation in 
the data.
    Other commenters argued that their industry should not be exempt 
because their workplaces continue to pose risk to the workers in them. 
For example, the American Nurses Association (ANA) opposed the partial 
exemption of doctor's offices and health services:

    ANA urges OSHA to remember the purpose of the Act, to protect 
the health and safety of ALL workers, when deliberating on exempting 
employers from this standard. As stated before, health care workers 
risk of exposure to injury and illness is not limited to one 
setting. Therefore, the Standard Industrial Classifications (SICs) 
801 Offices and Clinics of Doctors of Medicine and SIC 809 
Miscellaneous Health and Allied Services should not be exempt from 
this standard (Ex. 15: 376).

    The International Brotherhood of Teamsters (IBT) also argued 
against excluding certain health care service industries:

    IBT has concerns when the use of this analysis will grant 
partial exemptions to SIC codes 801 (offices and clinics of 
doctors), 807 (medical and dental offices), and 809 (miscellaneous 
health and allied services). All three of these SIC codes are 
covered under other OSHA rules (such as the bloodborne pathogen 
standard and ethylene oxide standard) and have medical surveillance 
requirements to detect adverse health effects. OSHA should require 
that these workplaces keep records of work related illnesses or 
injuries that occur. Especially, since OSHA has already determined 
that there is a significant risk of harm from exposures in these 
workplaces (Ex. 15: 369).

    OSHA recognizes that workers in establishments that are exempt 
under the 75% DART rate criterion will continue to be exposed to job-
related hazards and to experience workplace injuries and illnesses. 
However, because these industries' overall injury rate is below the 75% 
cutoff, they qualify for exemption, along with other financial, service 
and retail industries that fall below that injury rate threshold. 
Exemption of an industry on the basis of its lower-than-average DART 
rate does not mean that all establishments within that industry have 
such rates or that workers in that industry will not experience 
injuries and illnesses. The 1904 partial exemption does not exempt 
employers from any other OSHA regulation or standard, so employees in 
these industries will continue to benefit from the protection offered 
by the OSHA standards. For example, while doctors' and dentists' 
offices are partially exempt under the 1904 regulation, they are still 
required to comply with the OSHA Bloodborne Pathogens Standard (29 CFR 
1910.1030). Use of the 75% criterion merely provides a cutoff point, 
based on BLS injury and illness rates, for different industry sectors. 
OSHA believes that it is appropriate to use the 75% cutoff point 
because, in general, it is an appropriate overall indicator of the 
relative hazard rank of an industry. OSHA recognizes that no average 
across-establishment statistic can capture the injury and illness 
experience of all occupations or establishments within that industry.
    For some SIC codes, the BLS Annual Survey does not publish data at 
the three-digit level. The survey is designed to provide data at the 
four-digit level in the manufacturing industries and at the three-digit 
level in all other industries, primarily because of budget constraints 
that limit the amount of data the BLS can collect and process. However, 
the survey has other publication criteria that make some of the data at 
this detailed level unpublishable. Under the proposal, coverage would 
have been based on the industry's LWDI rate. If a 3-digit sector did 
not have published data, OSHA proposed to use the data for the two-
digit industry group for that sector.
    One 3-digit sector affected by this approach was dental offices 
(SIC 802), which the proposal would have covered because the entire 2-
digit health care sector has a relatively high injury and illness rate. 
The American Dental Association (ADA) suggested that OSHA use an 
alternative approach to exempt dentists from coverage rather than rely 
on a strict data protocol for making the decision:

[d]ental offices are very much like physicians' offices in terms of 
size, scope of activity, and degree of occupational health risk. For 
purposes of this rulemaking, however, physicians' offices have been 
granted a categorical exemption while dentists' offices (SIC Code 
802) have not. Even dental laboratories (SIC Code 807) have been 
granted a categorical exemption from this rule, although it is 
unlikely that anyone would assert that dental laboratories are safer 
and more healthful places to work than dental offices. The ADA is 
unaware of any data suggesting that dental offices should be treated 
differently than either physicians' offices or dental laboratories 
(Ex. 15: 408).

    The more recent data published by the BLS for the years 1996, 1997, 
and 1998 include specific estimates of the injury and illness 
experience for SIC 802 (dental offices) in that period. The dental 
office industry experienced a 3-year average rate of days away, 
restricted, or transferred injuries of 0.2 per 100 workers in those 
years, a rate well below 75% of the national average. Therefore, the 
final rule exempts employers classified in SIC 802 from routine 
recordkeeping requirements.
    The proposed rule would have removed SIC 736 (personnel supply 
services) from the list of exempted industry sectors; however, because 
this industry's more recent average DART (formerly LWDI) rate (for the 
years 1996, 1997, and 1998, the base years OSHA is using to determine 
lower-hazard industry exemptions) is above 75% of the national average 
cutoff, SIC 736 is not exempted under the final rule. The final rule 
(see section 1904.31(b)(2)) requires the ``using firm'' to record the 
injuries and illnesses of temporary workers that are ``leased'' from a 
personnel supply service, providing that the using firm supervises 
these workers on a day-to-day basis.
    The National Association of Temporary and Staffing Services 
commented on the proposed removal of the exemption for SIC 736:


[[Page 5943]]


    The proposed rules also would lift the partial exemption for 
employers classified under SIC Code 7363 (help supply services). 
Those employers, among others, were exempted from injury and illness 
record keeping requirements in 1982 because they had low work place 
injury rates. The proposal to lift the exemption is based on 
reported increased injury rates for these employers. However, since 
records for the vast majority of staffing firm employees are 
maintained by the worksite employer as explained above, the 
practical effect of lifting the exemption for staffing firms would 
be to require them to maintain records for their home office 
clerical and administrative workers--for whom there is no evidence 
of increased work place illnesses or injuries. Hence, we urge OSHA 
to retain the partial exemption for SIC 7363.
    If the exemption is not retained in the case of SIC 7363 
employers, it would be especially important for the final rules to 
expressly provide, as set forth above, that there is no intent to 
impose a dual reporting requirement. At least one state OSH office 
already has construed the proposed lifting of the partial exemption 
as creating an obligation on the part of staffing firms to maintain 
records for all of its employees, including temporary employees 
supervised by the worksite employer. This is clearly inconsistent 
with the intent of the proposed rule and should be clarified (Ex. 
15: 333).

    The final rule makes clear that, when a ``leased'' or ``temporary'' 
employee is supervised on a day-to-day basis by the using firm, the 
using firm must enter that employee's injuries and illnesses on the 
using firm's establishment Log and other records. Injuries and 
illnesses occurring to a given employee should only be recorded once, 
either by the temporary staffing firm or the using firm, depending on 
which firm actually supervises the temporary employees on a day-to-day 
basis. (see the discussion for Sec. 1904.31, Covered employees, for an 
in-depth explanation of these requirements.)
    Some commenters suggested that OSHA should grant partial exemptions 
to specific industries within SICs 01 through 51 (agriculture, forestry 
and fishing; mining; construction; manufacturing; transportation, 
communications, electric, gas and sanitary services; and wholesale 
trade) that had lost workday incidence rates that were below 75% of the 
average rate for all industries instead of limiting such exemptions to 
industries in SICs 52-89 (see, e.g., Exs. 15: 77, 95, 184, 201, 357, 
359, 374, 375). Typical of these comments was one from the Synthetic 
Organic Chemical Manufacturers Association (SOCMA):

    SOCMA believes that the partial exemption from recordkeeping 
requirements should be consistent for all standard industrial 
classifications. SOCMA supports the use of injury rates, rather than 
SIC Codes, as a criterion for partial exemption from recordkeeping 
requirements, provided the same criterion is applied to all work 
sites. For example, if the performance measure was 75 percent of the 
private sector average, then all industries with injury rates below 
this average should be exempt.
    There is sound basis for this shift in OSHA's approach. It has 
been found in the past that some industries in partially exempt SIC 
Codes 52--89 have had high injury rates while some in the 
``manufacturing'' SIC Codes 01-51 have had low injury rates. This 
has resulted in insufficient or unavailable injury and illness 
information for some facilities in SIC Codes 52-89 with high injury 
rates. Inspection resources are wasted if injury and illness 
information is not available during the inspection of high injury 
rate facilities. Conversely, requiring full recordkeeping for 
facilities with low injury rates results in a facility wasting 
resources on unnecessary recordkeeping. All businesses, regardless 
of SIC Code, should be treated equally and should have the 
opportunity to be exempt based on injury rates (Ex. 15: 357).

    The National Automobile Dealers Association (NADA) urged OSHA to 
exempt truck dealerships [classified in SIC 50], even though they are 
considered wholesale rather than retail establishments, because of 
their similarity to automobile dealerships [SIC 551], which are 
exempted:

    NADA strongly urges OSHA to exempt truck dealerships (SIC 5012), 
the overwhelming majority of whom are small businesses as recognized 
by the Small Business Administration (SBA).* * * A limited exemption 
for truck dealerships is justified under the same criteria used for 
automobile dealerships (Ex. 15: 280).

    On the other hand, some commenters agreed with OSHA's proposal to 
require all businesses in SICs 01-51 to keep injury and illness records 
(see, e.g., Exs. 15: 170, 199, 369). The International Brotherhood of 
Teamsters (IBT) remarked: ``IBT does not support using the same 
analysis of data at the three digit level of those industries in SIC 01 
through 51 (industries historically not exempted from recordkeeping 
requirements). IBT maintains the importance of recording of all 
occupational injuries and illnesses'' (Ex. 15: 369). A major utility, 
New England Power, agreed: ``We believe that the existing exemption 
criteria for SICs 52-89 should remain the same. Although many 
industries would fall within the exemption criteria in SICs 01-51, they 
are still higher hazard industries producing valuable data on injury/
illness experience'' (Ex. 15: 170). The NYNEX Corporation also agreed 
with OSHA's proposed approach:

    We are not in favor of extending the concept of industry-wide 
recordkeeping exemptions to the list of three digit codes in the 
group 01-51 that were identified in the proposal. Even though these 
groups have average injury and illness case rates that are less than 
75% of the private sector average, the nature of the work operations 
performed within these industries suggests that the variation above 
and below average for individual establishments could be much 
greater than with SIC Codes 52-89. An exemption for this group of 
establishments could mask the existence of some very high case rates 
within this group (Ex. 15: 199).

    After a review of the recent BLS data, OSHA's own experience, and 
the record of this rulemaking, OSHA has decided that it is appropriate 
to require firms in industries within the SIC 01 through 51 codes to 
comply with OSHA's requirements to keep records. Thus, the final rule, 
like the proposed rule and the rule published in 1982, does not exempt 
firms with more than 10 employees in the industry divisions of 
agriculture, mining, construction, manufacturing, wholesale trade, 
transportation and public utilities (SICs 01--52) from routine 
recordkeeping.
    Although OSHA no longer restricts its inspection targeting schemes 
to employers in these SICs, these industries have traditionally been, 
and continue to be, the focus of many of the Agency's enforcement 
programs. OSHA believes that it is important for larger employers 
(i.e., those with more than 10 employees) in these industries to 
continue to collect and maintain injury and illness records for use by 
the employer, employees and the government. As noted in the comments 
there is a wide variation in injury/illness rates among establishments 
classified in these industries. Further, as a whole, these industries 
continue to have injury and illness rates that are generally higher 
than the private sector average and will thus benefit from the 
information that OSHA-mandated records can provide about safety and 
health conditions in the workplace. In 1998, the lost workday injury 
and illness rate for the entire private sector was 3.1. As can be seen 
in the following table of lost workday injury and illness rates by 
industry division, all of the covered divisions exceeded 75% of the 
national average LWDI rate (2.325) for the private sector as a whole, 
while the exempted industry divisions had substantially lower rates.

------------------------------------------------------------------------
                                                              1998 lost
                                                               workday
                      Industry sector                         injury and
                                                               illness
                                                                 rate
------------------------------------------------------------------------
Agriculture, forestry and fishing (SIC 01-09)..............          3.9
Mining (SIC 10-14).........................................          2.9
Construction (SIC 15-17)...................................          4.0
Manufacturing (SIC 20-39)..................................          4.7

[[Page 5944]]


Transportation, communications, electric, gas and sanitary           4.3
 services (SIC 40-49)......................................
Wholesale trade (SIC 50 & 51)..............................          3.3
Retail trade (SIC 52-59)...................................          2.7
Finance, Insurance & Real Estate (SIC 60-67)...............          0.7
Services (SIC 70-87).......................................         2.4
------------------------------------------------------------------------
 (U.S. Department of Labor Press Release USDL 98-494, December 16, 1999)

    The problems that may be encountered by exempting additional 
industries are exemplified by an analysis of the petrochemical industry 
and the manufacturers of chemicals and petroleum products, classified 
in SICs 28 and 29. If the industry exemption were applied to these 
industries, injury and illness records would not be required for highly 
specialized plants that make industrial inorganic chemicals, plastics 
materials and synthetic resins, pharmaceuticals, industrial organic 
chemicals, and petroleum refineries. These industries have relatively 
low occupational injury and illness rates, but they are not truly low-
hazard industries. All of these facilities make, use and handle highly 
toxic chemicals and consequently have the potential for both acute 
overexposure and chronic exposures of their employees to these 
substances. These industries, for example, are the industries to which 
OSHA health standards, such as the benzene, ethylene oxide, and 
methylene chloride standards, apply. Because occupational illnesses, 
particularly chronic illnesses, are notoriously underreported (see, 
e.g., Exs. 15: 407, 4, 5), the LWDI rates for these industries do not 
accurately reflect the level of hazard present in these facilities. In 
addition, these types of facilities are prone to major safety and 
health problems, including explosions, toxic releases and other events 
that often lead to fatalities and serious injuries. The safety and 
health problems of these facilities are not limited to workers, but 
extend to hazards posed to the general public. In addition, OSHA 
frequently inspects these facilities because of their potential for 
catastrophic releases, fires, and explosions, and the Part 1904 injury 
and illness records have been extremely useful for this purpose.
    The Agency finds that continuing, and improving on, the Agency's 
longstanding approach of partially exempting those industries in SIC 
codes 52-89 that have DART rates, based on 3 years of BLS data, below 
75% of the private-sector average strikes the appropriate balance 
between the need for injury and illness information on the one hand, 
and the paperwork burdens created by recording obligations, on the 
other. The BLS Annual Survey will, of course, continue to provide 
national job-related statistics for all industries and all sizes of 
businesses. As it has done in the past, the BLS will sample employers 
in the partially exempt industries and ask each sampled employer to 
keep OSHA records for one year. In the following year, BLS will collect 
the records to generate estimates of occupational injury and illness 
for firms in the partially exempt industries and size classes, and 
combine those data with data for other industries to generate estimates 
for the entire U.S. private sector. These procedures ensure the 
integrity of the national statistics on occupational safety and health.
    The list of partially exempted industry sectors in this rule is 
based on the current (1987) revision of the SIC manual. The Office of 
Management and Budget (OMB) is charged with maintaining and revising 
the system of industrial classification that will replace the SIC. The 
new system is used by U.S. statistical agencies (including the BLS). 
Under the direction of OMB, the U.S. government has adopted a new, 
comprehensive system of industrial classification that will replace the 
SIC. The new system is called the North American Industrial 
Classification System (NAICS). NAICS will harmonize the U.S. 
classification system with those of Canada and Mexico and make it 
easier to compare various economic and labor statistics among the three 
countries. Several commenters expressed concern about this change in 
industrial classification systems (see, e.g., Exs. 15: 70, 182, 183, 
379). For example, the American Society of Safety Engineers (ASSE) 
stated:

    The Society is concerned with the recent Office of Management 
Budget (OMB), proposal to change the Economic Classification Policy 
from the Standard Industrial Classification System to the North 
American Industry Classification System. We recommend that OSHA 
study what the effect would be of promulgating a new regulation 
partially based on SIC codes when these codes could be potentially 
replaced/revised with a new classification system (Ex. 15: 182).

    Although the NAIC industry classification system has been formally 
adopted by the United States, the individual U.S. statistical agencies 
(including the BLS) are still converting their statistical systems to 
reflect the new codes and have not begun to publish statistics using 
the new industry classifications. The new system will be phased into 
the nation's various statistical systems over the next several years. 
The BLS does not expect to publish the first occupational injury and 
illness rates under the new system until the reference year 2003. Given 
the lag time between the end of the year and the publication of the 
statistics, data for a full three-year period will not be available 
before December of 2006.
    Because data to revise the Part 1904 industry exemption based on 
the NAIC system will not be available for another five years, OSHA has 
decided to update the industry exemption list now based on the most 
recent SIC-based information available from BLS for the years 1996, 
1997 and 1998. OSHA will conduct a future rulemaking to update the 
industry classifications to the NAIC system when BLS publishes injury 
and illness data that can be used to make appropriate industry-by-
industry decisions.
    The proposal inquired whether OSHA should adopt a procedure for 
adjusting the industry exemption lists as the injury and illness rates 
of various industries change over time. A number of commenters urged 
OSHA to update the exemption list periodically (see, e.g., Exs. 15: 27, 
87, 170, 181, 199, 272, 280, 359, 374, 375, 392, 407). Some commenters 
suggested various time periods, such as annually (Ex. 15: 374), every 3 
years (see, e.g., Exs. 15: 87, 181, 199, 407), every 5 years (see, 
e.g., Exs. 15: 170, 181, 262, 272, 359, 375), or every 5 to 10 years 
(Ex. 15: 392). Southwestern Bell Telephone suggested that the list 
should be modified whenever changes in the injury and illness rates 
warrant a change (Ex. 15: 27). In the opinion of the National Safety 
Council, ``How often the SIC exemption should be updated depends on how 
well and how quickly OSHA can communicate changes in the exempt 
industry list to those affected. The Council recommends updating the 
list every 3 to 5 years'' (Ex. 15: 280).
    Several commenters, however, opposed frequent updating of the SIC 
exemption list. For example, the Orlando Safety and Health Customer 
Council stated: ``Changes to SIC exemptions should be limited to a 
minimum of every 5 years. This would reduce confusion'' (Ex. 15: 97). 
The National Institute for Occupational Safety and Health (NIOSH) 
generally opposed industry exemptions but recommended that, if they 
were continued, they be updated as follows:
    If OSHA continues to provide this exemption for low injury rate 
SICs, NIOSH


[[Page 5945]]


recommends that the list of partially exempt SICs be placed in an 
Appendix. Because the injury and illness experience of an industry 
can change over time (e.g., SIC 58 and SIC 84 had injury rates at or 
below 75% of the private sector average in 1983, but above 75% of 
the private sector average in 1990 and 1992), OSHA should 
periodically review and modify the list of partially exempt 
industries. NIOSH recommends that the criteria for partial 
exemptions be placed in the regulatory text, while placing the list 
of partially exempt industries in an Appendix as noted so that the 
list could be updated periodically by administrative means rather 
than by changing the regulation. In addition to the partial 
exemption criteria, the regulatory text should specify the interval 
(in years) for reviewing and revising the list of those industries 
that qualify. NIOSH recommends an interval of 3 years for the review 
and revision process (Ex. 15: 407).

    OSHA agrees with those commenters who favored regular updating of 
the SIC code exemption list. For the list to focus Agency resources 
most effectively on the most hazardous industries, it must be up-to-
date. Industries that are successful in lowering their rates to levels 
below the exemption threshold should be exempted, while those whose 
rates rise sufficiently to exceed the criterion should receive 
additional attention. Unfortunately, the change in industry coding 
systems from the Standard Industrial Classification (SIC) system to the 
North American Industry Classification (NAIC) system will require a 
future rulemaking to shift to that system. Therefore, there is no value 
in adding an updating mechanism at this time. The automatic updating 
issue will be addressed in the same future rulemaking that addresses 
the NAIC system conversion.
Partial Exemptions for Employers Under the Jurisdiction of OSHA-
Approved State Occupational Safety and Health Plans
    Robert L. Rowan, Jr. expressed a concern that the OSHA State-Plan 
States could have differing industry exemptions from those applying to 
federal OSHA states, commenting:

    In regard to the note in OSHA's Coverage and Exemption Table 
that ``some states with their own occupational safety and health 
programs do not recognize the federal record keeping exemptions''. I 
am deeply concerned. I would prefer that all jurisdictions enforce 
the same requirements. This will be confusing and create needless 
problems for businesses with sites in numerous states if 
requirements are not enforced equally (Ex. 15: 62).

    For those States with OSHA-approved State plans, the state is 
generally required to adopt Federal OSHA rules, or a State rule that is 
at least as effective as the Federal OSHA rule. States with approved 
plans do not need to exempt employers from recordkeeping, either by 
employer size or by industry classification, as the final Federal OSHA 
rule does, although they may choose to do so. For example, States with 
approved plans may require records from a wider universe of employers 
than Federal OSHA does. These States cannot exempt more industries or 
employers than Federal OSHA does, however, because doing so would 
result in a State rule that is not as effective as the Federal rule. A 
larger discussion of the effect on the State plans can be found in 
Section VIII of this preamble, State Plans.
Recordkeeping Under the Requirements of Other Federal Agencies
    Section 1904.3 of the final rule provides guidance for employers 
who are subject to the occupational injury and illness recording and 
reporting requirements of other Federal agencies. Several other Federal 
agencies have similar requirements, such as the Mine Safety and Health 
Administration (MSHA), the Department of Energy (DOE), and the Federal 
Railroad Administration (FRA). The final rule at section 1904.3 tells 
the employer that OSHA will accept these records in place of the 
employer's Part 1904 records under two circumstances: (1) if OSHA has 
entered into a memorandum of understanding (MOU) with that agency that 
specifically accepts the other agency's records, the employer may use 
them in place of the OSHA records, or (2) if the other agency's records 
include the same information required by Part 1904, OSHA would consider 
them an acceptable substitute.
    OSHA received very few comments on the issue of duplicate 
recordkeeping under different agency rules. The Fertilizer Institute 
(TFI) recommended that OSHA make the data mandated by OSHA and MSHA 
more consistent (Ex. 15:154). However, MSHA and OSHA have different 
recordkeeping requirements because the agencies' mandate and uses of 
the data differ. The approach OSHA takes in the final rule, which is to 
continue to accept data kept by employers under other Federal 
requirements if the two federal agencies have made an agreement to do 
so, or if the data are equivalent to the data required to be kept by 
Part 1904, appears to be the best way to handle the problem raised by 
the TFI.

Subpart C. Recordkeeping Forms and Recording Criteria

    Subpart C of the final rule sets out the requirements of the rule 
for recording cases in the recordkeeping system. It contains provisions 
directing employers to keep records of the recordable occupational 
injuries and illnesses experienced by their employees, describes the 
forms the employer must use, and establishes the criteria that 
employers must follow to determine which work-related injury and 
illness cases must be entered onto the forms. Subpart C contains 
sections 1904.4 through 1904.29.
    Section 1904.4 provides an overview of the requirements in Subpart 
C and contains a flowchart describing the recording process. How 
employers are to determine whether a given injury or illness is work-
related is set out in section 1904.5. Section 1904.6 provides the 
requirements employers must follow to determine whether or not a work-
related injury or illness is a new case or the continuation of a 
previously recorded injury or illness. Sections 1904.7 through 1904.12 
contain the recording criteria for determining which new work-related 
injuries and illnesses must be recorded on the OSHA forms. Section 
1904.29 explains which forms must be used and indicates the 
circumstances under which the employer may use substitute forms.

Section 1904.4 Recording Criteria

    Section 1904.4 of the final rule contains provisions mandating the 
recording of work-related injuries and illnesses that must be entered 
on the OSHA 300 (Log) and 301 (Incident Report) forms. It sets out the 
recording requirements that employers are required to follow in 
recording cases.
    Paragraph 1904.4(a) of the final rule mandates that each employer 
who is required by OSHA to keep records must record each fatality, 
injury or illness that is work-related, is a new case and not a 
continuation of an old case, and meets one or more of the general 
recording criteria in section 1904.7 or the additional criteria for 
specific cases found in sections 1904.8 through 1904.12. Paragraph (b) 
contains provisions implementing this basic requirement.
    Paragraph 1904.4(b)(1) contains a table that points employers and 
their recordkeepers to the various sections of the rule that determine 
which work-related injuries and illnesses are to be recorded. These 
sections lay out the requirements for determining whether an injury or 
illness is work-related, if it is a new case, and if it meets one or 
more of the general recording criteria. In addition, the table contains 
a row addressing the application of these and additional criteria to 
specific kinds of cases (needlestick and sharps injury cases, 
tuberculosis cases, hearing loss

[[Page 5946]]

cases, medical removal cases, and musculoskeletal disorder cases). The 
table in paragraph 1904.4(b)(1) is intended to guide employers through 
the recording process and to act as a table of contents to the sections 
of Subpart C.
    Paragraph (b)(2) is a decision tree, or flowchart, that shows the 
steps involved in determining whether or not a particular injury or 
illness case must be recorded on the OSHA forms. It essentially 
reflects the same information as is in the table in paragraph 
1904.4(b)(1), except that it presents this information graphically.
    The former rule had no tables or flowcharts that served this 
purpose. However, the former Recordkeeping Guidelines (Ex. 2) contained 
several flowcharts to help employers make decisions and understand the 
overall recording process. The proposed rule included a flowchart as 
Appendix C to Part 1904--Decision Tree for Recording Occupational 
Injuries and Illnesses. OSHA received very few comments in response to 
proposed Appendix C, and no commenters objected to the decision tree 
concept. The commenters who discussed the decision tree supported it, 
and many suggested that it should be incorporated into the computer 
software OSHA develops to assist employers with keeping the records 
(see, e.g., Exs. 51, 15: 38, 67, 335, 407, 438).
    In the final rule, OSHA has decided to include the flowchart 
because of its usefulness in depicting the overall recording process. 
OSHA has not labeled the flowchart non-mandatory, as some commenters 
(see, e.g., Ex. 15: 335) suggested, because the recording of injuries 
and illnesses is a mandatory requirement and labeling the flowchart as 
non-mandatory could be confusing.

Section 1904.5 Determination of Work-Relatedness

    This section of the final rule sets out the requirements employers 
must follow in determining whether a given injury or illness is work-
related. Paragraph 1904.5(a) states that an injury or illness must be 
considered work-related if an event or exposure in the work environment 
caused or contributed to the injury or illness or significantly 
aggravated a pre-existing injury or illness. It stipulates that, for 
OSHA recordkeeping purposes, work relationship is presumed for such 
injuries and illnesses unless an exception listed in paragraph 
1904.5(b)(2) specifically applies.
    Implementation requirements are set forth in paragraph (b) of the 
final rule. Paragraph (b)(1) defines ``work environment'' for 
recordkeeping purposes and makes clear that the work environment 
includes the physical locations where employees are working as well as 
the equipment and materials used by the employee to perform work.
    Paragraph (b)(2) lists the exceptions to the presumption of work-
relatedness permitted by the final rule; cases meeting the conditions 
of any of the listed exceptions are not considered work-related and are 
therefore not recordable in the OSHA recordkeeping system.
    This section of the preamble first explains OSHA's reasoning on the 
issue of work relationship, then discusses the exceptions to the 
general presumption and the comments received on the exceptions 
proposed, and then presents OSHA's rationale for including paragraphs 
(b)(3) through (b)(7) of the final rule, and the record evidence 
pertaining to each.
    Section 8(c)(2) of the OSH Act directs the Secretary to issue 
regulations requiring employers to record ``work-related'' injuries and 
illnesses. It is implicit in this wording that there must be a causal 
connection between the employment and the injury or illness before the 
case is recordable. For most types of industrial accidents involving 
traumatic injuries, such as amputations, fractures, burns and 
electrocutions, a causal connection is easily determined because the 
injury arises from forces, equipment, activities, or conditions 
inherent in the employment environment. Thus, there is general 
agreement that when an employee is struck by or caught in moving 
machinery, or is crushed in a construction cave-in, the case is work-
related. It is also accepted that a variety of illnesses are associated 
with exposure to toxic substances, such as lead and cadmium, used in 
industrial processes. Accordingly, there is little question that cases 
of lead or cadmium poisoning are work-related if the employee is 
exposed to these substances at work.
    On the other hand, a number of injuries and illnesses that occur, 
or manifest themselves, at work are caused by a combination of 
occupational factors, such as performing job-related bending and 
lifting motions, and factors personal to the employee, such as the 
effects of a pre-existing medical condition. In many such cases, it is 
likely that occupational factors have played a tangible role in causing 
the injury or illness, but one that cannot be readily quantified as 
``significant'' or ``predominant'' in comparison with the personal 
factors involved.
    Injuries and illnesses also occur at work that do not have a clear 
connection to a specific work activity, condition, or substance that is 
peculiar to the employment environment. For example, an employee may 
trip for no apparent reason while walking across a level factory floor; 
be sexually assaulted by a co-worker; or be injured accidentally as a 
result of an act of violence perpetrated by one co-worker against a 
third party. In these and similar cases, the employee's job-related 
tasks or exposures did not create or contribute to the risk that such 
an injury would occur. Instead, a causal connection is established by 
the fact that the injury would not have occurred but for the conditions 
and obligations of employment that placed the employee in the position 
in which he or she was injured or made ill.
    The theory of causation OSHA should require employers to use in 
determining the work-relationship of injuries and illnesses was perhaps 
the most important issue raised in this rulemaking. Put simply, the 
issue is essentially whether OSHA should view cases as being work-
related under a ``geographic'' or ``positional'' theory of causation, 
or should adopt a more restrictive test requiring that the occupational 
cause be quantified as ``predominant,'' or ``significant,'' or that the 
injury or illness result from activities uniquely occupational in 
nature. This issue generated substantial comment during this 
rulemaking, and the Agency's evaluation of the various alternative 
tests, and its decision to continue its historic test, are discussed 
below.

    The final rule's test for work-relationship and its similarity 
to the former and proposed rules.--The final rule requires that 
employers consider an injury or illness to be ``work-related'' if an 
event or exposure in the work environment either caused or 
contributed to the resulting condition or significantly aggravated a 
pre-existing injury or illness. Work relatedness is presumed for 
injuries and illnesses resulting from events or exposures occurring 
in the work environment, unless an exception in Sec. 1904.5(b)(2) 
specifically applies.

Under paragraph 1904.5(b)(1), the ``work environment'' means ``the 
establishment and other locations where one or more employees are 
working or are present as a condition of their employment. The work 
environment includes not only physical locations, but also equipment or 
materials used by the employee during the course of his or her work.''
    The final rule's definition of work-relationship is essentially the 
same as that in both the former and proposed rules except for the final 
rule's requirement that the work event or exposure ``significantly'' 
aggravate a

[[Page 5947]]

pre-existing injury or illness. The Guidelines interpreting the former 
rule stated that

    Work-relationship is established under the OSHA recordkeeping 
system when the injury or illness results from an event or exposure 
in the work environment. The work environment is primarily composed 
of: (1) The employer's premises, and (2) other locations where 
employees are engaged in work-related activities or are present as a 
condition of their employment. (Ex. 2 at p. 32).

    The proposed rule also contained a similar definition of ``work-
related'' and ``work environment.'' The only significant difference 
between the proposed and the final rule definitions is that the 
proposed rule also would not have required a ``significant'' 
aggravation of a pre-existing condition before it became recordable; 
under the proposal, any aggravation would have been sufficient (see 61 
FR 4059).
The Alternative Tests for Work-Relationship
    Although OSHA proposed to continue its existing definition of work-
relationship, it sought comment on the following three alternative 
tests:
    1. Exclude cases with any evidence of non-work etiology. Only cases 
where the work event or exposure was the sole causative factor would be 
recorded;
    2. Record only cases where work was the predominant causative 
factor;
    3. Record all cases where the work event or exposure had any 
possibility of contributing to the case (emphasis added). (61 FR 4045)
Comments on the ``Quantified Occupational Cause'' Test
    The first two alternative tests described in the proposal would 
have required the employer to quantify the contribution of occupational 
factors as compared to that of personal factors. These tests are 
referred to in the Legal Authority section, and in this preamble, as 
the ``quantified occupational cause'' tests. Of these tests, 
Alternative 2--record only injuries and illnesses predominantly caused 
by occupational factors--received the most comment. Typical of these 
comments were those of the Dow Chemical Company, which expressed the 
view of many in industry that ``[a] system that labels an injury or 
illness attributable to the workplace even though the workplace 
contribution may be insignificant does not lead to an effective, 
credible or accurate program'' (Ex. 15: 335). Other commenters stated 
that recording only those cases where work was the predominant cause 
would improve the system by focusing attention on cases that are 
amenable to employer abatement (see, e.g., Exs. 22, 15: 13, 27, 34, 38, 
52, 60, 69, 71, 72, 82, 97, 102, 108, 109, 122, 136, 137, 141, 146, 
147, 149, 152, 154, 159, 163, 169, 171, 174, 176, 181, 197, 198, 199, 
200, 201, 214, 218, 224, 230, 231, 238, 239, 260, 262, 265, 266, 272, 
273, 277, 278, 287, 288, 290, 297, 301, 302, 303, 307, 313, 317, 318, 
330, 335, 346, 352, 353, 370, 375, 382, 378, 383, 384, 386, 388, 396, 
401, 402, 404, 405, 425, 426, 430).
    Some commenters (see, e.g., Exs. 15: 185, 199, 205, 332, 338, 349, 
354, 358, 375, 421, 440) offered a slight modification on Alternative 
2. They suggested that using a term other than predominant, such as 
``substantial'' or ``significant,'' would avoid the need to define 
``predominant'' as a percentage. For example, United Technologies (Ex. 
15: 440) opposed ``placing a percentage on the degree of contribution'' 
because doing so would not be practical. Further, according to this 
commenter, ``work relationship should be established in cases where the 
workplace contributed substantially to the injury or illness, as 
determined by an occupational physician.'' Arguing along the same 
lines, the American Petroleum Institute (API) (Ex. 15: 375) stated that 
it supported ``in principle the work-relatedness concept presented by 
OSHA as Alternative 2, but feels ``predominant'' might be too difficult 
to administer as a fundamental criterion. API proposes that work-
relatedness should exist when an event or exposure in the workplace is 
a significant factor resulting in an injury or illness. * * *'' 
Organization Resource Counselors, Inc. (Ex. 15: 358) added: ``[T]he 
Congressional intent in drafting these sections was to require the 
collection of work-related information about significant work-related 
injuries and illnesses.'' The General Electric Company (Ex. 15: 349) 
said that ``OSHA needs to allow the facility the flexibility to record 
only those cases that are ``more likely than not'' related to workplace 
exposure or tasks. This determination can be made during the incident 
investigation. A good test of work-relatedness is whether the injury 
would have been prevented by full compliance with the applicable OSHA 
standard.''
    Proposed Alternative 1, which would have required the recording 
only of cases where work was the sole cause, was also supported by a 
large number of commenters (see, e.g., Exs. 15: 9, 39, 87, 95, 119, 
123, 145, 151, 152, 179, 180, 183, 185, 204, 205, 225, 229, 234, 242, 
259, 263, 269, 270, 304, 341, 363, 377, 389, 393, 414, 433, 443). 
Typical of this view was the comment of the American Health Care 
Association (Ex. 15: 341):

    If OSHA's primary concern is to address those workplace hazards 
or risks that cause or may cause employee injury/illness then the 
agency should confine recordability to those injuries and illnesses 
that are directly caused by a workplace event or exposure. This 
approach, in turn, will focus the employer's attention on those 
unsafe workplace conditions that need to be corrected to protect all 
workers exposed to or at risk from the unsafe conditions.

    The National Federation of Independent Business (Ex. 15: 304) 
supported Alternative 1 ``because under such a system evidence of non-
work-related factors is excluded thus the decision-making process is 
dramatically simplified and the tally is very credible.'' The Painting 
and Decorator Contractors of America (Ex. 15: 433) added: ``[T]his 
approach is also consistent with OSHA's intent (and the Congressional 
mandate in the Paperwork Reduction Act of 1995) to reduce compliance 
burdens as this would be the simplest method for employers to apply.''
Comments on the ``Unique Occupational Activities'' Test
    Some commenters favored a closely related test for work 
relationship that would place primary emphasis on the nature of the 
activity that the employee was engaged in when injured or made ill. 
This test is referred to the Legal Authority section and in this 
preamble section as the ``unique occupational activities'' test. Its 
supporters argued that whether an injury or illness occurs or manifests 
itself at work is less important than whether or not the harm has been 
caused by activities or processes peculiar to the workplace. The AISI 
argued that:

    [I]t is clear that Congress intended OSHA's authority to 
regulate to be limited to ``occupational hazards'' and conceived of 
such hazards as ``processes and materials'' peculiar to the 
workplace. * * * Congress did not give OSHA the authority to 
regulate hazards if they ``grow out of economic and social factors 
which operate primarily outside the workplace. The employer neither 
controls nor creates these factors as he controls or creates work 
processes and materials.'' Congress was concerned with dangerous 
conditions peculiar to the workplace; it did not have in mind the 
recording of illnesses simply because they appear at work (internal 
citations omitted) (Ex. 15: 395).

    Dow Chemical made a similar point in arguing that the criteria for 
determining work-relationship should include whether the activity the 
employee was engaged in at the time of the injury or onset of illness 
was for the direct benefit of the employer or was a required part of 
the job (Ex. 15: 335B).

[[Page 5948]]

According to Dow, the activity-based test would be more accurate than 
the geographic presumption (OSHA's historic test) because it would omit 
injuries due to hazards beyond the employer's control:

    Examples to illustrate this point include the employee who 
during his break attempts to remove a plastic insert in a condiment 
container with a knife and ends up cutting himself which requires 
three stitches. This activity, while it happened on company grounds, 
was not for the direct benefit of the company nor a requirement of 
his job, and there was no way for the employer to prevent it (Ex. 
15: 335B).

Comments on OSHA's Historical Test
    A significant number of commenters supported OSHA's long-standing 
test in which work factors must be a cause, but not necessarily a 
``significant'' or ``predominant'' cause, and a geographic presumption 
applies if ``events or exposures'' in the work environment either 
caused or contributed to the resulting condition, or aggravated a pre-
existing condition (see, e.g., Exs. 15: 74, 153, 362, 369, 394, 407, 
418, 429). For example, NIOSH (Ex. 15: 407) favored this approach 
because ``[o]verreported cases can be identified and accounted for in 
data analysis, in contrast to the other alternatives which stress 
specificity at the expense of sensitivity and would result in 
unreported cases.'' The AFL-CIO argued that:

    * * * [c]apturing all workplace illnesses and injuries, even 
those for which the predominant cause cannot be proven to be work-
related, can lead to early recognition of problems and abatement of 
hazardous conditions. Our experience has shown us that when 
comprehensive records of all possible cases are kept, patterns of 
injury and illness emerge, enabling us to target problem areas/
factors that previously may not have been associated with that 
specific work environment. The inclusion of all cases will lead to 
prevention strategies that can reduce the risk of serious illness 
and injury to workers. Inclusion of all cases that have a workplace 
link will also assist in the recognition of diseases that are caused 
by synergistic effects. (Ex. 15: 418)

    The American Industrial Hygiene Association (AIHA) argued that 
continuing OSHA's historic approach to work-relationship is 
particularly important in the case of occupational illnesses because:

    Occupational illnesses differ from injuries in that minor or 
early symptoms of illness are often an important indicator of a more 
serious disease state, while a minor injury usually goes away 
without further developments. By the time serious disabling symptoms 
have surfaced. a disease may be very far progressed and 
irreversible. Training courses such as Hazard Communication are 
geared toward educating the workforce to recognize and report 
symptoms of overexposure, presumably for disease prevention. AIHA 
does not want this information to be de-emphasized or lost (Ex. 15: 
153).

Comments on the ``Mere Possibility'' Test
    Alternative 3 described in the proposal would have required that an 
injury or illness be considered work related ``if the worker ever 
experienced a workplace event or exposure that had any possibility of 
playing a role in the case.'' This ``mere possibility'' test is 
substantially different than OSHA's historical definition of work-
relationship, which required that the injury or illness have a tangible 
connection with the work environment. Although some commenters 
supported Alternative 3, apparently on the assumption that it was in 
fact OSHA's proposed definition, analysis of these comments suggests 
that the parties involved recognized that an injury must have a real, 
not merely theoretical, link to work to be work-related. No commenter 
suggested a rationale for recording cases having only a theoretical or 
speculative link to work.
OSHA's Reasons for Rejecting the Alternative Tests for Work-
Relationship
    OSHA has given careful consideration to all of the comments and 
testimony received in this rulemaking and has decided to continue to 
rely in the final rule on the Agency's longstanding definition of work-
relationship, with one modification. That modification is the addition 
of the word ``significantly'' before ``aggravation'' in the definition 
of work-relatedness set forth in final rule section 1904.5. The 
relevant portion of the section now states ``an injury or illness is to 
be considered work-related if an event or exposure in the work 
environment either caused or contributed to the injury or illness or 
significantly aggravated a pre-existing injury or illness'' (emphasis 
added).
    In the final rule, OSHA has restated the presumption of work-
relationship to clarify that it includes any non-minor injury or 
illness occurring as a result of an event or exposure in the work 
environment, unless an exception in paragraph 1904.5(b)(2) specifically 
applies. OSHA believes that the final rule's approach of relying on the 
geographic presumption, with a limited number of exceptions, is more 
appropriate than the alternative approaches, for the following reasons.
The Geographic Presumption Is Supported by the Statute
    One important distinction between the geographic test for causation 
and the alternative causation tests is that the geographic test treats 
a case as work-related if it results in whole or in part from an event 
or exposure occurring in the work environment, while the alternative 
tests would only cover cases in which the employer can determine the 
degree to which work factors played a causal role. Reliance on the 
geographic presumption thus covers cases in which an event in the work 
environment is believed likely to be a causal factor in an injury or 
illness but the effect of work cannot be quantified. It also covers 
cases in which the injury or illness is not caused by uniquely 
occupational activities or processes. These cases may arise, for 
example, when: (a) an accident at work results in an injury, but the 
cause of the accident cannot be determined; (b) an injury or illness 
results from an event that occurs at work but is not caused by an 
activity peculiar to work, such as a random assault or an instance of 
horseplay; (c) an injury or illness results from a number of factors, 
including both occupational and personal causes, and the relative 
contribution of the occupational factor cannot be readily measured; or 
(d) a pre-existing injury or illness is significantly aggravated by an 
event or exposure at work.
    As discussed in the Legal Authority section, the statute's language 
and the Legislative History support a definition of work-relationship 
that encompasses all injuries and illnesses resulting from harmful 
events and exposures in the work environment, not only those caused by 
uniquely occupational activities or processes. A number of commenters 
acknowledged the broad purposes served by OSHA's recordkeeping 
requirements and urged continued reliance on the former rule's 
definition of ``work-related'' (see, e.g., Exs. 15: 65, 198, 350, 369, 
418). For example, the AFL-CIO noted, ``[o]ur experience has shown us 
that when comprehensive records of all possible cases are kept, 
patterns of injury and illness emerge, enabling us to target problem 
areas/factors that previously may not have been associated with that 
specific work environment'' (Ex. 15: 418) (emphasis added).
    On the other hand, those commenters favoring the ``quantified 
occupational cause'' test or the ``unique occupational activity'' test 
maintained that injury and illness records have more limited functions. 
Some commenters argued that because OSHA's mission is to

[[Page 5949]]

eliminate preventable occupational injuries and illnesses, the 
determination of work-relationship must turn on whether the case could 
have been prevented by the employer's safety and health program. The 
Dow Chemical Company expressed this view as follows:

    [T]he goal of this recordkeeping system should be to accurately 
measure the effectiveness of safety and health programs in the 
workplace. Activities where safety and health programs could have no 
impact on preventing or mitigating the condition should not be 
logged and included in the Log and Summary nor used by OSHA to 
determine its inspection schedule. If the event was caused by 
something beyond the employer's control it should not be considered 
a recordable event that calls into question a facility's safety and 
health program.
    . . . Credibility in this regulation rests on whether the 
recorded data accurately reflects the safety and health of the 
workplace. Including events where the workplace had virtually no 
involvement undermines the credibility of the system and results in 
continued resistance to this regulation (Ex. 15: 335B).

    The law firm of Constangy, Brooks and Smith, LLC, urged OSHA to 
adopt the proposal's second alternative (``predominant cause'') because 
cases that are ``predominantly caused by workplace conditions'' are the 
ones most likely to be preventable by workplace controls. Their comment 
stated, ``[s]ince OSHA's ultimate mission is the prevention of 
workplace injuries and illnesses, it is reasonably necessary to require 
recording only when the injury or illness can be prevented by the 
employer'' (Ex. 15-345). Other commenters opposed the recording of 
cases in which the injury or illness arises while the employee is on 
break, in the rest room, or in storage areas located on the employer's 
premises. These commenters claimed that use of the geographic 
presumption results in recording many injuries and illnesses that have 
little or no relationship to the work environment (see, e.g., Exs. 15: 
231, 423, 424G).
    OSHA believes that the views of Dow Chemical and others in support 
of the proposal's alternative tests for work-relationship reflect too 
narrow a reading of the purposes served by the OSHA injury and illness 
records. Certainly, one important purpose for recordkeeping 
requirements is to enable employers, employees, and OSHA to identify 
hazards that can be prevented by compliance with existing standards or 
recognized safety practices. However, the records serve other purposes 
as well, including providing information for future scientific research 
on the nature of causal connections between the work environment and 
the injuries and illnesses sustained by employees. For example, the 
records kept by employers under Part 1904 produced useful data on 
workplace assaults and murders, which has permitted OSHA, employers, 
and others to focus on the issue of violence in the workplace. This has 
led, in turn, to efforts to reduce the number of such cases by 
implementing preventive measures. Although this issue was not 
anticipated by the 1904 system, the broad collection of injury, illness 
and fatality data allowed useful information to be extracted from the 
1904 data. As discussed in the Legal Authority section, these purposes 
militate in favor of a general presumption of work-relationship for 
injuries and illnesses that result from events or exposures occurring 
in the work environment, with exceptions for specific types of cases 
that may safely be excluded without significantly impairing the 
usefulness of the national job-related injury and illness database.
    At the same time, OSHA is sensitive to the concerns of some 
commenters that the injury and illness records are perceived as a 
measure of the effectiveness of the employer's compliance with the Act 
and OSHA standards. OSHA emphasizes that the recording of an injury or 
illness on the Log does not mean that a violation has occurred. The 
explanatory materials accompanying the revised OSHA Forms 300 and 301 
contain the following statement emphasizing this point: ``Cases listed 
on the Log of Work-Related Injuries and Illnesses are not necessarily 
eligible for Workers Compensation or other insurance benefits. Listing 
a case on the Log does not mean that the employer or worker was at 
fault or that an OSHA standard was violated.''
The Alternative Tests for Work-Relationship Will Likely Lead Both to 
Inconsistent Determinations and to Underreporting of Cases
    Under the first two alternative tests for work-relationship 
described in the proposal, the decision on work-relationship would 
depend upon the degree to which the injury or illness resulted from 
distinctly occupational causes. Whether labeled ``sole cause,'' 
``predominant cause,'' or ``significant cause,'' these alternative 
tests would require the employer, in each case, to distinguish between 
the occupational and non-occupational causal factors involved, and to 
weigh the contribution of the occupational factor or factors. Requiring 
the occupational cause to be quantified in this way creates practical 
problems militating against the use of these alternative tests in the 
final recordkeeping rule.
    The most serious problem is that there is no reliable, objective 
method of measuring the degree of contribution of occupational factors. 
The absence of a uniform methodology for assessing the extent of work 
contribution caused several industry commenters to endorse the former 
rule's position on work-relationship. For example, the American 
Automobile Manufacturers Association (AAMA) noted that an ideal system 
would focus on cases in which the work environment was a major 
contributor to the injury or illness. Nevertheless, the AAMA argued 
against adopting the predominant cause test, stating: ``until a system 
is developed in which employers can measure objectively and 
consistently whether or not the work environment is a major contributor 
to a workplace injury or illness, we favor continuing the definition of 
work-relationship as it currently exists'' (Ex. 15: 409). The Ford 
Motor Co. also argued in favor of continuing the existing definition:

    Ford feels that the work environment should be a major 
contributor to an injury or illness for the case to be considered 
work-related. However, we are unsure how employers can measure 
objectively, consistently and equally whether the work environment 
is a major contributor. The use of a checklist by a health care 
provider to determine whether the work environment was a major 
contributor for a case to be considered work-related would be overly 
burdensome and subjective. Until a system is developed by which 
employers can measure objectively, consistently and equally whether 
or not the work environment is a major contributor to a workplace 
injury or illness, we favor continuing the definition of work 
relationship as it currently exists (Ex. 15: 347).

    Based on a review of the record, OSHA agrees with those commenters 
who supported a continuation of the Agency's prior practice with regard 
to reliance on the geographic presumption for determinations of work-
relatedness. OSHA finds that this approach, which includes all cases 
with a tangible connection with work, better serves the purposes of 
recordkeeping. Accordingly, the final rule relies on the geographic 
presumption, with a few limited exceptions, as the recordkeeping 
system's test for work-relationship.
Who Makes the Determination?
    In addition to the definition of work-relatedness, commenters 
addressed the issue of who should make the determination of work-
relatedness in a given case (see, e.g., Exs. 15: 27, 35, 102, 105, 127, 
193, 221, 281, 305, 308, 324, 325, 341, 345, 347, 385, 387, 390, 392,

[[Page 5950]]

397, 420). Some commenters believed that a trained medical professional 
should make this determination, while others argued that the employer 
should make the ultimate decision about the work-relatedness of 
occupational injuries and illnesses. Some supported the use of the 
work-relatedness checklist for specific disorders included by OSHA in 
the proposal. For example, the American Public Health Association (Ex. 
15: 341) commented:

    We also believe that work-relatedness should only be established 
by the documented determination of a qualified health care provider 
with specific training related to the type of case reported. OSHA's 
checklist for determining work-relatedness. . . .should be used and 
expanded to include potentially recordable cases, i.e., excluding 
first aid treatment.

    The Dow Corning Corporation (Ex. 15: 374) argued that the employer 
should make the determination, albeit with the assistance of a health 
care professional:

    This assessment process should include interviews with 
knowledgeable people regarding the duties and hazards of the 
employee's job tasks in addition to the employee interview. If 
inaccurate or misleading information is given to the health care 
provider improper or inaccurate conclusions may be reached with 
regard to the incident cause. A health care provider's assessment of 
work-relationship is typically viewed as difficult to overcome, even 
if it is made with incomplete information. We recommend that the 
health care provider's checklist be used as only one input in the 
work-relationship decision and that the final decision should still 
rest with the employer.

    Deere and Company (Ex. 15: 253) opposed leaving the determination 
of work-relatedness to a health care professional:

    We strongly disagree with any provision that would allow a 
physician to make a final determination of work-relatedness. The 
only time a physician should have any input into the actual 
determination of work-relatedness is if they are knowledgeable of 
the employer's workplace environment and the specific job tasks 
performed by employees. Frequently, physicians will state that a 
condition was caused by an employee's job without having any 
knowledge of the specific tasks being performed by the employee. 
This is an unacceptable usurpation of employers' rights and we 
oppose any attempt to codify it in a federal regulation.

    However, several participants opposed making any work-relatedness 
checklist mandatory (such as the one OSHA proposed) (see, e.g., Exs. 
15: 68, 170, 201, 283, 434). The American Trucking Association's 
comment (Ex. 15: 397) was typical of this view:

    We do not, however, support a requirement that employers must 
use a mandatory checklist to determine work-relatedness. . . . 
Because the checklist asks for medical information, the employer 
would find itself in conflict with the confidentiality requirements 
imposed under the Americans With Disabilities Act. 29 C.F.R. 
Sec. 1630.14. Moreover, a mandatory checklist would be unnecessarily 
time-consuming and subjective. Finally, we note that inclusion of 
item 5(b), ``possible work contribution,'' biases the checklist in 
favor of work-relatedness. In the absence of a clear indication of 
whether or not the workplace caused or substantially caused the 
condition, asking a provider or employee if it were ``possible'' 
that the workplace contributed to or aggravated the injury/illness 
invites an affirmative response.

    OSHA has concluded that requiring employers to rely on a health 
care professional for the determination of the work-relatedness of 
occupational injuries and illnesses would be burdensome, impractical, 
and unnecessary. Small employers, in particular, would be burdened by 
such a provision. Further, if the professional is not familiar with the 
injured worker's job duties and work environment, he or she will not 
have sufficient information to make a decision about the work-
relatedness of the case. OSHA also does not agree that health care 
professional involvement is necessary in the overwhelming majority of 
cases. Employers have been making work-relatedness determinations for 
more than 20 years and have performed this responsibility well in that 
time. This does not mean that employers may not, if they choose, seek 
the advice of a physician or other licensed health care professional to 
help them understand the link between workplace factors and injuries 
and illnesses in particular cases; it simply means that OSHA does not 
believe that most employers will need to avail themselves of the 
services of such a professional in most cases.
    Accordingly, OSHA has concluded that the determination of work-
relatedness is best made by the employer, as it has been in the past. 
Employers are in the best position to obtain the information, both from 
the employee and the workplace, that is necessary to make this 
determination. Although expert advice may occasionally be sought by 
employers in particularly complex cases, the final rule provides that 
the determination of work-relatedness ultimately rests with the 
employer.
The Final Rule's Exceptions to the Geographic Presumption
    Paragraph 1904.5(b)(2) of the final rule contains eight exceptions 
to the work environment presumption that are intended to exclude from 
the recordkeeping system those injuries and illnesses that occur or 
manifest in the work environment, but have been identified by OSHA, 
based on its years of experience with recordkeeping, as cases that do 
not provide information useful to the identification of occupational 
injuries and illnesses and would thus tend to skew national injury and 
illness statistics. These eight exceptions are the only exceptions to 
the presumption permitted by the final rule.
    (i) Injuries or illnesses will not be considered work-related if, 
at the time of the injury or illness, the employee was present in the 
work environment as a member of the general public rather than as an 
employee. This exception, which is codified at paragraph 
1904.5(b)(2)(i), is based on the fact that no employment relationship 
is in place at the time an injury or illness of this type occurs. A 
case exemplifying this exception would occur if an employee of a retail 
store patronized that store as a customer on a non-work day and was 
injured in a fall. This exception allows the employer not to record 
cases that occur outside of the employment relationship when his or her 
establishment is also a public place and a worker happens to be using 
the facility as a member of the general public. In these situations, 
the injury or illness has nothing to do with the employee's work or the 
employee's status as an employee, and it would therefore be 
inappropriate for the recordkeeping system to capture the case. This 
exception was included in the proposal, and OSHA received no comments 
opposing its adoption.
    (ii) Injuries or illnesses will not be considered work-related if 
they involve symptoms that surface at work but result solely from a 
non-work-related event or exposure that occurs outside the work 
environment. OSHA's recordkeeping system is intended only to capture 
cases that are caused by conditions or exposures arising in the work 
environment. It is not designed to capture cases that have no 
relationship with the work environment. For this exception to apply, 
the work environment cannot have caused, contributed to, or 
significantly aggravated the injury or illness. This exception is 
consistent with the position followed by OSHA for many years and 
reiterated in the final rule: that any job-related contribution to the 
injury or illness makes the incident work-related, and its corollary--
that any injury or illness to which work makes no actual contribution 
is not work-related. An example of this type of injury would be a 
diabetic incident that occurs while an employee is working. Because no 
event or exposure at work contributed in any

[[Page 5951]]

way to the diabetic incident, the case is not recordable. This 
exception allows the employer to exclude cases where an employee's non-
work activities are the sole cause of the injury or illness. The 
exception was included in the proposal, and OSHA received no comments 
opposing its adoption.
    (iii) Injuries and illnesses will not be considered work-related if 
they result solely from voluntary participation in a wellness program 
or in a medical, fitness, or recreational activity such as blood 
donation, physical, flu shot, exercise classes, racquetball, or 
baseball. This exception allows the employer to exclude certain injury 
or illness cases that are related to personal medical care, physical 
fitness activities and voluntary blood donations. The key words here 
are ``solely'' and ``voluntary.'' The work environment cannot have 
contributed to the injury or illness in any way for this exception to 
apply, and participation in the wellness, fitness or recreational 
activities must be voluntary and not a condition of employment.
    This exception allows the employer to exclude cases that are 
related to personal matters of exercise, recreation, medical 
examinations or participation in blood donation programs when they are 
voluntary and are not being undertaken as a condition of work. For 
example, if a clerical worker was injured while performing aerobics in 
the company gymnasium during his or her lunch hour, the case would not 
be work-related. On the other hand, if an employee who was assigned to 
manage the gymnasium was injured while teaching an aerobics class, the 
injury would be work-related because the employee was working at the 
time of the injury and the activity was not voluntary. Similarly, if an 
employee suffered a severe reaction to a flu shot that was administered 
as part of a voluntary inoculation program, the case would not be 
considered work-related; however, if an employee suffered a reaction to 
medications administered to enable the employee to travel overseas on 
business, or the employee had an illness reaction to a medication 
administered to treat a work-related injury, the case would be 
considered work-related.
    This exception was included in the proposal, and received support 
from a number of commenters (see, e.g., Exs. 15: 147, 181, 188, 226, 
281, 304, 341, 345, 363, 348, 373). Other commenters supported this 
proposal but suggested consolidating it with the proposed exception for 
voluntary activities away from the employer's establishment (see, e.g., 
Exs. 15-176, 231, 248, 249, 250, 273, 301). OSHA has decided not to 
combine this exception with another exception because questions are 
often asked about injuries and illnesses that arise at the employer's 
establishment and the Agency believes that a separate exception 
addressing voluntary wellness programs and other activities will 
provide clearer direction to employers.
    (iv) Injuries and illnesses will not be considered work-related if 
they are solely the result of an employee eating, drinking, or 
preparing food or drink for personal consumption (whether bought on the 
premises or brought in). This exception responds to a situation that 
has given rise to many letters of interpretation and caused employer 
concern over the years. An example of the application of this exception 
would be a case where the employee injured himself or herself by 
choking on a sandwich brought from home but eaten in the employer's 
establishment; such a case would not be considered work-related under 
this exception. On the other hand, if the employee was injured by a 
trip or fall hazard present in the employer's lunchroom, the case would 
be considered work-related. In addition, a note to the exception makes 
clear that if an employee becomes ill as a result of ingesting food 
contaminated by workplace contaminants such as lead, or contracts food 
poisoning from food items provided by the employer, the case would be 
considered work-related. As a result, if an employee contracts food 
poisoning from a sandwich brought from home or purchased in the company 
cafeteria and must take time off to recover, the case is not considered 
work related. On the other hand, if an employee contracts food 
poisoning from a meal provided by the employer at a business meeting or 
company function and takes time off to recover, the case would be 
considered work related. Food provided or supplied by the employer does 
not include food purchased by the employee from the company cafeteria, 
but does include food purchased by the employer from the company 
cafeteria for business meetings or other company functions. OSHA 
believes that the number of cases to which this exception applies will 
be few. This exception was included in the proposal and received 
generally favorable comments (see, e.g., Exs. 15: 31, 78, 105, 159, 
176, 181, 184, 188, 345, 359, 428).
    (v) Injuries and illnesses will not be considered work-related if 
they are solely the result of employees doing personal tasks (unrelated 
to their employment) at the establishment outside of their assigned 
working hours. This exception, which responds to inquiries received 
over the years, allows employers limited flexibility to exclude from 
the recordkeeping system situations where the employee is using the 
employer's establishment for purely personal reasons during his or her 
off-shift time. For example, if an employee were using a meeting room 
at the employer's establishment outside of his or her assigned working 
hours to hold a meeting for a civic group to which he or she belonged, 
and slipped and fell in the hallway, the injury would not be considered 
work-related. On the other hand, if the employee were at the employer's 
establishment outside his or her assigned working hours to attend a 
company business meeting or a company training session, such a slip or 
fall would be work-related. OSHA also expects the number of cases 
affected by this exception to be small. The comments on this exception 
are discussed in more detail in the section concerning proposed 
Exception B-5, Personal Tasks Unrelated To Employment Outside of Normal 
Working Hours, found later in this document.
    (vi) Injuries and illnesses will not be considered work-related if 
they are solely the result of personal grooming, self-medication for a 
non-work-related condition, or are intentionally self-inflicted. This 
exception allows the employer to exclude from the Log cases related to 
personal hygiene, self-administered medications and intentional self-
inflicted injuries, such as attempted suicide. For example, a burn 
injury from a hair dryer used at work to dry the employee's hair would 
not be work-related. Similarly, a negative reaction to a medication 
brought from home to treat a non-work condition would not be considered 
a work-related illness, even though it first manifested at work. OSHA 
also expects that few cases will be affected by this exception.
    (vii) Injuries will not be considered work-related if they are 
caused by motor vehicle accidents occurring in company parking lots or 
on company access roads while employees are commuting to or from work. 
This exception allows the employer to exclude cases where an employee 
is injured in a motor vehicle accident while commuting from work to 
home or from home to work or while on a personal errand. For example, 
if an employee was injured in a car accident while arriving at work or 
while leaving the company's property at the end of the day, or while 
driving on his or her lunch hour to run an errand, the case would not 
be considered work-related. On the other hand, if an employee was 
injured in a car accident while leaving

[[Page 5952]]

the property to purchase supplies for the employer, the case would be 
work-related. This exception represents a change from the position 
taken under the former rule, which was that no injury or illness 
occurring in a company parking lot was considered work-related. As 
explained further below, OSHA has concluded, based on the evidence in 
the record, that some injuries and illnesses that occur in company 
parking lots are clearly caused by work conditions or activities--e.g., 
being struck by a car while painting parking space indicators on the 
pavement of the lot, slipping on ice permitted to accumulate in the lot 
by the employer--and by their nature point to conditions that could be 
corrected to improve workplace safety and health.
    (viii) Common colds and flu will not be considered work-related.
    Paragraph 1904.5(b)(2)(viii) allows the employer to exclude cases 
of common cold or flu, even if contracted while the employee was at 
work. However, in the case of other infectious diseases such as 
tuberculosis, brucellosis, and hepatitis C, employers must evaluate 
reports of such illnesses for work relationship, just as they would any 
other type of injury or illness.
    (ix) Mental illness will not be considered work-related unless the 
employee voluntarily provides the employer with an opinion from a 
physician or other licensed health care professional with appropriate 
training and experience (psychiatrist, psychologist, psychiatric nurse 
practitioner, etc.) stating that the employee has a mental illness that 
is work-related.
    Exception (ix) is an outgrowth of proposed Exception B-11--Mental 
illness, unless associated with post-traumatic stress. There were more 
than 70 comments that addressed the issue of mental illness 
recordkeeping. Two commenters suggested that OSHA postpone any decision 
on the issue: the National Safety Council (Ex. 15: 359) recommended 
further study, and the AFL-CIO (Ex. 15: 418) stated that the problem of 
mental illness in the workplace was so prevalent and so important that 
it should be handled in a separate rulemaking devoted to this issue.
    A few commenters, including NIOSH (Ex. 15: 407), the American 
Psychological Association (Ex. 15: 411), the AFL-CIO (Ex. 14: 418), the 
United Steelworkers of America (Ex. 15: 429), and the United 
Brotherhood of Carpenters Health and Safety Fund of North America (Ex. 
15: 350) argued that recording should not be limited to post-traumatic 
stress as OSHA had proposed but should instead include a broader range 
of mental disorders. The primary arguments of this group of comments 
were:
     Workers are afflicted with a number of mental disorders 
caused or exacerbated by work, and the statistics should include those 
disorders just as they include physical disorders;
     If the records include only post-traumatic stress as a 
mental disorder, many work-related cases of mental illness will go 
unreported (6,000 mental illness cases are reported to the BLS and 
involve days away from work, but less than 10% of these are post-
traumatic stress cases), and the statistics will be skewed and 
misinterpreted;
     Workers' compensation does not restrict compensable mental 
illnesses to post-traumatic stress cases;
     Employers are recording and reporting all mental disorders 
now and thus would not be burdened by continuing the practice.
    Arguments in support of treating mental illnesses no differently 
from any other injury or illness were made by the American 
Psychological Association (Ex. 15: 411):

    The American Psychological Association strongly opposes OSHA's 
proposal to consider a mental illness to be work related only if it 
is ``associated with post-traumatic stress.'' We feel that this 
proposal disregards an accumulating body of research showing the 
relationship between mental health/illness and workplace stressors. 
Mental illness associated with post traumatic stress is only one 
form of mental illness and use of this singular definition would 
exclude much of the mental illness affecting our nation's workforce.
    Job stress is perhaps the most pervasive occupational health 
problem in the workplace today. There are a number of emotional and 
behavioral results and manifestations of job stress, including 
depression and anxiety. These mental disorders have usually been 
captured under the ``mental illness'' category but would no longer 
be recognized if the proposed reporting guidelines were enacted.
    The 1985 National Health Interview Survey (Shilling & Brackbill, 
1987) indicated that approximately 11 million workers reported 
health-endangering levels of ``mental stress'' at work. A large and 
growing body of literature on occupational stress has identified 
certain job and organizational characteristics as having deleterious 
effects on the psychological and physical health of workers, 
including their mental health. These include high workload demands 
coupled with low job control, role ambiguity and conflict, lack of 
job security, poor relationships with coworkers and supervisors, and 
repetitive, narrow tasks (American Psychological Association, 1996). 
These include role stressors and demands in excess of control. More 
precise analyses reveal that specific occupations and job factors 
present particular risks. For example, machine-paced workers 
(involving limited worker control of job demands) have one of the 
highest levels of anxiety, depression, and irritation of 24 
occupations studied (Caplan et al., 1975). Health professionals 
(e.g., physicians, dentists, nurses, and health technologists) have 
higher than expected rates of suicide which is most often related to 
depression (Milham, 1983) and of alcohol and drug abuse (Hoiberg, 
1982). Nurses and other health care workers have increased rates of 
hospitalizations for mental disorders (Gundersson & Colcord, 1982; 
Hoiberg, 1982). This information about specific risks within 
different occupations provides important information for possible 
intervention and training to improve conditions while at the same 
time, indicating the possibility of specific stressors that need to 
be addressed within the job. This type information would be lost 
with the proposed reporting guidelines.

    Fourteen commenters opposed having to record mental illness cases 
of any kind (Exs. 15: 78, 133, 184, 248, 249, 250, 304, 348, 378, 395, 
406, 409, 412, 424). Their primary arguments were:
     The diagnosis of mental illnesses is subjective and 
unreliable;
     It is often impossible, even for a health care 
professional, to determine objectively which mental disorders are work-
related and which are not;
     Workers have a right to privacy about mental conditions 
that should not be violated; employers fear the risk of invasion of 
privacy lawsuits if they record these cases on ``public records''; 
because of confidentiality concerns, workers are unlikely to disclose 
mental illnesses, and employers will therefore be unable to obtain 
sufficient information to make recordability determinations;
     Mental illnesses are beyond the scope of the OSHA Act; 
Congress intended to include only ``recognized injuries or illnesses'';
     Recording mental disorders opens the door to abuse; 
workers may ``fake'' mental illnesses, and unions may encourage workers 
to report mental problems as a harassment tactic; and
      No useful statistics will be generated by such recording.
    The American Iron and Steel Institute (AISI) (Ex.15: 395) expressed 
the concerns of the group of employers opposed to any recording of 
mental conditions:

    OSHA should eliminate its proposed recording requirements for 
mental illness. OSHA's proposed rule includes changes in an 
employee's psychological condition as an ``injury or illness,'' and 
[proposed] Appendix A presumes that mental illness ``associated with 
post-traumatic stress'' is work related. Employers, employees, and 
OSHA have been wrestling for 25 years with the proper recording of 
fairly simple injuries like back

[[Page 5953]]

injuries, sprains, and illnesses caused by chemical exposures. 
Requiring employers to record something as vague as psychological 
conditions will impose impossible burdens on employers (and 
compliance officers) and thus will create an unworkable 
recordkeeping scheme.
    Moreover, too little is known about the etiology of most mental 
conditions to justify any presumption or conclusion that a condition 
that surfaces at work was ``caused'' by something in the work 
environment. It is hard to imagine a mental illness appearing at 
work that is not a manifestation of a preexisting condition or 
predisposition. Thus, the only sensible approach is to exclude all 
mental illnesses from recording requirements.

    Many commenters from business and trade associations either agreed 
with OSHA's proposal or recommended an even stricter limitation on 
recordable mental disorders (see, e.g., Exs. 33, 15: 27, 31, 38, 46, 
79, 122, 127, 132, 153, 170, 176, 181, 199, 203, 226, 230, 231, 273, 
277, 289, 301, 305, 307, 308, 313, 325, 332, 352, 353, 368, 384, 387, 
389, 392, 410, 427, 430, 434). Points raised by these commenters 
included recommendations that OSHA should require:
     Recording only of those mental illnesses that arise from a 
single, work-related traumatic or catastrophic event, such as a 
workplace explosion or an armed robbery;
     Recording only of those mental illnesses that are directly 
and substantially caused by a workplace incident;
     Recording only of diagnosed mental illnesses resulting 
from a single workplace event that is recognized as having the 
potential to cause a significant and severe emotional response;
     Recognition only of post-traumatic stress cases or related 
disorders that include physical manifestations of illness and that are 
directly related to specific, objectively documented, catastrophic 
work-related events; and
     Recording only of diagnosed conditions directly 
attributable to a traumatic event in the workplace, involving either 
death or severe physical injury to the individual or a co-worker.
    Several commenters suggested the use of a medical evaluation to 
determine diagnosis and/or work-relationship in cases of mental illness 
(see, e.g., Exs. 15: 65, 78, 105, 127, 170, 181, 184, 226, 230). For 
example, the Aluminum Company of America (Ex. 15: 65) stated that:

    OSHA should define mental health conditions for recordkeeping 
purposes as conditions diagnosed by a licensed physician or advanced 
health care practitioner with specialized psychiatric training 
(i.e., psychiatric nurse practitioner). Work-relatedness of the 
mental health condition should be determined by a psychiatric 
independent medical evaluation.

    A comment from the Department of Energy (Ex. 15: 163) stated that 
any diagnosis of mental illness should be made by at least two 
qualified physicians, and CONSOL Inc. (Ex. 15: 332) and Akzo Nobel (Ex. 
15: 387) wanted the rule to require that any such diagnosis meet the 
criteria of the Diagnostic and Statistical Manual, Version IV (DSM-IV). 
Commenters had different opinions about the minimum qualifications 
necessary for a health care professional to make decisions about mental 
health conditions; specifically, some commenters urged OSHA to exclude 
``counselors'' (Ex. 15: 226) or to include ``only psychiatrists and 
Ph.D. psychologists'' (Ex. 15: 184).
    A number of commenters suggested excluding from the requirement to 
record any mental illness related to personnel actions such as 
termination, job transfer, demotions, or disciplinary actions (see, 
e.g., Exs. 15: 68, 127, 136, 137, 141, 176, 184, 224, 231, 266, 273, 
278, 301, 395, 424). The New York Compensation Board (Ex. 15: 68) noted 
that New York's workers' compensation law excludes such cases by 
specifying that mental injuries are compensable with the exception of 
injuries that are the ``direct consequence of a lawful personnel 
decision involving a disciplinary action, work evaluation, job 
transfer, demotion, or termination taken in good faith by the 
employer.''
    Finally, several employers raised the issues of the privacy of an 
employee with a mental disorder, the need to protect doctor-patient 
confidentiality, and the potential legal repercussions of employers 
breaching confidentiality in an effort to obtain injury and illness 
information and in recording that information (see, e.g., Exs. 15: 78, 
153, 170, 195, 260, 262, 265, 277, 348, 392, 401, 406, 409). Some of 
these commenters suggested that an employer should only have the 
obligation to record after the employee has brought the condition to 
the attention of the employer, either directly or through medical or 
workers' compensation claims, and in no case should doctor-patient 
confidentiality be breached. (Issues related to confidentiality of the 
Log are discussed in detail in the summary and explanation of 
Sec. 1904.35, Employee Involvement.)
    After a review of the comments and the record on this issue, OSHA 
has decided that the proposed exception, which would have limited the 
work-relatedness (and thus recordability) of mental illness cases to 
those involving post-traumatic stress, is not consistent with the 
statute or the objectives of the recordkeeping system, and is not in 
the best interest of employee health. The OSH Act is concerned with 
both physical and mental injuries and illnesses, and in fact refers to 
``psychological factors'' in the statement of Congressional purpose in 
section 2 of the Act (29 U.S.C. 651(b)(5)).
    In addition, discontinuing the recording of mental illnesses would 
deprive OSHA, employers and employees, and safety and health 
professionals of valuable information with which to assess occupational 
hazards and would additionally skew the statistics that have been kept 
for many years. Therefore, the final rule does not limit recordable 
mental disorders to post traumatic stress syndrome or any other 
specific list of mental disorders. OSHA also does not agree that 
recording mental illnesses will lead to abuse by employees or others. 
OSHA has required the recording of these illnesses since the inception 
of the OSH Act, and there is no evidence that such abuse has occurred.
    However, OSHA agrees that recording work-related mental illnesses 
involves several unique issues, including the difficulty of detecting, 
diagnosing and verifying mental illnesses; and the sensitivity and 
privacy concerns raised by mental illnesses. Therefore, the final rule 
requires employers to record only those mental illnesses verified by a 
health care professional with appropriate training and experience in 
the treatment of mental illness, such as a psychiatrist, psychologist, 
or psychiatric nurse practitioner. The employer is under no obligation 
to seek out information on mental illnesses from its employees, and 
employers are required to consider mental illness cases only when an 
employee voluntarily presents the employer with an opinion from the 
health care professional that the employee has a mental illness and 
that it is work related. In the event that the employer does not 
believe the reported mental illness is work-related, the employer may 
refer the case to a physician or other licensed health care 
professional for a second opinion.
    OSHA also emphasizes that work-related mental illnesses, like other 
illnesses, must be recorded only when they meet the severity criteria 
outlined in Sec. 1904.7. In addition, for mental illnesses, the 
employee's identity must be protected by omitting the employee's name 
from the OSHA 300 Log and instead entering ``privacy concern case'' as 
required by Sec. 1904.29.

[[Page 5954]]

Exceptions Proposed but Not Adopted
    The proposed rule contained eleven exceptions to the geographic 
presumption. Some of these exceptions are included in the final rule, 
and therefore are discussed above, while others were rejected for 
various reasons. The following discussion addresses those proposed 
exemptions not adopted in the final rule, or not adopted in their 
entirety.
    Proposed Exception B-5. Personal Tasks Unrelated To Employment 
Outside of Normal Working Hours. The proposed rule included an 
exception for injuries and illnesses caused solely by employees 
performing personal tasks at the establishment outside of their normal 
working hours. Some aspects of this proposed exception have been 
adopted in the final, but others have not. Almost all the comments on 
this proposed exception supported it (see, e.g., Exs. 15: 31, 78, 105, 
121, 159, 281, 297, 336, 341, 350), and many suggested that the 
exception be expanded to include personal tasks conducted during work 
hours (see, e.g., Exs. 15: 176, 184, 201, 231, 248, 249, 250, 273, 301, 
335, 348, 374). Caterpillar, Inc. (Ex. 15: 201) offered an opinion 
representative of the views of these commenters: ``We agree with this 
exception but it should be expanded to include any personal tasks 
performed during work hours if the work environment did not cause the 
injury or illness. Expanding this exemption will be consistent with the 
exemptions for voluntary wellness program participation and eating, 
drinking, and preparing one's own food.''
    One commenter disagreed with the proposed exception (the Laborers 
Safety and Health Fund of North America (Ex. 15: 310)) and cited as a 
reason the difficulty of determining the extent to which, for example, 
a case involving an employee misusing a hazardous chemical after hours 
because he or she did not receive the necessary Right-to-Know training 
from the employer would qualify for this exception.
    Several commenters suggested that OSHA clarify what it meant by the 
terms ``personal tasks'' and ``normal working hours'' (see, e.g., Exs. 
15: 102, 304, 345). For example, a representative of Constangy, Brooks 
& Smith recommended that:

    More explanation be provided regarding the further limitation on 
this exclusion. For example, does this section of the proposal 
envision the exclusion of injuries and illnesses resulting from 
personal tasks performed during overtime (i.e., outside of normal 
working hours)? If I am injured while talking to my spouse on the 
phone during regular business hours, must the case be recorded, 
while if the same injury occurs during overtime, the case is non-
recordable? Also, how are injuries to salaried employees (who are 
exempt from overtime) treated under this aspect of the proposal? I 
submit that if these issues are not fully ``fleshed out'' in the 
proposal or its preamble, this subparagraph will result in the 
creation of more questions than it resolves.

    The National Federation of Independent Business (NFIB) (Ex. 15: 
304) asked OSHA ``to specify that the `normal working hours' refers to 
the work schedule of the employee not the employer. If this distinction 
is not made clear, this proposal arguably could deny this exemption to 
establishments which operate during non-standard operating hours (e.g., 
24 hours a day, weekends, after 5 PM, etc.)--and we assume this is not 
OSHA's intent.''
    OSHA believes that injuries and illnesses sustained by employees 
engaged in purely personal tasks at the workplace, outside of their 
assigned working hours, are not relevant for statistical purposes and 
that information about such injuries and illnesses would not be useful 
for research or other purposes underlying the recordkeeping 
requirements. OSHA has therefore decided to include some parts of the 
proposed exception in the final rule. Additional language has been 
added to the exception since the proposal to clarify that the exception 
also applies when the employee is on the premises outside of his or her 
assigned working hours, as the NFIB pointed out.
    OSHA does not agree, however, with those commenters who suggested 
that the exception be expanded to include personal tasks performed by 
employees during work hours. As discussed in preceding sections of this 
summary and explanation and in the Legal Authority discussion, there 
are strong legal and policy reasons for treating an injury or illness 
as work-related if an event or exposure in the work environment caused 
or contributed to the condition or significantly aggravated a pre-
existing condition. Under this ``but-for'' approach, the nature of the 
activity the employee was engaged in at the time of the incident is not 
relevant, except in certain limited circumstances. Moreover, OSHA 
believes that it would be difficult in many cases for employers to 
distinguish between work activities and personal activities that occur 
while the employee is on-shift. Accordingly, the final rule codifies 
parts of this proposed exception in paragraph 1904.5(b)(v) in the 
following form: ``The injury or illness is solely the result of an 
employee doing personal tasks (unrelated to their employment) at the 
establishment outside of the employee's assigned working hours.''
    Proposed Exception B-6. Cases Resulting From Acts of Violence by 
Family Members or Ex-spouses When Unrelated to Employment, Including 
Self-inflicted Injuries. The final rule does not exempt workplace 
violence cases from the Log, although it does allow employers to 
exclude cases that involve intentionally self-inflicted injuries. The 
final rule thus departs substantially from the proposal in this 
respect. The proposed exception, which would have exempted domestic 
violence and self-inflicted cases from the Log, drew many comments. The 
comments generally fell into four categories: (1) those urging OSHA to 
require the recording of all cases of violence occurring at the 
establishment; (2) those recommending that no violence cases at the 
establishment be recorded; (3) those recommending recordation only of 
violence cases perpetrated by certain classes of individuals; and (4) 
those urging OSHA to require the recording of cases involving violence 
related to employment without regard to the perpetrator. The comments 
on the proposed exception are discussed below.
    No exemption/record all injuries and illnesses arising from violent 
acts. A number of commenters objected to OSHA's proposed exemption of 
domestic violence cases from the list of recordable injuries, arguing 
that all acts of violence occurring at the workplace should be recorded 
(see, e.g., Exs. 15: 31, 54, 56, 88, 90, 91, 93, 94, 99, 101, 103, 104, 
106, 111, 114, 115, 144, 186, 187, 238, 345, 362, 407, 418, 439). For 
example, the North Carolina Department of Labor stated that ``if an 
employer must log the injuries sustained as a result of workplace 
violence then the employer may also institute needed security measures 
to protect the employees at the establishment. An employer should be 
required to log any `preventable' injury (above first aid) that an 
employee sustains at the establishment'' (Ex. 15: 186). The Miller 
Brewing Company also supported recording all acts of workplace 
violence, based on the following rationale: ``I envision a scenario 
involving an angry husband attempting to kill his wife but, because he 
is a ``bad shot,'' another employee is killed. Why should killing an 
innocent bystander be a reportable event, whereas a fatality involving 
a spouse is excluded?'' (Ex. 15: 442).
    Exception for all violent acts. There were commenters who thought 
injuries and illnesses resulting from violence were outside of OSHA's 
purview and

[[Page 5955]]

should not be recorded at all (see, e.g., Exs. 15: 28, 75, 96, 107, 
203, 254, 289). For example, the Quaker Oats Company (Ex. 15: 289) 
stated that ``[w]orkplace violence in any form is a personal criminal 
act, and in no way, shape or form should violence be labeled under 
hazards in the workplace or even [be] monitored by OSHA. A person who 
may turn to violent behavior from family, personal, or job dispute is a 
matter of NLRB [National Labor Relations Board], law enforcement or 
state employment statutes, not industrial safety.'' The National 
Restaurant Association (Ex. 15: 96) agreed:

    Congress passed the Occupational Safety and Health Act to 
regulate workplace hazards dealing with the workplace environment or 
processes that employers could identify and possibly protect. The 
Congress did not contemplate that this statute would be used to 
redress incidents over which the employer has no ability to control, 
such as the unpredictability of workers or nonworkers committing 
violent, tortuous acts towards others. This issue was litigated 
unsuccessfully by OSHA in Secretary of Labor v. Megawest Financial, 
Inc., OSHRC Doc. No. 93-2879 (June 19, 1995). OSHA apparently is 
attempting in this NPR to obtain by regulatory fiat what was 
rejected by case law and to displace state tort law actions by using 
the OSH Act to police social behavior.

    Recording work-related violence except acts of certain classes of 
individuals. There were many commenters who supported the proposed 
exception, which would only have excluded acts of violence on employees 
committed by family members and ex-spouses and self-inflicted injuries 
and illnesses. The proposed exception as drafted was supported by some 
commenters (see, e.g., Exs. 15: 78, 198, 350, 359). Others thought the 
exception should be expanded to include not only family members and ex-
spouses, but also live-in partners, friends, and other intimates (see, 
e.g., Exs. 15: 80, 122, 153, 181, 213, 325, 363, 401), while others 
argued that the exemption should apply to the general public, i.e., to 
all people (see, e.g., Exs. 15: 9, 111, 119, 151, 152, 179, 180, 239, 
260, 262, 265, 272, 303, 304, 341, 356, 375, 401, 430).
    Typical of comments in support of a broader exception were the 
remarks of the National Oilseed Processors Association (Ex. 15: 119):

    The only time violence in the work place should be considered 
work-related is when it is associated with a work issue and 
committed by an employee or other person linked to the business, 
e.g., a customer. Any other act of violence is not under the control 
of the employer and should not be considered work-related.

    Alabama Shipyard Inc. (Ex. 15: 152) added:

    Exempting acts of violence based strictly on acts committed by 
family members, a spouse, or when self-inflicted is too limited. 
Instead, the exemption should be based on the relationship of the 
perpetrator to the employer. The employer should be no more 
responsible for some random act of violence by a crazy individual 
walking in off the street who is in no way associated with the 
employer than it should be for an act of violence by a family 
member.

    Southern California Edison (Ex. 15: 111) stated that ``violence is 
another example that should be excluded from being work-related if the 
employee personally knows the attacker. This would include family 
members or coworkers. Only those acts of violence that result from 
random criminal activity should be included (i.e., robbery, murder, 
etc.).'' TU Services (Ex. 15: 262) recommended ``that only cases that 
involve acts of violence that are the result of random criminal 
activity should be recorded. Cases that involve anyone with a personal 
relationship with the employee should be excluded.'' The American Feed 
Industry Association (Ex. 15: 204) and United Parcel Service (Ex. 15: 
424), on the other hand, argued that cases involving workplace violence 
should only be recorded if the perpetrator was a fellow employee.
    Record all violent acts directly related to employment regardless 
of who commits the act. Commenters favoring this approach suggested 
that violence by family members or others should be recorded if linked 
to work, but that all personal disputes should be exempt (see, e.g., 
Exs. 15: 105, 146, 176, 184, 231, 273, 297, 301, 313, 336, 348, 352, 
353, 374, 389, 392). The Workplace Health and Safety Council (Ex. 15: 
313) proposed the following exception:

    Cases will not be considered work-related if they result solely 
from acts of violence committed by one's family, or ex-spouse, or 
other persons when unrelated to the worker's employment, including 
intentionally self-inflicted injuries. Violence by persons on the 
premises in connection with the employer's business (including 
thieves and former employees) is considered work related even if 
committed by one's family or ex-spouse.

    The American Ambulance Association (Ex. 15: 226) stated simply: 
``AAA believes that OSHA should define what is work-related violence 
and assume that all other acts are not work-related, and eliminate the 
family and non-family distinction.'' The United Auto Workers (Ex. 15: 
438) agreed:

    Incidents of intentional violence should be recorded only if 
they arise from employment activities. Incidents between employees, 
or between employees and non-employees which rise from personal 
disputes should not be recorded. Existing data show that the number 
of incidents of interpersonal violence between coworkers or workers 
and intimates is small, although these incidents do get high 
visibility. Therefore, exclusion of these small number of cases will 
have little effect on statistical measures.

    Some commenters urged OSHA to place some restrictions on the 
proposed exception. For example, two commenters argued that cases 
involving violence should only be recorded for occupations where there 
is a reasonable potential of encountering violence (Exs. 15: 335, 409). 
The American Automobile Manufacturers Association (AAMA) stated that:

    Workplace violence as a reasonable function of an employee's 
employment should be recorded, for example: a cashier injured in a 
robbery attempt at a 24-hour retail establishment. An example of 
``unreasonable'' recordable workplace violence that should not be 
recordable (i.e., where an employee was simply ``in the wrong place 
at the wrong time'') would be a flight crew that perishes mid-flight 
from a terrorist's bomb. These cases have nothing to do with the 
individual's employer, only that they happened to be victims at the 
employer's place of employment. It is AAMA's understanding that the 
purpose of the subject standard is to collect information pertaining 
to injuries and illnesses that arise out of conditions in the 
workplace, with the end objective being to use that information to 
correct or mitigate these conditions so as to prevent additional 
injuries or illnesses.

    Caterpillar Inc. (Ex. 15: 201) suggested that ``a predominant 
contributor concept, similar to that being proposed to help establish 
work-relatedness, could be utilized in cases where the clear cause of 
violence is not readily apparent.''
    In the final rule, OSHA has decided not to exclude from recording 
those injury and illness cases involving acts of violence against 
employees by family members or ex-spouses that occur in the work 
environment or cases involving other types of violence-related injuries 
and illnesses. The final rule does exempt from recording those cases 
resulting from intentionally self-inflicted injuries and illnesses; 
these cases represent only a small fraction of the total number of 
workplace fatalities (three percent of all 1997 workplace violence 
fatalities) (BLS press release USDL 98-336, August 12, 1998). OSHA 
believes that injuries and illnesses resulting from acts of violence 
against employees at work are work-related under the positional theory 
of causation. The causal connection is usually established by the fact 
that the assault or other harmful event would not have

[[Page 5956]]

occurred had the employee not, as a condition of his or her employment, 
been in the position where he or she was victimized. Moreover, 
occupational factors are directly involved in many types of workplace 
violence, such as assaults engendered by disputes about working 
conditions or practices, or assaults on security guards or cashiers and 
other employees, who face a heightened risk of violence at work. 
Accordingly, OSHA does not accept the premise, advanced by some 
commenters, that workplace violence is outside the purview of the 
statute.
    In some cases, acts of violence committed by a family member or ex-
spouse at the workplace may be prevented by appropriate security 
measures enforced by employers. Moreover, information about workplace 
injuries due to assaults by family members or ex-spouses is relevant 
and should be included in the overall injury and illness data for 
statistical and research purposes. Omitting the proposed exception also 
obviates the need for employers to make distinctions among various 
degrees of personal relationships. Accordingly, the final rule does not 
allow employers to exclude injuries and illnesses resulting from 
violence occurring in the workplace from their Logs. However, some 
cases of violence will be excluded under Sec. 1904.5(b)(2)(v), which 
exempts an injury or ilness that is solely the result of an employee 
doing personal tasks (unrelated to their employment) at the 
establishment outside of the employee's assigned working hours. For 
example, if an employee arrives at work early to use a company 
conference room for a civic club meeting, and is injured by some 
violent act, the case would not be considered work related.
    OSHA has decided to maintain the exclusion for intentionally self-
inflicted injuries that occur in the work environment in the final 
rule. The Agency believes that when a self-inflicted injury occurs in 
the work environment, the case is analogous to one in which the signs 
or symptoms of a pre-existing, non-occupational injury or illness 
happen to arise at work, and that such cases should be excluded for the 
same reasons. (see paragraph 1904.5(b)(2)(ii)). The final rule at 
paragraph 1904.5(b)(2)(vi) therefore includes that the part of 
exception proposed that applied to injuries and illnesses that are 
intentionally self-inflicted.
    Proposed Exception B-7. Parking Lots and Access Roads. This 
proposed exception, which in effect would have narrowed the definition 
of ``establishment'' to exclude company parking lots, had approximately 
equal numbers of commenters in favor and opposed. The final rule 
includes some aspects of the proposed exemption. In favor of recording 
injuries in parking lots and on access roads were the commenters 
represented by Exs. 24, 15: 41, 72, 310, 362. Typical of the views of 
this group was that of the Association of Operating Room Nurses (AORN) 
(Ex. 15: 72), which noted that:

    [e]mployee parking lots should be included in defining ``work-
related.'' Perioperative nurses and other surgical service providers 
may be required on a ``call'' basis during the night hours. 
Consequently they enter and leave parking lots at unusual times when 
traffic in the lots is minimal. These providers may be at increased 
risk for random violence. Absent the ``call'' requirement, the 
employee would not be in the parking lot at the time of the injury. 
Further, if the employee is paid for travel time to and/or from the 
facility, injuries occurring during that period should be considered 
``work-related.''

    The AFL-CIO (Ex. 15: 362) added that employers may be less likely 
to provide lighting, security and other controls that could prevent 
violent assaults in parking lots and access roads if injuries occurring 
there are not recordable.
    The opposite view, in support of the proposed exception for parking 
lots, was expressed by several employers (see, e.g., Exs. 15: 27, 45, 
176, 185, 195, 231, 248, 249, 250, 273, 289, 301, 304, 341, 363). The 
National Wholesale Druggists Association (NWDA) (Ex. 15: 185) supported 
the proposed exclusion:

    [i]nevitably, activities that take place in the company parking 
lot or on the company access road are not only outside of the 
employer's dominion and control but also are most often not related 
in any way to the employee's work. Including injuries that occur in 
these locations as part of the OSHA log would lead to an inaccurate 
reflection of injury data as a whole. OSHA should retain this 
exemption. An employer has no control over an employee's commute to 
and from the workplace, with the exception of arrival and departure 
times for the work day. If OSHA requires the reporting of injuries 
that occur during the employee's commute, the number of injuries 
reported would increase dramatically.

    The National Federation of Independent Business (Ex. 15: 304) 
stated that the proposed exception would be consistent with workers' 
compensation rules.
    OSHA has concluded that a limited exception for cases occurring on 
parking lots is appropriate but that the broader exception proposed is 
not. The final rule thus provides an exception for motor vehicle injury 
cases occurring when employees are commuting to and from work. As 
discussed in the preamble that accompanies the definition of 
``establishment'' (see Subpart G of the final rule), OSHA has decided 
to rely on activity-based rather than location-based exemptions in the 
final rule. The parking lot exception in the final rule applies to 
cases in which employees are injured in motor vehicle accidents 
commuting to and from work and running personal errands (and thus such 
cases are not recordable), but does not apply to cases in which an 
employee slips in the parking lot or is injured in a motor vehicle 
accident while conducting company business (and thus such cases are 
recordable). This exception is codified at paragraph 1904.5(b)(2)(vii) 
of the final rule.
    Proposed Exception B-8. Never Engaged in an Activity That Could 
Have Placed Stress On the Affected Body Part. This proposed exception 
would have allowed employers not to record cases if no aspect of the 
worker's job placed stress on the affected body part or exposed the 
worker to any chemical or physical agent at work that could be 
associated with the observed injury or illness. This proposed exception 
received support from a number of employers (see, e.g., Exs. 15: 176, 
185, 231, 273, 301, 341, 359, 406). For example, the National Wholesale 
Druggists' Association stated that ``Such injuries or illnesses are 
obviously not caused by any work-related activities and should 
therefore be excluded from any reporting and recording requirements' 
(Ex. 15: 185).
    Deleting the word ``never'' from the proposed exception was also 
supported by many respondents (see, e.g., Exs. 15: 146, 279, 304, 335, 
374, 392, 395, 430, 431, 442). Representative of the latter group is 
the following comment by the BF Goodrich Company (Ex. 15: 146):

    The use of the term ``never'' in this exemption requires too 
harsh a test for case evaluation. A back injury should not be 
recordable because the employee lifted a box 10 years previous to 
the injury. A more reasonable evaluation criteria meeting the same 
intent could be stated as below: The injury or illness is not work-
related if it cannot be associated with the employee's duties or 
exposures at work.

    Taking an opposing view to the proposed exception were the AFL-CIO 
(Ex. 15: 418), the United Steelworkers of America (Ex. 15: 429), and 
the United Brotherhood of Carpenters Health and Safety Fund of North 
America (Ex. 15: 350). The AFL-CIO stated that:

    We believe when evaluating injuries this approach could 
logically work in most cases, but in cases of chemical exposures and 
musculoskeletal disorders this logic does not hold merit. If the 
Agency attempts to apply this approach to the aforementioned types 
of cases, the employer will have to become an

[[Page 5957]]

epidemiologist, ergonomist or toxicologist to determine if these 
cases meet the recordability criteria set forth in this proposal . . 
. . We encourage the Agency to omit this provision from the final 
standard. Because of the increasing numbers of workers being 
medically diagnosed for multiple chemical sensitivity and the 
exposures some workers receive without any knowledge until years 
after the incident, the Agency must carefully think about the 
inclusion of this provision to the final standard.

    Similarly, the Carpenters Fund (UBC H&SF) argued that:

    [T]his [exception] would exclude those cases where symptoms 
arise at work, but are caused by accidents or exposures away from 
work. The UBC H&SF agrees with the theory of this provision, but 
emphasizes that the task placed on employers to determine causation 
by exposures away from work would in many cases be impossible. Also 
the apportionment of causation is not discussed in this analysis and 
would allow some to record cases .01 percent caused by work and 
others to not record cases 99 percent caused by work. For the 
foregoing reasons, that this requirement is unworkable, we urge it 
be dropped from the final rule.

    Based on a review of the record on this issue, OSHA has decided not 
to include this proposed exception in the final rule. On reflection, 
the proposed language is confusing and would be difficult to apply. The 
underlying concept, to the extent it has merit, is better covered in 
the exemption paragraph 1904.5(b)(2)(ii). As discussed in preceding 
sections of this summary and explanation for section 1904.5, there are 
sound legal and policy justifications for defining work-relationship 
broadly to include injuries and illnesses that result from events or 
exposures in the work environment. The proposed exception would 
effectively ``swallow'' the geographic presumption theory of causation 
underpinning the rule by shifting the focus of enquiry in every case to 
the employee's specific job duties. As OSHA has noted, the geographic 
presumption includes some cases in which the illness or injury cannot 
be directly linked to the stresses imposed by job duties. For example, 
if an employee trips while walking on a level factory floor and breaks 
his arm, the injury should be recordable. The comments supporting the 
proposed exemption do not, in OSHA's view, provide a basis for 
excluding these types of cases from recording on the Log.
    Proposed Exception B-9. Voluntary Community Activities Away From 
The Employer's Establishment. This proposed exemption drew two comments 
supporting it as written (Exs. 15: 78, 304), and several other 
participants recommended that it be expanded to exclude injuries and 
illnesses that arise from voluntary community activities wherever they 
occur (see, e.g., Exs. 15: 146, 184, 272, 303, 359). Typical of these 
comments is one from U.S. West (Ex. 15: 184), which stated that 
``[e]mphasis should be on the activity that occurred, not the location 
of the activity.''
    The United Brotherhood of Carpenters, Health & Safety Fund of North 
America (Ex. 15: 350) agreed with the proposed exception, except for 
cases where the employee is present as a condition of employment or in 
the employer's interest. It commented:

    [A]t the surface this exception seems to make perfect sense. 
However, real employment relationships and real employer-community 
relationships do not fit such clean characterizations. Many times 
employees are forced to become ``team players'' and volunteer for 
unpaid off-establishment activities. Many employers engage in 
community ``good will'' generating activities by having their 
employees volunteer. For the above reasons we urge that cases 
occurring away from the employer's establishment be considered work-
related if the employee is engaged in any activity in the interest 
of the employer or is there as a condition of employment.

    OSHA has decided not to include this proposed exception in the 
final rule because the final rule's overall definition of work-
environment addresses this situation in a simple and straightforward 
way. If the employee is taking part in the activity and is either 
working or present as a condition of employment, he or she is in the 
work environment and any injury or illness that arises is presumed to 
be work-related and must then be evaluated for its recordability under 
the general recording criteria. Thus, if the employee is engaged in an 
activity at a location away from the establishment, any injury or 
illness occurring during that activity is considered work-related if 
the worker is present as a condition of employment (for example, the 
worker is assigned to represent the company at a local charity event). 
For those situations where the employee is engaged in volunteer work 
away from the establishment and is not working or present as a 
condition of employment, the case is not considered work-related under 
the general definition of work-relationship. There is thus no need for 
a special exception.
    Proposed Exception B-10. The Case Results Solely From Normal Body 
Movements, not Job-Related Motions or Contribution from the Work 
Environment. This proposed exception generated some support (see, e.g., 
Exs. 15: 107, 147, 173, 185, 341, 348, 373, 392) but also caused much 
confusion about the meaning of the phrases ``normal body movement'' and 
``job-related'' (see, e.g., Exs. 15: 80, 83, 89, 98, 146, 176, 225, 
226, 231, 239, 273, 301, 304, 313, 352, 353, 355, 359, 406, 424). The 
following comment by the American Gas Association (Ex. 15: 225) is 
representative of those in this group:

    `[N]ormal body movements' needs clarification since OSHA has not 
set forth any reasons for excluding it. OSHA's language states that 
there is an exclusion ``* * * provided that activity does not 
involve a job related motion and the work environment does not 
contribute to the injury or illness''. OSHA goes on to elaborate 
that illnesses or injuries should not be recorded if they are not 
related to an identifiable work activity. However, OSHA also states 
the exclusion would not apply if it involved repetitive motion or if 
the work environment either caused or contributed to the injury or 
illness. This language is ambiguous and redundant. Repetitive motion 
injury/illness conditions should be treated in the same way as any 
other condition. There should be a work-related exclusion if the 
work environment did not cause or contribute to the injury/illness.

    LeRoy E. Euvard, Jr., Safety and Environmental Staff (Ex. 15: 80) 
added:

    [T]he definition of work-related resulting from normal body 
movements is too broad. The definition excludes walking, talking, 
etc. `provided the activity does not involve a job-related motion.' 
Does that mean that if an employee is walking to the rest room and 
becomes ill, the illness is not work-related, but, if he/she is 
walking from the rest room back to his/her work station, it is work-
related? If the employee is engaged in social talk, the illness is 
not work-related, but, if he/she is engaged in a conversation 
regarding some aspect of work, the illness is work-related?

    Other commenters objected to the concept of excluding cases 
resulting from normal body movements from the Log (Ex. 56X, pp. 51, 52; 
Ex. 15: 418). Walter Jones of the International Brotherhood of 
Teamsters used the following example:

    We do take opposition to some of the exceptions. For cases that 
result in normal body movement, I'd like to just bring another 
example up. We have a member who after spending most of his morning 
sorting about 700 different boxes, on break in a normal, 
unencumbered motion, dropped his pencil and picked it up, had a back 
spasm and his back went out. And I know that according to the way 
the standard is written, or the regulation is written, that this can 
be attributed to work activity. But the reason we bring it up is we 
need to be careful in trying to be that exact because an employer 
will take an uninformed employee and may take liberties (Ex. 56X, 
pp. 51, 52).

    OSHA has decided not to include a recordkeeping exception for 
injuries or illnesses associated with normal body movements in the 
final rule. The

[[Page 5958]]

proposed provision was intended to exclude the recording of cases that 
happened to occur in the work environment without any real work 
contribution. However, the comments on this issue have convinced OSHA 
that the proposed provision is unnecessary, would be unworkable, and 
would result in incomplete and inconsistent data. The case cited by the 
Teamsters is but one example of a legitimate work-related injury that 
could go unrecorded if OSHA were to adopt this provision in the final 
rule. Further, the final rule already makes clear that injuries and 
illnesses that result solely from non-work causes are not considered 
work-related and therefore are excluded from the Log, and establishes 
the requirements employers must follow to determine work-relationship 
for an injury or illness when it is unclear whether the precipitating 
event occurred in the workplace or elsewhere (see paragraph 
1904.5(b)(3)). According to the requirements in that section, the 
employer must evaluate the employee's work duties and the work 
environment to decide whether it is more likely than not that events or 
exposures in the work environment either caused or contributed to the 
condition or significantly aggravated a pre-existing condition. If so, 
the case is work-related.
Additional Exemptions Suggested by Commenters but Not Adopted
    In addition to commenting on the eleven proposed exceptions, 
interested parties suggested adding some exceptions to the final rule. 
This section contains a discussion of those additional exemptions 
suggested by commenters but not adopted in the final rule.
    Acts of God: The International Dairy Foods Association (IDFA) 
suggested that OSHA exclude any injury or illness that was ``the result 
of an ``Act of God,'' such as, but not limited to, an earthquake or a 
tornado'' (Ex. 15: 203). OSHA has not adopted such an exception because 
doing so would not be in keeping with the geographic presumption 
underpinning this final rule, and would exclude cases that are in fact 
work-related. For example, if a worker was injured in a flood while at 
work, the case would be work-related, even though the flood could be 
considered an act of God. Accordingly, if workplace injuries and 
illnesses result from these events, they must be entered into the 
records (for a more detailed discussion of this point, see the Legal 
Authority section, above).
    Phobias: The American Crystal Sugar Company (Ex. 15: 363) suggested 
that OSHA add an exception from recording for cases involving phobias:

    I would also like to suggest exempting an employee's loss of 
consciousness based on a fear-based phobia, i.e., fainting at the 
sight of blood. Occasionally an OSHA regulation may require blood 
tests, such as checking lead levels in blood. There are a few 
employees that will lose consciousness at the sight of a needle. 
These phobias are not limited to medical procedures, but may include 
spiders, snakes, etc. In several of our factories, the occupational 
health nurse will administer tetanus boosters as a service to our 
employees. Employees that have a phobia about injections can (and 
do) lose consciousness, which now makes what was intended as a 
service an OSHA recordable accident.

    OSHA has not included an exception from recording in the final 
recordkeeping regulation for phobias or any other type of mental 
illness. The scenario described by the American Crystal Sugar Company, 
which involved fainting from fear of an injection offered as a service 
to employees, might be considered non-work-related under the exception 
codified at paragraph 1904.5(b)(2)(iii), Voluntary participation in a 
medical activity. OSHA also believes that it would be unreasonable to 
omit a case of loss of consciousness resulting from the administration 
of a blood test for lead exposure at work. These tests are necessitated 
by the employee's exposure to lead at work and are required by OSHA's 
lead standard (29 CFR 1910.1025). The other scenarios presented by 
these commenters, involving spiders, snakes, etc., would also be work-
related under the geographic presumption.
    Illegal activities and horseplay: Several commenters suggested an 
exception for an employee engaging in illegal activities, horseplay, or 
failing to follow established work rules or procedures (see, e.g., Exs. 
15: 49, 69, 117, 151, 152, 179, 180, 203, 368, 393). The comment of the 
American Network of Community Options and Resources (ANCOR) (Ex. 15: 
393) is representative of those on this issue:

    Employees who fail to follow employer training and best 
practices or violate established policy present a threat not only to 
other employees and consumers/customers, but also to employers held 
responsible for the consequences of their actions. For example, 
ANCOR does not believe that employers should have to use these 
recording and reporting procedures when illnesses and injuries are a 
result of an employee engaged in illegal activities or fails/
violates established procedures.

    OSHA has not adopted any of these recommended exceptions in the 
final recordkeeping rule because excluding these injuries and illnesses 
would be inconsistent with OSHA's longstanding reliance on the 
geographic presumption to establish work-relatedness. Furthermore, the 
Agency believes that many of the working conditions pointed to in these 
comments involve occupational factors, such the effectiveness of 
disciplinary policies and supervision. Thus, recording such incidents 
may serve to alert both the employer and employees to workplace safety 
and health issues.
    Non-occupational degenerative conditions: Two commenters also asked 
OSHA to include in the final rule a recording exception for non-
occupational degenerative conditions (Exs. 15: 176, 248) such as high 
blood pressure, arthritis, coronary artery disease, heart attacks, and 
cancer that can develop regardless of workplace exposure. OSHA has not 
added such an exception to the rule, but the Agency believes that the 
fact that the rule expects employers confronted with such cases to make 
a determination about the extent to which, if at all, work contributed 
to the observed condition will provide direction about how to determine 
the work-relatedness of such cases. For example, if work contributes to 
the illness in some way, then it is work-related and must be evaluated 
for its recordability. On the other hand, if the case is wholly caused 
by non-work factors, then it is not work-related and will not be 
recorded in the OSHA records.
Determining Whether the Precipitating Event or Exposure Occurred in the 
Work Environment or Elsewhere
    Paragraph 1904.5(b)(3) of the final rule provides guidance on 
applying the geographic presumption when it is not clear whether the 
event or exposure that precipitated the injury or illness occurred in 
the work environment or elsewhere. If an employee reports pain and 
swelling in a joint but cannot say whether the symptoms first arose 
during work or during recreational activities at home, it may be 
difficult for the employer to decide whether the case is work-related. 
The same problem arises when an employee reports symptoms of a 
contagious disease that affects the public at large, such as a 
staphylococcus infection (``staph'' infection) or Lyme disease, and the 
workplace is only one possible source of the infection. In these 
situations, the employer must examine the employee's work duties and 
environment to determine whether it is more likely than not that one or 
more events or exposures at work caused or contributed to the 
condition. If the employer determines that it is unlikely that the 
precipitating event or exposure

[[Page 5959]]

occurred in the work environment, the employer would not record the 
case. In the staph infection example given above, the employer would 
consider the case work-related, for example, if another employee with 
whom the newly infected employee had contact at work had been out with 
a staph infection. In the Lyme disease example, the employer would 
determine the case to be work-related if, for example, the employee was 
a groundskeeper with regular exposure to outdoor conditions likely to 
result in contact with deer ticks.
    In applying paragraph 1904.5(b)(3), the question employers must 
answer is whether the precipitating event or exposure occurred in the 
work environment. If an event, such as a fall, an awkward motion or 
lift, an assault, or an instance of horseplay, occurs at work, the 
geographic presumption applies and the case is work-related unless it 
otherwise falls within an exception. Thus, if an employee trips while 
walking across a level factory floor, the resulting injury is 
considered work-related under the geographic presumption because the 
precipitating event--the tripping accident--occurred in the workplace. 
The case is work-related even if the employer cannot determine why the 
employee tripped, or whether any particular workplace hazard caused the 
accident to occur. However, if the employee reports an injury at work 
but cannot say whether it resulted from an event that occurred at work 
or at home, as in the example of the swollen joint, the employer might 
determine that the case is not work-related because the employee's work 
duties were unlikely to have caused, contributed to, or significantly 
aggravated such an injury.
Significant Workplace Aggravation of a Pre-existing Condition
    In paragraph 1904.5(b)(4), the final rule makes an important change 
to the former rule's position on the extent of the workplace 
aggravation of a preexisting injury or illness that must occur before 
the case is considered work-related. In the past, any amount of 
aggravation of such an injury or illness was considered sufficient for 
this purpose. The final rule, however, requires that the amount of 
aggravation of the injury or illness that work contributes must be 
``significant,'' i.e., non-minor, before work-relatedness is 
established. The preexisting injury or illness must be one caused 
entirely by non-occupational factors.
    A number of commenters on OSHA's proposed rule raised the issue of 
recording injuries that were incurred off the job and then were 
aggravated on the job (see, e.g., Exs. 15: 60, 80, 95, 107, 176, 201, 
204, 213, 281, 308, 313, 338, 368, 375, 395, 396, 406, 424, 427, 428, 
441). The National Roofing Contractors Association (NRCA) commented 
that ``[t]his definition [includes] aggravating a pre-existing 
condition. While NRCA believes that the exemptions provided [in the 
proposed rule] are a step in the right direction, this provision could 
require that an employer record an injury that originally occurred 
outside the employer's workplace. The motion or activity that 
aggravated the injury may not represent any substantial hazard, yet 
would still be recorded'' (Ex. 15: 441). The United Parcel Service (Ex. 
15: 424) objected to the inclusion of the concept of aggravation in the 
definition of work-relatedness:

    [a]nother flaw in the proposal arises from its proposed 
recording requirement in the case of ``aggravation'' of prior 
conditions. As drafted, the rule would require reporting as an 
occupational injury or illness a musculoskeletal condition arising 
away from work which becomes aggravated by performing job duties 
(i.e., the job increases discomfort), when accompanied by swelling 
or inflammation. Thus, an employee who hurts his wrist playing 
tennis on the weekend and who returns to his word processing job 
Monday would have a reportable MSD under the rule. With such 
criteria for recordation, reported occupational injuries and 
illnesses would skyrocket, and yet most often these reports would 
reflect conditions arising away from work.

    The Food Distributors International (Ex. 15: 368) recommended:

    [i]t is very important that injuries that are not truly work-
related not be the subject of mandatory recording. For example, if 
an employee were injured off the job and came to work to ``try it 
out'' (i.e., to see if he or she was capable of performing the 
normal job functions), resulting pain might be seen as 
``aggravation'' and become recordable on that basis. The true source 
of injury, however, would be outside the workplace, and recording 
would produce an artificially inflated rate of injuries and 
illnesses, and a profile that was inaccurate.

    Several commenters were concerned about the aggravation of 
preexisting injuries in the context of recurrences or new cases (see, 
e.g., Exs. 15: 210, 204, 338) . For example, Caterpillar Inc. (Ex. 15: 
201) stated that:

    [b]ack injuries, repetitive motion injuries, and other chronic 
conditions which have degenerative or aging causal factors often 
recur without a new work accident and further without a new work 
accident capable of causing the underlying condition. Even if a new 
work accident occurs, the accident should be serious enough to cause 
the underlying condition before the new case presumption is 
applicable. The effect of this would be to eliminate minor 
aggravation of preexisting conditions from consideration as new 
injuries.

    LeRoy E. Euvard, Jr., of the Safety and Environmental Staff Company 
(Ex. 15: 80), suggested that:

    [a]ggravation of a pre-existing condition should not be 
recordable if normal body movements or events cause the aggravation. 
For example, a smoker with asthma or other obstructive airway 
disease may experience shortness of breath while climbing a flight 
of stairs. A person with degenerative disk disease may experience 
pain while lifting a normal bag of groceries. If performing similar 
activities at work likewise aggravates the condition, it should not 
be recordable.

    As discussed above, OSHA agrees that non-work-related injuries and 
illnesses should not be recorded on the OSHA Log. To ensure that non-
work-related cases are not entered on the Log, paragraph 
1904.5(b)(2)(ii) requires employers to consider as non-work-related any 
injury or illness that ``involves signs or symptoms that surface at 
work but result solely from a non-work-related event or exposure that 
occurs outside the work environment.''
    The Agency also believes that preexisting injury or illness cases 
that have been aggravated by events or exposures in the work 
environment represent cases that should be recorded on the Log, because 
work has clearly worsened the injury or illness. OSHA is concerned, 
however, that there are some cases where work-related aggravation 
affects the preexisting case only in a minor way, i.e., in a way that 
does not appreciably worsen the preexisting condition, alter its 
nature, change the extent of the medical treatment, trigger lost time, 
or require job transfer. Accordingly, the final rule requires that 
workplace events or exposures must ``significantly'' aggravate a pre-
existing injury or illness case before the case is presumed to be work-
related. Paragraph 1904.5(a) states that an injury or illness is 
considered work-related if ``an event or exposure in the work 
environment either caused or contributed to the resulting condition or 
significantly aggravated a pre-existing injury or illness.''
    Paragraph 1904.5(b)(4) of the final rule defines aggravation as 
significant if the contribution of the aggravation at work is such that 
it results in tangible consequences that go beyond those that the 
worker would have experienced as a result of the preexisting injury or 
illness alone, absent the aggravating effects of the workplace. Under 
the final rule, a preexisting injury or illness will be considered to 
have been significantly aggravated, for the purposes of OSHA injury and 
illness recordkeeping, when an event or exposure in the work

[[Page 5960]]

environment results in: (i) Death, providing that the preexisting 
injury or illness would likely not have resulted in death but for the 
occupational event or exposure; (ii) Loss of consciousness, providing 
that the preexisting injury or illness would likely not have resulted 
in loss of consciousness but for the occupational event or exposure; 
(iii) A day or days away from work or of restricted work, or a job 
transfer that otherwise would not have occurred but for the 
occupational event or exposure; or (iv) Medical treatment where no 
medical treatment was needed for the injury or illness before the 
workplace event or exposure, or a change in the course of medical 
treatment that was being provided before the workplace event or 
exposure. OSHA's decision not to require the recording of cases 
involving only minor aggravation of preexisting conditions is 
consistent with the Agency's efforts in this rulemaking to require the 
recording only of non-minor injuries and illnesses; for example, the 
final rule also no longer requires employers to record minor illnesses 
on the Log.
Preexisting Conditions
    Paragraph 1904.5(b)(5) stipulates that pre-existing conditions, for 
recordkeeping purposes, are conditions that resulted solely from a non-
work-related event or exposure that occurs outside the employer's work 
environment. Pre-existing conditions also include any injury or illness 
that the employee experienced while working for another employer.
Off Premises Determinations
    Employees may be injured or become ill as a result of events or 
exposures away from the employer's establishment. In these cases, OSHA 
proposed to consider the case work-related only if the employee was 
engaged in a work activity or was present as a condition of employment 
(61 FR 4063). In the final rule, (paragraph 1904.5(b)(1)) the same 
concept is carried forward in the definition of the work environment, 
which defines the environment as including the establishment and any 
other location where one or more employees are working or are present 
as a condition of their employment.
    Thus, when employees are working or conducting other tasks in the 
interest of their employer but at a location away from the employer's 
establishment, the work-relatedness of an injury or illness that arises 
is subject to the same decision making process that would occur if the 
case had occurred at the establishment itself. The case is work-related 
if one or more events or exposures in the work environment either 
caused or contributed to the resulting condition or significantly 
aggravated a pre-existing condition, as stated in paragraph 1904.5(a). 
In addition, the exceptions for determining work relationship at 
paragraph 1904.5(b)(2) and the requirements at paragraph 1904.5(b)(3) 
apply equally to cases that occur at or away from the establishment.
    As an example, the work-environment presumption clearly applies to 
the case of a delivery driver who experiences an injury to his or her 
back while loading boxes and transporting them into a building. The 
worker is engaged in a work activity and the injury resulted from an 
event--loading/unloading--occurring in the work environment. Similarly, 
if an employee is injured in an automobile accident while running 
errands for the company or traveling to make a speech on behalf of the 
company, the employee is present at the scene as a condition of 
employment, and any resulting injury would be work-related.
Employees on Travel Status
    The final rule continues (at Sec. 1904.5(b)(6)) OSHA's longstanding 
practice of treating injuries and illnesses that occur to an employee 
on travel status as work-related if, at the time of the injury or 
illness, the employee was engaged in work activities ``in the interest 
of the employer.'' Examples of such activities include travel to and 
from customer contacts, conducting job tasks, and entertaining or being 
entertained if the activity is conducted at the direction of the 
employer.
    The final rule contains three exceptions for travel-status 
situations. The rule describes situations in which injuries or 
illnesses sustained by traveling employees are not considered work-
related for OSHA recordkeeping purposes and therefore do not have to be 
recorded on the OSHA 300 Log. First, when a traveling employee checks 
into a hotel, motel, or other temporary residence, he or she is 
considered to have established a ``home away from home.'' At this time, 
the status of the employee is the same as that of an employee working 
at an establishment who leaves work and is essentially ``at home''. 
Injuries and illnesses that occur at home are generally not considered 
work related. However, just as an employer may sometimes be required to 
record an injury or illness occurring to an employee working in his or 
her home, the employer is required to record an injury or illness 
occurring to an employee who is working in his or her hotel room (see 
the discussion of working at home, below).
    Second, if an employee has established a ``home away from home'' 
and is reporting to a fixed worksite each day, the employer does not 
consider injuries or illnesses work-related if they occur while the 
employee is commuting between the temporary residence and the job 
location. These cases are parallel to those involving employees 
commuting to and from work when they are at their home location, and do 
not have to be recorded, just as injuries and illnesses that occur 
during normal commuting are not required to be recorded.
    Third, the employer is not required to consider an injury or 
illness to be work-related if it occurs while the employee is on a 
personal detour from the route of business travel. This exception 
allows the employer to exclude injuries and illnesses that occur when 
the worker has taken a side trip for personal reasons while on a 
business trip, such as a vacation or sight-seeing excursion, to visit 
relatives, or for some other personal purpose.
    The final rule's travel-related provisions (at paragraph 
1904.5(b)(6)) are essentially identical to those proposed (63 FR 4063), 
with only minor editorial changes, and are also parallel to those for 
determining the work-relationship of traveling employees under the 
former recordkeeping system (Ex. 2, pp. 36, 37). OSHA received various 
comments and suggestions about how best to determine work relationship 
for traveling employees. A few commenters endorsed OSHA's proposed 
approach (see, e.g., Exs. 15: 199, 396, 406). Other commenters believe, 
however, that employer control of, or the authority to control, the 
work environment should be determinative because activities outside the 
employer's control fall outside the scope of the employer's safety and 
health program (see, e.g., Exs. 15: 335, 396, 409, 424). The comments 
of the Dow Chemical Company (Ex. 15: 335) are typical of these views:

    [t]ravel on public carriers such as commercial airlines, trains, 
and taxi services or pre-existing conditions that are aggravated 
during normal unencumbered body motions, or injuries that occur off-
the-job but do not impair someone until they arrive at work are all 
beyond the control of the employer and the scope of any safety and 
health program. The commercial plane that crashes while the employee 
was flying on company business or the taxi accident while the 
employee was trying to get to the airport to fly on company business 
are events which, while tragic, are beyond the scope of an 
employer's control and beyond the reasonable reach of that 
employer's safety and health program.


[[Page 5961]]


    However, as discussed in the Legal Authority section and the 
introduction to the work-relationship section of the preamble, OSHA has 
decided not to limit the recording of occupational injuries and 
illnesses to those cases that are preventable, fall within the 
employer's control, or are covered by the employer's safety and health 
program. The issue is not whether the conditions could have, or should 
have, been prevented or whether they were controllable, but simply 
whether they are occupational, i.e., are related to work. This is true 
regardless of whether the employee is injured while on travel or while 
present at the employer's workplace. An employee who is injured in an 
automobile accident or killed in an airline crash while traveling for 
the company has clearly experienced a work-related injury that is 
rightfully included in the OSHA injury and illness records and the 
Nation's occupational injury and illness statistics. As the American 
Industrial Hygiene Association (Ex. 15: 153) remarked:

    The workforce is increasingly made up of service sector jobs. 
Computers, materials movement, travel, violence are all emerging and 
increasing sources of occupational injury and illness. Many of these 
newer trends in cases may not involve lost workdays, but are 
recordable and significant to the workforce none the less. Many of 
the clean, non-manufacturing employers who were traditionally exempt 
from recordkeeping have risk in these and other emerging areas about 
which OSHA should be collecting data.

    Two commenters specifically objected to the inclusion of cases 
involving client entertainment (Ex. 15: 409, 424). The American 
Association of Automobile Manufacturers (AAMA) remarked:

    AAMA agrees with OSHA that injuries/illnesses to employees 
during travel status are work-related and recordable. However, AAMA 
takes strong exception to the inclusion of `entertaining or being 
entertained for the purpose of transacting, discussing, or promoting 
business.' We find the notion of recording an illness for an 
employee, while he/she was engaged in a business related dinner, and 
subsequently suffering acute onset of diarrhea leading to 
hospitalization for gastroenteritis, to be inappropriate. OSHA needs 
to remove this obligation from the final rule. (Ex. 15: 409)

    OSHA does not agree with this comment, because the Agency believes 
that employees who are engaged in management, sales, customer service 
and similar jobs must often entertain clients, and that doing so is a 
business activity that requires the employee to work at the direction 
of the employer while conducting such tasks. If the employee is injured 
or becomes ill while engaged in such work, the injury or illness is 
work-related and should be recorded if it meets one or more of the 
other criteria (death, medical treatment, etc.). The gastroenteritis 
example provided by the AAMA is one type of injury or illness that may 
occur in this situation, but employees are also injured in accidents 
while transporting clients to business-related events at the direction 
of the employer or by other events or exposures arising in the work 
environment.
    On the other hand, not all injuries and illnesses sustained in the 
course of business-related entertainment are reportable. To be 
recordable, the entertainment activity must be one that the employee 
engages in at the direction of the employer. Business-related 
entertainment activities that are undertaken voluntarily by an employee 
in the exercise of his or her discretion are not covered by the rule. 
For example, if an employee attending a professional conference at the 
direction of the employer goes out for an evening of entertainment with 
friends, some of whom happen to be clients or customers, any injury or 
illness resulting from the entertainment activities would not be 
recordable. In this case, the employee was socializing after work, not 
entertaining at the direction of the employer. Similarly, the fact that 
an employee joins a private club or organization, perhaps to 
``network'' or make business contacts, does not make any injury that 
occurs there work-related.
    Two commenters recommended that OSHA eliminate the exceptions for 
determining work-relationship while employees are on travel and simply 
require all injuries and illnesses occurring while an employee is on 
travel status to be considered work-related (Exs. 15: 350, 418). For 
example, the AFL-CIO (Ex. 15: 418) suggested:

    We would also strongly encourage the Agency to re-evaluate 
[proposed] Appendix A Section C ``Travel Status''. The AFL-CIO 
believes that employees in ``travel status'' (e.g., traveling on 
company business) should be considered engaged in work-related 
activities during ALL of their time spent on the trip. This includes 
all travel, job tasks, entertaining and other activities occurring 
during ``travel status.''

    OSHA believes that expanding the concept of work-related travel to 
include all of the time the worker spends on a trip would be 
inconsistent with the tests of work-relationship governing the 
recording of other injuries and illnesses and would therefore skew the 
statistics and confuse employers. As the Dow Chemical Company (Ex. 15: 
335) stated:

    While the employee is traveling for the benefit of the company, 
it cannot be said that 100% of their time is engaged in work-related 
activities. Employees engage in personal and social activities while 
traveling on company business that is not for the direct benefit of 
the company nor a condition of employment and which cannot be 
impacted by an employer's safety or health program. Often there is 
``free time'' while traveling and employees engage in a myriad of 
activities such as shopping, sightseeing, dining out with friends or 
family that may be in the area, and the like. These are activities 
that do not benefit the company and are outside the company's 
control or reasonable reach of its safety and health programs. These 
are activities which, if the employee were engaged in them at their 
normal work location, would not be recordable; but just by the fact 
that they happen to be traveling for business purposes raises these 
otherwise non-recordable cases into those subject to the 
recordkeeping rule.

    OSHA agrees with Dow that there are situations where an injury or 
illness case involving an employee who is on travel status should be 
excluded from the records. There is no value in recording injuries and 
illnesses that would not be recorded under non-travel circumstances. 
For example, there is no value to including in the statistics an injury 
sustained by an employee who slips and falls in a motel room shower or 
who is injured in an automobile accident while on personal business, or 
becomes the victim of random street violence while doing personal 
shopping on a business trip. OSHA is therefore continuing the Agency's 
practice of excluding certain cases while employees are in travel 
status and applying the exceptions to the geographic presumption in the 
final rule to those occurring while the worker is traveling.
    The Department of Energy (Ex. 15: 163) expressed a concern about 
overseas travel, remarking ``For employees who travel in the U.S., the 
standard makes sense. For employees who travel out of the country, 
additional burdens to them are generally incurred. Travelers to 
tropical locations or other areas with different fauna and microbes may 
incur diseases that are not indigenous to the U.S.'' In response, OSHA 
notes that the recordkeeping regulation does not apply to travel 
outside the United States because the OSH Act applies only to the 
confines of the United States (29 U.S.C. Sec. 652(4)) and not to 
foreign operations. Therefore, the OSHA recordkeeping regulation does 
not apply to non-U.S. operations, and injuries or illnesses that may 
occur to a worker traveling outside the United States need not be 
recorded on the OSHA 300 Log.
Working at Home
    The final rule also includes provisions at Sec. 1904.5(b)(7) for

[[Page 5962]]

determining the work-relatedness of injuries and illnesses that may 
arise when employees are working at home. When an employee is working 
on company business in his or her home and reports an injury or illness 
to his or her employer, and the employee's work activities caused or 
contributed to the injury or illness, or significantly aggravated a 
pre-existing injury, the case is considered work-related and must be 
further evaluated to determine whether it meets the recording criteria. 
If the injury or illness is related to non-work activities or to the 
general home environment, the case is not considered work-related.
    The final rule includes examples to illustrate how employers are 
required to record injuries and illnesses occurring at home. If an 
employee drops a box of work documents and injures his or her foot, the 
case would be considered work-related. If an employee's fingernail was 
punctured and became infected by a needle from a sewing machine used to 
perform garment work at home, the injury would be considered work-
related . If an employee was injured because he or she tripped on the 
family dog while rushing to answer a work phone call, the case would 
not be considered work-related. If an employee working at home is 
electrocuted because of faulty home wiring, the injury would not be 
considered work-related.
    This provision is consistent with longstanding Agency practice 
under the former recordkeeping system. It was also included in the 
proposed rule (63 FR 4063), which read ``An injury or illness will be 
considered work-related if it occurs while the employee is performing 
work for pay or compensation in the home, if the injury or illness is 
directly related to the performance of work rather than the general 
home environment or setting.''
    A number of commenters supported OSHA's proposed approach to 
recording the injuries and illnesses of employees who work at home 
(see, e.g., Exs. 15: 31, 146, 176, 231, 273, 301, 336, 348, 375, 406, 
409, 413, 427, 429). The comments of the Council of Community Blood 
Centers (CCBC) (Ex. 15: 336) are typical of the views of these 
participants:

    CCBC believes this is a good rule and should stay on the books. 
Accident or illness should be work-related if it occurs at home and 
is related to performance of the work, not the general home 
environment or setting. Workers often are off the premises in a 
variety of situations, such as travel, providing repair services, or 
consultation. Just as injuries in these situations are reportable, 
so should those during work at home, if authorized by the employer.

    A large number of commenters objected to the proposed approach, 
however (see, e.g., Exs. 65, 66, 78, 89, 105, 111, 123, 194, 200, 225, 
239, 260, 262, 265, 277, 288, 330, 335, 341, 345, 360, 387, 393, 401, 
406, 409, 430, 434, 440). Most of these commenters objected because of 
the employer's perceived inability to control working conditions in the 
home environment (see, e.g., Exs. 15: 89, 163, 194, 239, 262, 288, 330, 
345, 360). For example, the Fort Howard Corporation commented:

    Fort Howard strongly opposes OSHA's proposal to consider any 
injuries and illnesses as ``work-related'' if it occurs while the 
employee is performing work for pay or compensation in the home if 
the injury or illness is directly related to the performance of the 
work. Employers have absolutely no control over employees' homes. 
They cannot oversee employees who are doing the work nor can they 
effectively monitor the manner the work is conducted or the 
environment in which it is conducted. OSHA's proposal could place 
employers in the role of insuring the home as a safe work 
environment. (Ex. 15: 194)

    Again, as discussed above, OSHA is concerned that all non-minor 
work-related cases be recorded on the Log and become part of the 
national statistics, both because these injuries and illnesses provide 
information about the safety and health of the work environment to 
employers, employees, and safety and health professionals and because 
collecting them may allow previously obscured safety and health issues 
to be identified. Injuries and illnesses occurring while the employee 
is working for pay or compensation at home should be treated like 
injuries and illnesses sustained by employees while traveling on 
business. The relevant question is whether or not the injury or illness 
is work-related, not whether there is some element of employer control. 
The mere recording of these injuries and illnesses as work-related 
cases does not place the employer in the role of insuring the safety of 
the home environment.
    The law firm of Leonard, Ralston, Stanton & Remington, Chartered 
(Ex. 15: 430) raised questions about OSHA's role when employees perform 
office work activities in a home office:

    The increasing incidence of home work (or ``telecommuting'') 
raises some interesting issues. For example, does OSHA assume that 
its right of inspection extends to an employee's private home? If 
so, has the Agency examined the constitutionality of this position? 
What control does the Agency assume an employer has over working 
conditions in a private home? Does the Agency expect the employer to 
inspect its employees' homes to identify unsafe conditions? Must the 
employer require an employee to correct unsafe conditions in the 
home (e.g., frayed carpet which presents a tripping hazard; 
overloaded electrical wiring or use of extension cords; etc.) as a 
condition of employment? If so, who must pay the cost of necessary 
home improvements?

    OSHA has recently issued a compliance directive (CPL 2-0.125) 
containing the Agency's response to many of the questions raised by 
this commenter. That document clarifies that OSHA will not conduct 
inspections of home offices and does not hold employers liable for 
employees' home offices. The compliance directive also notes that 
employers required by the recordkeeping rule to keep records ``will 
continue to be responsible for keeping such records, regardless of 
whether the injuries occur in the factory, in a home office, or 
elsewhere, as long as they are work-related, and meet the recordability 
criteria of 29 CFR Part 1904.''
    With more employees working at home under various telecommuting and 
flexible workplace arrangements, OSHA believes that it is important to 
record injuries and illnesses attributable to work tasks performed at 
home. If these cases are not recorded, the Nation's injury and illness 
statistics could be skewed. For example, placing such an exclusion in 
the final rule would make it difficult to determine if a decline in the 
overall number or rate of occupational injuries and illnesses is 
attributable to a trend toward working at home or to a change in the 
Nation's actual injury and illness experience. Further, excluding these 
work-related injuries and illnesses from the recordkeeping system could 
potentially obscure previously unidentified causal connections between 
events or exposures in the work environment and these incidents. OSHA 
is unwilling to adopt an exception that would have these potential 
effects. As the BF Goodrich Company (Ex. 15: 146) said, ``[s]pecific 
criteria to address employee work-at-home situations is appropriate to 
assure consistent reporting in our changing work environment.''

Section 1904.6 Determination of New Cases

    Employers may occasionally have difficulty in determining whether 
new signs or symptoms are due to a new event or exposure in the 
workplace or whether they are the continuation of an existing work-
related injury or illness. Most occupational injury and illness cases 
are fairly discrete events, i.e., events in which an injury or acute 
illness occurs, is treated, and then resolves completely. For example, 
a worker may suffer a cut, bruise, or rash from a clearly recognized 
event in the

[[Page 5963]]

workplace, receive treatment, and recover fully within a few weeks. At 
some future time, the worker may suffer another cut, bruise or rash 
from another workplace event. In such cases, it is clear that the two 
injuries or illnesses are unrelated events, and that each represents an 
injury or illness that must be separately evaluated for its 
recordability.
    However, it is sometimes difficult to determine whether signs or 
symptoms are due to a new event or exposure, or are a continuance of an 
injury or illness that has already been recorded. This is an important 
distinction, because a new injury or illness requires the employer to 
make a new entry on the OSHA 300 Log, while a continuation of an old 
recorded case requires, at most, an updating of the original entry. 
Section 1904.6 of the final rule being published today explains what 
employers must do to determine whether or not an injury or illness is a 
new case for recordkeeping purposes.
    The basic requirement at Sec. 1904.6(a) states that the employer 
must consider an injury or illness a new case to be evaluated for 
recordability if (1) the employee has not previously experienced a 
recorded injury or illness of the same type that affects the same part 
of the body, or (2) the employee previously experienced a recorded 
injury or illness of the same type that affected the same part of the 
body but had recovered completely (all signs and symptoms of the 
previous injury or illness had disappeared) and an event or exposure in 
the work environment caused the injury or illness, or its signs or 
symptoms, to reappear.
    The implementation question at Sec. 1904.6(b)(1) addresses chronic 
work-related cases that have already been recorded once and 
distinguishes between those conditions that will progress even in the 
absence of workplace exposure and those that are triggered by events in 
the workplace. There are some conditions that will progress even in the 
absence of further exposure, such as some occupational cancers, 
advanced asbestosis, tuberculosis disease, advanced byssinosis, 
advanced silicosis, etc. These conditions are chronic; once the disease 
is contracted it may never be cured or completely resolved, and 
therefore the case is never ``closed'' under the OSHA recordkeeping 
system, even though the signs and symptoms of the condition may 
alternate between remission and active disease.
    However, there are other chronic work-related illness conditions, 
such as occupational asthma, reactive airways dysfunction syndrome 
(RADs), and sensitization (contact) dermatitis, that recur if the ill 
individual is exposed to the agent (or agents, in the case of cross-
reactivities or RADs) that triggers the illness again. It is typical, 
but not always the case, for individuals with these conditions to be 
symptom-free if exposure to the sensitizing or precipitating agent does 
not occur.
    The final rule provides, at paragraph (b)(1), that the employer is 
not required to record as a new case a previously recorded case of 
chronic work-related illness where the signs or symptoms have recurred 
or continued in the absence of exposure in the workplace. This 
paragraph recognizes that there are occupational illnesses that may be 
diagnosed at some stage of the disease and may then progress without 
regard to workplace events or exposures. Such diseases, in other words, 
will progress without further workplace exposure to the toxic 
substance(s) that caused the disease. Examples of such chronic work-
related diseases are silicosis, tuberculosis, and asbestosis. With 
these conditions, the ill worker will show signs (such as a positive TB 
skin test, a positive chest roentgenogram, etc.) at every medical 
examination, and may experience symptomatic bouts as the disease 
progresses.
    Paragraph 1904.6(b)(2) recognizes that many chronic occupational 
illnesses, however, such as occupational asthma, RADs, and contact 
dermatitis, are triggered by exposures in the workplace. The difference 
between these conditions and those addressed in paragraph 1904.6(b)(1) 
is that in these cases exposure triggers the recurrence of symptoms and 
signs, while in the chronic cases covered in the previous paragraph, 
the symptoms and signs recur even in the absence of exposure in the 
workplace. This distinction is consistent with the position taken by 
OSHA interpretations issued under the former recordkeeping rule (see 
the Guidelines discussion below). The Agency has included provisions 
related to new cases/continuations of old cases in the final rule to 
clarify its position and ensure consistent reporting.
    Paragraph 1904.6(b)(3) addresses how to record a case for which the 
employer requests a physician or other licensed health care 
professional (HCP) to make a new case/continuation of an old case 
determination. Paragraph (b)(3) makes clear that employers are to 
follow the guidance provided by the HCP for OSHA recordkeeping 
purposes. In cases where two or more HCPs make conflicting or differing 
recommendations, the employer is required to base his or her decision 
about recordation based on the most authoritative (best documented, 
best reasoned, or most persuasive) evidence or recommendation.
    The final rule's provisions on the recording of new cases are 
nearly identical to interpretations of new case recordability under the 
former rule. OSHA has historically recognized that it is generally an 
easier matter to differentiate between old and new cases that involve 
injuries than those involving illnesses: the Guidelines stated that 
``the aggravation of a previous injury almost always results from some 
new incident involving the employee * * * [w]hen work-related, these 
new incidents should be recorded as new cases on the OSHA forms, 
assuming they meet the criteria for recordability * * *'' (Ex. 2, p. 
31). However, the Guidelines also stated that ``certain illnesses, such 
as silicosis, may have prolonged effects which recur over time. The 
recurrence of these symptoms should not be recorded as a new case on 
the OSHA forms. * * * Some occupational illnesses, such as certain 
dermatitis or respiratory conditions, may recur as the result of new 
exposures to sensitizing agents, and should be recorded as new cases.''
    OSHA developed and included specific guidance for evaluating when 
cumulative trauma disorders (CTDs) (ergonomic injuries and illnesses, 
now known as musculoskeletal disorders, or MSDs) should be recorded as 
new cases in the Ergonomics Program Management Guidelines For 
Meatpacking Plants (Ex. 11, p. 15) which were published in 1990. These 
Guidelines provided:

    If and when an employee who has experienced a recordable CTD 
becomes symptom free (including both subjective symptoms and 
physical findings), any recurrence of symptoms establishes a new 
case. Furthermore, if the worker fails to return for medical care 
within 30 days, the case is presumed to be resolved. Any visit to a 
health care provider for similar complaints after the 30-day 
interval ``implies reinjury or reexposure to a workplace hazard and 
would represent a new case.''

    Thus, the former rule had different ``new case'' criteria for 
musculoskeletal disorders than for other injuries and illnesses. (For 
the final rule's recording criteria for musculoskeletal disorders, see 
Section 1904.12.)
    OSHA's recordkeeping NPRM proposed a single approach to the 
identification of new cases for all injuries and illnesses, including 
musculoskeletal disorders. The proposal would have required the 
recurrence of a pre-existing injury or illness to be considered a new 
case to evaluate for recordability if (1) it resulted from a

[[Page 5964]]

new work event or exposure, or (2) 45 days had elapsed since medical 
treatment, work restriction, or days away from work had ceased, and the 
last sign or symptom had been experienced. The proposed approach would, 
in effect, have extended the recurrence criteria for musculoskeletal 
disorders to all injury and illness cases, but would have increased the 
no-medical-intervention interval from 30 to 45 days. A recurrence of a 
previous work-related injury or illness would have been presumed, under 
the proposed approach, to be a new case if (1) it resulted from a new 
work accident or exposure, or (2) 45 days had elapsed since medical 
treatment had been administered or restricted work activity or days 
away had occurred and since the last sign or symptom had been 
experienced. This proposed presumption would have been rebuttable if 
there was medical evidence indicating that the prior case had not been 
resolved. In the proposal, OSHA also asked for input on the following 
questions related to new case recording:

    OSHA solicits comment on the appropriateness of the 45-day 
interval. Is 45 days too short or long of a period? If so, should 
the period be 30 days? 60 days? 90 days? or some other time period? 
Should different conditions (e.g. back cases, asthma cases etc.) 
have different time intervals for evaluating new cases?
    OSHA is also seeking input for an improved way to evaluate new 
cases. Should a new category of cases be created to capture 
information on recurring injuries and illnesses? One option is to 
add an additional ``check box'' column to the proposed OSHA Form 300 
for identifying those cases that are recurrences of previously 
recorded injuries and illnesses. This would allow employers, 
employees and OSHA inspectors to differentiate between one time 
cases and those that are recurrent, chronic conditions. This 
approach may help to remove some of the stigma of recording these 
types of disorders and lead to more complete records. OSHA solicits 
input on this approach. Will a recurrence column reduce the stigma 
of recording these types of cases? Should recurrences be included in 
the annual summaries? Should a time limit be used to limit the use 
of a recurrence column?

    In response to the views and evidence presented by commenters to 
the record, OSHA has decided not to adopt the proposed approach to the 
recording of new/recurring cases in the final rule. Commenters 
expressed a wide variety of views about the recording of recurring 
injury and illness cases. Some commenters favored the proposed approach 
as drafted. Others, however, objected to it on many grounds: (1) the 
time limit should be longer or shorter than the 45 days proposed; (2) 
the proposed approach would result in under- or overreporting; (3) it 
would conflict with workers' compensation requirements; (4) it was too 
restrictive (5) it would encourage excessive use of the health care 
system; and (6) it should be replaced by a physician or other licensed 
health care professional's opinion.
    A number of commenters supported OSHA's proposed approach (see, 
e.g., Exs. 15: 27, 65, 70, 151, 152, 154, 179, 180, 181, 185, 186, 188, 
214, 331, 332, 336, 359, 387, 396, 424, 428). Representative of these 
comments was one from The Fertilizer Institute (TFI):

    TFI agrees with OSHA's proposed 45 day criterion for the 
recording of new cases. Concerning OSHA's solicitation of comments 
on whether different conditions should have different evaluation 
periods, TFI encourages OSHA to adopt a single time period for all 
conditions. Different evaluation periods for different conditions 
will lead to complexity and confusion without any resulting benefit 
to recordkeeping (Ex. 15: 154).

    Other commenters supported the concept of using a time limit for 
determining new cases, but thought the number of days should be higher 
(see, e.g., Exs. 15: 45, 49, 61, 82, 89, 131, 147, 184, 235, 331, 389). 
Some commenters generally opposed the time limit concept but made 
recommendations for longer time periods if OSHA decided in the final 
rule to adopt a time limit (see, e.g., Exs. 15: 38, 79, 89, 111, 136, 
137, 141, 194, 224, 246, 266, 278, 288, 299, 313, 335, 352, 353, 430). 
The longer intervals suggested by commenters included 60 days (see, 
e.g., Exs. 15: 82, 389); 90 days (see, e.g., Exs. 15: 38, 49, 79, 147, 
184, 246, 299, 313, 331, 335, 352, 353, 430); 120 days (Ex. 15: 194); 
180 days (see, e.g., Exs. 15: 61, 111, 136, 137, 141, 224, 266, 278, 
288); one year (Ex. 15: 131); and five years (Ex. 15: 89).
    A large number of commenters opposed the proposed approach for 
identifying new cases that would then be tested for their recordability 
(see, e.g., Exs. 15: 33, 38, 39, 41, 78, 79, 89, 95, 102, 107, 111, 
119, 127, 133, 136, 137, 141, 153, 171, 176, 194, 199, 203, 224, 225, 
231, 246, 266, 273, 278, 281, 288, 289, 299, 301, 305, 307, 308, 313, 
335, 337, 341, 346, 348, 352, 353, 375, 395, 405, 410, 413, 424, 425, 
428, 430, 440). Some commenters argued that the proposed 45-day 
interval was arbitrary (see, e.g., Exs. 15: 119, 203, 289, 313, 352, 
353, 395), that it conflicted with workers' compensation new case 
determinations (see, e.g., Exs. 15: 38, 119, 136, 137, 141, 224, 266, 
278), that the approach would not work in the case of chronic injury 
(see, e.g., Exs. 33; 15: 176, 199, 231, 273, 299, 301, 305, 308, 337, 
346, 348, 375), or that the proposed 45-day rule would result in over-
reporting of occupational injuries and illnesses (see, e.g., Exs. 15: 
119, 127, 136, 137, 141, 171, 199, 224, 266, 278, 305, 337, 424, 425). 
The comments of the NYNEX Corporation (Ex. 15: 199) illustrate the 
general concerns of these commenters:

    We do not agree, however, with the second criterion of a symptom 
free 45 day period following medical treatment, restriction, or days 
away from work. This criterion fails to take into account the 
persistent nature of many chronic or recurring conditions, i.e., 
back strains, musculoskeletal disorders, where the symptoms may 
disappear for a period of time, but the underlying conditions are 
still present. If adopted, this criterion could cause injury and 
illness data to be artificially inflated with the onset of ``new'' 
cases, which in fact are recurrences of existing conditions. This in 
turn could lead to false epidemics and a diversion of resources from 
more legitimate workplace concerns.

    On the other hand, William K. Principe of Constangy, Brooks & 
Smith, LLC (Ex. 15: 428) was concerned that the proposed method would 
result in fewer recordable cases:

    Since many employees will report that they continued to 
experience symptoms or that they continue to have good days and bad 
days, the new rule will result in many fewer recordable CTD 
[cumulative trauma disorder] cases. In fact, at some hand-intensive 
manual operations, the number of CTD cases should be drastically 
reduced under the proposal that 45 days must elapse since the last 
symptom. There is something fundamentally wrong with a recordkeeping 
system that one year shows a high incidence of CTDs and the next 
shows a dramatic decline, when the underlying conditions remain 
virtually identical.

    United Parcel Service (Ex. 15: 424) stated that there should be no 
time limit to determining whether or not a case is a recurrence:

    In UPS's experience, however, it is a simple process to 
determine, by medical referral or by examining prior medical 
history, whether a condition is a recurrence. This has long been the 
practice, and indeed the [proposal] contemplates it will remain the 
practice through the first 44 days. It does not become any more 
complex on the 45th, 50th, or 100th day; and if in an individual 
employer's judgment it does, then the employer may of course report 
the condition as a new injury.

    Three commenters disapproved of OSHA's approach because it would 
have been applicable to all recurrences and they believe that each case 
must be evaluated on its own merits (Exs. 15: 78, 184, 203). The 
International Dairy Foods Association (IDFA) described this concern 
succinctly: ``Each injury has its own resolution based on the injury, 
illness, degree, and numerous other factors that are characteristic of 
the


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