TL;DR – What Employers Need to Know
- A recent federal court ruling confirms that falsified safety records can result in criminal convictions—including prison time.
- Supervisors and managers can be held personally liable, even if they didn’t directly create the false documents.
- Employers must ensure proper training, accurate recordkeeping, and proactive audit preparation to avoid exposure.
OSHA Inspections Can Now Lead to Prison Time: What Employers Must Know
A recent ruling from the U.S. Court of Appeals for the 7th Circuit serves as a sobering reminder for employers: workplace safety violations and false documentation can lead to criminal charges, not just fines.
This case involved two managers from a Wisconsin milling company who were sentenced to prison following a deadly explosion at their facility. What began as a standard OSHA inspection escalated into a full criminal investigation by the Department of Justice—resulting in convictions, millions in penalties, and long-term reputational damage.
What Happened?
In 2017, an explosion at Didion Milling’s corn mill tragically killed five workers and injured others. OSHA’s investigation uncovered over 20 serious and willful violations, leading to a $1.8 million fine. But that was just the beginning.
The case was referred to the DOJ, which indicted the company and six employees for falsifying safety and environmental records and misleading regulators and auditors. Two managers were ultimately convicted in court:
- One manager received a 24-month prison sentence for submitting false pollution control logs and failing to disclose discrepancies during an audit.
- Another was convicted of conspiracy to commit wire and mail fraud for falsifying sanitation logs to pass inspections and retain key clients.
3 Critical Lessons for Employers
1. OSHA Inspections Can Lead to Criminal Charges
Administrative penalties are no longer the ceiling. If OSHA finds evidence of falsification or deception, criminal referrals may follow.
2. Managers Can Be Held Personally Liable
Even if a manager didn’t create false documents, signing or failing to flag known discrepancies can result in criminal liability.
3. Compliance Training is Essential
Your team must understand proper documentation practices and audit protocols. Proactive internal training and compliance reviews are critical.
Why This Matters Now
With increased scrutiny from OSHA and federal agencies, employers must be vigilant. Poor recordkeeping, unsafe practices, or misleading statements can expose both individuals and organizations to serious consequences.
VertiSource HR is Here to Help
At VertiSource HR, we help businesses stay compliant through expert-led training, ongoing audit support, and hands-on HR partnership. Whether you need to build internal safeguards or improve documentation procedures, our team is here to guide you.
Need help navigating OSHA compliance or reducing risk?
Let’s work together to protect your business—and your people.
