The workplace is full of potential hazards. Some of the most overlooked are the everyday chemicals employees encounter without realizing the risk.
Whether it’s cleaning solvents, paint thinners, or industrial oils, if a substance can cause harm, OSHA’s Hazard Communication Standard (HCS) applies. Failing to comply can be costly. In 2023 alone, hazard communication violations were the second-most cited OSHA standard, with over 3,000 totaling nearly $5 million in penalties.
The financial risks of non-compliance with OSHA’s HCS
If you’ve never received an OSHA citation, it’s easy to assume your current safety practices are enough. However, hazard communication infractions are often the result of minor oversights.
Top OSHA hazard communication violations:
- Absent or subpar hazard communication programs
- Inadequate employee training
- Outdated or inaccessible Safety Data Sheets (SDS)
- Missing or incorrect chemical container labeling
These problems create fundamental safety gaps that increase the likelihood of employee injury, chemical exposure, and long-term health issues.
How OSHA compliance affects your insurance risk and premiums
Although OSHA compliance focuses on employee safety, it also helps reduce your company's insurance risk. Failing to follow the Hazard Communication Standard can increase your exposure to claims and lead to higher premiums or reduced coverage options. Insurance implications include:
- Workers’ compensation claims: Inadequate employee training and protection can lead to costly claims from chemical-related injuries or illnesses.
- General liability exposure: Improper labeling, storage, or handling of hazardous materials can lead to third-party injuries or property damage.
- Environmental liability: Spills or improper disposal may trigger pollution claims and regulatory fines not covered under standard property or liability policies.
Maintaining compliance protects your people and strengthens your position when negotiating or renewing insurance coverage.
A unified global standard with the UN
Implementing safety practices used to be like the Wild West, differing all over the world. Manufacturers and employers used inconsistent formats and labeling practices. A safety sheet from one supplier in China looked different from a supplier in Germany, making it challenging to understand risks or respond quickly in emergencies. In 2012, OSHA aligned its Hazard Communication Standard with the United Nations' Globally Harmonized System (GHS).
Under GHS:
- OSHA replaced the term Material Safety Data Sheet (MSDS) with Safety Data Sheet (SDS).
- SDSs now follow a standardized 16-section format.
- Labels need to include the product/chemical name, pictograms, signal words, a precautionary statement, and a hazard warning.
Building a compliant hazard communication program
Naturally, you want to protect your employees, and staying compliant with OSHA is a win-win. It helps you meet regulatory requirements while simultaneously reducing workplace risks.
To meet OSHA’s standards, implement these core components:
Develop a written hazard communication program
This document is the foundation of your compliance.
Outline how your business:
- Conducts training
- Maintains and updates SDSs
- Labels containers (including secondary ones)
- Keeps a current chemical inventory
Always include site-specific details. A generic, fill-in-the-blank template isn’t enough. Your written program needs to reflect the actual procedures and hazards in your workplace.
Maintain an accurate chemical inventory for OSHA compliance
This list must be:
- Accurate and continuously updated
- Accessible to employees
- Maintained for 30 years from the last use of any chemical
Make Safety Data Sheets (SDS) accessible
SDSs must be:
- Updated, current, and available to employees on demand (any employee can ask to see an SDS at any time)
- Readily accessible to employees during emergencies in paper or digital form
Email the supplier to start a paper trail if you receive a chemical without an SDS. If OSHA visits, that written record demonstrates you're trying to comply and shifts the liability upstream.
Ensure proper chemical labeling: Primary and secondary container requirements
Make sure to:
- Keep the primary labels from the manufacturer or supplier visible
- Label secondary containers like spray bottles or transfer containers
- Use appropriate pictograms and signal words
- Match the information found on the SDS
- Include the product/chemical name, a precautionary statement, and a hazard warning
Adopt best practices for safe and compliant chemical storage
Require employees to:
- Store chemicals safely, following instructions on the Safety Data Sheets (e.g., away from direct sunlight, in a ventilated area, away from ignition sources, etc.).
- Double check the type of storage container to use for each hazardous chemical. Is the chemical incompatible with the type of container (e.g., plastic, metal, etc.)?
- Comply with all applicable agencies (EPA; NFPA; local, state, and federal building and fire codes, etc.) when storing large quantities of chemicals onsite.
- Assess the amount of chemicals used in a year. Are you storing too much? Take inventory and consider reducing orders to prevent oversupply. While purchasing chemicals in bulk may save some money, storing large quantities can involve additional compliance costs.
Provide chemical safety training: What your employees need to know
Ensure employees understand:
- Chemical hazards specific to your workplace
- How to read SDSs and container labels
- How to use, clean, and store personal protective equipment (PPE)
- Emergency response procedures
Train employees before they start working with chemicals. OSHA doesn’t always require annual refresher training, but it’s a good idea to offer short sessions each year. Some states do require them, so check your local rules.
Conduct occasional spot checks to gauge the training's effectiveness. Ask employees questions like, "Where are the SDSs kept?" or "What PPE do you use for this chemical?" OSHA inspectors may randomly ask employees where SDSs are located. Spot checks help prepare your workers before an inspector asks.
Why HCS compliance is the foundation of a safer workplace
Compliance with the Hazard Communication Standard is a roadmap for protecting your people. From written programs to container labels, the standard ensures employees can recognize hazards, understand risks, and take informed action.
Don’t let compliance fall by the wayside. Even if the current presidential administration relaxes enforcement, insurance carriers look at your risk management practices in the underwriting process. Upholding best practices protects your workforce and can help you at renewal time.
Want to learn more?
Connect with the Risk Strategies Loss Control and Safety Team at safety@risk-strategies.com.
This article summarizes a recent webinar on the Hazard Communication Standard.
Watch now: OSHA Hazard Communication Standard Webinar
