Dollar Tree, Inc. Agrees to $1.35 Million Settlement with OSHA for Workplace Safety Violations

Dollar Tree, Inc. has entered into a settlement with the Occupational Safety and Health Administration (OSHA), resulting in a comprehensive corporate-wide agreement to enhance workplace safety measures across its retail stores. The U.S. Department of Labor (DOL) unveiled the agreement, which also includes fines exceeding $1 million, on Wednesday.

Under the terms of the settlement, Dollar Tree, Inc. will pay a total of $1.35 million in fines, which will be used to resolve existing contested inspections and address open investigations into alleged safety issues, as confirmed by the DOL.

This settlement represents the second agreement between the company and OSHA, the prior one spanning the period from 2015 to 2018, according to the DOL.

In response to the settlement announcement, Dollar Tree, Inc. released a press statement, emphasizing its commitment to workplace safety. The statement outlined the company’s intention to bolster its safety programs, policies, procedures, and training to ensure the well-being of its associates. Mike Creedon, the Chief Operating Officer of Dollar Tree, Inc., expressed appreciation for the opportunity to collaborate with OSHA on safety initiatives, aiming to position the organization as a leader in workplace safety.

The settlement includes provisions targeting alleged safety violations that OSHA claims to have “repeatedly” observed at Dollar Tree and Family Dollar stores. It also encompasses measures to address potential future violations, according to the DOL.

Among the stipulations, the company is required to conduct a “comprehensive, nationwide assessment” of the root causes behind repeated violations within a two-year timeframe. Additionally, the company must rectify any potential future issues, such as blocked exits, improper material storage, and access to fire extinguishers and electric panels, within a 48-hour period after being notified of a violation by OSHA. Failure to comply with this timeframe may result in daily penalties of up to $100,000, capped at $500,000, with documented evidence of the remedy.

Solicitor of Labor Seema Nanda stated, “The Solicitor’s office and OSHA support innovative agreements under which companies commit to solve the underlying problems that create hazards.” Nanda expressed confidence in the efficacy of this approach due to the substantial steps already taken by Dollar Tree, Inc. to address systemic issues.

In addition to the financial settlement, Dollar Tree, Inc. will adopt various safety measures. These include bolstering hazard identification and control programs, establishing safety advisory groups, maintaining a round-the-clock safety complaint hotline, and implementing a comprehensive tracking system for safety-related issues, as outlined by the DOL.

The announcement of the OSHA settlement coincides with Dollar Tree, Inc.’s impending release of its second-quarter earnings. In its first quarter, the company reported net sales of $7.32 billion for its discount stores, marking a 6% year-over-year increase. Net income for the same period was recorded at $299 million.

As Dollar Tree, Inc. takes steps to rectify safety concerns and elevate workplace safety standards, the settlement represents a significant commitment to the well-being of its employees and customers.