In its field operations manual, OSHA provides  guidance to inspectors, employers, and workers on compliance with  safety and health standards, inspections, and penalty assessments. For example, OSHA’s  Voluntary Protection Programs (VPP) recognize employers with  exemplary safety and health systems and relatively low injury and illness  rates, and exempts them from routine inspections. There are two types of safety incentive programs: rate-based programs,  which reward workers for achieving low rates of reported injuries or  illnesses, and behavior-based programs, which reward workers for certain  behaviors such as recommending safety improvements (see fig. Safety Incentive Programs and Policies May Affect Injury and Illness Reporting

		Research on the Effect of Safety Incentive Programs Is Inconclusive, but Several Experts Agree Certain Programs and Policies May Discourage Reporting

Little conclusive academic research exists on whether safety incentive  programs and other workplace safety policies affect workers’ injury and  illness reporting, but several experts stated that rate-based programs may  discourage injury and illness reporting. Three-Quarters of U.S. Manufacturers Had Safety Incentive Programs or Other Workplace Safety Policies

According to our survey, in 2010, an estimated 116,000 of about 153,000  manufacturers in the United States (75 percent) had safety incentive  programs or had other workplace safety policies that, according to several  experts, may affect workers’ reporting of injuries and illnesses. However, we estimated that safety incentive programs were less  prevalent than other workplace safety policies, such as demerit systems,  that discipline workers for unsafe work practices.a quarter of manufacturers had some type of safety incentive program  and most had a demerit system or post-incident drug and alcohol testing   We also estimated that  policy. Demerit systems were the most common policy reported, followed  by post-incident drug and alcohol testing policies (see fig. Most  manufacturers had more than one safety incentive program or other  workplace safety policy, and more than 20 percent had several, according to  our estimates. OSHA Has Taken Limited Actions to Address Safety Incentive Programs and Other Workplace Safety Policies

		OSHA’s Enforcement Efforts Address Safety Incentive Programs and Other Workplace Safety Policies to a Limited Extent

OSHA can use its enforcement authority to address certain aspects of  safety incentive programs and other workplace safety policies, but the  effectiveness of these activities is limited. Similarly,  OSHA’s field operations manual does not provide guidance to its  inspectors for addressing safety incentive programs during inspections. In response to our recommendation that OSHA add language about key  elements of a positive safety culture—and the potential effect of different  types of safety incentive programs and other workplace safety policies— to its field operations manual, OSHA stated that it has issued guidance for  its inspectors about safety incentive programs that underscores the  agency’s position that programs that discourage workers from reporting  injuries may violate whistleblower protection statutes and OSHA’s  recordkeeping regulations. Key contributors to this report are listed in appendix V.

Appendix I: Scope and Methodology

	Literature Review and Expert Input on Safety Incentive Programs and Other Workplace Safety Policies That May Affect Injury and Illness Reporting

To determine what is known about the effect of workplace safety incentive  programs and other workplace safety policies on injury and illness  reporting, we conducted a literature search for relevant studies. To supplement our understanding of what is known about the effect of  safety incentive programs and other workplace safety policies on injury  and illness reporting, we interviewed experts and industry officials from  academia, employer associations, a law firm, a consulting firm, unions,  and state and federal occupational safety and health agencies. Survey of Manufacturing Worksites

To study the prevalence of workplace safety incentive programs as well  as other workplace safety policies that may affect injury and illness  reporting, we surveyed a nationally representative sample of  manufacturing worksites. We interviewed selected OSHA officials from the agency’s  national office as well as several regional and area offices to learn about  (1) their efforts to address the potential impact of safety incentive  programs and workplace policies on injury and illness reporting, (2) the  recordkeeping enforcement initiative, and (3) their views on safety  incentive programs and the potential relationship between these  programs and injury and illness reporting.
Why GAO Did This Study

OSHA relies on employer injury and illness records to target its enforcement efforts. Questions have been raised as to whether some safety incentive programs and other workplace safety policies may discourage workers' reporting of injuries and illnesses. GAO examined (1) what is known about the effect of workplace safety incentive programs and other workplace safety policies on injury and illness reporting, (2) the prevalence of safety incentive programs as well as other policies that may affect reporting, and (3) actions OSHA has taken to address how safety incentive programs and other policies may affect injury and illness reporting. GAO reviewed academic literature, federal laws, regulations, and OSHA guidance; surveyed a nationally representative sample of manufacturing worksites; and interviewed federal and state occupational safety and health officials, union and employer representatives, and researchers.

What GAO Found

Little research exists on the effect of workplace safety incentive programs and other workplace safety policies on workers' reporting of injuries and illnesses, but several experts identified a link between certain types of programs and policies and reporting. Researchers distinguish between rate-based safety incentive programs, which reward workers for achieving low rates of reported injuries or illnesses, and behavior-based programs, which reward workers for certain behaviors, such as recommending safety improvements. Of the six studies GAO identified that assessed the effect of safety incentive programs, two analyzed the potential effect on workers reporting of injuries or illnesses, but they concluded that there was no relationship between the programs and injury and illness reporting. Experts and industry officials, however, suggest that rate-based programs may discourage reporting of injuries and illnesses. Experts and industry officials also reported that certain workplace polices, such as post-incident drug and alcohol testing, may discourage workers from reporting injuries and illnesses. Researchers and workplace safety experts also noted that how safety is managed in the workplace, including employer practices such as fostering open communication about safety issues, may encourage reporting of injuries and illnesses.
In 2010, from its survey, GAO estimated that 25 percent of U.S. manufacturers had safety incentive programs, and most had other workplace safety policies that, according to experts and industry officials, may affect injury and illness reporting. GAO estimated that 22 percent of manufacturers had rate-based safety incentive programs, and 14 percent had behavior-based programs. Almost 70 percent of manufacturers also had demerit systems, which discipline workers for unsafe behaviors, and 56 percent had post-incident drug and alcohol testing policies according to GAOs estimates. Most manufacturers had more than one safety incentive program or other workplace safety policy and more than 20 percent had several. Such programs and policies were more common among larger manufacturers.
Although the Occupational Safety and Health Administration (OSHA) is not required to regulate safety incentive programs, it has taken limited action to address the potential effect of such programs and other workplace safety policies on injury and illness reporting. These programs and policies, however, are not addressed in key guidance such as OSHA's field operations manual for inspectors. OSHA has cooperative programs that exempt employers with exemplary safety and health management systems from routine inspections. One such program prohibits participants from having rate-based safety incentive programs, but guidance on OSHAs other cooperative programs does not address safety incentive programs. Similarly, OSHA inspectors and outreach specialists provide information to employers about the potential benefits and risks of safety incentive programs, but the guidance provided to inspectors in its field operations manual does not address these programs.

What GAO Recommends

GAO recommends that OSHA provide guidance about safety incentive programs and other workplace safety policies consistently across the agency's cooperative programs, and add language about safety incentive programs and other workplace safety policies to the guidance provided to inspectors in its field operations manual. OSHA agreed with the recommendations, and noted its plans to address them.