NC Labor commissioner halts 'death discount' for workplace fatality civil penalties

North Carolina's Labor commissioner ended Wednesday the so-called "death discount" available to businesses that experience a workplace fatality.

"When a fatality occurs due to workplace safety failures, our response must reflect the gravity of that loss - fully and without dilution," Commissioner Luke Farley said in a news release.

One of the investigative determinations by state Labor officials for decades has been a sobering calculation - the monetary value of a human life.

The median N.C. Labor civil penalty fine to a business for a workplace death is about $12,000, according to the Ramsey Law Firm.

The amount of the reduced fine is often based on the size of the business.

In many instances, state Labor officials have negotiated the fine down as much as 70% from the $16,550 state maximum per incident civil penalty for serious violations in order to mirror federal Occupational Safety and Health Administration standards.

State Labor officials often agrees to negotiate with employers on reducing the civil penalty as an incentive to make worksite safety improvements, such as requiring extra training or safety inspections, according to the law firm.

When it comes to willful or repeat violations, the civil penalty maximum currently is $165,514.

According to a 2024 Charlotte Observer report, state labor officials reduced civil penalties more than 40% of the time after citing companies for violations linked to worker deaths in 2022 and 2023.

Farley's directive is meant to "ensure that enforcement actions fully reflect the gravity of a fatality, regardless of the size of the business involved."

"Despite modern technology, enhanced safety programs, and the best of intentions, workplace fatalities still occur far too often. When businesses violate safety rules and those violations lead to a workers' death, those businesses are often penalized by state and federal agencies; agencies charged with, among other things, protecting workers.

The North Carolina Department of Labor has maintained a longstanding policy of reducing such penalties after a worker is killed on the job. As Commissioner Farley recently said "the loss of human life cannot be discounted." Penalties charged to businesses that do not follow the rules should not be discounted either.

Michael Brown, managing partner of CR Legal Team LLP, commended Farley's "courage in changing this policy."

"Despite modern technology, enhanced safety programs and the best of intentions, workplace fatalities still occur far too often. The North Carolina Labor Department has maintained a longstanding policy of reducing such penalties after a worker is killed on the job.

"Commissioner Farley's decision to end this policy is both admirable and just."

One of the highest-profile workplace fatality investigations involved the June 2018 death of Kernersville resident Jeffrey Whitworth at the YRC Freight Inc. campus at 1255 N.C. 66 South in Kernersville.

Whitworth, 74, was crushed to death when the forklift he was operating fell four to five feet from a tractor-trailer as he was reportedly backing up to the edge of a dock. Kernersville police said that at some point the tractor-trailer was moved away from the dock, leaving a gap.

Kernersville police determined the death was "a total accident" and no criminal charges were filed.

In December 2018, the Labor department fined YRC $7,000 "for a serious violation" involving not requiring forklift operators to wear a seat belt. The report indicated that other employees were operating a forklift without using a seat belt.

YRC also was fined $4,000 for "a non-serious violation" of the Occupational Safety and Health Act of N.C. for failing to report the death within eight hours of a workplace fatality. The Labor report said the department was notified of Whitworth's death about 13 hours after it occurred.

Farley said civil penalties are a key enforcement tool used to reinforce workplace safety standards, deter negligence, and ensure employers meet their legal obligations to protect workers.

Farley said he recognizes that eliminating the possibility of a reduced civil penalty may harm smaller businesses more financially than larger ones.

However, he stressed that compliance assistance - not reduced accountability - is the appropriate path forward.

"The right way to support small businesses is through education, outreach, and resources that help them operate safely," Farley said.

The Ramsey Law Firm said state Labor officials' willingness to reduce civil penalty for workplace fatalities "sends a dangerous message to employers, lawyers and others who advocate for workers."

The state Labor totals exclude workplace deaths handled by the U.S. Labor Department, such as traffic accidents - which typically account for a majority of workplace fatalities - and on farms with 10 or fewer employees.

Law enforcement agencies investigate homicides and suicides that occur at workplaces.

Braxton Winston, president of the N.C. State AFL-CIO President Braxton, said the union "strongly agrees with ending the ‘death discount' on employer fines when their workers die on the job."

The union represents more than 100,000 North Carolina workers.

"Those fines are already too low, and Commissioner Farley is right: the loss of a human life cannot be discounted," Winston said. "We applaud him and the department for finding that this shameful practice did nothing to promote justice or accountability."

Winston called the policy change "common sense regulation that can be done under existing state law. "

"This is not about politics; it's about people. This is a win for North Carolina workers that will save lives."

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