Dollar Tree, Inc. has agreed to a settlement with Occupational Safety and Health Administration (OSHA) that comes with work safety-related requirements and fines over $1 million combined.
The U.S. Department of Labor (DOL) said the many Dollar Tree and Family Dollar retail stores that fall under the purview of OSHA would be subject to the corporate-wide settlement geared toward workplace safety enhancements. It unveiled the agreement on Wednesday.
The fine that Dollar Tree, Inc. will have to cover as part of it totaled $1.35 million. Those funds will "settle existing contested as well as open inspections" of alleged safety issues, the DOL said.
The corporate-wide settlement marks the second that the company has reached with OSHA. The prior one spanned 2015 to 2018, according to the DOL.
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Dollar Tree, Inc. issued a press release about the newly announced settlement, saying it "paves the way for Dollar Tree and Family Dollar stores to further their safety programs and reflect the organization’s commitment to safety."
"We are implementing substantial safety policies, procedures, and training, all intended to safeguard the wellbeing of our associates. We appreciate the opportunity to engage with OSHA on our safety initiatives as we move forward, seeking to establish our position as a leading retailer in workplace safety," company COO Mike Creedon said.
The settlement includes measures related to alleged violations OSHA said it has "repeatedly" seen at Dollar Tree and Family Dollar locations in the past and to potential future violations, according to the DOL.
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For allegedly repeated violations, the company has a "comprehensive, nationwide assessment" of their "root causes" it must launch with a two-year timeframe to address them, according to the DOL.
The regulatory agency set a two-day deadline for the company to remedy any potential future issues with "blocked exits, access to fire extinguishers and electric panels, and improper material storage." That clock apparently starts after it gets notification of a purported violation from OSHA.
The settlement said OSHA can issue daily penalties to the Dollar Tree and Family Dollar retailer worth $100,000 in the event that it doesn’t remedy a purported violation by the end of that 48-hour period. It capped the amount at $500,000 and required documentation of the fix, according to the DOL.
"The Solicitor’s office and OSHA support innovative agreements under which companies commit to solve the underlying problems that create hazards," Solicitor of Labor Seema Nanda said. "We were willing to use this approach because these companies have already taken substantial steps to address the systemic issues, which gave us confidence that this innovative approach would work."
Other steps the company will take under the settlement include increasing its "hazard identification and control" programs, setting up safety advisory groups, operating a safety complaint hotline at all hours of the day and making a "tracking system" for them, according to the DOL.
The announcement of the OSHA settlement came just a day before Dollar Tree, Inc. is slated to publish its earnings for the second quarter.
In May, the company said its discount stores saw $7.32 billion in net sales for its first quarter, climbing 6% year-over-year. Its net income for that three-month period came in at $299 million.
