Regulatory actions, when carefully designed, serve critical societal purposes, such as safeguarding workers, public health, and the environment. However, these regulations come with compliance costs that can burden businesses, leading to missed opportunities and higher operational expenses. Balancing these dynamics remains a persistent challenge.
For decades, the scope of U.S. regulations has expanded, increasing the financial demands on the economy. While these workplace rules aim to mitigate risks and liabilities, thus lowering costs to businesses, communities, and governments, the debate on regulatory efficiency persists. For instance, the 2020 federal budget revealed that OSHA’s enforcement and consultative services cost employers approximately $5 annually per business. This modest investment underscores the agency’s pivotal role in worker health and safety.