What Happens if OSHA Is Eliminated? The Potential Impact on Workplace Safety and Workers’ Compensation

A new legislative proposal, the Nullify OSHA Act (NOSHA), introduced by U.S. Rep. Andy Biggs (R-Ariz.), aims to dismantle the Occupational Safety and Health Administration (OSHA) and transfer workplace safety oversight to individual states. Proponents argue this would allow for more localized control, but critics warn it could lead to inconsistent safety standards, higher injury rates, and increased workers’ compensation costs.

OSHA plays a key role in setting national safety standards, reducing workplace injuries, and ensuring compliance through enforcement. Eliminating OSHA could create a fragmented system where some states maintain strict regulations while others weaken protections, leading to increased claims, higher insurance premiums, and greater financial strain on businesses. Without federal oversight, employers operating in multiple states could face compliance confusion and legal uncertainty, making risk assessment and workers’ compensation pricing more complex for insurers.

Beyond financial implications, the absence of OSHA could lead to more workplace accidents, particularly in high-risk industries like construction and manufacturing. Without federal enforcement, companies with poor safety records may face fewer penalties, increasing the likelihood of hazardous working conditions. The proposal’s long-term consequences could include more litigation, higher injury-related costs, and an overall decline in workplace safety.

As discussions around the bill continue, the workers’ compensation industry must prepare for potential regulatory shifts. A uniform safety framework ensures predictability, lowers risks, and controls costs. Removing OSHA could disrupt this balance, affecting employers, insurers, and workers nationwide.