Dollar General on Thursday has agreed to a $12 million settlement with the U.S. Department of Labor over failure to implement extensive safety improvements across its more than 19,000 stores nationwide.
This adds to the over $21 million in fines Dollar General has accrued from the federal Occupational Safety and Health Administration (OSHA) since 2017, primarily due to blocked fire exits, hazardous clutter, and other safety violations, CNBC reported.
Gun violence also remains a critical concern for the chain, with 49 fatalities and 172 injuries reported at its locations according to 2023 data from the nonprofit Gun Violence Archive.
As a recurrent violator, Dollar General became the first company included in OSHA's "severe violators" list for workplace safety rules in 2023, following the agency's expansion of its safety enforcement program.
"This agreement ensures Dollar General prioritizes worker safety by instituting significant and systemic operational changes, enhancing accountability and compliance, and involving employees in maintaining their own health and safety," said Douglas Parker, Assistant Secretary for Occupational Safety and Health, in a press release.
Under the settlement, the Tennessee-based retailer is mandated to employ additional safety managers, decrease inventory, and improve stocking efficiency to prevent blocked exits and clutter.
The agreement also requires Dollar General to provide comprehensive safety and health training for all employees and establish a safety and health committee with employee involvement.
To address these issues, Dollar General has engaged third-party consultants and auditors to identify hazards and conduct unannounced annual compliance audits.
The company has also created a new Safety Operations Center and maintains an anonymous hotline for employees and the public to report safety concerns. This third-party audit initiative was initially a response to a shareholder vote in May 2023, which the company had previously opposed.
The Department of Labor settlement also stipulates that Dollar General must monitor the effectiveness of these measures and submit quarterly reports to OSHA.
The retailer is required to rectify safety hazards, such as blocked access to fire extinguishers and electrical panels, and improper material storage, within 48 hours, providing proof of correction.
Failure to comply will result in additional fines of $100,000 per day, up to a maximum of $500,000.
"We are pleased to have reached an agreement with OSHA to resolve these matters," the company said in a statement. "We remain committed to ensuring a safe working environment for our employees and a pleasant shopping experience for our customers."
