The U.S. Department of Labor announced that its Occupational Safety and Health Administration (OSHA) has reached a corporate-wide settlement with Dollar General Corp (NYSE:DG) and its retail subsidiaries to enhance workplace safety across all its stores.

This agreement requires Dollar General to prioritize worker safety by implementing substantial operational changes to improve accountability and compliance.

Dollar General has agreed to pay $12 million in penalties and introduce corporate-wide measures to prioritize employee safety.

These measures include establishing an expanded safety structure, hiring additional safety managers, and reducing inventory to prevent blocked exits and unsafe storage.

The company will also provide safety and health training to both leadership and non-managerial employees. Additionally, a safety and health committee will be developed to encourage employee participation in safety initiatives.

As part of the agreement, Dollar General must promptly address future violations related to blocked exits, fire extinguishers, electrical panels, and material storage.

The company has 48 hours to correct these hazards and must provide proof of correction. Failure to comply can result in monetary assessments of $100,000 per day, up to $500,000, alongside OSHA inspection and enforcement actions.

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An independent auditor will perform unannounced compliance audits annually to assess safety conditions, including egress, access to fire extinguishers, and electrical hazards.

Dollar General has established a new Safety Operations Center to detect store hazards and support safety performance. An anonymous hotline for employees and the public to report safety concerns has also been set up.

This settlement resolves existing contested and open federal OSHA inspections involving alleged violations such as blocked emergency exits, electrical panels, fire extinguishers, and unsafe storage.

Since 2017, the company has failed numerous safety inspections, accumulating over $25 million in proposed fines for various violations, reported Bloomberg.

In October, Dollar General replaced its CEO to restore stability and confidence. Former CEO Todd Vasos returned, promising to improve staffing and slow expansion.

Current and former employees have worked with unions and advocacy groups to push for safety changes, leading shareholders to approve an independent safety audit resolution last year.

The report further noted that OSHA's settlement with Dollar General follows a similar agreement with rival Dollar Tree Inc (NASDAQ:DLTR). The retailer will form a safety and health committee, hold quarterly meetings with OSHA, and ensure business practices prevent hazards.

Price Action: DG shares closed higher by 3.21% at $131.59 on Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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