Commissioner Luke Farley abolished the "Death Discount" in workplace fatality cases

N.C. Labor Commissioner Luke Farley announced a significant policy change to advance a broader effort of strengthening worker safety across the state.

For decades, North Carolina’s approach to workplace safety enforcement has mirrored a federal OSHA policy that, in certain tragic cases, reduced penalties after a worker is killed. These reductions were applied based on the size of a business. In some instances, they lowered penalties by as much as 70 percent in cases involving a fatality. This came to be known by workplace safety advocates as the “death discount.”

“When a fatality occurs due to workplace safety failures, our response must reflect the gravity of that loss — fully and without dilution,” Commissioner Luke Farley said.

Effective immediately, the N.C. Department of Labor will no longer apply penalty reductions in cases involving worker deaths. The updated directive ensures that enforcement actions fully reflect the gravity of a fatality, regardless of the size of the business involved.

The N.C. Department of Labor emphasized that civil penalties are a key enforcement tool used to reinforce workplace safety standards, deter negligence, and ensure employers meet their legal obligations to protect workers.

While acknowledging concerns from small business owners, Commissioner Farley reiterated his support for the small business community and emphasized that compliance assistance — not reduced accountability — is the appropriate path forward.

“The right way to support small businesses is through education, outreach, and resources that help them operate safely,” Commissioner Farley stated. “Discounting the value of a human life does not serve workers or employers.”

The policy change reflects a broader commitment by the N.C. Department of Labor to ensure consistent enforcement and uphold the principle that every worker deserves to return home safely at the end of the day.