State audit: Cal/OSHA staffing gaps, process shortfalls limit worker protections; agency accepts recommendations

A state audit released this year found the Division of Occupational Safety and Health (Cal/OSHA) repeatedly failed to inspect dangerous workplaces in a timely, consistent way and often relied on employer self-investigations that do not produce fines, the state auditor told lawmakers at a joint oversight hearing.

The audit, conducted by State Auditor Grant Parks and covering fiscal years 2019–20 through 2023–24, concluded that Cal/OSHA’s “process deficiencies and staffing shortages limit its ability to protect workers,” noting a 32% vacancy rate in 2023–24 in the division, uneven case documentation, and routine use of so‑called letter investigations. Parks said Cal/OSHA conducted on‑site inspections in about 20% of valid complaints in 2023–24 and used employer letter investigations more than 80% of the time.

Why it matters: Lawmakers said the findings help explain continuing workplace tragedies in California despite the state’s broad safety rules. The audit documents cases in which serious injuries and fatalities did not trigger on‑site Cal/OSHA inspections, inadequate documentation of corrective action and fine calculations, and large reductions to initially assessed penalties without clear written justification. The committee's chairs and members signaled they will press for structural fixes, not only hiring.

Key findings

- Staffing and workload: The audit found a 32% vacancy rate in Cal/OSHA in 2023–24; a consulting workload analysis Cal/OSHA commissioned recommended roughly 265 additional staff. The auditor said Cal/OSHA later reported lower vacancy figures after the state removed (swept) roughly 66 authorized positions and the division reported roughly 126 hires earlier in the year; the auditor cautioned that lowering authorized positions can artificially reduce vacancy rates without addressing workload.

- Reliance on letter investigations: Parks’ office found Cal/OSHA used employer self‑investigations (letter investigations) in roughly 80% of complaints in 2023–24. Those letters do not result in fines; the audit reviewed cases in which employers’ responses lacked photographic evidence or invoices showing abatement and, in some instances, no employer response was documented.

- Timeliness and inspection quality: State law requires inspectors to begin some investigations within three working days; the audit found some inspections began weeks or months late. For serious‑injury complaints the audit found inspections were started late about 23% of the time; other complaint types started late in roughly 40% of cases. The audit also found inconsistent use of investigative worksheets and missing documentation in hard‑copy files.

- Fine calculation and reductions: The audit compared Cal/OSHA’s fine calculations to auditor calculations in a sample of cases and found frequent unexplained reductions. In one fatal forklift case the auditor calculated a base fine of $18,000 where Cal/OSHA used a $2,000 base; the auditor’s overall case calculation was roughly $40,000 while the agency imposed about $21,000. Across the five‑year audit period, roughly 36% of inspections with fines had post‑citation reductions, averaging about a 56% reduction of the initial assessed amount in settlement.

- Criminal referrals: The audit found criminal referrals were rare—about 31–32 criminal referrals over five years (about seven or eight per year)—and Cal/OSHA lacked written policies that document when to refer cases for prosecution.

Agency response and planned actions

Cal/OSHA Chief Deborah Lee acknowledged the audit’s findings and told the committee: "I acknowledge the audit's findings and their recommendations, which makes it clear and certain that improvement are needed at CalOSHA." Director Jennifer Osborne of the Department of Industrial Relations said the department has reduced the division’s reported vacancy rate and established a recruitment unit and said she was "committed to continuing the projects in motion, including several technology upgrades, increasing outreach to employers and workers, revamping our website to be more user friendly, and improving our services." Both officials said they accept the audit’s recommendations and described immediate steps.

Steps the department described at the hearing include: - Policy updates and training: Cal/OSHA said it has hired a policy writer and intends to finalize several updated enforcement policies and begin staff training in September on revised procedures, including clarifying when on‑site inspections are required versus when letter investigations are permissible. - Case management system: The division is developing an electronic case management system to replace paper files; Cal/OSHA projects the system will be live in late 2026 or 2027 and said it will include built‑in checks to prevent closing cases without required approvals and evidence of abatement. - Increased hiring and recruitment: Cal/OSHA reported it had hired roughly 126 people earlier in the year and created a dedicated recruitment and retention unit; the auditor cautioned that the removal of vacant positions from the authorized count can make vacancy statistics appear improved without reflecting true increases in enforcement capacity. - Internal audits and verification: Cal/OSHA said it will perform recurring internal audits of inspection files and begin spot‑checks of employer‑provided abatement evidence (for example, photographs or invoices) and take on‑site follow‑up when documentation is insufficient.

Lawmakers’ next steps and scrutiny

Committee members said the audit demonstrates problems beyond staffing and signaled a range of follow‑ups: demanding documentation of Cal/OSHA’s hires and how positions were filled, pressing for written policies on forensic decisions such as criminal referrals, and monitoring implementation. State Auditor Parks said the auditor’s office will review Cal/OSHA’s progress at a 60‑day mark (mid‑September) and again at later milestones.

Representative quotes (from hearing): - State Auditor Grant Parks: "Cal OSHA was facing significant staffing shortages." - Chief Deborah Lee (Cal/OSHA): "I acknowledge the audit's findings and their recommendations, which makes it clear and certain that improvement are needed at CalOSHA." - Director Jennifer Osborne (Department of Industrial Relations): "I'm committed to continuing the projects in motion, including several technology upgrades, increasing outreach to employers and workers, revamping our website to be more user friendly, and improving our services." - Assemblymember Ortega (audit requester): "If we don't act today to reform Cal OSHA, that's what we are saying to your husband, your dad, your best friend, to the people of California that they're only worth $6,000 to the state of California." (discussion of small aggregate fine totals in several fatality cases)

What remains unresolved

The audit and the hearing left several items for further review: the precise accounting of fines assessed vs. collected and how settlement reductions are justified in case files; the number and type of newly hired staff and whether hires addressed enforcement roles such as industrial hygienists; a formal written policy on when to refer cases for criminal prosecution; and evidence the department is verifying employer abatement claims rather than relying on self‑certification.

The Department of Industrial Relations and Cal/OSHA accepted the audit’s findings and pledged to implement the recommendations. The auditor’s office will evaluate Cal/OSHA’s responses at the 60‑day checkpoint and report back to the committees.

Ending

The audit drew unanimous attention from lawmakers across the aisle at the joint hearing. Members said they will continue oversight during Cal/OSHA’s policy updates and technology rollout and consider legislative remedies if the department’s responses are not adequate.