Labor Department Imposes $1.35M Fine On Dollar Tree; Reaches Settlement To Address Work Conditions

The U.S. Department of Labor said its Occupational Safety and Health Administration (OSHA) entered into a settlement agreement with the discount retail chain Dollar Tree Inc (NASDAQ: DLTR) to improve workplace safety in stores nationwide. 

The settlement agreement requires Dollar Tree and its Family Dollar to conduct a comprehensive, nationwide assessment of the root causes of the violations OSHA repeatedly cited at multiple stores.

Among the requirements are:

• The company should form a plan to identify causes and make operational changes to correct the irregularities within a two-year period.

• To ensure prompt abatement of any future violations related to blocked exits, access to fire extinguishers and electrical panels, and improper material storage at stores nationwide. 

• The companies must correct hazards within 48 hours of OSHA notifying them.

Also Read: Dollar Tree's Strategic Plan To Propel Annual EPS Growth: Analyst Predicts Bright Future

Failure to comply will cause the companies to receive monetary assessments of $100,000 per day of violation, up to $500,000, as well as OSHA inspection and enforcement actions.

“At the Department of Labor, we know that every worker deserves to come home safe at the end of the workday,” said Acting Secretary of Labor Julie Su.

“Through our robust enforcement of workplace protections and use of innovative legal methods that resulted in this agreement, thousands of workers will have a healthier, safer and more certain future.”

Dollar Tree agreed to pay $1.35 million in penalties to settle existing issues as well as open inspections of similar alleged violations.

Price Action: DLTR shares are trading higher by 0.21% at $141.01 on the last check Wednesday.

Photo: Shutterstock