Dollar General and Labor Department reach agreement over safety violations

The US Department of Labor announced on Thursday an agreement with Dollar-GeneralThe retailer and its subsidiaries must now pay a $12 million superb and implement significant workplace safety improvements of their greater than 19,000 stores across the country.

The latest fines come on top of greater than $21 million in fines the federal Occupational Safety and Health Administration has imposed on the discount retailer since 2017 for blocked emergency exits, dangerous disorder and other safety allegations. Gun violence can be a difficulty at Dollar General stores: According to 2023 data from the nonprofit Gun Violence Archive, 49 people have been killed and 172 people have been injured by gun violence at Dollar General stores.

Dollar General, a repeat Labor Department offender, became the primary company added to OSHA's list of “serious violators” of workplace safety regulations in 2023 after the agency expanded the reach of its safety enforcement program.

“This agreement commits Dollar General to making worker safety a top priority by implementing significant and systematic changes in its operations to improve accountability and compliance. It also provides Dollar General employees with important guidance to ensure their own health and safety,” said Douglas Parker, assistant secretary for occupational safety and health, in a press release.

Under the brand new agreement, the Tennessee-based retailer must hire additional safety managers, significantly reduce its inventory levels and increase warehouse efficiency to avoid blocked exits and clutter, provide safety and health training to all employees and establish a security and health committee with worker participation.

Dollar General has engaged outside consultants and auditors to discover hazards and conduct unannounced annual compliance audits, established a brand new Safety Operations Center, and created an anonymous hotline for workers and the general public to report safety concerns.

The external auditors were first hired in response to a shareholder vote in May 2023 that called for this, but the corporate opposed this decision on the time.

The agreement with the Department of Labor also requires Dollar General to observe the outcomes of those efforts and submit quarterly reports to OSHA.

Under the agreement, Dollar General is required to repair safety hazards corresponding to blocked access to fireplace extinguishers and electrical panels and improper material storage in its stores inside 48 hours and supply proof of fixes. If the discounter fails to satisfy this obligation, it faces additional fines starting from $100,000 per day as much as $500,000.

CNBC has reached out to Dollar General for further comment.

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