Dollar General to Pay $12M Penalty, Improve Safety Under Settlement

Discount store operator Dollar General has agreed to pay $12 million in penalty for alleged safety violations that led to blocked exits and fire extinguishers and unsafe storage, requiring the company to improve workplace safety in stores across the U.S. in a settlement with the federal Labor Department, the government said in a statement on Thursday.

Dollar General, which has over 19,000 stores in the United States, was designated by the U.S. Labor Department’s Occupational Safety and Health Administration as a “severe violator” of federal law.

The department has previously alleged that the retailer endangered worker safety by exposing them to unsafe conditions and the company failed several government safety inspections.

The Labor Department said that as part of the settlement, the company will hire additional safety managers, expand its safety and health management system, provide concerned training to employees and managers and develop a safety and health committee.

The settlement also requires the company to significantly reduce inventory and increase stocking efficiency to prevent blocked exits and unsafe material storage.

Dollar General had no immediate comment on Thursday.

Failure to correct any identified future hazards within 48 hours may require the retailer to pay $100,000 per day of violation, up to $500,000, as well as inspection from the Labor Department, the department said. The department also said the company will provide it with quarterly reports.

“These changes help give peace of mind to thousands of workers, knowing that they are not risking their safety in their workplaces and that they will come home healthy at the end of each day,” Douglas Parker, Assistant Secretary of Labor for Occupational Safety and Health, said on Thursday.

(Reporting by Singh in Washington; Editing by Aurora Ellis)