Study: Regulatory Compliance Costly for Employers

Feb. 11, 2002
It costs the average U.S. manufacturer approximately $1,700 per year per employee to comply with federal regulations.

It costs the average U.S. manufacturer approximately $1,700 per year per employee to comply with federal regulations, according to a new study released by researchers at the Mercatus Center at George Mason University, Fairfax, Va.. That amount can go as high as $2,500 per employee for small employers.

Manufacturers paid $28 billion in 2000 to comply with workplace regulations, with regulations related to occupational health and safety accounting for about one-third of that total. Employee benefits, such as COBRA and the Unemployment Compensation Act, accounted for another 10 percent of the annual cost of regulations to employers.

"Counterproductive regulations are a serious drag on the U.S. economy," said Patrick Cleary, senior vice president of the National Association of Manufacturers.

He added that while the NAM doesn''t advocate a regulation-free workplace, regulations come with a steep price tag for employers. "Lawmakers need to exercise extreme caution before piling on even more," he cautioned.

by Sandy Smith ([email protected])

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EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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