Every dealership leader I talk to cares about their people. That’s never the question. The question is whether your environmental health and safety (EHS) program is actually set up to protect them, day in and day out, in ways that hold up when OSHA shows up or an employee gets hurt. After years working alongside dealerships on their safety and workplace safety programs, I’ve seen the same truth play out again and again. Caring about your team and protecting your bottom line are not two different goals; they’re the same goal. A strong EHS compliance program keeps people safe and keeps your dealership financially healthy. Here’s what that looks like in practice, and what’s changed in 2026. Your Ex-Mod Reflects How Well You’re Caring for Your People Your Experience Modification Rate, or Ex-Mod, is one of the clearest signals of how well your workplace safety program is actually working. It compares your workers’ compensation loss experience to what’s expected for a business like yours. A rate of 1.00 is the benchmark. Below that, you’re protecting your team better than expected. Above it, both your people and your business are absorbing the cost. The formula is straightforward: Take your number of indemnity cases, divide by your average employee count, multiply by 100, then divide by the Bureau of Labor Statistics incident rate for your NAICS code. A dealership with just two wage-replacement claims and 70 employees can end up with an Ex-Mod of 3.57, far above where anyone wants to be. That number carries real weight. On a $100,000 manual workers’ comp premium, a 0.80 Ex-Mod brings your cost down to $80,000. A 3.57 Ex-Mod pushes it to $357,000. Same dealership, same headcount, but an entirely different financial reality. Every incident we prevent through good occupational safety practices is a person who goes home whole and a cost your business never has to carry. Understanding OSHA Compliance: Why Inspections Happen OSHA inspections usually aren’t random, and understanding what triggers one is part of proactively taking care of your people. Visits occur for three reasons: imminent danger, such as severe injuries and fatality investigations; complaints or referrals; and programmed inspections. That third category deserves your attention, because OSHA currently prioritizes hazardous industries and employers showing a high volume of workers’ compensation claims. In other words, the same gaps driving up your Ex-Mod are often the same gaps drawing regulatory scrutiny. The most common OSHA citations dealerships are facing right now point to everyday hazard areas: fall protection, hazard communication, ladders, lockout/ tagout, respiratory protection, scaffolding, powered industrial trucks, eye and face protection, and machine guarding. Each one represents a place where a simple safeguard, a clear procedure or a bit of training could have kept someone from getting hurt. The penalties for falling short are significant. In 2026, a serious violation can carry a penalty of up to $16,550. A willful violation can reach $165,514. Failure to abate a known hazard adds up to $16,550 per day it remains uncorrected. The ROI of Safety Protecting Your People and Your Dealership Through Stronger EHS Compliance By Amanda Rawls, Vice President of Client Success, KPA 18 ILLINOIS AUTOMOBILE DEALER NEWS
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