Seyfarth Synopsis: A Texas federal court won’t decide the legality of OSHA’s rule regarding the “Tracking of Workplace Injuries and Illnesses” until after the July 1, 2017 deadline for employers to comply with the rule.

A Texas federal court won’t decide the legality of OSHA’s rule regarding the Tracking of Workplace Injuries and Illnesses, 81 Fed. Reg. 29624 (May 12, 2016) until after the July 1, 2017 deadline for employers to comply with the rule, according to an April 3, 2017 judge’s order. The order gives attorneys from the Department of Labor and several employer groups challenging the rule until July 5, 2017 to submit a proposed summary judgment briefing schedule (TEXO ABC/AGC v. Perez, N.D. Tex., No. 16-1998).

We had blogged previously about OSHA’s new rule on electronic reporting, drug-testing, retaliation claims, and safety incentive programs. The TEXO lawsuit seeks a declaratory judgment finding that the rule is unlawful to the extent that it prohibits or otherwise imposes limits on incident-based employer safety incentive programs and routine mandatory post-accident drug testing programs. The plaintiffs allege that the challenged provisions are unlawful and must be vacated because they exceed OSHA’s statutory authority, and because the “underlying findings and conclusions are arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law.”

Business organizations and other industry groups have also sued OSHA in Oklahoma federal court to prevent the implementation of the new injury and illness electronic reporting rule, arguing that OSHA’s proposed online database violates employers’ First and Fifth Amendment rights, is arbitrary, capricious, and otherwise contrary to law, and oversteps OSHA’s authority. National Association of Home Builders of the United States et al. v. Perez et al., No. 5:17-cv-00009 (W.D. Okla. Jan. 4, 2017).

While it remains to be seen how either of these legal challenges will fare, the business community has shown a willingness to strongly oppose this new rule — a rule that has been widely criticized as emblematic of regulatory overreach. However, as the rule remains on the books, employers are required to comply with the July 1 electronic reporting deadline, or face the risk of citations and penalties.