The strongest safety award programs reward safe behavior, such as reporting hazards and near misses, finishing training and leading toolbox talks, not only injury free days. OSHA allows injury free milestone rewards only when they do not discourage reporting, and the IRS lets safety awards be tax free when they are tangible items within set limits.
What to reward
- Reporting hazards and near misses
- Completing safety training and certifications
- Leading or taking part in toolbox talks and inspections
- Crew milestones, such as a number of days without a lost time injury, paired with the items above
OSHA states that rewarding employees for reporting near misses or hazards is always permissible.
Award ideas
| Award | Items that work | Who gets it |
|---|---|---|
| Crew milestone | Embroidered hoodies or jackets with the milestone, insulated coolers | The whole crew |
| Hazard reporting recognition | Choice of a jacket, tool bag or cooler | Individuals, monthly or quarterly |
| Training completion | Branded hard hat stickers, beanies, insulated tumblers | Everyone who completes it |
| Annual safety award | Premium jacket, engraved plaque, quality tool bag | Top individuals and crews |
Gear that gets worn on site keeps the message visible every day.
OSHA: rewards must not discourage reporting
OSHA's 2018 guidance under 29 CFR 1904.35 says safety incentive programs are allowed. Rate based programs, such as rewards for an injury free month, are permitted as long as they are not run in a way that discourages employees from reporting injuries. OSHA lists safeguards that help:
- Also reward employees for identifying unsafe conditions.
- Train everyone on their right to report and on your non-retaliation policy.
- Have a way to check that employees feel free to report.
IRS rules for tax free safety awards
A safety achievement award can be excluded from wages when it is tangible personal property given as part of a meaningful presentation, within $400 per employee per year or $1,600 under a qualified plan award program. It does not qualify when given to a manager, administrator, clerical employee or other professional employee, or once more than 10% of eligible employees have already received safety awards that year. Cash and gift cards never qualify. Confirm with your accountant.
High visibility apparel
When an award is high visibility apparel that will be worn on site, ask for garments certified to ANSI/ISEA 107 and keep logos off the reflective tape. We can confirm the certification on the quote.
Frequently asked questions
- Are safety incentive programs allowed by OSHA?
- Yes. OSHA allows them, including rewards for injury free periods, as long as they do not discourage reporting. Rewarding hazard and near miss reports is always permitted.
- What are good safety award ideas for construction crews?
- Embroidered jackets or hoodies marking the milestone, insulated coolers, tool bags and premium beanies. Gear worn on site keeps the message in front of the crew.
- Are safety awards taxable?
- Cash and gift cards are taxable. Tangible safety awards can be tax free up to $400 per employee per year, or $1,600 under a qualified plan, if they are not given to managers or professional staff and no more than 10% of eligible employees receive them in a year.
- Can we put our logo on high visibility vests?
- Yes, on certified garments, as long as the logo stays off the reflective tape.
Related tools
- Recognition calendarEvery appreciation day and gifting date for the year, with the date to send your brief and approve the proof.
- Recognition ROI calculatorSee how many departures a recognition program needs to prevent to pay for itself, using BLS turnover data.
- Size mix calculatorTurn a headcount into an exact quantity per size, with spares.