delete PART 1987—PROCEDURES FOR HANDLING RETALIATION COMPLAINTS UNDER SECTION 402 OF THE FDA FOOD SAFETY MODERNIZATION ACT
Implements whistleblower protection procedures for food industry employees who report violations of federal food safety laws. Establishes complaint process with OSHA, investigation standards requiring prima facie showing, preliminary reinstatement orders, ALJ de novo hearings, ARB review, and remedies including back pay, reinstatement, and compensatory damages.
Maintaining this regulation imposes significant compliance costs on food businesses, particularly small firms, through mandatory OSHA investigations, preliminary reinstatement orders, back pay awards, and attorney fees. The administrative process creates moral hazard, encouraging frivolous claims that waste resources and chill legitimate employment decisions. Unseen costs include the erosion of at-will employment principles and the distortion of labor market incentives, as employers become risk-averse in hiring and supervision to avoid retaliation claims. These burdens on free enterprise outweigh any marginal benefit given that whistleblower protections are already available through state laws and federal courts.