7th Circuit: Federal Court Upholds Criminal Convictions of Managers in OSHA-Related Case
|
APPLIES TO All Employers with Employees in IL, IN, and WI |
EFFECTIVE June 10, 2025 |
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion
On June 10, 2025, in U.S. v. Derrick Clark and Shawn Mesner, the Seventh Circuit U.S. Court of Appeals upheld the criminal convictions of two managers at Didion Milling following a fatal 2017 explosion at the company’s Wisconsin facility. The ruling serves as a warning to employers that misconduct in accurate recordkeeping and during safety inspections can result in criminal prosecution, prison time, and substantial financial penalties.
In this case, the appellate court affirmed the convictions of the company’s former VP of Operations and former Food Safety Superintendent, who previously received prison sentences for knowingly submitting false environmental compliance documents, aiding in the submission of falsified OSHA records, and falsifying sanitation logs and misleading auditors. The circumstances centered around Didion’s dust collection tracking and sanitation schedule. Specifically, evidence was presented at trial indicating that Derrick Clark, VP of Operations, had received emails warning about inaccurate recordkeeping and truthful reporting, but had still signed off on reports with falsified logs that were written by others. There was also testimony that he helped another employee to remove information from logs that were subject to an audit and failed to disclose the removed information during the agency audit. Additionally, evidence was presented that Shawn Mesner, Food Safety Superintendent, falsified safety logs and misled auditors. The convictions were challenged on appeal on mostly evidentiary grounds that ultimately did not succeed.
This case serves as a powerful reminder that OSHA inspections can have serious legal consequences beyond administrative penalties. If investigators uncover falsified records, obstruction, or deceptive conduct, the matter can quickly escalate into a criminal prosecution by the Department of Justice. Supervisors and managers are not immune from liability, meaning those who sign off on compliance documents or direct others in recordkeeping can face criminal charges, even if they did not personally falsify the records. Simply remaining silent in the face of known falsehoods may be enough to support a conviction for aiding and abetting.
Action Items
- Implement regular safety and compliance training for supervisors and managers.
- Conduct periodic internal audits of company records.
- Consult with legal counsel on identified issues with compliance documents.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2025 ManagEase