The Labor Department and Dollar General reach an agreement regarding workplace safety violations.

• Dollar General and its subsidiaries will pay $12 million in penalties and make significant workplace safety improvements after reaching a settlement with the Department of Labor.
• Since 2017, the discounter has accumulated more than $21 million in fines from the federal Occupational Safety and Health Administration due to safety issues such as blocked fire exits and dangerous clutter. Now, the company faces additional fines.
• To prevent blocked exits and clutter, among other measures, Dollar General is required to significantly reduce its inventory and increase stocking efficiency under the new settlement.

The retailer and its subsidiaries will pay $12 million in penalties and implement significant workplace safety improvements in their more than 19,000 stores nationwide, as announced by the U.S. Department of Labor on Thursday.

Since 2017, Dollar General has accumulated over $21 million in fines from the federal Occupational Safety and Health Administration due to safety issues such as blocked fire exits and cluttered workspaces. Additionally, gun violence has been a problem at Dollar General stores, with 49 people killed and 172 people injured by gun violence in 2023, according to data from the nonprofit Gun Violence Archive.

In 2023, Dollar General was the first company to be added to OSHA's "severe violators" list for workplace safety rules, following the agency's expansion of its safety enforcement program.

Dollar General has pledged to prioritize worker safety by implementing significant changes in its operations and giving employees a voice in ensuring their own health and safety, as stated by Assistant Secretary for Occupational Safety and Health Douglas Parker in a press release.

The Tennessee-based retailer must hire more safety managers, reduce inventory, improve stocking efficiency, offer safety and health training to employees, and establish a safety and health committee with employee involvement under the new settlement.

Dollar General has employed third-party consultants and auditors to detect hazards and conduct unannounced annual compliance audits, established a Safety Operations Center, and established an anonymous hotline for employees and the public to report safety concerns.

In May 2023, third-party auditors were appointed in response to a shareholder vote calling for one, despite the company's opposition at the time.

Dollar General must track the results of their labor settlement and submit quarterly reports to OSHA.

Under the agreement, Dollar General must rectify safety hazards such as blocked access to fire extinguishers and electrical panels and improper material storage at its stores within 48 hours and provide proof of correction. If the discounter fails to do so, it will face additional fines of $100,000 a day up to $500,000.

CNBC has reached out to Dollar General for additional comment.