April 3, 2024

Department of Labor investigation finds one of the nation's largest modular home manufacturers exposed workers to dozens of safety, health risks

Cavco Industries Inc. faces $272K in fines, program focused on high injury rate employers

AUSTIN, TX – An Austin subsidiary of one of the nation's largest producers of modular and manufactured homes faces $272,479 in penalties after federal investigators found the company exposing employees to more than two dozen serious violations during an October 2023 inspection.

Investigators with the U.S. Department of Labor's Occupational Safety and Health Administration cited Cavco Industries Inc., parent company of Palm Harbor Homes, for 25 serious and two other-than-serious violations. Since 2015, OSHA has cited Cavco with 38 workplace safety and health violations at manufacturing facilities in four states.

OSHA initiated the investigations as a planned inspection under the National Emphasis Program Site-Specific Targeting for establishments with high injury rates.

During the inspection, the agency identified the following hazardous conditions:

• Lack of required fall protection, exposing workers to safety hazards related to falls.
• Improper use of ladders and failure to maintain safe walking surfaces.
• Allowing overhead hazards and suspended loads.
• Improperly inspected fire extinguishers.
• Lack of welding screens.
• No safe access to electrical shutoffs and other electrical violations.

In addition, inspectors cited Cavco Industries for more than a dozen health hazards, including failing to maintain respiratory and hazard communication programs to protect workers from isocyanates and silica; not providing employees with personal protective equipment and an eyewash and shower station; and failing to assess silica exposure.

"The findings of our investigations and Cavco Industries' history of violations suggest that the company is failing in its responsibility to keep work areas safe and healthful," explained OSHA Area Director Monica Camacho in Austin, Texas. "OSHA has specific standards for the manufacturing industry and provides many resources to inform employers and employees. There is no excuse for these kinds of failures that expose workers to serious and potentially fatal injuries."

Founded in 1965, Cavco Industries Inc. is a Phoenix-based home services enterprise that designs and factory builds structures including manufactured homes, modular homes, commercial buildings, park model RVs and vacation cabins under more than a dozen brand names. The company operates manufacturing facilities in Arizona, California, North Carolina and Texas, and serves customers in those states as well as in Colorado, Louisiana, Nevada, New Mexico, Oklahoma and Utah. Cavco Industries has distribution points in 43 U.S. states and in Canada, through its retailers and 31 production lines. The company employs about 7,250 people, including more than 200 workers in Austin. Cavco also operates Standard Casualty, which offers insurance products for manufactured homeowners, and CountryPlace Mortgage to provide financing options.

The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA's area director, or contest the findings before the independent Occupational Safety and Health Review Commission.

Learn about protecting workers from falls and respiratory protections.

Learn more about OSHA.

Media Contacts:

Juan J. Rodríguez, 972-850-4709, rodriguez.juan@dol.gov
Chauntra Rideaux, 972-850-4710, rideaux.chauntra.d@dol.gov

Release Number: 24-584-DAL