OSHA Fines Grain Company $276,407 for Safety Violations After Worker Injury

OSHA News Releases

Filed February 24th, 2026

Detected March 13th, 2026

Summary

The Occupational Safety and Health Administration has issued citations and proposed $276,407 in penalties to Alliance Grain Co. in Gibson City, Illinois. The citations stem from an inspection following a serious injury to a seasonal laborer, revealing violations related to machine guarding, lockout/tagout procedures, and grain bin entry safety.

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What changed

OSHA has issued citations and proposed $276,407 in penalties to Alliance Grain Co. after an inspection revealed multiple safety violations. The violations include failing to properly guard and lockout/tagout dangerous machinery during grain bin entry, which led to a seasonal laborer suffering a serious foot injury. Specific citations include failure to lockout/tagout machinery, protect workers from sump holes, provide grain handling training, issue permits for bin entry, utilize an observer, and test bin atmospheres. The citations consist of two willful, one serious, and three other-than-serious violations.

Alliance Grain Co. has 15 business days to respond to the citations and penalties by complying, requesting an informal conference, or contesting the findings before the Occupational Safety and Health Review Commission. Failure to comply with OSHA standards can result in significant penalties and potential further enforcement actions. Companies in the grain handling and processing industries should review their machine guarding, lockout/tagout, and grain bin entry procedures to ensure compliance.

What to do next

Review and update machine guarding procedures.
Ensure strict adherence to lockout/tagout protocols.
Verify compliance with grain bin entry safety standards, including atmospheric testing and observer requirements.

Penalties

$276,407 in proposed penalties

Source document (simplified)

Notice: Information in some news releases may not reflect the current or final status of a case, including, but not limited to, the penalty amount(s) or classification(s).

OSHA News Release - Chicago Region

U.S. Department of Labor
GIBSON CITY, ILL – Federal safety inspectors have found a central Illinois grain company endangered workers and violated federal law by failing to properly guard and lockout/tagout dangerous machinery during grain bin entry, which led to a seasonal laborer suffering a serious foot injury.

February 24, 2026

Federal investigators find Illinois grain silo operator violated safety standards after worker suffers injury

GIBSON CITY, ILL – Federal safety inspectors have found a central Illinois grain company endangered workers and violated federal law by failing to properly guard and lockout/tagout dangerous machinery during grain bin entry, which led to a seasonal laborer suffering a serious foot injury.

The U.S. Department of Labor's Occupational Safety and Health Administration initiated an inspection into Alliance Grain Co. after learning that the seasonal laborer suffered the injury after stepping through an unguarded sump hole and onto a moving paddle style unloading conveyor.

OSHA issued two willful, one serious, and three other-than-serious citations for failing to lockout/tagout machinery, protect workers from stepping into the sump holes, and provide grain handling training to employees. Additionally, the employer failed to issue permits prior to bin entry, utilize an observer outside the bin, and ensure the bin’s atmosphere was tested before workers entered.

The agency has proposed $276,407 in penalties.

Alliance Grain Co. 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.

OSHA's machine guarding, lockout/tagout and grain handling safety webpages provide information on what employers must do to limit worker exposures to machine hazards.