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O'Reilly Auto accused of OSHA violations in New Mexico

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The New Mexico Environment Department is accusing O'Reilly Automotive Inc. (Nasdaq: ORLY) of Occupational Health and Safety Act violations related to COVID-19.

Officials with the state government agency say O'Reilly Automotive has been issued citations to the tune of $242,827 for allegedly failing to protect employees from exposure to the virus, according to a news release. The violations are said to have taken place at an O'Reilly Auto Parts store in Lovington, New Mexico.

The state complaint alleges O'Reilly Automotive allowed employees with COVID-19 symptoms to continue to work, failed to properly screen workers for the virus and did not follow cleaning and disinfection protocols. New Mexico officials say three employees at the store were COVID-positive and one worker, a 46-year-old woman, died last year.

“Providing employees with a false sense of protection from COVID-19 by putting policies in place to comply with state law and then not following them is unconscionable," New Mexico’s Environment Cabinet Secretary James Kenney said in the release. "Had O’Reilly management complied with corporate policies, it’s possible this tragic situation could have been avoided."

State officials indicated O'Reilly Automotive has 15 days from Feb. 2 to pay the penalties or contest the citation before the New Mexico Occupational Health and Safety Commission.

O'Reilly Automotive intends to contest the allegations, according to a statement provided to Springfield Business Journal by Mark Merz, vice president of investor relations, reporting and planning for the auto parts retailer.

"At this time, we have not received a copy of the government’s investigative materials related to the citations referenced in the release, but are actively working to obtain them," the statement reads. "We do not agree with the conclusions, or proposed fines, described in the citations.

"Since the beginning of the COVID-19 pandemic, O’Reilly Auto Parts has made the safety and wellness of our team members and our customers our unwavering top priority."

The latest complaint comes after New Mexico last month settled two citations with O'Reilly Automotive for violations of coronavirus safety rules at a store in Santa Fe. O'Reilly Automotive paid $79,200 in penalties as part of the settlement, according to the release.

The statement provided by Merz indicated "O’Reilly strongly objected” to the previous allegations but agreed to settle "in lieu of a costly legal process."

Separately, O'Reilly Automotive is scheduled to report its 2020 earnings on Feb. 10. The company's stock last month hit an all-time high of $496.61 per share, according to past reporting.

ORLY shares were trading at $445.35 as of 10:37 a.m. The 52-week low is $251.52 per share.

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