Protect Small Business Jobs Act of 2016

This bill requires a federal agency, before any enforcement action is taken on any sanction on a small business for any violation of a rule or pursuant to an adjudication, to: (1) notify the small business that it may be subject to a sanction at the end of a six-month grace period following such notification; (2) delay further action for 15 days after such notification; (3) defer further action for the six-month period (allowing an additional three-month period upon application by the small business demonstrating reasonable good-faith efforts to remedy the violation or other conduct giving rise to the sanction); (4) make a further determination at the end of the applicable grace period as to whether the small business would still be subject to the sanction; and (5) upon a negative determination, waive the sanction. The grace period shall be inapplicable with respect to a violation that puts anyone in imminent danger, as defined by the Occupational Safety and Health Act. Any sanction imposed in violation of the requirements of this Act shall have no force or effect.

The bill requires: (1) agencies to report annually to the Small Business and Agriculture Regulatory Enforcement Ombudsman on the implementation of the requirements of this Act, and (2) the Ombudsman to include such information in a currently-required annual report to Congress.