OSHA CFR 29 - Oily Rags
OSHA 1910.125(e)(4)(ii&iii) Oily rags
Rags and other material contaminated with liquids from dipping or coating operations are placed in approved waste cans immediately after use; and waste can contents are properly disposed of at the end of each shift.
Please consult your local authority having jurisdiction with your questions and for guidance in conforming to laws as they apply to your application. This is only meant for a reference and does not imply a warranty.