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focus-area/transportation/enforcement-dot
559965082
['Enforcement - DOT']

The U.S. Department of Transportation (DOT) and equivalent agencies in each state use a variety of tools and processes to enforce federal/state transportation and hazardous materials safety regulations. Among those regulations are the Federal Motor Carrier Safety Regulations, the Hazardous Materials Regulations, and state DOT safety regulations applicable to motor carriers and drivers engaged in intrastate operations. Compliance with the regulations is required of all employers, employees, and drivers operating commercial motor vehicles.

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Enforcement — DOT

The U.S. Department of Transportation (DOT) and equivalent agencies in each state use a variety of tools and processes to enforce federal and state transportation and hazardous materials safety regulations. Among those regulations are:

  • The Federal Motor Carrier Safety Regulations (FMCSRs) administered by the DOT’s Federal Motor Carrier Safety Administration (FMCSA), as found in 49 CFR 350 – 399, along with noise-emission standards found in Part 325.
  • The Hazardous Materials Regulations (HMRs) administered by the DOT’s Pipeline and Hazardous Materials Safety Administration (PHMSA), as found in Parts 100 – 180.
  • State DOT safety regulations applicable to motor carriers and drivers engaged in intrastate operations.

Who is subject to FMCSA enforcement?

  • All employers, employees, and drivers who operate CMVs must comply with the FMCSRs.
  • The regulations are enforced by a combination of state, local, and federal agencies.

Compliance with the Federal Motor Carrier Safety Regulations (FMCSRs) is required of all employers, employees, and drivers operating commercial motor vehicles (CMVs). A “commercial motor vehicle” is any self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when the vehicle:

  • Has a gross vehicle weight rating (GVWR), gross combination weight rating (GCWR), gross vehicle weight (GVW), or gross combination weight (GCW) of 10,001 pounds or more, whichever is greater; or
  • Is designed or used to transport 9 or more passengers (including the driver) for compensation, or 16 or more passengers (including the driver) not for compensation; or
  • Is used to transport hazardous materials in a quantity requiring placarding.

Intrastate operations

Carriers and drivers engaged in intrastate-only commerce (within the borders of a state) are not generally subject to the Federal Motor Carrier Safety Administration’s (FMCSA’s) jurisdiction or the monitoring and enforcement programs that apply to interstate operations (except in the case of drivers transporting placarded hazardous materials). Instead, these carriers and drivers are subject to state and local CMV laws and regulations, which are generally compatible with — but not always identical to — the FMCSRs. Some states, for example, exempt CMVs that weigh less than 26,001 pounds.

Who can enforce the FMCSRs?

To ensure that federal CMV safety regulations are enforced, the FMCSA relies on state and local transportation agencies, in addition to its own safety investigators stationed at FMCSA Field Offices in each state. Although any officer of the law can stop a truck or bus on the roadside and issue a citation, only certified officers and investigators can conduct official audits or investigations or conduct roadside inspections that result in compliance data being uploaded to FMCSA. Information on officer certification requirements can be found in Part 385, Subpart C.

The FMCSA helps pay for state and local CMV enforcement programs through the Motor Carrier Safety Assistance Program (MCSAP). To qualify for MCSAP funds, states must have and enforce CMV safety laws that are equivalent to and compatible with the FMCSRs. See:

  • Part 350 for more information about MCSAP standards.
  • Part 355 for more information about the standards for ensuring that state laws are “compatible” with the FMCSRs.

Enforcement tools

  • The CSA program is the DOT’s primary tool for identifying high-risk carriers and prioritizing them for enforcement.
  • There are a variety of enforcement tools the DOT utilizes to determine if a driver or carrier is out of compliance, including inspections, audits, and investigations.

The Federal Motor Carrier Safety Administration (FMCSA) and its state partners have a variety of enforcement tools at their disposal. Key among them are:

  • Roadside inspections of CMVs in operation, and
  • Audits and investigations performed either off-site or at the business locations of those subject to the Federal Motor Carrier Safety Regulations (FMCSRs) (including motor carriers, intermodal equipment providers, etc.).

How are drivers and carriers chosen for enforcement?

Because the Department of Transportation (DOT) does not have enough resources to examine every commercial motor vehicle (CMV) or motor carrier in operation, they must prioritize their investigations. The primary means used to prioritize enforcement is the Compliance, Safety, Accountability (CSA) program, which uses a variety of data from roadside inspections, investigations, and crashes to identify the carriers and drivers who have the most compliance problems.

Motor carriers and drivers may also be prioritized for enforcement if:

  • Violations are observed on the road,
  • There’s a significant crash, or
  • There’s a valid complaint about a driver or carrier (from a member of the public, from a driver, from an enforcement official, etc.).

Enforcement tools

Once a driver, motor carrier, or other entity is targeted for enforcement, the DOT must decide which type of enforcement tool is appropriate. These tools include the following:

  • Roadside inspections occurring on the roadside, at fixed or portable scales, waysides, ports of entry, rest areas, or other locations along the nation’s roadways.
  • Safety audits, which entail examination of a motor carrier’s operations to provide educational and technical assistance on safety and the operational requirements of the FMCSRs and applicable Hazardous Materials Regulations (HMRs). Safety audits are also used to gather critical safety data needed to assess the carrier’s safety performance and basic safety management controls. Safety audits do not result in safety ratings.
  • Warning letters sent to drivers or motor carriers, alerting them to a non-compliance issue and pointing them to resources that can help them get back on track.
  • Targeted roadside inspections that focus on a specific problem area, such as hours of service. Motor carriers that suddenly feel “picked on” due to an increase in roadside inspections may be the subject of a targeted roadside inspection effort.
  • Off-site investigations performed at the DOT’s offices instead of at the carrier’s business location. These types of audits involve the carrier sending compliance documentation (such as driver files or hours-of-service records) to the DOT electronically for auditing.
  • Focused on-site investigations at a motor carrier’s location, geared toward a specific problem area such as driver qualification or vehicle compliance.
  • Roadability reviews, which are audits of intermodal equipment providers (IEPs) to verify compliance with applicable FMCSRs.
  • Comprehensive investigations, also known as compliance reviews. These are usually multi-day audits that result in a safety rating for the motor carrier. They may be conducted on-site or off-site.
  • Cooperative safety plans are an option if an investigation reveals safety problems which the motor carrier expresses a willingness to fix. These are structured improvement plans developed and implemented voluntarily by motor carriers to address safety problems, often used as a “last resort” before the carrier is fined. When it agrees to a cooperative safety plan, the FMCSA will monitor the motor carrier’s safety performance and resort to other penalties or enforcement actions if the carrier’s performance does not improve.
  • Notices of violation, which are formal written notices informing motor carriers that they are non-compliant and must take immediate corrective action or face a fine or other penalty. After receiving such a notice, the driver or motor carrier would have to provide evidence of corrective action or could try to challenge the identified safety violations.
  • Notices of claim, which are formal written notices that assess a monetary penalty (fine) for violations.
  • Settlement agreements, whose purpose is to contractually bind the motor carrier to take actions to improve safety. The motor carrier is given the opportunity to enter into the settlement agreement to avoid fines or suspension of operations. The settlement agreement identifies the consequences to the motor carrier if it does not take the agreed-upon action and return to compliance. The agreement would allow the carrier to avoid significant penalties by committing to major safety improvements, for example, with the understanding that failure to comply with the terms of the settlement agreement would result in the immediate imposition of the maximum penalty that would otherwise have been levied.
  • Out-of-service orders that instruct a carrier or driver to stop all CMV operations immediately. These are generally issued only after a comprehensive audit or when an imminent hazard is identified.

Note also that state licensing agencies have tools at their disposal to remove driving privileges from individual drivers who have been convicted of certain violations. Refer to Commercial drivers' licenses and Driver qualifications.

Compliance reviews

  • The FMCSA conducts CRs to assess carriers’ safety management controls.

A compliance review is an in-depth examination of a motor carrier’s operations to determine whether the carrier meets the Federal Motor Carrier Safety Administration’s (FMCSA’s) safety fitness standard as described in 385.5. Those that meet the standard are granted a “satisfactory” safety rating. Safety ratings are only issued after a compliance review, not after other types of enforcement actions.

To meet the safety fitness standard, a motor carrier must demonstrate it has adequate “safety management controls” in place, which function effectively to ensure acceptable compliance with the Federal Motor Carrier Safety Regulations. Safety management controls are the systems, policies, programs, practices, and procedures used by a motor carrier to ensure compliance with applicable safety and hazardous materials regulations, which ensure the safe movement of products and passengers through the transportation system, and to reduce the risk of highway accidents and hazardous materials incidents resulting in fatalities, injuries, and property damage. (385.3) The Federal Motor Carrier Safety Regulations (FMCSRs) do not generally specify which safety management controls a carrier must have in place for each compliance topic. Rather, the FMCSA leaves it up to each motor carrier to decide which controls are best to achieve the goal at hand.

See: Safety Management Cycle (below)

Compliance reviews are used:

  1. To rate unrated motor carriers,
  2. To conduct a follow-up investigation on motor carriers rated unsatisfactory or conditional as a result of a previous review,
  3. To investigate legitimate (non-frivolous) complaints,
  4. In response to a request by a motor carrier to reevaluate its safety rating, or
  5. To assess motor carriers deemed to be high risk.

Motor carriers are usually given at least 48 hours advance notice before a compliance review, not including weekends or federal holidays. In that 48-hour time frame, the carrier is expected to produce all documentation requested by the FMCSA. (390.29) Records that need to be produced include:

  • Proof of financial responsibility,
  • Driver qualification files (including all required forms),
  • Drug and alcohol testing records (if applicable),
  • Records of duty status (logs) and supporting documents,
  • Driver vehicle inspection reports and maintenance records,
  • Hazardous materials records (if applicable), and
  • An accident register and copies of all required accident reports.

Auditors will also review roadside inspection results and other data already accessible to the FMCSA.

The compliance review and safety rating process is governed under Part 385. Carriers that are not domiciled in North America but that intend to operate in the United States should refer to Part 385, Subparts H and I.

Safety ratings

  • Motor carriers can receive either a satisfactory, conditional, or unsatisfactory safety rating after a compliance review.

A safety rating is an evaluation assigned to an interstate motor carrier after a compliance review. The ratings are made public and can have wide-ranging effects on a carrier’s ability to conduct business.

The safety rating a motor carrier receives from the Federal Motor Carrier Safety Administration (FMCSA) affects everything from its ability to continue operation (i.e., it could result in an out-of-service order) to insurance rates to attracting customers and quality drivers to how it might fare in a lawsuit based on its “reputation.” Because so much hinges on a positive outcome following an investigation, it is important to have a clear understanding how the agency arrives at a rating.

The three possible ratings are:

  • Satisfactory — The carrier has adequate safety management controls to meet the safety fitness standards in 385.5.
  • Conditional — The carrier does not have adequate safety management controls in place, which could lead to serious safety violations.
  • Unsatisfactory — The carrier does not have adequate safety management controls in place and has committed serious safety violations.

In general, carriers rated “unsatisfactory” are prohibited from operating commercial motor vehicles. These carriers are issued an out-of-service order that becomes final on the 61st day after the rating is assigned, although that may be extended by up to 60 days for carriers making an effort to comply. For carriers hauling hazmat or passengers, the out-of-service order becomes final on the 46th day after the carrier is rated.

Acute and critical regulations

  • Compliance with acute and critical regulations affects the outcome of a compliance review.

In part, carriers are evaluated and safety ratings assigned based on compliance or noncompliance with a series of “acute” and “critical” regulations. Other factors include vehicle and driver out-of-service rates and accident history.

  • Acute regulations are those where noncompliance is so severe that immediate corrective actions by the motor carrier are required. For example, a violation of 383.37(b) by allowing or requiring an employee to drive with more than one commercial driver’s license is an acute violation. Such a violation is usually discovered through examination of the driver’s qualification file, reflecting that the carrier had knowledge of the violation. If the motor carrier did not have such knowledge or could not reasonably be expected to have such knowledge, then a violation would not be cited.
  • Critical regulations are those where noncompliance relates to management and/or operational controls, and violations indicate a breakdown in those controls. For example, the basic hours-of-service limits in 395.3 and 395.5 are critical regulations.

The list of acute and critical regulations can be found at the end of this explanation.

Points are assigned when the auditor finds noncompliance with acute regulations or patterns of noncompliance with critical regulations. A pattern is more than one violation; when several documents are reviewed for compliance with a particular regulation, a pattern is found when 10 percent of the documents show a violation.

The six factors of a compliance review

  • Compliance reviews are based on six factors.
  • The points assessed against these factors will result in a safety rating of either satisfactory, conditional, or unsatisfactory.

The regulations are categorized into five “factors,” along with a sixth factor addressing accidents:

Each time the auditor finds a violation of an acute regulation or a pattern of noncompliance with a critical regulation, one point will be assessed against the appropriate factor. However, each pattern of noncompliance with a critical hours-of-service regulation under Part 395 will be assessed two points. These points then translate into a rating for each factor, as follows:

  • Zero points = Satisfactory
  • One point = Conditional
  • Two or more points = Unsatisfactory

Vehicle factor

A special scoring process is used for Factor 4, the vehicle factor. When a carrier has had at least 3 vehicle inspections in the 12 months before the audit, and/or if such inspections are performed during the audit, the vehicle factor will be evaluated based on the carrier’s Out-of-Service (OOS) rate as well as compliance with acute and critical regulations. The OOS rate will affect the vehicle factor as follows:

If the carrier’s vehicle OOS rate is:Then the initial Factor 4 rating will be:But if acute/critical violations under Part 396 are found during the audit, the Factor 4 rating could be lowered to:
34 percent or greaterconditionalunsatisfactory.
less than 34 percentsatisfactoryconditional.

Scoring the accident factor

Factor 6, Accident, is not based on regulatory compliance but rather the carrier’s recordable accident rate during the past 12 months, when the carrier had at least two such accidents in that time.

A recordable accident, as defined in 390.5, is an accident involving a commercial motor vehicle operating on a public roadway that results in:

  • A fatality,
  • Bodily injury requiring immediate medical treatment away from the scene of the accident, or
  • One or more motor vehicles incurring disabling damage as a result of the accident requiring the vehicle(s) to be towed or otherwise transported away from the scene.

The carrier’s accident rate per million miles is compared with the national average rate from the years 1994–1996:

  • 0.747 for all carriers, or
  • 0.839 for carriers operating entirely within a 100-air-mile radius (a higher rate is used for these short-haul or “urban” operators because they typically have more exposure to risk).

Carriers are expected to keep their accident rates below twice these national averages. Therefore, carriers will receive an unsatisfactory rating on Factor 6 if their accident rate is greater than:

  • 1.7 for carriers operating entirely within a radius of 100 air miles, or
  • 1.5 for all other carriers.

What about accidents that were not preventable?

ALL recordable accidents will be used in the initial rating process. However, the carrier can contest that process by presenting compelling evidence that the recordable rate is not a fair means of evaluating its accident factor. The FMSCA will then consider whether the carrier’s accidents were preventable or not. Preventability is judged according to this standard:

"If a driver, who exercises normal judgment and foresight could have foreseen the possibility of the accident that in fact occurred, and avoided it by taking steps within his/her control which would not have risked causing another kind of mishap, the accident was preventable."

Calculating the overall rating

  • Following an audit, carriers will receive a safety rating and a list of problems to correct.

The carrier’s overall safety rating is based on the ratings in each individual factor, and the Federal Motor Carrier Safety Administration (FMCSA) uses a computerized rating formula to assess the audit results and assign a safety rating.

Motor Carrier Safety Rating Table

FACTOR RATINGS
OVERALL SAFETY RATING
Number of unsatisfactory factorsNumber of conditional factors
zerotwo or fewerSatisfactory
zeromore than twoConditional
onetwo or fewerConditional
onemore than twoUnsatisfactory
two or morezero or moreUnsatisfactory

The proposed safety rating

Within 30 days after a compliance review, the carrier will receive a letter from FMCSA headquarters containing the proposed safety rating and a list of compliance problems that need correcting, if any. The rating is finalized as follows:

RatingDetails
SATISFACTORYThe rating is final and takes effect on the date of the notice.
CONDITIONALThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If the rating is an upgrade from an unsatisfactory rating, it becomes final immediately.
UNSATISFACTORYThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If necessary safety improvements are not made within that time frame, then the carrier will be deemed “unfit” to continue operating in interstate commerce and will lose its operating authority. The 60-day deadline may be extended if the carrier is making good faith efforts to comply. (385.13)

Upgrading or contesting a safety rating

  • In response to a safety rating, carriers may contest the given rating by requesting either an administrative review or a rating change.

Under 385.15 and 385.17, motor carriers have the right to petition for a review of their ratings if there are factual or procedural disputes, and to request another review after corrective actions have been taken:

  • Administrative reviews — Requests for an administrative review must be made within 90 days of the date of the proposed or final safety rating, or within 90 days after denial of a request for a change in rating. If the proposed rating is “unsatisfactory,” the request should be made within 15 days or the carrier risks being placed out of service before the Federal Motor Carrier Safety Administration (FMCSA) has time to complete its review. (385.15)
  • Requests for rating change — A motor carrier that has taken action to correct the deficiencies that resulted in a proposed or final rating of “conditional” or “unsatisfactory” may request a rating change at any time. The request must be based on evidence that the carrier has taken corrective actions and that its operations currently meet the safety standards. (385.17)

Auditing of intermodal equipment providers

The FMCSA does not assign safety ratings to intermodal equipment providers. Rather, the agency performs “roadability reviews” to verify compliance with Parts 390, 393, and 396. After such a review, the FMCSA may cite the intermodal equipment provider for violations, impose civil penalties, forbid the use of particular pieces of equipment, or order the provider to stop tendering any equipment to motor carriers.

New-entrant audits

  • Once a new motor carrier has been in operation long enough, they will be audited as a new entrant.
  • This type of audit doesn’t result in a safety rating but will assess the need for corrective actions.

New motor carriers are subject to a “new-entrant safety audit” during the first 18 months of business. The audit itself usually occurs after the carrier has been in business for at least 3 months, but no more than 12 months, with a final report issued within 18 months.

The purpose of this pass/fail audit is to provide educational and technical assistance to the carrier and to gather enough data to assess whether the carrier has an adequate safety management program. Those who fail the audit are required to take corrective actions and prove compliance before being granted permanent registration as a motor carrier. The audit does NOT result in a safety rating.

The audit will be conducted once the carrier has been in operation long enough (generally at least three months) to have enough records on hand to allow the Federal Motor Carrier Safety Administration (FMCSA) to evaluate the carrier’s safety management controls. The audit can be expedited if serious violations are discovered.

All records and documents required for the safety audit must be made available for inspection upon request by the FMCSA. The areas for review include, but are not limited to, driver qualification, hours of service, vehicle maintenance, the accident register, and drug and alcohol testing.

For details on how carriers are assessed during the audit, refer to Part 385, Appendix A.

Sixteen regulations have been identified as essential elements of basic safety management controls necessary to operate in interstate commerce. If a motor carrier has not complied with any one of these regulations, the carrier will fail the new-entrant audit and will receive notice that its U.S. Department of Transportation (DOT) new-entrant registration will be revoked. Violations that will result in automatic failure of the audit are:

  1. Not implementing a drug and/or alcohol testing program. (382.115(a)-(b))
  2. Using a driver known to have an alcohol content of 0.04 or greater to perform a safety-sensitive function. (382.201)
  3. Using a driver who has refused to submit to an alcohol or drug test required under Part 382. (382.211)
  4. Using a driver known to have tested positive for a controlled substance. (382.215)
  5. Failing to implement a random drug and/or alcohol testing program. (382.305)
  6. Using a driver who does not possess a commercial driver’s license (CDL) when required. (383.3(a)/383.23(a))
  7. Using an employee with a CDL which is suspended, revoked, or canceled by a state. (383.37(a))
  8. Using a disqualified CDL driver. (383.51(a))
  9. Not having proper financial responsibility coverage. (387.7(a))
  10. Not having proper financial responsibility coverage for a passenger-carrying vehicle. (387.31(a))
  11. Using a disqualified driver (CDL or non-CDL). (391.15(a))
  12. Using a physically unqualified driver. (391.11(b)(4))
  13. Failing to require a driver to make a record of duty status. (395.8(a))
  14. Using a CMV declared “out of service” or using it before the repairs are made. (396.9(c)(2))
  15. Failing to correct out-of-service defects listed on daily vehicle inspection reports. (396.11(a)(3))
  16. Using a CMV that was not periodically inspected. (396.17(a))

When the audit is complete, the auditor will review the findings with the company. If the company fails the audit, it typically will be given 60 days to correct the problems. This period is reduced to 45 days for carriers that transport passengers or hazardous materials in quantities requiring placarding.

More details about new-entrant audits can be found in Part 385, Subparts D and H.

Safety Management Cycle

  • The Safety Management Cycle is a six-component process improvement tool used by the FMCSA to analyze a carrier’s safety and compliance program and help address noncompliance issues.
  • The Cycle is made up of six SMPs that signify key components of a carrier’s safety plan.
  • The six SMPs are policies and procedures, roles and responsibilities, qualification and hiring, training and communication, monitoring and tracking, and meaningful action.

The Federal Motor Carrier Safety Administration (FMCSA) describes the Safety Management Cycle as the “signature tool” of its investigative process. Fortunately, this tool is publicly available for use by motor carriers looking to address their safety and compliance issues and improve their Compliance, Safety, Accountability (CSA) scores.

Like other process improvement tools, the Safety Management Cycle is applied as a step-by-step process to determine why safety and compliance issues are occurring. The tool also provides a framework for brainstorming remedies, choosing solutions, and designing and implementing plans to improve a carrier’s safety operations.

The Safety Management Cycle can be broken down into six components, known as “Safety Management Processes” (SMPs), as shown below. The six arrows identify key components of a carrier’s safety program where problems may arise. All six “spokes” in the diagram must be working effectively in order for a motor carrier’s safety efforts to succeed.

The SMPs are:

  • Policies and procedures define the “what” and “how” of a motor carrier’s operations. Policies establish the guidelines for how motor carriers and their employees behave in a given situation; procedures explain how to accomplish these policies. The other five SMPs focus on how to implement these policies and procedures.
  • Roles and responsibilities define what each employee should do to implement policies and procedures.
  • Qualifications and hiring covers finding and qualifying people for the defined roles and responsibilities.
  • Training and communication of a motor carrier’s policies, procedures, roles, and responsibilities, so that every employee understands the expectations and has the skills and knowledge to perform their assigned functions.
  • Monitoring and tracking of employee performance, which enables companies to be aware of their employees’ safety performance and compliance with its policies and procedures and how they execute their roles and responsibilities. Monitoring involves looking at the performance of the operation, while tracking is assessing the data collected, leading to meaningful action.
  • Meaningful action gives motor carriers the tools to correct or improve employee behavior, including, for example, refresher training and positive reinforcement such as rewards or bonuses, in order to improve the motor carrier’s overall safety performance.

When an FMCSA investigator looks at a motor carrier’s compliance efforts, the investigator will use the Safety Management Cycle to locate and point out specific areas of noncompliance. When problems are found during an audit, the auditor will want to see the company’s policies and procedures, the assigned roles and responsibilities, and the company’s hiring, qualification, and training practices. The auditor will then want to know how the carrier is tracking and monitoring compliance and will check if there has been meaningful action taken to address the problems.

The FMCSA traditionally leaves it up to the motor carrier to decide the details on implementing safety management controls that best fit its operations. The FMCSA only verifies that the company has some type of controls in place and the carrier is operating safely and compliantly.

If the company were not operating compliantly and safely, as proven by roadside inspection data or the results of an investigation, the FMCSA would likely decide that the company does not have adequate safety management controls in place.

The Safety Management Cycle uses this abstract idea of having controls in place and offers motor carriers — and enforcement personnel — a more concrete, step-by-step guide for implementing a solution. When a carrier performs a self-audit or undergoes an investigation of its records by the FMCSA, the root cause of a safety or compliance problem will fall within one or more of the six SMPs and can be addressed.

Policies and procedures

  • Policies (the “what”) and procedures (the “why” and “how”) go together by setting guidelines for employees to follow and naming methods for achieving them.

Effective safety management begins with policies and procedures. Policies provide a simple explanation of what a motor carrier will and will not allow. Having policies that clearly state what is expected allows everyone, including supervisory and management personnel, to see the company’s safety and compliance vision and goals. The policies should be simple, straightforward, and measurable, with no room for interpretation. Policies also need to cover the consequences of failure to follow the policies.

If policies are the “what” and “why,” procedures are the “how to.” They explain how to accomplish policies and establish a means to verify that employees and management are complying with the policies.

For example, an hours-of-service policy might require all commercial drivers (and dispatchers and supervisors) to comply with federal hours-of-service rules and explain the consequences of failing to do so. Corresponding procedures may explain which log form to use, how and when to submit logs, whether to use the 60- or 70-hour limit, how logs are to be audited, etc.

Some carriers choose not to have procedures but instead use their policies to dictate everything, and that is acceptable. For any policy to be truly effective, it must be distributed and understood by everyone in the company (see training and communication below), and it must not conflict with any other policies that are in place. As an example of conflicting policies, an hours-of-service policy may require strict adherence to the rules while another policy may require drivers to always deliver on time, no matter what. This would make it impossible for a driver to comply with both policies at the same time.

Policies and procedures do not need to match the regulations; in fact, they can exceed them. Doing so may be advantageous, but companies should make sure that a more stringent policy does not conflict with another area of regulation or law. For example, a hiring policy that exceeds minimum Department of Transportation requirements may violate fair hiring practices under employment laws.

Roles and responsibilities

  • All employees must know their role and responsibility for any given policy in order for it to govern the company effectively.

For policies and procedures to be effective, roles and responsibilities must be assigned. A safety program without assigned accountability leads to inefficiencies and noncompliance. In short, every employee — from the drivers to the managers — must know what their roles and responsibilities are within the safety program. Here are a few examples:

  • Managers and supervisors need to be held responsible for overseeing the development of policies and procedures.
  • An employee needs to be assigned the responsibility of making sure that the policies are kept current and employees are trained on their content.
  • An employee needs to be responsible for verifying that the policies are being followed.

A company should not create a “paper tiger” policy or procedure that no employee pays attention to after it’s written. It won’t take a Federal Motor Carrier Safety Administration investigator long to figure out if a carrier’s policies and procedures hold people accountable for their assigned roles and responsibilities.

Qualification and hiring

  • Safety management begins with recruiting and hiring qualified employees.

Qualification and hiring practices get the right person in the right position. Achieving that goal can involve creating job descriptions, structuring the hiring process, and developing hiring standards.

Qualification and hiring processes are especially critical when it comes to drivers. Hiring a bad driver can have a company-wide impact, on everything from safety to liability to profitability. However, effective qualification and hiring practices are critical for all positions that impact safety.

When hiring a dispatcher, safety person, technician, yard jockey, etc., a company should have a formal job description so applicants (and recruiters) know exactly what they are being hired to do. The hiring process should be backed by a strong recruiting and screening system built around the job requirements, to ensure the carrier is getting the right person into the job.

Training and communication

  • Safety management continues with a comprehensive training program, from the first orientation to ongoing and refresher courses.

Once a motor carrier has the necessary policies and procedures, has assigned roles and responsibilities, and has hired the right people, the next step is to examine the carrier’s training program. This includes initial, ongoing, and remedial or refresher training.

The initial training is often referred to as “orientation,” and it plays a critical role. It’s the company’s one chance to make a strong impression on its new hires regarding safety and how the vehicles are being operated. Rushing the orientation process tends to create the opposite impression — that all the carrier cares about is getting drivers turning miles as fast as possible.

Orientation must be followed with and reinforced by ongoing and refresher training. Communication of policies, procedures, roles, and responsibilities is critical if you want employees to be focused on compliance and safety. Training must be reinforced with ongoing communication for all safety-related positions in the company, from drivers to managers. Section 390. 3(e) requires that everyone involved in safety must know and apply the safety regulations (as they relate to the position), and it is the motor carrier’s responsibility to ensure this happens.

Monitoring and tracking

  • Closely monitoring a safety program can help a company spot trends and problem areas.
  • It will also reflect to the FMCSA that the carrier is aware of their compliance efforts.

Monitoring and tracking are used to determine where a carrier’s safety program stands, similar to the way the Federal Motor Carrier Safety Administration (FMCSA) monitors and tracks the industry through Compliance, Safety, Accountability (CSA). If it can be measured, it can be managed.

If a carrier is not monitoring their safety program’s performance, the FMCSA will likely assume the carrier cannot know how compliance efforts are working, much less where the problems are. For example, how can a company be aware of where its employees stand on hours-of-service compliance if their logs aren’t monitored (audited) or their compliance isn’t tracked?

Monitoring and tracking will enable companies to spot trends, catch problems, and take action to correct those problems. If everything is going well, then the company will know that the other parts of the Safety Management Cycle are working properly.

One way for a company to track compliance is through the CSA Safety Measurement System; another is the self-tracking of inspections, violations, and crashes and performing self-auditing. Or a carrier may want to use a third-party service to track its on-road and in-house performance, or use a combination of these approaches. One question you will need to address is, “What does the company want to track?”

These are some of the key safety-related metrics:

  • All incidents, no matter how minor;
  • Department of Transportation (DOT) recordable crashes;
  • All roadside inspections and violations;
  • Out-of-service violations;
  • Internal violations discovered during self-auditing, including log auditing; and
  • Injuries.

This data should be tracked company-wide, based on individual drivers, location, and supervisor. This way, if a problem begins surfacing, it is easy to see where the problem is and who is involved.

Meaningful action

  • Lastly, carriers must review their entire safety management process when determining how to act on detected problems.

The final step in the Safety Management Cycle is for a company to take meaningful action when monitoring and tracking have indicated a problem. Taking meaningful action should correct the problem at its roots.

The process of meaningful action begins with a review of the relevant policies and procedures that relate to the problem. Are they written properly? Are people following them? If not, was there a breakdown in training or communications, or perhaps in the hiring standards? Each of the other five Safety Management Processes should be examined and revised as needed. Common solutions may include:

  • Revising policies and procedures;
  • Reassigning responsibilities;
  • Improving the hiring and qualification standards for the positions involved;
  • Deciding that employees are not qualified for the position they are occupying, which may lead to replacement or retraining; and
  • Improving training and/or communications.

To see if “meaningful action” is having an impact, carriers need to continue monitoring and tracking. On the other hand, if the same problem is constantly surfacing but all other components of the Safety Management Cycle are in place and operating correctly, you may not be taking the actions necessary to address the problem.

FMCSA administrative enforcement proceedings

  • A carrier, if found to be noncompliant, might be subject to an administrative judgment within the FMCSA such as a Notice of Violation or a Notice of Claim.

Like other federal agencies, the Federal Motor Carrier Safety Administration (FMCSA) has a process in place for administrative proceedings. These are non-judicial proceedings within the agency, used to:

  • Determine whether a motor carrier, intermodal equipment provider, driver, property broker, freight forwarder, or any other entity subject to the FMCSA’s jurisdiction has failed to comply with agency regulations or their underlying statutes; and
  • Issue an appropriate order to compel compliance with the statute or regulation, assess a civil penalty, or both, if such violations are found.

Administrative proceedings are regulated under Part 386. These regulations include important information for motor carriers to be aware of should they become subject to enforcement actions, particularly a Notice of Violation, a Notice of Claim, an out-of-service order, or other serious disciplinary actions. In addition, Part 386 governs the proceedings for resolving conflicts in the driver medical examination process under 391.47.

A Notice of Violation is a formal written notice alleging violations of the Federal Motor Carrier Safety Regulations (FMCSRs), Hazardous Materials Regulations (HMRs), or FMCSA commercial regulations (FMCCRs). A Notice of Violation is used when the FMCSA wants to give the recipient a chance to correct the violations, rather than simply issuing a fine.

A Notice of Claim is a formal written notice that the FMCSA is assessing a civil penalty (fine) for violations of the FMCSRs, HMRs, and/or FMCCRs.

In general, when a motor carrier or other entity receives notice that it is the subject of, or is otherwise involved in, an administrative proceeding, the notice will include instructions and deadlines concerning how the carrier may respond or otherwise be involved in the process (e.g., by paying a penalty, appearing for a hearing, correcting violations, contesting a penalty, etc.). (Part 386)

If a carrier becomes involved in an administrative proceeding, they should be aware of the deadlines. For example, after receiving a Notice of Claim, the carrier has 30 days to either pay the penalty, contest the alleged violations, or seek binding arbitration to dispute the amount of the penalty. Failing to meet that deadline could result in a default judgment and order to pay the full penalty amount.

Penalties and fines

  • Violations of the FMCSRs and HMRs can result in civil penalties and fines from the FMCSA.
  • The penalty amount is based on several factors such as the nature and gravity of the violation.

The Federal Motor Carrier Safety Administration (FMCSA) is authorized to levy fines and penalties against motor carriers, drivers, and other entities who violate the Federal Motor Carrier Safety Regulations (FMCSRs), Hazardous Materials Regulations (HMRs), or FMCSA commercial regulations. These are known as “civil” penalties and are regulated under Part 386 and its appendices.

A civil penalty is a monetary fine imposed by a government agency as compensation for violations. A civil penalty is not the same as a criminal punishment because it cannot carry jail time or other legal penalties.

Fines and penalties issued to drivers after roadside inspections do not fall under FMCSA jurisdiction. Such fines are levied based on state law and there is no uniform fine schedule across states.

How are civil penalties determined?

The regulations in Part 386 generally list the maximum civil penalties that may be levied for various violations, although in some cases they also contain a minimum amount as well. These amounts are established by Congress in the statutes that grant enforcement powers to the FMCSA.

The actual civil penalties that get assessed against a motor carrier, driver, or other entity may depend on a variety of factors, including:

  • The nature of the violations,
  • The gravity of the violations*,
  • The violator’s degree of culpability,
  • The violator’s history of prior offenses,
  • The effect on the violator’s ability to continue to do business, and
  • Other factors “as justice and public safety may require.”

*In the case of drivers who exceed the driving-time limit by more than three hours (called an “egregious” violation), the gravity will be deemed high enough to deserve maximum penalties.

In addition to these, certain civil penalties concerning household goods are also based on the degree of harm caused to a shipper and whether the shipper was adequately compensated before the civil penalty was assessed.

Note that “ability to pay” is not taken into account except in the case of violations of insurance requirements under Part 387.

What if a fine goes unpaid?

A commercial motor vehicle owner or operator who fails to pay a civil penalty in full within 90 days after the deadline specified in a final order from the FMCSA is prohibited from operating in interstate commerce starting on the 91st day. Similarly, a broker, freight forwarder, for-hire motor carrier, foreign motor carrier, or foreign motor private carrier that fails to meet that 90-day deadline will have its registration suspended. (386.83 and 386.84)

The following tables summarize the civil penalty amounts found in Part 386.

Civil penalties for Federal Motor Carrier Safety Regulations (FMCSRs)/ Hazardous Material Regulations (HMRs) violations

ViolationDescriptionCivil Penalty
RecordkeepingFailing to prepare or maintain a required record or preparing or maintaining a required record that is incomplete, inaccurate, or false.$1,496 for each day of violation, up to $14,960
Knowing falsification of recordsKnowingly falsifying, destroying, mutilating, or changing a required report or record; knowingly making a false or incomplete record about an operation or business fact or transaction; or knowingly making, preparing, or preserving a record in violation of a Department of Transportation regulation or order. $14,960
Non-recordkeepingViolating a non-recordkeeping requirement of Parts 382, 385, or 390-399$18,170 per violation
Non-recordkeeping violations by driversA driver violating a non-recordkeeping requirement of Parts 382, 385, or 390–399$4,543
Driving during alcohol out-of-service (OOS) orderA driver placed OOS for 24 hours for violating the alcohol prohibitions in 392.5(a) or (b) who drives during that time$3,740, up to $7,481
Commercial driver’s license (CDL) and Clearinghouse violationsAny person violating the Drug & Alcohol Clearinghouse rules in Part 382, Subpart G, or the CDL rules in Part 383, Subparts B, C, E, F, G, or H$7,481
Violations of OOS orders by CDL holdersA CDL holder convicted of violating an OOS order$3,740, up to $7,481
An employer of a CDL holder knowingly allowing, requiring, permitting, or authorizing the employee to operate a CMV while the CDL holder is subject to an OOS order$7,481, up to $37,400
Railroad-crossing violationsAn employer of a CDL holder knowingly allowing, requiring, permitting, or authorizing the employee to operate a CMV in violation of a federal, state, or local law or regulation pertaining to railroad-highway grade crossings$19,389
Financial responsibilityFailing to maintain the levels of financial responsibility required under Part 387$19,933 per day
Violation of Hazardous Materials Regulations (HMRs) by motor carriers, drivers, shippers, or other persons who transport hazardous materials or cause them to be transported on highways by commercial vehicle Violating rules related to the transport or shipment of hazardous materials$96,624 per violation per day
Knowingly violating rules related to hazardous materials training$582, up to $96,624, per violation
Knowingly violating rules related to the manufacture, fabrication, marking, maintenance, reconditioning, repair, or testing of a packaging or container that is represented, marked, certified, or sold as being qualified for use in the transport or shipment of hazardous materials$96,624 per violation
Violating applicable FMCSRs while transporting hazardous materials$96,624
Any of the above four HMR violations resulting in death, serious illness, severe injury to any person, or substantial destruction of property$225,455 additional per offense
Motor carrier operating with an Unsatisfactory safety ratingOperating a commercial motor vehicle (CMV) in interstate commerce after receiving a final unsatisfactory safety rating$32,208 per day
Operating a CMV designed or used to transport hazardous materials for which placarding is required, after receiving a final unsatisfactory safety rating$96,624 per offense per day, or $225,455 if the violation results in death, serious illness, severe injury, or substantial destruction of property
Copying of records and access to equipment, lands, and buildings Failing to allow the FMCSA or other authorized personnel to inspect and copy any record or inspect and examine equipment, lands, buildings, and other property$1,496 per offense per day, up to $14,960
Evasion of compliance Attempting to evade compliance with regulationsAt least $2,577 but not more than $6,441 for the first violation and at least $3,219 but not more than $9,652 for a subsequent violation
Recordkeeping under commercial regulationsFailing to prepare or retain a report or answer a question within 30 days, filing a false report, destroying, or changing a report, making a false or incomplete entry about a business-related fact, or preparing or preserving a record in violation of 49 U.S.C. 131-149 or related regulationsMinimum $1,496 per violation, up to $9,652 per violation
Civil penalties for notice/order violations

ViolationDescriptionCivil Penalty
Notices to abateFailing to stop violating the regulations in the time prescribed in the noticeReinstatement of any deferred assessment or payment of a penalty (or portion thereof)
SubpoenasFailing to respond to an FMCSA subpoena to appear and testify or produce recordsMinimum of $1,288, up to $12,882 per violation
Final ordersFailing to comply with an FMCSA final orderThe full penalty that was originally assessed
Out-of-service/suspension ordersDriving a CMV while subject to an OOS order (driver)$2,232 per violation
Requiring or allowing a driver to drive a CMV while subject to an OOS order (motor carrier)$22,324 per violation
Operating an out-of-service CMV or intermodal equipment before required repairs are made (driver) $2,232 per violation
Requiring or allowing a driver to drive an out-of-service CMV or intermodal equipment before required repairs are made (motor carrier) $22,324 per violation
Failing to return written certification of correction required by the OOS order $1,116 per violation
Knowingly falsifying written certification of correction as required by the OOS order $2,232 per violation, up to $22,324
Operating in violation of an order to cease all or part of the employer's CMV or intermodal equipment operations $32,208 per day
Conducting operations during a period of suspension for failure to pay penalties, or while registration is revoked or suspended $18,170 to $28,304 per day
Operating as a “reincarnated” carrier to avoid compliance under 386.73$28,304 per day
Civil penalties for registration/authority violations

ViolationDescription Civil Penalty
RegistrationOperating as a carrier for the transportation of property without complying with registration requirements. Minimum $12,882 per violation
Operating as a broker without complying with registration or financial security requirements. $12,882 per violation
Operating as a carrier of passengers without complying with registration requirements Minimum $21,208 per violation
Violating 49 U.S.C. 131-149, a related regulation, or a condition of registration $971 per violation, unless another penalty is provided in 49 U.S.C. 149
Hazardous wastesOperating as a carrier or broker for the transportation of hazardous wastes in violation of registration requirements Minimum $25,767 per violation, up to $51,533 per violation
Foreign carrier registration/authorityOperating as a foreign carrier or foreign private carrier of property without complying with registration requirements Minimum $12,882 per violation
Operating as a foreign carrier or foreign private carrier without authority and beyond the commercial zones $17,717 for an intentional violation, $44,294 for a pattern of intentional violations
Civil penalties for household goods violations

Violation DescriptionCivil Penalty
Shipper protectionAs a motor carrier or freight forwarder of household goods (or receiver or trustee), failing to comply with any regulation relating to the protection of individual shippers Minimum $1,937 per violation
Weight falsificationFalsifying (or authorizing the falsification of) documents used in the transportation of household goods by carrier or freight forwarder to evidence the weight of a shipmentMinimum $3,879 for the first violation, $9,695 for each subsequent violation
Service chargesCharging for services which are not performed or are not reasonably necessary in the safe and adequate movement of the shipmentMinimum $3,879 for the first violation, $9,695 for each subsequent violation
Failing to deliverViolating a contract for shipment of household goods in interstate commerce by knowingly or willfully failing to deliver the goods to the destination when charges have been estimated by the carrier and the shipper has tendered a payment$19,389 per violation per day, and/or suspension of registration for up to 36 months
Estimating costs As a broker for transportation of household goods, making an estimate of the transportation cost before entering into an agreement with a motor carrier to provide the transportation $14,960 per violation
RegistrationProviding transportation of household goods, or providing broker services for such transportation, without being properly registered$37,400 per violation
Civil penalties for rate violations

DescriptionCivil Penalty
Knowingly accepting or receiving from a carrier a rebate or offset against the rate specified in a tariff for the transportation of property delivered to the carrierThree times the amount accepted as a rebate or offset and three times the value of other consideration accepted or received as a rebate or offset for the six-year period before the action is begun
Offering, soliciting, or receiving transportation of property at a different rate than the required tariff rate$193,890 per violation
Offering, soliciting, or receiving a rebate or concession related to motor carrier transportation under 49 U.S.C. 135, or assisting or permitting another person to get that transportation at less than the required tariff rate $387 for the first violation, $484 for each subsequent violation
As a freight forwarder, assisting or willingly permitting a person to get service at less than the required rate $971 for the first violation, up to $3,879 for each subsequent violation
Getting or attempting to get service from a freight forwarder at less than the required rate $971 for the first violation, up to $3,879 for each subsequent violation
Civil penalties for loading/unloading violations

DescriptionCivil Penalty
Knowingly violating or authorizing, consenting to, or permitting a violation of 49 U.S.C. 14103 relating to loading and unloading motor vehicles$19,389 per violation

Civil penalties for other commercial violations

DescriptionCivil Penalty
Disclosing information in violation of 49 U.S.C. 14908 without the permission of the shipper or consignee$3,879
Violating 49 U.S.C. 131-149, a related regulation, or a condition of registration $971 per violation, unless another penalty is provided in 49 U.S.C. 149
A director, officer, receiver, trustee, lessee, agent, or employee of a carrier that is a corporation violating 49 U.S.C. 131-149Penalties of 49 U.S.C. 149 that apply to a corporation

Who is subject to FMCSA enforcement?

  • All employers, employees, and drivers who operate CMVs must comply with the FMCSRs.
  • The regulations are enforced by a combination of state, local, and federal agencies.

Compliance with the Federal Motor Carrier Safety Regulations (FMCSRs) is required of all employers, employees, and drivers operating commercial motor vehicles (CMVs). A “commercial motor vehicle” is any self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when the vehicle:

  • Has a gross vehicle weight rating (GVWR), gross combination weight rating (GCWR), gross vehicle weight (GVW), or gross combination weight (GCW) of 10,001 pounds or more, whichever is greater; or
  • Is designed or used to transport 9 or more passengers (including the driver) for compensation, or 16 or more passengers (including the driver) not for compensation; or
  • Is used to transport hazardous materials in a quantity requiring placarding.

Intrastate operations

Carriers and drivers engaged in intrastate-only commerce (within the borders of a state) are not generally subject to the Federal Motor Carrier Safety Administration’s (FMCSA’s) jurisdiction or the monitoring and enforcement programs that apply to interstate operations (except in the case of drivers transporting placarded hazardous materials). Instead, these carriers and drivers are subject to state and local CMV laws and regulations, which are generally compatible with — but not always identical to — the FMCSRs. Some states, for example, exempt CMVs that weigh less than 26,001 pounds.

Who can enforce the FMCSRs?

To ensure that federal CMV safety regulations are enforced, the FMCSA relies on state and local transportation agencies, in addition to its own safety investigators stationed at FMCSA Field Offices in each state. Although any officer of the law can stop a truck or bus on the roadside and issue a citation, only certified officers and investigators can conduct official audits or investigations or conduct roadside inspections that result in compliance data being uploaded to FMCSA. Information on officer certification requirements can be found in Part 385, Subpart C.

The FMCSA helps pay for state and local CMV enforcement programs through the Motor Carrier Safety Assistance Program (MCSAP). To qualify for MCSAP funds, states must have and enforce CMV safety laws that are equivalent to and compatible with the FMCSRs. See:

  • Part 350 for more information about MCSAP standards.
  • Part 355 for more information about the standards for ensuring that state laws are “compatible” with the FMCSRs.

Enforcement tools

  • The CSA program is the DOT’s primary tool for identifying high-risk carriers and prioritizing them for enforcement.
  • There are a variety of enforcement tools the DOT utilizes to determine if a driver or carrier is out of compliance, including inspections, audits, and investigations.

The Federal Motor Carrier Safety Administration (FMCSA) and its state partners have a variety of enforcement tools at their disposal. Key among them are:

  • Roadside inspections of CMVs in operation, and
  • Audits and investigations performed either off-site or at the business locations of those subject to the Federal Motor Carrier Safety Regulations (FMCSRs) (including motor carriers, intermodal equipment providers, etc.).

How are drivers and carriers chosen for enforcement?

Because the Department of Transportation (DOT) does not have enough resources to examine every commercial motor vehicle (CMV) or motor carrier in operation, they must prioritize their investigations. The primary means used to prioritize enforcement is the Compliance, Safety, Accountability (CSA) program, which uses a variety of data from roadside inspections, investigations, and crashes to identify the carriers and drivers who have the most compliance problems.

Motor carriers and drivers may also be prioritized for enforcement if:

  • Violations are observed on the road,
  • There’s a significant crash, or
  • There’s a valid complaint about a driver or carrier (from a member of the public, from a driver, from an enforcement official, etc.).

Enforcement tools

Once a driver, motor carrier, or other entity is targeted for enforcement, the DOT must decide which type of enforcement tool is appropriate. These tools include the following:

  • Roadside inspections occurring on the roadside, at fixed or portable scales, waysides, ports of entry, rest areas, or other locations along the nation’s roadways.
  • Safety audits, which entail examination of a motor carrier’s operations to provide educational and technical assistance on safety and the operational requirements of the FMCSRs and applicable Hazardous Materials Regulations (HMRs). Safety audits are also used to gather critical safety data needed to assess the carrier’s safety performance and basic safety management controls. Safety audits do not result in safety ratings.
  • Warning letters sent to drivers or motor carriers, alerting them to a non-compliance issue and pointing them to resources that can help them get back on track.
  • Targeted roadside inspections that focus on a specific problem area, such as hours of service. Motor carriers that suddenly feel “picked on” due to an increase in roadside inspections may be the subject of a targeted roadside inspection effort.
  • Off-site investigations performed at the DOT’s offices instead of at the carrier’s business location. These types of audits involve the carrier sending compliance documentation (such as driver files or hours-of-service records) to the DOT electronically for auditing.
  • Focused on-site investigations at a motor carrier’s location, geared toward a specific problem area such as driver qualification or vehicle compliance.
  • Roadability reviews, which are audits of intermodal equipment providers (IEPs) to verify compliance with applicable FMCSRs.
  • Comprehensive investigations, also known as compliance reviews. These are usually multi-day audits that result in a safety rating for the motor carrier. They may be conducted on-site or off-site.
  • Cooperative safety plans are an option if an investigation reveals safety problems which the motor carrier expresses a willingness to fix. These are structured improvement plans developed and implemented voluntarily by motor carriers to address safety problems, often used as a “last resort” before the carrier is fined. When it agrees to a cooperative safety plan, the FMCSA will monitor the motor carrier’s safety performance and resort to other penalties or enforcement actions if the carrier’s performance does not improve.
  • Notices of violation, which are formal written notices informing motor carriers that they are non-compliant and must take immediate corrective action or face a fine or other penalty. After receiving such a notice, the driver or motor carrier would have to provide evidence of corrective action or could try to challenge the identified safety violations.
  • Notices of claim, which are formal written notices that assess a monetary penalty (fine) for violations.
  • Settlement agreements, whose purpose is to contractually bind the motor carrier to take actions to improve safety. The motor carrier is given the opportunity to enter into the settlement agreement to avoid fines or suspension of operations. The settlement agreement identifies the consequences to the motor carrier if it does not take the agreed-upon action and return to compliance. The agreement would allow the carrier to avoid significant penalties by committing to major safety improvements, for example, with the understanding that failure to comply with the terms of the settlement agreement would result in the immediate imposition of the maximum penalty that would otherwise have been levied.
  • Out-of-service orders that instruct a carrier or driver to stop all CMV operations immediately. These are generally issued only after a comprehensive audit or when an imminent hazard is identified.

Note also that state licensing agencies have tools at their disposal to remove driving privileges from individual drivers who have been convicted of certain violations. Refer to Commercial drivers' licenses and Driver qualifications.

Compliance reviews

  • The FMCSA conducts CRs to assess carriers’ safety management controls.

A compliance review is an in-depth examination of a motor carrier’s operations to determine whether the carrier meets the Federal Motor Carrier Safety Administration’s (FMCSA’s) safety fitness standard as described in 385.5. Those that meet the standard are granted a “satisfactory” safety rating. Safety ratings are only issued after a compliance review, not after other types of enforcement actions.

To meet the safety fitness standard, a motor carrier must demonstrate it has adequate “safety management controls” in place, which function effectively to ensure acceptable compliance with the Federal Motor Carrier Safety Regulations. Safety management controls are the systems, policies, programs, practices, and procedures used by a motor carrier to ensure compliance with applicable safety and hazardous materials regulations, which ensure the safe movement of products and passengers through the transportation system, and to reduce the risk of highway accidents and hazardous materials incidents resulting in fatalities, injuries, and property damage. (385.3) The Federal Motor Carrier Safety Regulations (FMCSRs) do not generally specify which safety management controls a carrier must have in place for each compliance topic. Rather, the FMCSA leaves it up to each motor carrier to decide which controls are best to achieve the goal at hand.

See: Safety Management Cycle (below)

Compliance reviews are used:

  1. To rate unrated motor carriers,
  2. To conduct a follow-up investigation on motor carriers rated unsatisfactory or conditional as a result of a previous review,
  3. To investigate legitimate (non-frivolous) complaints,
  4. In response to a request by a motor carrier to reevaluate its safety rating, or
  5. To assess motor carriers deemed to be high risk.

Motor carriers are usually given at least 48 hours advance notice before a compliance review, not including weekends or federal holidays. In that 48-hour time frame, the carrier is expected to produce all documentation requested by the FMCSA. (390.29) Records that need to be produced include:

  • Proof of financial responsibility,
  • Driver qualification files (including all required forms),
  • Drug and alcohol testing records (if applicable),
  • Records of duty status (logs) and supporting documents,
  • Driver vehicle inspection reports and maintenance records,
  • Hazardous materials records (if applicable), and
  • An accident register and copies of all required accident reports.

Auditors will also review roadside inspection results and other data already accessible to the FMCSA.

The compliance review and safety rating process is governed under Part 385. Carriers that are not domiciled in North America but that intend to operate in the United States should refer to Part 385, Subparts H and I.

Safety ratings

  • Motor carriers can receive either a satisfactory, conditional, or unsatisfactory safety rating after a compliance review.

A safety rating is an evaluation assigned to an interstate motor carrier after a compliance review. The ratings are made public and can have wide-ranging effects on a carrier’s ability to conduct business.

The safety rating a motor carrier receives from the Federal Motor Carrier Safety Administration (FMCSA) affects everything from its ability to continue operation (i.e., it could result in an out-of-service order) to insurance rates to attracting customers and quality drivers to how it might fare in a lawsuit based on its “reputation.” Because so much hinges on a positive outcome following an investigation, it is important to have a clear understanding how the agency arrives at a rating.

The three possible ratings are:

  • Satisfactory — The carrier has adequate safety management controls to meet the safety fitness standards in 385.5.
  • Conditional — The carrier does not have adequate safety management controls in place, which could lead to serious safety violations.
  • Unsatisfactory — The carrier does not have adequate safety management controls in place and has committed serious safety violations.

In general, carriers rated “unsatisfactory” are prohibited from operating commercial motor vehicles. These carriers are issued an out-of-service order that becomes final on the 61st day after the rating is assigned, although that may be extended by up to 60 days for carriers making an effort to comply. For carriers hauling hazmat or passengers, the out-of-service order becomes final on the 46th day after the carrier is rated.

Acute and critical regulations

  • Compliance with acute and critical regulations affects the outcome of a compliance review.

In part, carriers are evaluated and safety ratings assigned based on compliance or noncompliance with a series of “acute” and “critical” regulations. Other factors include vehicle and driver out-of-service rates and accident history.

  • Acute regulations are those where noncompliance is so severe that immediate corrective actions by the motor carrier are required. For example, a violation of 383.37(b) by allowing or requiring an employee to drive with more than one commercial driver’s license is an acute violation. Such a violation is usually discovered through examination of the driver’s qualification file, reflecting that the carrier had knowledge of the violation. If the motor carrier did not have such knowledge or could not reasonably be expected to have such knowledge, then a violation would not be cited.
  • Critical regulations are those where noncompliance relates to management and/or operational controls, and violations indicate a breakdown in those controls. For example, the basic hours-of-service limits in 395.3 and 395.5 are critical regulations.

The list of acute and critical regulations can be found at the end of this explanation.

Points are assigned when the auditor finds noncompliance with acute regulations or patterns of noncompliance with critical regulations. A pattern is more than one violation; when several documents are reviewed for compliance with a particular regulation, a pattern is found when 10 percent of the documents show a violation.

The six factors of a compliance review

  • Compliance reviews are based on six factors.
  • The points assessed against these factors will result in a safety rating of either satisfactory, conditional, or unsatisfactory.

The regulations are categorized into five “factors,” along with a sixth factor addressing accidents:

Each time the auditor finds a violation of an acute regulation or a pattern of noncompliance with a critical regulation, one point will be assessed against the appropriate factor. However, each pattern of noncompliance with a critical hours-of-service regulation under Part 395 will be assessed two points. These points then translate into a rating for each factor, as follows:

  • Zero points = Satisfactory
  • One point = Conditional
  • Two or more points = Unsatisfactory

Vehicle factor

A special scoring process is used for Factor 4, the vehicle factor. When a carrier has had at least 3 vehicle inspections in the 12 months before the audit, and/or if such inspections are performed during the audit, the vehicle factor will be evaluated based on the carrier’s Out-of-Service (OOS) rate as well as compliance with acute and critical regulations. The OOS rate will affect the vehicle factor as follows:

If the carrier’s vehicle OOS rate is:Then the initial Factor 4 rating will be:But if acute/critical violations under Part 396 are found during the audit, the Factor 4 rating could be lowered to:
34 percent or greaterconditionalunsatisfactory.
less than 34 percentsatisfactoryconditional.

Scoring the accident factor

Factor 6, Accident, is not based on regulatory compliance but rather the carrier’s recordable accident rate during the past 12 months, when the carrier had at least two such accidents in that time.

A recordable accident, as defined in 390.5, is an accident involving a commercial motor vehicle operating on a public roadway that results in:

  • A fatality,
  • Bodily injury requiring immediate medical treatment away from the scene of the accident, or
  • One or more motor vehicles incurring disabling damage as a result of the accident requiring the vehicle(s) to be towed or otherwise transported away from the scene.

The carrier’s accident rate per million miles is compared with the national average rate from the years 1994–1996:

  • 0.747 for all carriers, or
  • 0.839 for carriers operating entirely within a 100-air-mile radius (a higher rate is used for these short-haul or “urban” operators because they typically have more exposure to risk).

Carriers are expected to keep their accident rates below twice these national averages. Therefore, carriers will receive an unsatisfactory rating on Factor 6 if their accident rate is greater than:

  • 1.7 for carriers operating entirely within a radius of 100 air miles, or
  • 1.5 for all other carriers.

What about accidents that were not preventable?

ALL recordable accidents will be used in the initial rating process. However, the carrier can contest that process by presenting compelling evidence that the recordable rate is not a fair means of evaluating its accident factor. The FMSCA will then consider whether the carrier’s accidents were preventable or not. Preventability is judged according to this standard:

"If a driver, who exercises normal judgment and foresight could have foreseen the possibility of the accident that in fact occurred, and avoided it by taking steps within his/her control which would not have risked causing another kind of mishap, the accident was preventable."

Calculating the overall rating

  • Following an audit, carriers will receive a safety rating and a list of problems to correct.

The carrier’s overall safety rating is based on the ratings in each individual factor, and the Federal Motor Carrier Safety Administration (FMCSA) uses a computerized rating formula to assess the audit results and assign a safety rating.

Motor Carrier Safety Rating Table

FACTOR RATINGS
OVERALL SAFETY RATING
Number of unsatisfactory factorsNumber of conditional factors
zerotwo or fewerSatisfactory
zeromore than twoConditional
onetwo or fewerConditional
onemore than twoUnsatisfactory
two or morezero or moreUnsatisfactory

The proposed safety rating

Within 30 days after a compliance review, the carrier will receive a letter from FMCSA headquarters containing the proposed safety rating and a list of compliance problems that need correcting, if any. The rating is finalized as follows:

RatingDetails
SATISFACTORYThe rating is final and takes effect on the date of the notice.
CONDITIONALThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If the rating is an upgrade from an unsatisfactory rating, it becomes final immediately.
UNSATISFACTORYThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If necessary safety improvements are not made within that time frame, then the carrier will be deemed “unfit” to continue operating in interstate commerce and will lose its operating authority. The 60-day deadline may be extended if the carrier is making good faith efforts to comply. (385.13)

Upgrading or contesting a safety rating

  • In response to a safety rating, carriers may contest the given rating by requesting either an administrative review or a rating change.

Under 385.15 and 385.17, motor carriers have the right to petition for a review of their ratings if there are factual or procedural disputes, and to request another review after corrective actions have been taken:

  • Administrative reviews — Requests for an administrative review must be made within 90 days of the date of the proposed or final safety rating, or within 90 days after denial of a request for a change in rating. If the proposed rating is “unsatisfactory,” the request should be made within 15 days or the carrier risks being placed out of service before the Federal Motor Carrier Safety Administration (FMCSA) has time to complete its review. (385.15)
  • Requests for rating change — A motor carrier that has taken action to correct the deficiencies that resulted in a proposed or final rating of “conditional” or “unsatisfactory” may request a rating change at any time. The request must be based on evidence that the carrier has taken corrective actions and that its operations currently meet the safety standards. (385.17)

Auditing of intermodal equipment providers

The FMCSA does not assign safety ratings to intermodal equipment providers. Rather, the agency performs “roadability reviews” to verify compliance with Parts 390, 393, and 396. After such a review, the FMCSA may cite the intermodal equipment provider for violations, impose civil penalties, forbid the use of particular pieces of equipment, or order the provider to stop tendering any equipment to motor carriers.

New-entrant audits

  • Once a new motor carrier has been in operation long enough, they will be audited as a new entrant.
  • This type of audit doesn’t result in a safety rating but will assess the need for corrective actions.

New motor carriers are subject to a “new-entrant safety audit” during the first 18 months of business. The audit itself usually occurs after the carrier has been in business for at least 3 months, but no more than 12 months, with a final report issued within 18 months.

The purpose of this pass/fail audit is to provide educational and technical assistance to the carrier and to gather enough data to assess whether the carrier has an adequate safety management program. Those who fail the audit are required to take corrective actions and prove compliance before being granted permanent registration as a motor carrier. The audit does NOT result in a safety rating.

The audit will be conducted once the carrier has been in operation long enough (generally at least three months) to have enough records on hand to allow the Federal Motor Carrier Safety Administration (FMCSA) to evaluate the carrier’s safety management controls. The audit can be expedited if serious violations are discovered.

All records and documents required for the safety audit must be made available for inspection upon request by the FMCSA. The areas for review include, but are not limited to, driver qualification, hours of service, vehicle maintenance, the accident register, and drug and alcohol testing.

For details on how carriers are assessed during the audit, refer to Part 385, Appendix A.

Sixteen regulations have been identified as essential elements of basic safety management controls necessary to operate in interstate commerce. If a motor carrier has not complied with any one of these regulations, the carrier will fail the new-entrant audit and will receive notice that its U.S. Department of Transportation (DOT) new-entrant registration will be revoked. Violations that will result in automatic failure of the audit are:

  1. Not implementing a drug and/or alcohol testing program. (382.115(a)-(b))
  2. Using a driver known to have an alcohol content of 0.04 or greater to perform a safety-sensitive function. (382.201)
  3. Using a driver who has refused to submit to an alcohol or drug test required under Part 382. (382.211)
  4. Using a driver known to have tested positive for a controlled substance. (382.215)
  5. Failing to implement a random drug and/or alcohol testing program. (382.305)
  6. Using a driver who does not possess a commercial driver’s license (CDL) when required. (383.3(a)/383.23(a))
  7. Using an employee with a CDL which is suspended, revoked, or canceled by a state. (383.37(a))
  8. Using a disqualified CDL driver. (383.51(a))
  9. Not having proper financial responsibility coverage. (387.7(a))
  10. Not having proper financial responsibility coverage for a passenger-carrying vehicle. (387.31(a))
  11. Using a disqualified driver (CDL or non-CDL). (391.15(a))
  12. Using a physically unqualified driver. (391.11(b)(4))
  13. Failing to require a driver to make a record of duty status. (395.8(a))
  14. Using a CMV declared “out of service” or using it before the repairs are made. (396.9(c)(2))
  15. Failing to correct out-of-service defects listed on daily vehicle inspection reports. (396.11(a)(3))
  16. Using a CMV that was not periodically inspected. (396.17(a))

When the audit is complete, the auditor will review the findings with the company. If the company fails the audit, it typically will be given 60 days to correct the problems. This period is reduced to 45 days for carriers that transport passengers or hazardous materials in quantities requiring placarding.

More details about new-entrant audits can be found in Part 385, Subparts D and H.

Safety ratings

  • Motor carriers can receive either a satisfactory, conditional, or unsatisfactory safety rating after a compliance review.

A safety rating is an evaluation assigned to an interstate motor carrier after a compliance review. The ratings are made public and can have wide-ranging effects on a carrier’s ability to conduct business.

The safety rating a motor carrier receives from the Federal Motor Carrier Safety Administration (FMCSA) affects everything from its ability to continue operation (i.e., it could result in an out-of-service order) to insurance rates to attracting customers and quality drivers to how it might fare in a lawsuit based on its “reputation.” Because so much hinges on a positive outcome following an investigation, it is important to have a clear understanding how the agency arrives at a rating.

The three possible ratings are:

  • Satisfactory — The carrier has adequate safety management controls to meet the safety fitness standards in 385.5.
  • Conditional — The carrier does not have adequate safety management controls in place, which could lead to serious safety violations.
  • Unsatisfactory — The carrier does not have adequate safety management controls in place and has committed serious safety violations.

In general, carriers rated “unsatisfactory” are prohibited from operating commercial motor vehicles. These carriers are issued an out-of-service order that becomes final on the 61st day after the rating is assigned, although that may be extended by up to 60 days for carriers making an effort to comply. For carriers hauling hazmat or passengers, the out-of-service order becomes final on the 46th day after the carrier is rated.

Acute and critical regulations

  • Compliance with acute and critical regulations affects the outcome of a compliance review.

In part, carriers are evaluated and safety ratings assigned based on compliance or noncompliance with a series of “acute” and “critical” regulations. Other factors include vehicle and driver out-of-service rates and accident history.

  • Acute regulations are those where noncompliance is so severe that immediate corrective actions by the motor carrier are required. For example, a violation of 383.37(b) by allowing or requiring an employee to drive with more than one commercial driver’s license is an acute violation. Such a violation is usually discovered through examination of the driver’s qualification file, reflecting that the carrier had knowledge of the violation. If the motor carrier did not have such knowledge or could not reasonably be expected to have such knowledge, then a violation would not be cited.
  • Critical regulations are those where noncompliance relates to management and/or operational controls, and violations indicate a breakdown in those controls. For example, the basic hours-of-service limits in 395.3 and 395.5 are critical regulations.

The list of acute and critical regulations can be found at the end of this explanation.

Points are assigned when the auditor finds noncompliance with acute regulations or patterns of noncompliance with critical regulations. A pattern is more than one violation; when several documents are reviewed for compliance with a particular regulation, a pattern is found when 10 percent of the documents show a violation.

The six factors of a compliance review

  • Compliance reviews are based on six factors.
  • The points assessed against these factors will result in a safety rating of either satisfactory, conditional, or unsatisfactory.

The regulations are categorized into five “factors,” along with a sixth factor addressing accidents:

Each time the auditor finds a violation of an acute regulation or a pattern of noncompliance with a critical regulation, one point will be assessed against the appropriate factor. However, each pattern of noncompliance with a critical hours-of-service regulation under Part 395 will be assessed two points. These points then translate into a rating for each factor, as follows:

  • Zero points = Satisfactory
  • One point = Conditional
  • Two or more points = Unsatisfactory

Vehicle factor

A special scoring process is used for Factor 4, the vehicle factor. When a carrier has had at least 3 vehicle inspections in the 12 months before the audit, and/or if such inspections are performed during the audit, the vehicle factor will be evaluated based on the carrier’s Out-of-Service (OOS) rate as well as compliance with acute and critical regulations. The OOS rate will affect the vehicle factor as follows:

If the carrier’s vehicle OOS rate is:Then the initial Factor 4 rating will be:But if acute/critical violations under Part 396 are found during the audit, the Factor 4 rating could be lowered to:
34 percent or greaterconditionalunsatisfactory.
less than 34 percentsatisfactoryconditional.

Scoring the accident factor

Factor 6, Accident, is not based on regulatory compliance but rather the carrier’s recordable accident rate during the past 12 months, when the carrier had at least two such accidents in that time.

A recordable accident, as defined in 390.5, is an accident involving a commercial motor vehicle operating on a public roadway that results in:

  • A fatality,
  • Bodily injury requiring immediate medical treatment away from the scene of the accident, or
  • One or more motor vehicles incurring disabling damage as a result of the accident requiring the vehicle(s) to be towed or otherwise transported away from the scene.

The carrier’s accident rate per million miles is compared with the national average rate from the years 1994–1996:

  • 0.747 for all carriers, or
  • 0.839 for carriers operating entirely within a 100-air-mile radius (a higher rate is used for these short-haul or “urban” operators because they typically have more exposure to risk).

Carriers are expected to keep their accident rates below twice these national averages. Therefore, carriers will receive an unsatisfactory rating on Factor 6 if their accident rate is greater than:

  • 1.7 for carriers operating entirely within a radius of 100 air miles, or
  • 1.5 for all other carriers.

What about accidents that were not preventable?

ALL recordable accidents will be used in the initial rating process. However, the carrier can contest that process by presenting compelling evidence that the recordable rate is not a fair means of evaluating its accident factor. The FMSCA will then consider whether the carrier’s accidents were preventable or not. Preventability is judged according to this standard:

"If a driver, who exercises normal judgment and foresight could have foreseen the possibility of the accident that in fact occurred, and avoided it by taking steps within his/her control which would not have risked causing another kind of mishap, the accident was preventable."

Calculating the overall rating

  • Following an audit, carriers will receive a safety rating and a list of problems to correct.

The carrier’s overall safety rating is based on the ratings in each individual factor, and the Federal Motor Carrier Safety Administration (FMCSA) uses a computerized rating formula to assess the audit results and assign a safety rating.

Motor Carrier Safety Rating Table

FACTOR RATINGS
OVERALL SAFETY RATING
Number of unsatisfactory factorsNumber of conditional factors
zerotwo or fewerSatisfactory
zeromore than twoConditional
onetwo or fewerConditional
onemore than twoUnsatisfactory
two or morezero or moreUnsatisfactory

The proposed safety rating

Within 30 days after a compliance review, the carrier will receive a letter from FMCSA headquarters containing the proposed safety rating and a list of compliance problems that need correcting, if any. The rating is finalized as follows:

RatingDetails
SATISFACTORYThe rating is final and takes effect on the date of the notice.
CONDITIONALThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If the rating is an upgrade from an unsatisfactory rating, it becomes final immediately.
UNSATISFACTORYThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If necessary safety improvements are not made within that time frame, then the carrier will be deemed “unfit” to continue operating in interstate commerce and will lose its operating authority. The 60-day deadline may be extended if the carrier is making good faith efforts to comply. (385.13)

Upgrading or contesting a safety rating

  • In response to a safety rating, carriers may contest the given rating by requesting either an administrative review or a rating change.

Under 385.15 and 385.17, motor carriers have the right to petition for a review of their ratings if there are factual or procedural disputes, and to request another review after corrective actions have been taken:

  • Administrative reviews — Requests for an administrative review must be made within 90 days of the date of the proposed or final safety rating, or within 90 days after denial of a request for a change in rating. If the proposed rating is “unsatisfactory,” the request should be made within 15 days or the carrier risks being placed out of service before the Federal Motor Carrier Safety Administration (FMCSA) has time to complete its review. (385.15)
  • Requests for rating change — A motor carrier that has taken action to correct the deficiencies that resulted in a proposed or final rating of “conditional” or “unsatisfactory” may request a rating change at any time. The request must be based on evidence that the carrier has taken corrective actions and that its operations currently meet the safety standards. (385.17)

Auditing of intermodal equipment providers

The FMCSA does not assign safety ratings to intermodal equipment providers. Rather, the agency performs “roadability reviews” to verify compliance with Parts 390, 393, and 396. After such a review, the FMCSA may cite the intermodal equipment provider for violations, impose civil penalties, forbid the use of particular pieces of equipment, or order the provider to stop tendering any equipment to motor carriers.

Acute and critical regulations

  • Compliance with acute and critical regulations affects the outcome of a compliance review.

In part, carriers are evaluated and safety ratings assigned based on compliance or noncompliance with a series of “acute” and “critical” regulations. Other factors include vehicle and driver out-of-service rates and accident history.

  • Acute regulations are those where noncompliance is so severe that immediate corrective actions by the motor carrier are required. For example, a violation of 383.37(b) by allowing or requiring an employee to drive with more than one commercial driver’s license is an acute violation. Such a violation is usually discovered through examination of the driver’s qualification file, reflecting that the carrier had knowledge of the violation. If the motor carrier did not have such knowledge or could not reasonably be expected to have such knowledge, then a violation would not be cited.
  • Critical regulations are those where noncompliance relates to management and/or operational controls, and violations indicate a breakdown in those controls. For example, the basic hours-of-service limits in 395.3 and 395.5 are critical regulations.

The list of acute and critical regulations can be found at the end of this explanation.

Points are assigned when the auditor finds noncompliance with acute regulations or patterns of noncompliance with critical regulations. A pattern is more than one violation; when several documents are reviewed for compliance with a particular regulation, a pattern is found when 10 percent of the documents show a violation.

The six factors of a compliance review

  • Compliance reviews are based on six factors.
  • The points assessed against these factors will result in a safety rating of either satisfactory, conditional, or unsatisfactory.

The regulations are categorized into five “factors,” along with a sixth factor addressing accidents:

Each time the auditor finds a violation of an acute regulation or a pattern of noncompliance with a critical regulation, one point will be assessed against the appropriate factor. However, each pattern of noncompliance with a critical hours-of-service regulation under Part 395 will be assessed two points. These points then translate into a rating for each factor, as follows:

  • Zero points = Satisfactory
  • One point = Conditional
  • Two or more points = Unsatisfactory

Vehicle factor

A special scoring process is used for Factor 4, the vehicle factor. When a carrier has had at least 3 vehicle inspections in the 12 months before the audit, and/or if such inspections are performed during the audit, the vehicle factor will be evaluated based on the carrier’s Out-of-Service (OOS) rate as well as compliance with acute and critical regulations. The OOS rate will affect the vehicle factor as follows:

If the carrier’s vehicle OOS rate is:Then the initial Factor 4 rating will be:But if acute/critical violations under Part 396 are found during the audit, the Factor 4 rating could be lowered to:
34 percent or greaterconditionalunsatisfactory.
less than 34 percentsatisfactoryconditional.

Scoring the accident factor

Factor 6, Accident, is not based on regulatory compliance but rather the carrier’s recordable accident rate during the past 12 months, when the carrier had at least two such accidents in that time.

A recordable accident, as defined in 390.5, is an accident involving a commercial motor vehicle operating on a public roadway that results in:

  • A fatality,
  • Bodily injury requiring immediate medical treatment away from the scene of the accident, or
  • One or more motor vehicles incurring disabling damage as a result of the accident requiring the vehicle(s) to be towed or otherwise transported away from the scene.

The carrier’s accident rate per million miles is compared with the national average rate from the years 1994–1996:

  • 0.747 for all carriers, or
  • 0.839 for carriers operating entirely within a 100-air-mile radius (a higher rate is used for these short-haul or “urban” operators because they typically have more exposure to risk).

Carriers are expected to keep their accident rates below twice these national averages. Therefore, carriers will receive an unsatisfactory rating on Factor 6 if their accident rate is greater than:

  • 1.7 for carriers operating entirely within a radius of 100 air miles, or
  • 1.5 for all other carriers.

What about accidents that were not preventable?

ALL recordable accidents will be used in the initial rating process. However, the carrier can contest that process by presenting compelling evidence that the recordable rate is not a fair means of evaluating its accident factor. The FMSCA will then consider whether the carrier’s accidents were preventable or not. Preventability is judged according to this standard:

"If a driver, who exercises normal judgment and foresight could have foreseen the possibility of the accident that in fact occurred, and avoided it by taking steps within his/her control which would not have risked causing another kind of mishap, the accident was preventable."

Calculating the overall rating

  • Following an audit, carriers will receive a safety rating and a list of problems to correct.

The carrier’s overall safety rating is based on the ratings in each individual factor, and the Federal Motor Carrier Safety Administration (FMCSA) uses a computerized rating formula to assess the audit results and assign a safety rating.

Motor Carrier Safety Rating Table

FACTOR RATINGS
OVERALL SAFETY RATING
Number of unsatisfactory factorsNumber of conditional factors
zerotwo or fewerSatisfactory
zeromore than twoConditional
onetwo or fewerConditional
onemore than twoUnsatisfactory
two or morezero or moreUnsatisfactory

The proposed safety rating

Within 30 days after a compliance review, the carrier will receive a letter from FMCSA headquarters containing the proposed safety rating and a list of compliance problems that need correcting, if any. The rating is finalized as follows:

RatingDetails
SATISFACTORYThe rating is final and takes effect on the date of the notice.
CONDITIONALThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If the rating is an upgrade from an unsatisfactory rating, it becomes final immediately.
UNSATISFACTORYThe rating becomes final 60 days after the date of the notice, or 45 days for hazmat or passenger carriers. If necessary safety improvements are not made within that time frame, then the carrier will be deemed “unfit” to continue operating in interstate commerce and will lose its operating authority. The 60-day deadline may be extended if the carrier is making good faith efforts to comply. (385.13)

Upgrading or contesting a safety rating

  • In response to a safety rating, carriers may contest the given rating by requesting either an administrative review or a rating change.

Under 385.15 and 385.17, motor carriers have the right to petition for a review of their ratings if there are factual or procedural disputes, and to request another review after corrective actions have been taken:

  • Administrative reviews — Requests for an administrative review must be made within 90 days of the date of the proposed or final safety rating, or within 90 days after denial of a request for a change in rating. If the proposed rating is “unsatisfactory,” the request should be made within 15 days or the carrier risks being placed out of service before the Federal Motor Carrier Safety Administration (FMCSA) has time to complete its review. (385.15)
  • Requests for rating change — A motor carrier that has taken action to correct the deficiencies that resulted in a proposed or final rating of “conditional” or “unsatisfactory” may request a rating change at any time. The request must be based on evidence that the carrier has taken corrective actions and that its operations currently meet the safety standards. (385.17)

Auditing of intermodal equipment providers

The FMCSA does not assign safety ratings to intermodal equipment providers. Rather, the agency performs “roadability reviews” to verify compliance with Parts 390, 393, and 396. After such a review, the FMCSA may cite the intermodal equipment provider for violations, impose civil penalties, forbid the use of particular pieces of equipment, or order the provider to stop tendering any equipment to motor carriers.

New-entrant audits

  • Once a new motor carrier has been in operation long enough, they will be audited as a new entrant.
  • This type of audit doesn’t result in a safety rating but will assess the need for corrective actions.

New motor carriers are subject to a “new-entrant safety audit” during the first 18 months of business. The audit itself usually occurs after the carrier has been in business for at least 3 months, but no more than 12 months, with a final report issued within 18 months.

The purpose of this pass/fail audit is to provide educational and technical assistance to the carrier and to gather enough data to assess whether the carrier has an adequate safety management program. Those who fail the audit are required to take corrective actions and prove compliance before being granted permanent registration as a motor carrier. The audit does NOT result in a safety rating.

The audit will be conducted once the carrier has been in operation long enough (generally at least three months) to have enough records on hand to allow the Federal Motor Carrier Safety Administration (FMCSA) to evaluate the carrier’s safety management controls. The audit can be expedited if serious violations are discovered.

All records and documents required for the safety audit must be made available for inspection upon request by the FMCSA. The areas for review include, but are not limited to, driver qualification, hours of service, vehicle maintenance, the accident register, and drug and alcohol testing.

For details on how carriers are assessed during the audit, refer to Part 385, Appendix A.

Sixteen regulations have been identified as essential elements of basic safety management controls necessary to operate in interstate commerce. If a motor carrier has not complied with any one of these regulations, the carrier will fail the new-entrant audit and will receive notice that its U.S. Department of Transportation (DOT) new-entrant registration will be revoked. Violations that will result in automatic failure of the audit are:

  1. Not implementing a drug and/or alcohol testing program. (382.115(a)-(b))
  2. Using a driver known to have an alcohol content of 0.04 or greater to perform a safety-sensitive function. (382.201)
  3. Using a driver who has refused to submit to an alcohol or drug test required under Part 382. (382.211)
  4. Using a driver known to have tested positive for a controlled substance. (382.215)
  5. Failing to implement a random drug and/or alcohol testing program. (382.305)
  6. Using a driver who does not possess a commercial driver’s license (CDL) when required. (383.3(a)/383.23(a))
  7. Using an employee with a CDL which is suspended, revoked, or canceled by a state. (383.37(a))
  8. Using a disqualified CDL driver. (383.51(a))
  9. Not having proper financial responsibility coverage. (387.7(a))
  10. Not having proper financial responsibility coverage for a passenger-carrying vehicle. (387.31(a))
  11. Using a disqualified driver (CDL or non-CDL). (391.15(a))
  12. Using a physically unqualified driver. (391.11(b)(4))
  13. Failing to require a driver to make a record of duty status. (395.8(a))
  14. Using a CMV declared “out of service” or using it before the repairs are made. (396.9(c)(2))
  15. Failing to correct out-of-service defects listed on daily vehicle inspection reports. (396.11(a)(3))
  16. Using a CMV that was not periodically inspected. (396.17(a))

When the audit is complete, the auditor will review the findings with the company. If the company fails the audit, it typically will be given 60 days to correct the problems. This period is reduced to 45 days for carriers that transport passengers or hazardous materials in quantities requiring placarding.

More details about new-entrant audits can be found in Part 385, Subparts D and H.

Safety Management Cycle

  • The Safety Management Cycle is a six-component process improvement tool used by the FMCSA to analyze a carrier’s safety and compliance program and help address noncompliance issues.
  • The Cycle is made up of six SMPs that signify key components of a carrier’s safety plan.
  • The six SMPs are policies and procedures, roles and responsibilities, qualification and hiring, training and communication, monitoring and tracking, and meaningful action.

The Federal Motor Carrier Safety Administration (FMCSA) describes the Safety Management Cycle as the “signature tool” of its investigative process. Fortunately, this tool is publicly available for use by motor carriers looking to address their safety and compliance issues and improve their Compliance, Safety, Accountability (CSA) scores.

Like other process improvement tools, the Safety Management Cycle is applied as a step-by-step process to determine why safety and compliance issues are occurring. The tool also provides a framework for brainstorming remedies, choosing solutions, and designing and implementing plans to improve a carrier’s safety operations.

The Safety Management Cycle can be broken down into six components, known as “Safety Management Processes” (SMPs), as shown below. The six arrows identify key components of a carrier’s safety program where problems may arise. All six “spokes” in the diagram must be working effectively in order for a motor carrier’s safety efforts to succeed.

The SMPs are:

  • Policies and procedures define the “what” and “how” of a motor carrier’s operations. Policies establish the guidelines for how motor carriers and their employees behave in a given situation; procedures explain how to accomplish these policies. The other five SMPs focus on how to implement these policies and procedures.
  • Roles and responsibilities define what each employee should do to implement policies and procedures.
  • Qualifications and hiring covers finding and qualifying people for the defined roles and responsibilities.
  • Training and communication of a motor carrier’s policies, procedures, roles, and responsibilities, so that every employee understands the expectations and has the skills and knowledge to perform their assigned functions.
  • Monitoring and tracking of employee performance, which enables companies to be aware of their employees’ safety performance and compliance with its policies and procedures and how they execute their roles and responsibilities. Monitoring involves looking at the performance of the operation, while tracking is assessing the data collected, leading to meaningful action.
  • Meaningful action gives motor carriers the tools to correct or improve employee behavior, including, for example, refresher training and positive reinforcement such as rewards or bonuses, in order to improve the motor carrier’s overall safety performance.

When an FMCSA investigator looks at a motor carrier’s compliance efforts, the investigator will use the Safety Management Cycle to locate and point out specific areas of noncompliance. When problems are found during an audit, the auditor will want to see the company’s policies and procedures, the assigned roles and responsibilities, and the company’s hiring, qualification, and training practices. The auditor will then want to know how the carrier is tracking and monitoring compliance and will check if there has been meaningful action taken to address the problems.

The FMCSA traditionally leaves it up to the motor carrier to decide the details on implementing safety management controls that best fit its operations. The FMCSA only verifies that the company has some type of controls in place and the carrier is operating safely and compliantly.

If the company were not operating compliantly and safely, as proven by roadside inspection data or the results of an investigation, the FMCSA would likely decide that the company does not have adequate safety management controls in place.

The Safety Management Cycle uses this abstract idea of having controls in place and offers motor carriers — and enforcement personnel — a more concrete, step-by-step guide for implementing a solution. When a carrier performs a self-audit or undergoes an investigation of its records by the FMCSA, the root cause of a safety or compliance problem will fall within one or more of the six SMPs and can be addressed.

Policies and procedures

  • Policies (the “what”) and procedures (the “why” and “how”) go together by setting guidelines for employees to follow and naming methods for achieving them.

Effective safety management begins with policies and procedures. Policies provide a simple explanation of what a motor carrier will and will not allow. Having policies that clearly state what is expected allows everyone, including supervisory and management personnel, to see the company’s safety and compliance vision and goals. The policies should be simple, straightforward, and measurable, with no room for interpretation. Policies also need to cover the consequences of failure to follow the policies.

If policies are the “what” and “why,” procedures are the “how to.” They explain how to accomplish policies and establish a means to verify that employees and management are complying with the policies.

For example, an hours-of-service policy might require all commercial drivers (and dispatchers and supervisors) to comply with federal hours-of-service rules and explain the consequences of failing to do so. Corresponding procedures may explain which log form to use, how and when to submit logs, whether to use the 60- or 70-hour limit, how logs are to be audited, etc.

Some carriers choose not to have procedures but instead use their policies to dictate everything, and that is acceptable. For any policy to be truly effective, it must be distributed and understood by everyone in the company (see training and communication below), and it must not conflict with any other policies that are in place. As an example of conflicting policies, an hours-of-service policy may require strict adherence to the rules while another policy may require drivers to always deliver on time, no matter what. This would make it impossible for a driver to comply with both policies at the same time.

Policies and procedures do not need to match the regulations; in fact, they can exceed them. Doing so may be advantageous, but companies should make sure that a more stringent policy does not conflict with another area of regulation or law. For example, a hiring policy that exceeds minimum Department of Transportation requirements may violate fair hiring practices under employment laws.

Roles and responsibilities

  • All employees must know their role and responsibility for any given policy in order for it to govern the company effectively.

For policies and procedures to be effective, roles and responsibilities must be assigned. A safety program without assigned accountability leads to inefficiencies and noncompliance. In short, every employee — from the drivers to the managers — must know what their roles and responsibilities are within the safety program. Here are a few examples:

  • Managers and supervisors need to be held responsible for overseeing the development of policies and procedures.
  • An employee needs to be assigned the responsibility of making sure that the policies are kept current and employees are trained on their content.
  • An employee needs to be responsible for verifying that the policies are being followed.

A company should not create a “paper tiger” policy or procedure that no employee pays attention to after it’s written. It won’t take a Federal Motor Carrier Safety Administration investigator long to figure out if a carrier’s policies and procedures hold people accountable for their assigned roles and responsibilities.

Qualification and hiring

  • Safety management begins with recruiting and hiring qualified employees.

Qualification and hiring practices get the right person in the right position. Achieving that goal can involve creating job descriptions, structuring the hiring process, and developing hiring standards.

Qualification and hiring processes are especially critical when it comes to drivers. Hiring a bad driver can have a company-wide impact, on everything from safety to liability to profitability. However, effective qualification and hiring practices are critical for all positions that impact safety.

When hiring a dispatcher, safety person, technician, yard jockey, etc., a company should have a formal job description so applicants (and recruiters) know exactly what they are being hired to do. The hiring process should be backed by a strong recruiting and screening system built around the job requirements, to ensure the carrier is getting the right person into the job.

Training and communication

  • Safety management continues with a comprehensive training program, from the first orientation to ongoing and refresher courses.

Once a motor carrier has the necessary policies and procedures, has assigned roles and responsibilities, and has hired the right people, the next step is to examine the carrier’s training program. This includes initial, ongoing, and remedial or refresher training.

The initial training is often referred to as “orientation,” and it plays a critical role. It’s the company’s one chance to make a strong impression on its new hires regarding safety and how the vehicles are being operated. Rushing the orientation process tends to create the opposite impression — that all the carrier cares about is getting drivers turning miles as fast as possible.

Orientation must be followed with and reinforced by ongoing and refresher training. Communication of policies, procedures, roles, and responsibilities is critical if you want employees to be focused on compliance and safety. Training must be reinforced with ongoing communication for all safety-related positions in the company, from drivers to managers. Section 390. 3(e) requires that everyone involved in safety must know and apply the safety regulations (as they relate to the position), and it is the motor carrier’s responsibility to ensure this happens.

Monitoring and tracking

  • Closely monitoring a safety program can help a company spot trends and problem areas.
  • It will also reflect to the FMCSA that the carrier is aware of their compliance efforts.

Monitoring and tracking are used to determine where a carrier’s safety program stands, similar to the way the Federal Motor Carrier Safety Administration (FMCSA) monitors and tracks the industry through Compliance, Safety, Accountability (CSA). If it can be measured, it can be managed.

If a carrier is not monitoring their safety program’s performance, the FMCSA will likely assume the carrier cannot know how compliance efforts are working, much less where the problems are. For example, how can a company be aware of where its employees stand on hours-of-service compliance if their logs aren’t monitored (audited) or their compliance isn’t tracked?

Monitoring and tracking will enable companies to spot trends, catch problems, and take action to correct those problems. If everything is going well, then the company will know that the other parts of the Safety Management Cycle are working properly.

One way for a company to track compliance is through the CSA Safety Measurement System; another is the self-tracking of inspections, violations, and crashes and performing self-auditing. Or a carrier may want to use a third-party service to track its on-road and in-house performance, or use a combination of these approaches. One question you will need to address is, “What does the company want to track?”

These are some of the key safety-related metrics:

  • All incidents, no matter how minor;
  • Department of Transportation (DOT) recordable crashes;
  • All roadside inspections and violations;
  • Out-of-service violations;
  • Internal violations discovered during self-auditing, including log auditing; and
  • Injuries.

This data should be tracked company-wide, based on individual drivers, location, and supervisor. This way, if a problem begins surfacing, it is easy to see where the problem is and who is involved.

Meaningful action

  • Lastly, carriers must review their entire safety management process when determining how to act on detected problems.

The final step in the Safety Management Cycle is for a company to take meaningful action when monitoring and tracking have indicated a problem. Taking meaningful action should correct the problem at its roots.

The process of meaningful action begins with a review of the relevant policies and procedures that relate to the problem. Are they written properly? Are people following them? If not, was there a breakdown in training or communications, or perhaps in the hiring standards? Each of the other five Safety Management Processes should be examined and revised as needed. Common solutions may include:

  • Revising policies and procedures;
  • Reassigning responsibilities;
  • Improving the hiring and qualification standards for the positions involved;
  • Deciding that employees are not qualified for the position they are occupying, which may lead to replacement or retraining; and
  • Improving training and/or communications.

To see if “meaningful action” is having an impact, carriers need to continue monitoring and tracking. On the other hand, if the same problem is constantly surfacing but all other components of the Safety Management Cycle are in place and operating correctly, you may not be taking the actions necessary to address the problem.

Policies and procedures

  • Policies (the “what”) and procedures (the “why” and “how”) go together by setting guidelines for employees to follow and naming methods for achieving them.

Effective safety management begins with policies and procedures. Policies provide a simple explanation of what a motor carrier will and will not allow. Having policies that clearly state what is expected allows everyone, including supervisory and management personnel, to see the company’s safety and compliance vision and goals. The policies should be simple, straightforward, and measurable, with no room for interpretation. Policies also need to cover the consequences of failure to follow the policies.

If policies are the “what” and “why,” procedures are the “how to.” They explain how to accomplish policies and establish a means to verify that employees and management are complying with the policies.

For example, an hours-of-service policy might require all commercial drivers (and dispatchers and supervisors) to comply with federal hours-of-service rules and explain the consequences of failing to do so. Corresponding procedures may explain which log form to use, how and when to submit logs, whether to use the 60- or 70-hour limit, how logs are to be audited, etc.

Some carriers choose not to have procedures but instead use their policies to dictate everything, and that is acceptable. For any policy to be truly effective, it must be distributed and understood by everyone in the company (see training and communication below), and it must not conflict with any other policies that are in place. As an example of conflicting policies, an hours-of-service policy may require strict adherence to the rules while another policy may require drivers to always deliver on time, no matter what. This would make it impossible for a driver to comply with both policies at the same time.

Policies and procedures do not need to match the regulations; in fact, they can exceed them. Doing so may be advantageous, but companies should make sure that a more stringent policy does not conflict with another area of regulation or law. For example, a hiring policy that exceeds minimum Department of Transportation requirements may violate fair hiring practices under employment laws.

Roles and responsibilities

  • All employees must know their role and responsibility for any given policy in order for it to govern the company effectively.

For policies and procedures to be effective, roles and responsibilities must be assigned. A safety program without assigned accountability leads to inefficiencies and noncompliance. In short, every employee — from the drivers to the managers — must know what their roles and responsibilities are within the safety program. Here are a few examples:

  • Managers and supervisors need to be held responsible for overseeing the development of policies and procedures.
  • An employee needs to be assigned the responsibility of making sure that the policies are kept current and employees are trained on their content.
  • An employee needs to be responsible for verifying that the policies are being followed.

A company should not create a “paper tiger” policy or procedure that no employee pays attention to after it’s written. It won’t take a Federal Motor Carrier Safety Administration investigator long to figure out if a carrier’s policies and procedures hold people accountable for their assigned roles and responsibilities.

Qualification and hiring

  • Safety management begins with recruiting and hiring qualified employees.

Qualification and hiring practices get the right person in the right position. Achieving that goal can involve creating job descriptions, structuring the hiring process, and developing hiring standards.

Qualification and hiring processes are especially critical when it comes to drivers. Hiring a bad driver can have a company-wide impact, on everything from safety to liability to profitability. However, effective qualification and hiring practices are critical for all positions that impact safety.

When hiring a dispatcher, safety person, technician, yard jockey, etc., a company should have a formal job description so applicants (and recruiters) know exactly what they are being hired to do. The hiring process should be backed by a strong recruiting and screening system built around the job requirements, to ensure the carrier is getting the right person into the job.

Training and communication

  • Safety management continues with a comprehensive training program, from the first orientation to ongoing and refresher courses.

Once a motor carrier has the necessary policies and procedures, has assigned roles and responsibilities, and has hired the right people, the next step is to examine the carrier’s training program. This includes initial, ongoing, and remedial or refresher training.

The initial training is often referred to as “orientation,” and it plays a critical role. It’s the company’s one chance to make a strong impression on its new hires regarding safety and how the vehicles are being operated. Rushing the orientation process tends to create the opposite impression — that all the carrier cares about is getting drivers turning miles as fast as possible.

Orientation must be followed with and reinforced by ongoing and refresher training. Communication of policies, procedures, roles, and responsibilities is critical if you want employees to be focused on compliance and safety. Training must be reinforced with ongoing communication for all safety-related positions in the company, from drivers to managers. Section 390. 3(e) requires that everyone involved in safety must know and apply the safety regulations (as they relate to the position), and it is the motor carrier’s responsibility to ensure this happens.

Monitoring and tracking

  • Closely monitoring a safety program can help a company spot trends and problem areas.
  • It will also reflect to the FMCSA that the carrier is aware of their compliance efforts.

Monitoring and tracking are used to determine where a carrier’s safety program stands, similar to the way the Federal Motor Carrier Safety Administration (FMCSA) monitors and tracks the industry through Compliance, Safety, Accountability (CSA). If it can be measured, it can be managed.

If a carrier is not monitoring their safety program’s performance, the FMCSA will likely assume the carrier cannot know how compliance efforts are working, much less where the problems are. For example, how can a company be aware of where its employees stand on hours-of-service compliance if their logs aren’t monitored (audited) or their compliance isn’t tracked?

Monitoring and tracking will enable companies to spot trends, catch problems, and take action to correct those problems. If everything is going well, then the company will know that the other parts of the Safety Management Cycle are working properly.

One way for a company to track compliance is through the CSA Safety Measurement System; another is the self-tracking of inspections, violations, and crashes and performing self-auditing. Or a carrier may want to use a third-party service to track its on-road and in-house performance, or use a combination of these approaches. One question you will need to address is, “What does the company want to track?”

These are some of the key safety-related metrics:

  • All incidents, no matter how minor;
  • Department of Transportation (DOT) recordable crashes;
  • All roadside inspections and violations;
  • Out-of-service violations;
  • Internal violations discovered during self-auditing, including log auditing; and
  • Injuries.

This data should be tracked company-wide, based on individual drivers, location, and supervisor. This way, if a problem begins surfacing, it is easy to see where the problem is and who is involved.

Meaningful action

  • Lastly, carriers must review their entire safety management process when determining how to act on detected problems.

The final step in the Safety Management Cycle is for a company to take meaningful action when monitoring and tracking have indicated a problem. Taking meaningful action should correct the problem at its roots.

The process of meaningful action begins with a review of the relevant policies and procedures that relate to the problem. Are they written properly? Are people following them? If not, was there a breakdown in training or communications, or perhaps in the hiring standards? Each of the other five Safety Management Processes should be examined and revised as needed. Common solutions may include:

  • Revising policies and procedures;
  • Reassigning responsibilities;
  • Improving the hiring and qualification standards for the positions involved;
  • Deciding that employees are not qualified for the position they are occupying, which may lead to replacement or retraining; and
  • Improving training and/or communications.

To see if “meaningful action” is having an impact, carriers need to continue monitoring and tracking. On the other hand, if the same problem is constantly surfacing but all other components of the Safety Management Cycle are in place and operating correctly, you may not be taking the actions necessary to address the problem.

FMCSA administrative enforcement proceedings

  • A carrier, if found to be noncompliant, might be subject to an administrative judgment within the FMCSA such as a Notice of Violation or a Notice of Claim.

Like other federal agencies, the Federal Motor Carrier Safety Administration (FMCSA) has a process in place for administrative proceedings. These are non-judicial proceedings within the agency, used to:

  • Determine whether a motor carrier, intermodal equipment provider, driver, property broker, freight forwarder, or any other entity subject to the FMCSA’s jurisdiction has failed to comply with agency regulations or their underlying statutes; and
  • Issue an appropriate order to compel compliance with the statute or regulation, assess a civil penalty, or both, if such violations are found.

Administrative proceedings are regulated under Part 386. These regulations include important information for motor carriers to be aware of should they become subject to enforcement actions, particularly a Notice of Violation, a Notice of Claim, an out-of-service order, or other serious disciplinary actions. In addition, Part 386 governs the proceedings for resolving conflicts in the driver medical examination process under 391.47.

A Notice of Violation is a formal written notice alleging violations of the Federal Motor Carrier Safety Regulations (FMCSRs), Hazardous Materials Regulations (HMRs), or FMCSA commercial regulations (FMCCRs). A Notice of Violation is used when the FMCSA wants to give the recipient a chance to correct the violations, rather than simply issuing a fine.

A Notice of Claim is a formal written notice that the FMCSA is assessing a civil penalty (fine) for violations of the FMCSRs, HMRs, and/or FMCCRs.

In general, when a motor carrier or other entity receives notice that it is the subject of, or is otherwise involved in, an administrative proceeding, the notice will include instructions and deadlines concerning how the carrier may respond or otherwise be involved in the process (e.g., by paying a penalty, appearing for a hearing, correcting violations, contesting a penalty, etc.). (Part 386)

If a carrier becomes involved in an administrative proceeding, they should be aware of the deadlines. For example, after receiving a Notice of Claim, the carrier has 30 days to either pay the penalty, contest the alleged violations, or seek binding arbitration to dispute the amount of the penalty. Failing to meet that deadline could result in a default judgment and order to pay the full penalty amount.

Penalties and fines

  • Violations of the FMCSRs and HMRs can result in civil penalties and fines from the FMCSA.
  • The penalty amount is based on several factors such as the nature and gravity of the violation.

The Federal Motor Carrier Safety Administration (FMCSA) is authorized to levy fines and penalties against motor carriers, drivers, and other entities who violate the Federal Motor Carrier Safety Regulations (FMCSRs), Hazardous Materials Regulations (HMRs), or FMCSA commercial regulations. These are known as “civil” penalties and are regulated under Part 386 and its appendices.

A civil penalty is a monetary fine imposed by a government agency as compensation for violations. A civil penalty is not the same as a criminal punishment because it cannot carry jail time or other legal penalties.

Fines and penalties issued to drivers after roadside inspections do not fall under FMCSA jurisdiction. Such fines are levied based on state law and there is no uniform fine schedule across states.

How are civil penalties determined?

The regulations in Part 386 generally list the maximum civil penalties that may be levied for various violations, although in some cases they also contain a minimum amount as well. These amounts are established by Congress in the statutes that grant enforcement powers to the FMCSA.

The actual civil penalties that get assessed against a motor carrier, driver, or other entity may depend on a variety of factors, including:

  • The nature of the violations,
  • The gravity of the violations*,
  • The violator’s degree of culpability,
  • The violator’s history of prior offenses,
  • The effect on the violator’s ability to continue to do business, and
  • Other factors “as justice and public safety may require.”

*In the case of drivers who exceed the driving-time limit by more than three hours (called an “egregious” violation), the gravity will be deemed high enough to deserve maximum penalties.

In addition to these, certain civil penalties concerning household goods are also based on the degree of harm caused to a shipper and whether the shipper was adequately compensated before the civil penalty was assessed.

Note that “ability to pay” is not taken into account except in the case of violations of insurance requirements under Part 387.

What if a fine goes unpaid?

A commercial motor vehicle owner or operator who fails to pay a civil penalty in full within 90 days after the deadline specified in a final order from the FMCSA is prohibited from operating in interstate commerce starting on the 91st day. Similarly, a broker, freight forwarder, for-hire motor carrier, foreign motor carrier, or foreign motor private carrier that fails to meet that 90-day deadline will have its registration suspended. (386.83 and 386.84)

The following tables summarize the civil penalty amounts found in Part 386.

Civil penalties for Federal Motor Carrier Safety Regulations (FMCSRs)/ Hazardous Material Regulations (HMRs) violations

ViolationDescriptionCivil Penalty
RecordkeepingFailing to prepare or maintain a required record or preparing or maintaining a required record that is incomplete, inaccurate, or false.$1,496 for each day of violation, up to $14,960
Knowing falsification of recordsKnowingly falsifying, destroying, mutilating, or changing a required report or record; knowingly making a false or incomplete record about an operation or business fact or transaction; or knowingly making, preparing, or preserving a record in violation of a Department of Transportation regulation or order. $14,960
Non-recordkeepingViolating a non-recordkeeping requirement of Parts 382, 385, or 390-399$18,170 per violation
Non-recordkeeping violations by driversA driver violating a non-recordkeeping requirement of Parts 382, 385, or 390–399$4,543
Driving during alcohol out-of-service (OOS) orderA driver placed OOS for 24 hours for violating the alcohol prohibitions in 392.5(a) or (b) who drives during that time$3,740, up to $7,481
Commercial driver’s license (CDL) and Clearinghouse violationsAny person violating the Drug & Alcohol Clearinghouse rules in Part 382, Subpart G, or the CDL rules in Part 383, Subparts B, C, E, F, G, or H$7,481
Violations of OOS orders by CDL holdersA CDL holder convicted of violating an OOS order$3,740, up to $7,481
An employer of a CDL holder knowingly allowing, requiring, permitting, or authorizing the employee to operate a CMV while the CDL holder is subject to an OOS order$7,481, up to $37,400
Railroad-crossing violationsAn employer of a CDL holder knowingly allowing, requiring, permitting, or authorizing the employee to operate a CMV in violation of a federal, state, or local law or regulation pertaining to railroad-highway grade crossings$19,389
Financial responsibilityFailing to maintain the levels of financial responsibility required under Part 387$19,933 per day
Violation of Hazardous Materials Regulations (HMRs) by motor carriers, drivers, shippers, or other persons who transport hazardous materials or cause them to be transported on highways by commercial vehicle Violating rules related to the transport or shipment of hazardous materials$96,624 per violation per day
Knowingly violating rules related to hazardous materials training$582, up to $96,624, per violation
Knowingly violating rules related to the manufacture, fabrication, marking, maintenance, reconditioning, repair, or testing of a packaging or container that is represented, marked, certified, or sold as being qualified for use in the transport or shipment of hazardous materials$96,624 per violation
Violating applicable FMCSRs while transporting hazardous materials$96,624
Any of the above four HMR violations resulting in death, serious illness, severe injury to any person, or substantial destruction of property$225,455 additional per offense
Motor carrier operating with an Unsatisfactory safety ratingOperating a commercial motor vehicle (CMV) in interstate commerce after receiving a final unsatisfactory safety rating$32,208 per day
Operating a CMV designed or used to transport hazardous materials for which placarding is required, after receiving a final unsatisfactory safety rating$96,624 per offense per day, or $225,455 if the violation results in death, serious illness, severe injury, or substantial destruction of property
Copying of records and access to equipment, lands, and buildings Failing to allow the FMCSA or other authorized personnel to inspect and copy any record or inspect and examine equipment, lands, buildings, and other property$1,496 per offense per day, up to $14,960
Evasion of compliance Attempting to evade compliance with regulationsAt least $2,577 but not more than $6,441 for the first violation and at least $3,219 but not more than $9,652 for a subsequent violation
Recordkeeping under commercial regulationsFailing to prepare or retain a report or answer a question within 30 days, filing a false report, destroying, or changing a report, making a false or incomplete entry about a business-related fact, or preparing or preserving a record in violation of 49 U.S.C. 131-149 or related regulationsMinimum $1,496 per violation, up to $9,652 per violation
Civil penalties for notice/order violations

ViolationDescriptionCivil Penalty
Notices to abateFailing to stop violating the regulations in the time prescribed in the noticeReinstatement of any deferred assessment or payment of a penalty (or portion thereof)
SubpoenasFailing to respond to an FMCSA subpoena to appear and testify or produce recordsMinimum of $1,288, up to $12,882 per violation
Final ordersFailing to comply with an FMCSA final orderThe full penalty that was originally assessed
Out-of-service/suspension ordersDriving a CMV while subject to an OOS order (driver)$2,232 per violation
Requiring or allowing a driver to drive a CMV while subject to an OOS order (motor carrier)$22,324 per violation
Operating an out-of-service CMV or intermodal equipment before required repairs are made (driver) $2,232 per violation
Requiring or allowing a driver to drive an out-of-service CMV or intermodal equipment before required repairs are made (motor carrier) $22,324 per violation
Failing to return written certification of correction required by the OOS order $1,116 per violation
Knowingly falsifying written certification of correction as required by the OOS order $2,232 per violation, up to $22,324
Operating in violation of an order to cease all or part of the employer's CMV or intermodal equipment operations $32,208 per day
Conducting operations during a period of suspension for failure to pay penalties, or while registration is revoked or suspended $18,170 to $28,304 per day
Operating as a “reincarnated” carrier to avoid compliance under 386.73$28,304 per day
Civil penalties for registration/authority violations

ViolationDescription Civil Penalty
RegistrationOperating as a carrier for the transportation of property without complying with registration requirements. Minimum $12,882 per violation
Operating as a broker without complying with registration or financial security requirements. $12,882 per violation
Operating as a carrier of passengers without complying with registration requirements Minimum $21,208 per violation
Violating 49 U.S.C. 131-149, a related regulation, or a condition of registration $971 per violation, unless another penalty is provided in 49 U.S.C. 149
Hazardous wastesOperating as a carrier or broker for the transportation of hazardous wastes in violation of registration requirements Minimum $25,767 per violation, up to $51,533 per violation
Foreign carrier registration/authorityOperating as a foreign carrier or foreign private carrier of property without complying with registration requirements Minimum $12,882 per violation
Operating as a foreign carrier or foreign private carrier without authority and beyond the commercial zones $17,717 for an intentional violation, $44,294 for a pattern of intentional violations
Civil penalties for household goods violations

Violation DescriptionCivil Penalty
Shipper protectionAs a motor carrier or freight forwarder of household goods (or receiver or trustee), failing to comply with any regulation relating to the protection of individual shippers Minimum $1,937 per violation
Weight falsificationFalsifying (or authorizing the falsification of) documents used in the transportation of household goods by carrier or freight forwarder to evidence the weight of a shipmentMinimum $3,879 for the first violation, $9,695 for each subsequent violation
Service chargesCharging for services which are not performed or are not reasonably necessary in the safe and adequate movement of the shipmentMinimum $3,879 for the first violation, $9,695 for each subsequent violation
Failing to deliverViolating a contract for shipment of household goods in interstate commerce by knowingly or willfully failing to deliver the goods to the destination when charges have been estimated by the carrier and the shipper has tendered a payment$19,389 per violation per day, and/or suspension of registration for up to 36 months
Estimating costs As a broker for transportation of household goods, making an estimate of the transportation cost before entering into an agreement with a motor carrier to provide the transportation $14,960 per violation
RegistrationProviding transportation of household goods, or providing broker services for such transportation, without being properly registered$37,400 per violation
Civil penalties for rate violations

DescriptionCivil Penalty
Knowingly accepting or receiving from a carrier a rebate or offset against the rate specified in a tariff for the transportation of property delivered to the carrierThree times the amount accepted as a rebate or offset and three times the value of other consideration accepted or received as a rebate or offset for the six-year period before the action is begun
Offering, soliciting, or receiving transportation of property at a different rate than the required tariff rate$193,890 per violation
Offering, soliciting, or receiving a rebate or concession related to motor carrier transportation under 49 U.S.C. 135, or assisting or permitting another person to get that transportation at less than the required tariff rate $387 for the first violation, $484 for each subsequent violation
As a freight forwarder, assisting or willingly permitting a person to get service at less than the required rate $971 for the first violation, up to $3,879 for each subsequent violation
Getting or attempting to get service from a freight forwarder at less than the required rate $971 for the first violation, up to $3,879 for each subsequent violation
Civil penalties for loading/unloading violations

DescriptionCivil Penalty
Knowingly violating or authorizing, consenting to, or permitting a violation of 49 U.S.C. 14103 relating to loading and unloading motor vehicles$19,389 per violation

Civil penalties for other commercial violations

DescriptionCivil Penalty
Disclosing information in violation of 49 U.S.C. 14908 without the permission of the shipper or consignee$3,879
Violating 49 U.S.C. 131-149, a related regulation, or a condition of registration $971 per violation, unless another penalty is provided in 49 U.S.C. 149
A director, officer, receiver, trustee, lessee, agent, or employee of a carrier that is a corporation violating 49 U.S.C. 131-149Penalties of 49 U.S.C. 149 that apply to a corporation
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