DOT audit trouble? Know your options to reduce fines
On-site DOT audits are roaring back in the wake of the pandemic, and they’re hitting motor carriers’ bottom lines. Enforcement cases rose 31 percent and total fines were up 40 percent over 2021. Do you know your options if you’re hit with a penalty?
You have choices
If you’re the target of a DOT audit and a resulting fine (about 1 in 3 audits results in a fine), it’s important to know what your options are. You can just pay the fine and be done with it, but there are other ways to proceed, and they could save you a lot of money.
Consider, for example, the case of a small Vermont-based manufacturer that was recently hit with a big fine for hours-of-service violations. The company allowed its drivers to use paper logs for five months while they transitioned to a new e-log system. On top of that, there was little oversight or training, so some drivers failed to use any logs at all.
Needless to say, an auditor found the violations and hit the company with a $14,100 bill. Company leaders knew they made a mistake, but it was too late.
Click here to read about how inflation is affecting FMCSA fines. |
Pay, dispute, or arbitrate
The company’s next step was key. It could have paid the fine, or it could have tried to dispute the violations before a judge. Instead, it chose a third option: arbitration. That’s where the DOT and the motor carrier agree to let an independent judge decide on the penalty amount.
The arbitrator recognized the efforts the company had made to comply and gave them a huge break. He reduced the penalty three-fold, to $4,700.
Play by the rules
The lesson here is that if you’re audited and hit with a fine, there are ways to reduce the cost — as long as you play by the rules. This means meeting all deadlines with your paperwork (for example, you have only 30 days to answer the initial Notice of Claim informing you of a fine). You would also need to take immediate steps to prevent future violations (that “good faith effort” you’ve probably heard about).
Of course, you can dispute the violations if you weren’t at fault. But if you’re ready to admit guilt and want to seek a lower penalty, arbitration may be your best option.
The rules discussing arbitration are found in 49 CFR 386.14. |
Key to remember: Motor carriers hit with a fine after a DOT audit have three options, including arbitration, which may help reduce the ultimate price to be paid.