Inflation strikes again; Cost of non-compliance goes way up
The FMCSA has increased its maximum fines by nearly 8 percent for 2023, one of the largest increases ever.
The annual increase is required by law and is pegged to inflation, which has been unusually high for the past two years. The penalty increase for this year was 7.75 percent and went into effect on January 6, 2023. The increase for 2022 was just over 6 percent. Prior to that, increases were generally around 1 percent each year
What does it mean?
The increase means federal penalties levied on motor carriers and drivers for violations of the safety regulations will be going up.
For example, a safety violation that last year might have cost up to $16,800 could now result in a fine of over $18,000.
The complete list of fines (known as civil penalties) is found in Appendices A and B to 49 CFR Part 386.
Example fines
The following table shows examples of the FMCSA’s old and new maximum civil penalties. Keep in mind that these are the maximum potential penalties; actual fine amounts are determined on a case-by-case basis after numerous variables are taken into consideration. Actual fines are typically much lower than the maximums allowed by law.
Violation | Old fine | New fine |
---|---|---|
Recordkeeping violation, per day | $1,388 | $1,496 |
Driver penalty for violating a safety rule | $4,216 | $4,543 |
CDL violation | $6,269 | $6,755 |
Knowing falsification of records | $13,885 | $14,960 |
Violating a safety rule, like hours of service | $16,864 | $18,170 |
Operating after being declared unfit due to an unsatisfactory safety rating | $29,893 | $32,208 |
Allowing a driver to violate an out-of-service order | $34,712 | $37,400 |
Violating a hazmat transportation rule | $89,678 | $96,624 |
Hazmat violation resulting in death or severe injury | $209,249 | $225,455 |
Top 5 fines of 2022, so far
In the first 11 months of 2022, the FMCSA collected $22.9 million in civil penalties. These were the five largest fines paid during that time:
- $791,640 paid by an Illinois motor carrier for violations of the CDL and hours-of-service rules.
- $91,620 paid by an Illinois motor carrier for violating the 11-hour driving rule.
- $75,080 paid by an Illinois motor carrier for violating rules for drug testing, hours of service, and vehicle maintenance.
- $72,300 paid by a New Jersey motor carrier for violating the 14-hour limit.
- $71,400 paid by an Illinois motor carrier for violating the drug-testing rules and falsifying logs and other records.
Key to remember: The cost of non-compliance with FMCSA safety regulations has gone up nearly 8 percent. If you violate the rules, it will hit your bottom line harder than ever before.