6.0 Legislation & Other Related Legal Issues
Atex Freight Broker Training, Inc. – El Paso, Texas
Lesson 6.0 Legislation & Other Related Legal Issues
Overview for Lesson 6.0
Introduction to Legislation
Compliance, Safety, Accountability (CSA 2010)
Moving Ahead for Progress – 21st Century (MAP 21)
Fixing America’s Surface Transportation(FAST)Act
California Air Resources Board (CARB)
HOS, ELDs, Speed Limiters, Etc.
Carrier Selection
Avoiding “Negligent Carrier Selection”
Avoiding “Vicarious Liability”
Other
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Let’s get started …
Introduction to Legislation
Here is the most important idea with all this legislation:
Legislation is in a state of flux – Don’t let frustration take hold
- Is there actual government overreach?
- Cost/benefit analysis
CSA 2010
B.A.S.I.C. ratings
Safety Fitness Determination (SFD)
Safety “fitness” determination – driver and company
MAP 21
Carriers – carriers are prohibited from brokering out excess loads without having their broker authority.
Three years’ experience – not implemented yet
FAST Act
FMCSA requirement to take down the ‘relative’ safety scores
CARB
California Air Resources Board
Topic 3. HOS, ELDs, Speed Limiters, Etc.
Hours of Service (HOS)
Electronic Logging Devices (ELDs)
Speed Limiters
Carrier Selection
Schramm vs. Foster (2004)
Avoiding “Negligent Carrier Selection”
Avoiding “Vicarious Liability”
Other
New Food Shipping Mandate
Driver Training
CDL Training for Military Vets
National Carrier Hiring Standards
Independent Contractors and Owner Operators
Autonomous Trucks
Other – New food shipping mandate
The Food and Drug Administration (FDA)has implemented new regulations regarding food transportation – it affects brokers as well as shippers and carriers.
The problem here is attempting to arrive at uniform standards that flow through the shipping, broker and carrier relationships.
Spot loads and smaller carriers and brokers would be at a possible disadvantage as they try to keep up with the “fire power” that large companies have.
There is established protocol called the Uniform Food Safety Transportation Protocol that contains minimum compliance standards that may be passed on to smaller players involved with these issues.
Carriers can formally commit to this protocol, allowing shippers and brokers to verify the carrier’s commitment to food transport standards.
An article posted in JOC.com,(Journal of Commerce) states:
“.. under the new regulations brokers are now charged with a greater duty that will not only expose them to potential sanctions for non-compliance with the regulations, but civil liability to the shippers on whose behalf the brokers act”.
It might be wise for brokers to include some type of Statement of Position given to shippers to help reduce liability on this FDA regulation.
The statement might read as follows:
The shipper shall be completely liable for compliance and is responsible for making sure that all information and documents needed to make certain that the safe and sanitary transport of the shipper’s food are in place as directed by The Food Safety Modernization Act of 2011.
“The requirements for the carrier will include documented training that provides awareness of potential food safety problems that may occur, basic sanitary practices, and carrier responsibilities under the rule”.
The Owner Operators Independent Drivers Association (OOIDA) is working proactively with smaller carriers in education and compliance.
Other – Driver training
Driver training has been found lacking in many ways as trainers try to roll out as many drivers as possible in a rather quick manner.
A new rule, officially known as Minimum Training Requirements for Entry-Level Commercial Vehicle Operators, was slated to take effect Feb. 6, 2017 but has been delayed.
Classroom instruction, behind-the-wheel driving and a registry of CDL operators are at the core of this new rule. Carriers are calling for the restoration of the 30-hour minimum driving time behind the wheel.
Other – CDL training for military vets
There is a shortage of truck drivers and the shortage may continue for some time. There are also many new military veterans transitioning back into civilian life.
Is this a marriage waiting to happen?
Here’s a good webpage with several related links:
>>> CDL Training for Military Veterans
Also, go to your favorite search engine and type in “vets becoming truck drivers” or something similar. Keep up to date on this.
Other – National Carrier Hiring Standards
Various advocates for setting carrier hiring standards into legislation have, once again, put the issue into the hands of legislators.
The standard would be simple and relieve the broker/shipper from liability in negligent carrier selection.
The three hiring standards proposed are:
- Ensure that the carrier is properly registered with the FMCSA,
- Ensure that the carrier has the minimum insurance, and
- Ensure that the carrier has not been given an unsatisfactory rating.
Follow this issue with industry sources.
Other – Independent contractors and owner operators
Recently here in 2022, California with their Assembly Bill 6 (AB5)just upended the independent contractor business model and it is now “the law” in Californis. Every worker (for the most part) is required to become employees and independent contractors are not allowed. Other states such as New Jersey may try to implement the same type of legislation.
There will and are lawsuits abounding and it may take years before some equity is served for those independents who DON’T want to become employees and who prefer to remain domiciled in California. Nevertheless …
… there are both federal and state laws that regulate employee, employer, independent contractor and owner operator relationships. Some of these laws are in conflict with each other.
In the past, and currently, most motor carriers classify their drivers as independent contractors. Thus, most operating expenses, including payroll taxes, were borne by the driver as an independent owner operator.
Now the federal government and some state agencies are making a move to get drivers reclassified as employees rather than independent contractors which would make carrier companies liable for the employees’ payroll taxes, and more.
Some Owner Operators want to be classified as employees where they have benefits such as workers’ comp, unemployment compensation, overtime pay – even mandated lunch breaks, etc.
Other Owner Operators want the freedom to do their “gigs” as they please, moving around without being strapped down to a particular company. This issue is an ongoing battle.
The main issue for freight brokers might be in the Broker-Carrier Agreement. Brokers should look at who will be signing this agreement and the confirmation for the carrier?
Other – Autonomous trucks
Transportation experts don’t think driverless trucks will be fully operational AND adopted without fear for at least two decades. Don’t fret, if you are a truck driver.
Here’s a good resource: