A growing number of businesses are starting to use medium-duty truck fleets. Many of these, such as landscapers, contractors, and service-type companies, are either just starting business or switching to the larger trucks. If you are in this category you may be unaware that you can be considered a commercial motor carrier with your trucks and drivers subject to the Federal Motor Carrier Safety Administration (FMCSA) regulations. Failure to comply with these regulations can result in fines, delays, and increases in insurance premiums.
If you operate in more than one state (interstate) of if your state has adopted the Federal Motor Carrier Regulations for in-state (intrastate) operations, then the following apply to your business:
A commercial motor carrier is any business that transports hazardous materials, operates a vehicle whose weight is over 10,000 pounds, or operates a vehicle that carries more than eight passengers for compensation or 15 passengers not for compensation. It does not matter that you do not haul freight or deliver materials. The only criteria are that the truck is being used in a commercial business and that it meets one of these other requirements. Just because a driver is not required to have a commercial driver’s license (CDL) does not mean that the vehicle and the company are not subject to the FMCSA regulations.
If you are operating medium-duty trucks, you need to determine if your vehicles exceed the 10,000-pound threshold. Examine the rating on the plate from the manufacturer. This is the gross vehicle weight rating, or GVWR. Add to that the GVWR of any towed trailer to get the gross combination weight rating, or GCWR. If these do not exceed 10,000 pounds, you must then check the actual total loaded weight at a scale to be certain that you do not exceed 10,000 pounds. If either of these numbers places you above the threshold, then you are a commercial motor carrier and the truck is a commercial motor vehicle.
This article examines the FCMSA requirements for companies and drivers of vehicles that fall into the 10,000- to 26,000-pound ranges and do not otherwise meet the requirements for a CDL-licensed driver. The drivers of these vehicles are not required to hold a CDL, but the company and driver are required to comply with the regulations. You need to obtain a copy of the Federal Motor Carrier Safety Regulations Handbook and should carry one in each vehicle. This article covers a few of the major issues but is not intended to be a complete listing of all the requirements.
If you cross state lines you are required to register with the Department of Transportation and obtain a DOT number. This is the only difference between the requirements for interstate and intrastate operations. Companies that operate solely within one state are not required to obtain a DOT number.
The DOT number and your company information must be properly displayed on the vehicle. A daily pre-trip inspection is required. The vehicle must meet all the safety requirements including a fire extinguisher and warning triangles. The driver must have a medical card and may be subject to the hours of service and logbook requirements. The truck must go through the weigh stations.
Drivers who operate in interstate commerce often become entangled in varying state laws, especially those relating to traffic offenses. Insurance carriers are carefully examining the records of company drivers and are excluding many excellent employees simply because they may have been the victim of an unjust speeding ticket or didn’t understand the consequences of the citation. For example, a North Carolina driver who pays a more-than-15-mph out-of-state speeding ticket will have his driver’s license suspended. Companies need to carefully monitor all citations and assist their drivers with any violation. This is a good business practice since replacing and training a driver is expensive, not to mention because of the potential savings in insurance premiums.
Companies are required to comply with the record-keeping requirements and driver qualification requirements. Failure to do so can result in fines and revocation of your DOT permit to operate. The legal community is becoming aware of the regulations and attorneys are starting to subpoena the company driver file in the aftermath of an accident. If your driver was not qualified to operate the vehicle, you are in a very bad position. It is even possible that your insurance carrier will deny coverage if it was a willful violation of the regulations.
The federal regulations are complex and subject to interpretation. One state may rigorously enforce the laws regarding medium trucks while another completely ignores them. Your best source of information is your state trucking association or the agency in your state responsible for enforcing the FMCSA regulations. Many states offer a “courtesy” inspection where an officer will inspect your trucks and records and explain any deficiencies. I highly recommend this since they cannot target your business based on the inspection, and compliance with the officer’s recommendations might be used as a defense if you are later fined for a violation.
Please note that this article is not intended to be legal advice and is provided as general information only. While the information contained herein is deemed to be accurate, it is not guaranteed.
