The trucking industry has seen the devastating impact of nuclear verdicts play out over the past several years. In order to avoid this fate, carriers must focus on hiring qualified drivers – and keeping pristine paperwork.
Carriers are operating in an environment where every new driver hire could result in a productive driver tenure or a multimillion-dollar negligence lawsuit. At the same time, Federal Motor Carrier Safety Administration audits can happen at any time.
Paperwork can be easy to overlook during the day-to-day operations of running a trucking company. Unprepared fleets, however, are subject to violations and hefty penalties in the face of an audit.
It is imperative for carriers to maintain flawless driver qualification (DQ) files for every person who will operate a commercial motor vehicle (CMV) in any area open to public travel. This includes individuals who exist outside the parameters of a typical driver.
The Federal Motor Carrier Safety Regulations (FMCSRs) require files for not only company drivers, but also for every temporary agency driver, independent contractor under the company’s USDOT number, casual fill-in driver, mechanic and office employee – including the owner.
A lack of knowledge of the DQ or other regulations is not a valid excuse during an audit or a defense during litigation. In fact, while simple compliance may be acceptable during an audit, even perfect adherence to FMCSRs will not automatically protect a carrier during post-accident litigation.
“Plaintiffs’ attorneys scrutinize the DQ file to uncover compliance gaps or exceptions made – allowed by FMCSA or not. Making exceptions and non-compliance can sink your ship in court,” according to a J. J. Keller spokesperson. “FMCSA regulatory minimums are the equivalent of a C- in grade school. To earn an ‘A,’ carriers should adopt and follow practices that exceed the regulations.”
In today’s legal environment, carriers definitely want to earn an A. Carriers can reduce the risks of poor compliance and vetting practices by adopting best practices and training their hiring and qualification team.
Best practices to maintain audit-ready DQ files
The first and simplest step carriers can take toward improving their DQ files is utilizing a driver qualification checklist at hire. Fleets should also set standards above FMCSA minimums in their own company policies and procedures.
Maintaining files is an ongoing process. Carriers should conduct regular motor vehicle record (MVR) file reviews with a detailed checklist. Companies that find this level of monitoring daunting can consider outsourcing DQ file management to a trusted third-party expert.
Using a third-party DQ file management and MVR monitoring service can help carriers reduce risk and allow internal employees to focus on the core mission of their companies. Safety leaders with multiple compliance responsibilities can be overtaxed on both time and expertise in all accountable areas. Outsourcing can reduce stress and eliminate the risk of noncompliance due to insufficient time for thorough reviews or keeping up with regulations.
No matter how a carrier chooses to handle file management and monitoring, fleet managers should consider digitizing DQ files. Carriers can unlock multiple advantages by converting hard-copy documents and files to electronic files.
The benefits of electronic files include:
- Online recruiting allows background checks to start sooner due to consent and disclosures obtained without an in-person visit.
- Driver hiring process steps are monitored with alerts to missing or late documents.
- DQ file auditing is ongoing and easier, not event-driven and painstakingly long.
- Remote, secure access to files is available via the internet.
Finally, carriers should use annual mock audits to identify where compliance gaps are and generate an action plan for the future. With mock audits conducted by an expert third-party service or an unbiased internal expert, audit readiness is not an unknown.
“Using a third-party or regular mock audits is like wearing a watch that shows your compliance health score at all times,” according to a J. J. Keller spokesperson. “They allow you to sleep better with audit-ready files.”
Regular mock audits earn carriers an understanding of potential violations, a chance to rectify issues and improve compliance, a process of continuous improvement, and ongoing strategies for maintaining DQ file compliance.
Common DQ file errors
There are several areas of DQ files that commonly have compliance errors and risk management gaps. The most frequent issues typically involve the driver application, background investigations, MVRs, proof of medical certification and/or road test evaluations.
Carriers should be extra prudent in these areas when hiring drivers – and when continuously maintaining their files.
Additionally, when rehiring drivers, carriers must be just as diligent in creating the new DQ file. Carriers cannot reuse the old DQ file in whole, but some items can be reused, like a road test certificate in the last three years or a current medical certification. Despite these exceptions, to reduce risk, carriers should treat rehired drivers as if they were brand new to the company.
Carriers should also take special care when it comes to temporary drivers. Auditors often look for drivers who are not on the driver roster from the carrier, like temporary agency drivers. Auditors know that qualifying “temp” drivers on short notice can result in improperly qualified or unqualified drivers.
A full DQ file is required for temporary drivers unless they qualify as a multiple employer driver, which means that they work for two or more DOT carriers in seven days and are fully qualified by one of the carriers, not the temp agency.
All-in-all, most DQ errors result from either a lack of knowledge or a lack of time on the part of the carrier. These errors are not worth the perceived convenience of lax or unqualified management and monitoring.
“It takes time and expertise to do DQ file compliance right,” a J. J. Keller spokesperson said. “Treat every driver file like it’s worth a million dollars, because a bad one can cost a whole lot more.”
Audit penalties
Carriers often end up facing steep penalties when DQ file recordkeeping errors are found during FMCSA audits.
FMCSA outlines the maximum fines for recordkeeping errors and other violations. If a carrier fails to maintain a DQ record or maintains a required record that is incomplete, inaccurate or false, the company is subject to a maximum civil penalty of $1,544 for each day the violation continues. The total fine can climb to $15,445.
The top 5 FMCSA DQ audit violations between 2021-2023 include:
- Incomplete or no employment application.
- Inquiries into driving record (MVR) not kept in DQ file.
- Failing to maintain a DQ file on each driver.
- Failing to investigate a driver’s background.
- Failing to maintain a notation of annual review.
For carriers looking to get more serious about file compliance, ensuring that their own DQ files do not contain any of the most common violations is a good place to start. Click here to learn more about how J. J. Keller can help your fleet achieve better compliance.