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How Does Your Drug and Alcohol Company Policy Measure Up?

Company policies are designed to communicate business principles expected of employees and what will happen if the policy is broken.  This communication helps guide the company to operate in the manner that management wants the company to operate.   Well written company policies are also designed to help protect the company from liability by incorporating established safe and ethical procedures into its daily operations.  This is especially important in the trucking industry where employees operate in a very safety sensitive environment.

The approach of a well written company policy is generally detailed and may include such things as forbidden behaviors, rights, dispute procedures and consequences of breaking the policy. It will communicate what a person should expect of a company, what a company expects from individuals, and what will happen in events that deviate from the norm.

In most industries, company policies are strictly for each individual business to decide.  For the trucking industry, the Department of Transportation (DOT) mandates that carriers have policies written for several key, safety sensitive areas where proper employee behavior is critical.

One such area where a written company policy is mandated is for the misuse of alcohol and controlled substances.  Part 382.601 of the Federal Motor Carrier Safety Regulations describes in detail what each trucking company’s drug and alcohol policy must contain.   At minimum, a carrier whose drivers meet testing requirements, must have a drug and alcohol policy that includes:

• Educational materials that explain the requirements and the employer’s policies and procedures with respect to meeting these requirements.
  • The employer shall ensure that a copy of these materials is distributed to each driver prior to driver driving for the company.
  • The materials to be made available to drivers shall include detailed discussion of at least the following:
    •  The name and contact information of the person designated by the employer to answer driver questions about the drug and alcohol policy.
    • The categories of drivers who are subject to these policies.
    • Sufficient information about the safety-sensitive functions performed by those drivers to make clear what period of the work day the driver is required to be in compliance.
    • Specific information concerning driver conduct that is prohibited.
    • The circumstances under which a driver will be tested for alcohol and/or controlled substances, including post-accident testing.
    • The procedures that will be used to test for the presence of alcohol and controlled substances.
    •  The statement that a driver must submit to alcohol and controlled substances tests administered.
    •  An explanation of what constitutes a refusal to submit to an alcohol or controlled substances test and the consequences.
    • The consequences for drivers found to have violated the policy.
    • The consequences for drivers found to have an alcohol concentration of 0.02 or greater but less than 0.04;
    • Information concerning the effects of alcohol and controlled substances use on an individual’s health, work, and personal life;
    • The materials supplied to drivers may also include information on additional employer policies with respect to the use of alcohol or controlled substances.  Any such additional policies or consequences must be clearly and obviously described as being in addition to DOT minimums.
    • Each employer shall ensure that each driver signs a statement certifying that he or she has received a copy of these materials and will maintain the original of the signed certificate.

No company should conduct drug testing without a policy in place.  For trucking companies, a policy is not only mandatory but must contain the minimum requirements.  It is imperative that a policy be reviewed by a policy expert at least annually to ensure that it still reflects the company’s objectives and complies with all the state and federal laws.  If you need help with your company policies, give us a call at 503-607-1088.

Hauling Loads Into Canada?

10 Things Highway Carriers Need to Know About eManifest

1. With the implementation of eManifest, the Canada Border Services Agency (CBSA) must receive and validate highway carriers’ electronic cargo and conveyance data a minimum of one hour before commercial goods arrive at the border.

2. An informed compliance period is in effect. Regulations to enforce eManifest requirements for highway carriers are expected to be in place in Fall 2013. The CBSA anticipates being able to provide carriers as much as 45 days advance notice of the mandatory compliance date.

3. During the informed compliance period, the CBSA will monitor highway compliance with eManifest and provide feedback to non-compliant carriers.

4. During the informed compliance period, carriers will not be denied entry to Canada or subject to penalties for reasons associated with eManifest non-compliance.

5. In Fall 2013, eManifest highway carrier requirements are expected to be mandatory and non-compliant carriers could be subject to penalties.

6. Highway carriers can choose between two options to transmit their cargo and conveyance data to the CBSA: 1) the eManifest Portal or 2) an Electronic Data Interchange (EDI) method (Value Added Network, Customs Internet Gateway, Direct Connect to the CBSA and Third Party Service Providers).

7. On arrival at the border, drivers are required to present an eManifest lead sheet to the CBSA officer.

8. Release processes will not change with the implementation of eManifest and carriers must continue to provide importers/customs brokers with advance release data/documents for goods being released at first point of arrival.

9. For e-mail support on eManifest policy and processes, as well as eManifest Portal Shared Secret applications, contact the eManifest Help Desk at: eManifest-manifestelectronique@cbsa-asfc.gc.ca

10. For detailed eManifest technical support, contact the eManifest Technical Support Unit:

 by e-mail at: TSU.UST@cbsa-asfc.gc.ca

 by phone at: 1-888-957-7224 and press 2 (toll-free within Canada and the U.S.)

For more information, visit the eManifest pages of the CBSA Web site at www.cbsa.gc.ca.

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On December 22, 2011, the Federal Motor Carrier Safety Administration (FMCSA) publicly announced changes to the Hours of Service rules and published changes in the Federal Register on December 27, 2011.  The less controversial changes went into effect almost immediately.  The more controversial changes are scheduled to become effective and enforced on July 1, 2013.

The Hours of Service rule changes have been challenged by several organizations in a lawsuit.  The FMCSA has refused to postpone the implementation unless ordered by the court.  As of this writing, the courts are listening to the arguments from all organizations involved and have yet to make a decision or postpone the implementation date.  There is no telling when a decision will be made.

Trucking Associations across the country are telling their members to start training drivers now so that they are ready to comply with the new rules should they be upheld by the court.  Key elements of the changes that become effective July 1, 2013 are:

Maximum Driving Hours – FMCSA retained the current 11 hour driving time limit, but placed a limit on the number of consecutive driving hours. No driving may occur if more than 8 consecutive hours have passed since the last break of 30 minutes or more.

 Restart – Any restart period must include two consecutive nighttime periods (from 1 a.m. to 5 a.m.), and must be at least 34 consecutive hours long. Drivers are permitted to use the restart provision only once in any seven calendar days.

 14 Consecutive Hour Day (now called Driving Window) – The rule retains a 14 consecutive hour driving window. With a 30 minute rest break, maximum on-duty time within the 14 hour window is 13.5 hours. No driving may occur after 14 consecutive hours since coming on duty; non-driving work is allowed past the 14 hour driving window.

 Mandatory Rest Break – Drivers will not be permitted to drive if 8 hours have passed since their last break of 30 minutes or more. (Only 1 break may be required dependingupon timing).

It is highly recommended that all carriers review these rule changes and begin training programs to insure their drivers are knowledgeable and comply.  Glostone Trucking Solutions offers a series of online video trainings designed to help drivers understand the hours of service regulations

Jury says truck driver not adequately trained, awards $58.5 million

The jury in a wrongful death lawsuit in Santa Fe, NM, awarded the family of a crash victim $58.5 million, saying the driver of a tanker truck that made a left turn in the path of the victim’s oncoming vehicle did not have adequate training. The bulk of the responsibility for the crash lies with the management company that contracted with the trucking company, the jury said.
A special verdict from the jury holds the managing company 90 percent accountable for the March 2010 crash.  The owner of the tanker truck, was 9 percent responsible, and the driver of the truck was 1 percent responsible.
The award consists of $11.5 million in actual damages and $47 million in punitive damages.
The attorney representing the trust said in a release that the evidence he presented demonstrated inadequate training of the truck driver and repeated violations of federal and state trucking regulations by management and trucking company.
“Today a Santa Fe jury sent a clear message to the trucking industry that those companies who choose not to follow safety rules and who place profits over human life, will be held accountable for the harm that they cause,” personal injury lawyer Bill Robins of the Santa Fe firm Heard Robins Cloud & Black stated March 20.

Effective and documented driver training must become part of every company’s best practices.  Effective training will help save lives. Documented training will help to protect the company from legal attacks.  Glostone Trucking Solutions offers an entire library of online video trainings designed to supplement a trucking company driver training program. Training can be customized to the driver, is taken online, is available 24/7 and documented.  Contact us for more information at 503-607-1088.

April 30 is 1^st QTR IFTA Fuel Tax Deadline

Now is the time to make sure that each truck’s distance and fuel purchase records for January, February and March are accumulated, recorded, and computed to generate your 1^st Quarter 2013, International Fuel Tax Agreement tax report.  Reports and payments are due by April 30.  Any reports received after the deadline can be hit with penalties and interest.  Failing to turn in a report can place your company out of service. Avoid the headache of tax reporting. The staff at Glostone are experts at both IFTA fuel tax and Oregon mileage tax reporting.  Give us a call today!

Drug and Alcohol Testing Facility Now Open

A drug and alcohol testing facility is now available inside our Glostone Trucking Solutions office located in Clackamas, Oregon, just off exit 12 on I-205.  The facility is operated by CleanFleet and specializes in DOT drug and alcohol testing requirements.

Testing center manager Joe Minick says “Our facility is open and ready to serve.  We can work with all Carriers and Third Party Administrators for their random, pre-employment, follow-up, post-accident and return to duty testing.”Both drug and breath alcohol testing can be performed.  No appointment necessary. Hours are 8 am to 5 pm, Monday through Friday.  Truck parking is available!

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What Are Auditors Looking For?

In our February issue, we focused on the Federal Motor Carrier Safety Regulations.  We detailed the list of documents an auditor would require when looking for compliance with these regulations.

For this article, we will focus on the International Registration Plan (IRP) and the International Fuel Tax Agreement (IFTA).  Both apply to trucks over 26,000lbs and traveling interstate.  The IRP deals with how states register vehicles and distribute the registration fees to the states traveled.  IFTA is the system states use to collect and distribute fuel tax monies based upon where the fuel was used.  Each state is required to audit 3% or more of their carriers registered in these programs.

Both IRP and IFTA have similar record keeping requirements when it comes to tracking distance traveled.  IFTA goes beyond IRP record keeping requirements by also requiring fuel purchase records.  The records are used by auditors to verify that each carrier has an adequate record keeping system in place and uses those records accurately to pay the proper registration and fuel tax fees.  Auditors can request records going back 4 years.

Here is a list of required records common to both IRP and IFTA:

1. Distance recaps for each vehicle for each jurisdiction in which the vehicle operated.
   1. An acceptable distance accounting system is necessary to substantiate the information reported on the tax return filed quarterly or annually. At a minimum, must include distance data on each individual vehicle for each trip and be recapitulated in monthly fleet summaries. Supporting information should include:

• Date of trip (starting and ending);
• Trip origin and destination;
•  Route of travel;
• Beginning and ending odometer
• Total trip miles/kilometers;
• Miles/kilometers by jurisdiction;
• Unit number or vehicle identification number;
• Vehicle fleet number;
• Registrant’s name; and
• May include additional information at the discretion of the base jurisdiction.

Additional fuel records are required for IFTA. The fuel records shall contain:

1. The date of each receipt of fuel;
2. The name and address of the person from whom purchased or received;
3. The number of gallons or liters received;
4. The type of fuel;
5. The vehicle or equipment number into which the fuel was placed, and
6. If applicable, details of taxable and non-taxable usage of fuel;

These are the minimum records needed for an IFTA and/or IRP audit.  Just having the document does not mean it will be acceptable.  Auditors will verify the accuracy of the records plus ensure the correct numbers were actually reported.

Common mistakes carriers make with IFTA and IRP record keeping:

• Recording miles from dispatch records and not balancing them with odometer readings
• Recording miles using mapping software and zip code references
• Not recording odometer readings
• Not recording routes of travel
• Not recording empty or bob-tail miles
• Not recording personal miles
• Not keeping fuel receipts or accepting fuel receipts without all of the required information included.

Error percentages are applied to the entire three year audit period and to all vehicles which can result in substantial fee, penalty and interest assessments.  When it comes to compliance and audits, being proactive is the key.  Have systems in place that will guarantee records compliance and promote safety.  If you need help with a proactive plan, give us a call!

Pre-Employment Screening Program

The DOT makes available to carriers their Pre-employment Screening Program (PSP).  The information contained in the PSP reports is a summary of each drivers roadside violations going back 3 years.  This information can prove invaluable when trying to select the right driver for your company.

Carriers can enroll in the PSP program or avoid the annual fee by having us run the PSP report for you! Glostone is an authorized 3^rd party provider for PSP reports.  Give us a call for more information!

Electronic On Board Recorders

When used properly, Electric On Board Recorders (EOBRs) can be a great investment.  Used incorrectly, they can become money down the drain.  There is a wide variety of equipment and pricing available.  We recommend to always try before you buy and make sure the equipment is right for your operation.

Contact us if you have interest in a free, no obligation trial using uDrove (www.uDrove.com).  Their system uses most late model smart phones as a communication platform and is complete with electronic driver logs, distance tracking, load tracking and more.  After the free, no obligation trial,  no money down pricing options are available!

Need Experienced Dispatch or Broker Service?

We recommend Tim Neal at Freightway Services.  Give Tim a call at 503-492-1032.

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FMCSA announced a deadline of Oct. 1 to comply with the new broker bond requirement of $75,000, a change in broker and freight forwarder requirements enacted with the passage of last year’s highway funding law MAP-21. All brokers and freight forwarders must register with FMCSA and by Oct. 1. The act also increased the amount of the broker bond to $75,000 up from the current $10,000.

The bond companies will now be obligated to report to FMCSA when the bonds are canceled and the agency is to “immediately” suspend the registration of the broker and post notification on the agency’s website, according to another new provision included in MAP-21.

The deadline was mentioned in a set of FAQs that FMCSA recently released. For more information on the broker and freight forwarder requirements, click here.

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Anyone working in the trucking industry knows just how regulated it is.  From driver logs, to safety equipment, to fuel taxes, to inspections, the regulations are many and cover all aspects of operating a truck.  Most know the costs associated with being in regulatory compliance.  What is the cost for not complying?

Calculating the cost of noncompliance is difficult at best.  There are many variables that can enter into the equation.  Fleet size, types of trucks, truckload vs. less than truckload, regional or long haul all can have an impact.  Some recent research has been able to put some numbers to quantifiable noncompliance.

Fines

In 2011, DOT regulated companies paid $30,674,218 in fines for failure to comply with Federal Motor Carrier Safety Regulations (FMCSRs).  The average fine per case was $5,050.  The most costly violation was falsification of a driver log where carriers paid an average fine of $9,394.  Another costly violation was the transportation of hazardous materials (HazMat) without the appropriate paperwork.  HazMat fines averaged $8,578.

Out-of-Service

Lost revenue from drivers and vehicles being placed out of service for noncompliance is another large cost to carriers. Each hour of down time can cost up to $87.50 when you consider an average speed of 50 mph and revenue of $1.75 per mile.  Being placed out of service for 10 hours due to a driver log violation can cost upwards of $870.00.

Costs for out of service roadside vehicle violation repairs can be three to five times the cost of the repair being performed at the home terminal.  Add to this cost the lost driving time with the driver having to use on duty time to complete these repairs.  Finally, out of service delivery delays may make the noncompliance violation costs skyrocket, especially with time sensitive loads like produce.

Lawsuits

According to Rob Moseley, head of the transportation department at Smith, Moore, and Leatherwood, “juries are relatively accepting of truck drivers who make mistakes.  Juries are much less forgiving when safety issues are ignored.”  He added, “A trucking company gets to explain two problems or inconsistencies to the jury.  After that, the jury doesn’t listen and will punish the trucking company with damages.”

Not only will the carrier pay for damages but the costs associated with the legal defense.  Attorneys, additional experts, and depositions can add tens of thousands of dollars to the cost of noncompliance.

 Additional Costs

Other costs associated with noncompliance:

• Increase in number of inspections
• More detailed inspections
• Impact on insurance rates
• Loss of business due to poor CSA scores
• Reduction in contracted rates because of poor CSA scores

Carriers need to invest in compliance.   Spending money on log auditing, drug and alcohol testing and training drivers is costly but, the bottom line is, it’s cheaper than non-compliance!

The post Safety Regulations: The Cost of Non-Compliance appeared first on Glostone Trucking Solutions.

The San Bernardino County Superior Court has fined Foster Enterprises, an Ontario-based refrigerated transportation and cold storage business, $300,000 after a California Air Resources Board investigation revealed that the company failed to upgrade older diesel engines in its refrigerated trailer fleet as required to meet current California emissions standards.

The case resulted in the first court-imposed fine issued under CARB’s 2004 Transport Refrigeration Unit (TRU) regulation.  The company will pay $200,000 and the balance of the fine will be stayed, as long as they comply with the terms in the judgment handed down by the San Bernardino County Superior Court, and keep their fleet updated as required.

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Operating commercial trucks requires compliance with all sorts of regulations from several different agencies.  Each agency has the expectation that companies will be compliant with their regulations and have audit processes in place to make sure.  In addition to the dreaded IRS and OSHA audits, there is the Federal Motor Carrier Safety Regulation (FMCSR) audit, an International Fuel Tax Agreement (IFTA) audit and/or an International Registration Plan (IRP) audit.
For this article, we will focus on the FMCSR audit or what many call a DOT Safety audit.  Within the DOT Safety audit, there can be different types.  A focused audit might select just one part of the FMCSR regulations for review.  A full compliance audit might involve all records required within the FMCSR regulations.

Here’s a list of documents the DOT auditor will be looking for in a full audit:

Company Documents:

Copy of the MCS 90 Insurance Coverage Form
Accident Register and Corresponding Police Reports
Company Policies (at a minimum: Drug and Alcohol, Hours of Service, Maintenance, and Driver Qualifications)
Driver Log Management Review Documents

Driver Qualification/Employment Documents:
Employment Application
Inquiry to Past Employers
Record of Road Test
Medical Certificate
Pre-employment Drug Test Results
Driver’s Certification of Violation
Driver’s Motor Vehicle Record
Driver Drug and Alcohol Statement
Previous Employer Drug and Alcohol Test Statement
Annual Driver Reviews with Motor Vehicle Records
Driver Certification of Compliance With CDL Requirements
Driver Certification of Having Read and Promise to Abide by Company Policies
Driver Certification for Receiving, Having Read, and Abiding by, the Federal Motor Carrier Safety Regulations.
Driver Logs  (they will ask for supporting documents such as Bills of Lading, Fuel Receipts, and others to verify the accuracy of driver logs)

Maintenance Documents:
Maintenance Schedule for Each Truck and Each Trailer (plus documents showing the inspections took place)
Post Trip Inspections (Driver Vehicle Inspection Reports, plus documents showing any noted defects were repaired)
Annual Inspections Certificates
Violation Notices With Corresponding Repair Documents

These are the minimum records needed for a DOT audit.  Just having the document does not mean it will be acceptable.  The DOT expects the intent of each document be used in the management of the company.  The DOT auditor mission is to not only make sure each company is in compliance but also operating safely.

There are additional records other agencies require which we can review in a future article.  When it comes to compliance and audits, being proactive is the key.  Have systems in place that will guarantee compliance and promote safety.  If you need help with a proactive plan, give us a call!

Drug and Alcohol Testing Facility Now Open

A drug and alcohol testing facility is now available inside our Glostone Trucking Solutions office located in Clackamas, Oregon, just off exit 12 on I-205.  The facility is operated by CleanFleet and specializes in DOT drug and alcohol testing requirements.
Testing center manager Joe Minick says “Our facility is open and ready to serve.  We can work with all Carriers and Third Party Administrators for their random, pre-employment, follow-up, post-accident and return to duty testing.”
Both drug and breath alcohol testing can be performed.  No appointment necessary. Hours are 7:30 am to 5 pm, Monday through Friday.  Truck parking is available!

FMCSA Offers CSA Tools

The Federal Motor Carrier Safety Administration (FMCSA) has released new materials to assist motor carriers in identifying and addressing their safety and compliance issues.  These materials include the Safety Management Cycle (SMC), an important tool that Agency Safety Investigators use during on-site investigations.  The SMC is able to identify safety problems, their root causes, and safety solutions.
To help familiarize carriers with how to use the SMC and its six Safety Management Processes, FMCSA developed a factsheet that explains how to use these materials to improve safety practices.  FMCSA has also provided a supplemental case study that shows carriers how to use the SMC in the long-term.
Check out these new SMC resources on the CSA web site’s Resources page.

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The Congressional Budget Office is projecting the Highway Trust Fund will be insolvent by the end of 2014.  Finding a way to fund the nations highways is generating some innovative proposals.  One such proposal was offered by John Horsley, executive director of the American Association of State Highway and Transportation Officials, on January 16^th at the Transportation Research Board annual conference in Washington .

Horsley’s proposal is to replace the per-gallon tax on diesel and gasoline with a federal sales tax.  At a sales tax rate of 10.6% for diesel and 8.4% for gasoline, the AASHTO says the sales tax revenue would pump $350 billion into the Highway Trust Fund over six years. The current per-gallon tax and truck excise taxes would generate only $236 billion,

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