Sep 13, 2022
An Overview of Trucking DOT Audit
It is
important that when you receive an inspection from the DOT, you know how to
handle it. Regardless if you've been keeping up with your recordkeeping and
adhering to all the rules and regulations. Be aware that it's human instinct to
be wary and nervous beforehand.
That's why most trucking companies find it more convenient and practical to be part of a Consortium/Third-Party Administrators (C/TPAs) like Labworks USA to manage all, or part, of an employer's DOT drug and alcohol testing program and other DOT or FMCSA compliance needs. We perform tasks as agreed to by the employer to assist in implementing the drug and alcohol testing program and to help keep the employer compliant with the DOT/FMCSA Drug and Alcohol Testing rules and regulations. We as a DOT Consortium can help you.
As long as
DOT has no advance warning of an impending inspection, it’ll be natural for you
to feel anxious. But DOT conducts inspections regularly. It needs to make sure
all CMV drivers follow DOT rules.
If you think
these reviews have increased over the past couple of decades, you're correct.
Reviews have increased since 2010, mainly because of the introduction of the
Safety Management System. It relies on the data gathered from roadside
inspections and checkpoints. Every company is then given a CSA rating based on
the information collected during those inspections. Companies with higher
ratings and more violations can expect to get inspected more often.
Keep an eye
on your CPA scores. If you're seeing them creep up, make adjustments before you
get auditing. You can check your scores on the Internal Revenue Service's (IRS)
Taxpayer Advocate Service site. It's also regularly reviewed and revised.
DOT Audit and Why it is Needed
Many people
who aren't working specifically in the truck driving industry are surprised
when they get a letter from the Department of Transportation (DOT) asking them
for proof of insurance. However, if you're involved in construction or
manufacturing, you probably drive commercial vehicles as part of your business
operations.
If your
business involves transporting people or goods across state lines, regardless
of whether they're commercial or private vehicles, and those vehicles have a
GVWR greater than 10,000 lbs., then you, your employees, or those vehicles fall
under federal motor carrier safety standards.
If your
business operates within one specific region, then local laws and rules apply.
You should contact your local transportation department for details.
Reasons for
an IRS audit include several different types of issues:
New Entrant Review
A new
entrant review is an inspection performed by the Department of Transportation
(DOT) to ensure that a new business complies with federal regulations before it
can begin selling products or services across state lines. In order to qualify
for a new entrant review, a business must have been operating for at least one
year prior to receiving a DOT license. During the initial period of operation,
the business owner should perform a self-auditing process to determine whether
he or she is meeting all the requirements set forth by law.
A Targeted Audit
If your
customer satisfaction score is high, you will likely be audited by us. We may
send you multiple alerts regarding this issue. An additional number of alerts
will almost certainly result in a formal investigation.
Compliance Review
Several different factors can trigger a compliance review:
- Crash Rate: The DOT requires that
commercial motor vehicle operators maintain a minimum 1.5 crash rate for
each driver. If your drivers have an above-average crash rate, DOT may
conduct a compliance review.
- Citizens' Complaint: While that may be true that
occasionally citizens will file a complaint against drivers who pass them
on the road or who cut them off in heavy congestion, most of these
complaints come from disgruntled workers. They usually base their claims
on areas where they think it will be hard for you to defend yourself.
- A critical incident occurs when there is a
serious accident involving a driver who has been previously disciplined
by the company. For example, if a truck overturns spilling its entire
load onto an interstate highway and causing traffic delays for several
days, then this would be considered a critical incident.
- Random selection: Sometimes they will say it’ll
be your turn for a compliance review. You just never know when it might
happen.
Checklist During a DOT Audit
When DOT
auditors conduct an inspection of a commercial trucking company, they usually
cover several important areas including:
General DOT Information
You should
provide proof of insurance for all your cars and the type of goods they're
carrying. This includes preparing all appropriate forms, such as the MC-90, for
inspections. The DOT inspector will also require access to your company's
Accidental Report Book. The main reason for DOT to check this book is to make
sure that your company maintains accurate reports of any crashes that involve
your business.
Even if you
have the best drivers and no crashes occur, you still have to keep an
Accidental Report Book ready for review. And even if one of your trucks has
been involved in a collision that meets the criteria for "accidental"
according to the FMCSRs, you must maintain a report of that incident in the
book for three years from the day it happened. DOT will also examine your
driver training program. Remember, the FMCA requires you to teach not just your
drivers but everyone else working for you who is involved with compliance too.
DOT will be conducting an audit of your truck markings. This will make sure
your CMVs are properly marked. Both sides with your legal name and the DOT
identification numbers.
For your reference, here's a list of DOT Consortium services we offer at Labworks USA with respective rates.
Driver Qualification Files
This section
of the review covers licenses, qualifications, and testing for drugs and alcohol. You need to show DOT that all your drivers have
the correct licenses for the class of vehicle they drive and hold the
appropriate endorsements. It is of utmost importance that your company has a
drug and alcohol testing policy in place. This policy should be in writing, and
all drivers should be made aware of it. You should have a signed receipt from
each driver, indicating that they have received and read the policy.
One of the fastest ways that you can find yourself with an unsatisfactory mark
after an audit is to neglect your drug and alcohol testing program. If a driver
has been with you only a short time, you need to prove that you have tried to
obtain three years’ worth of drug and alcohol testing information from their
previous employers.
This is not always possible, but you need to show that you made an appropriate
attempt. Is one of your employees have an alcohol or drug problem? You don't
want to fire them but to help them with rehabilitation? With that, you must
show documentation about their treatment, the completion of a program, when
they returned to driving, and any follow-up tests you have done.
Operational Logs
Operators of CMVs are required to adhere to all driving limitations and hours of service regulations. DOT auditors will need to review logs and supporting documentation for a minimum of six months when they arrive. You must maintain either an electronic or paper file for each driver. Driver logs should contain four basic statuses:
- Off-duty: The driver isn’t working
- On duty: The driver is working but not
driving. This includes things such as refueling and loading freight.
- The sleeper berth is the resting area for the
driver while the vehicle is not in operation.
- Driving: The driver is operating the
vehicle. If drivers violate the hours of service rules, they may face
grave consequences. These rules regulate how many hours a driver can work
and when they need to take breaks. For example, a driver cannot drive for
more than 11 hours in one day, must take a 30-minute break every eight
hours, and must take a 10-hour break every 14 hours.
Vehicle Requirements
As the
driver operates the vehicle, they must be aware of the hours of service rules
and the potential consequences of violating them. These rules set the maximum
number of hours a driver can work in a day, as well as when they are required
to take breaks. For example, a driver cannot drive for more than 11 hours in
one day and must take a 30-minute break every eight hours. You must maintain
these records for at least a year.
If you have
more than 34 percent of your vehicles out of service at any one time, you will
probably only get a conditional pass. Most companies aim for around 20 percent.
The same is true if more than 10 to 12 percent of your drivers are also
unavailable. Try not to go higher than five percent.
If you are
planning to prepare for a DOT audit, we suggest reading this in-depth article
that we've created as part 2 of this overview - Preparing for a DOT Audit.
Moreover, if
you need further support with DOT compliance, feel free to reach out to us at Labworks USA.