How Does This Affect Me?
Each party to a brokered transaction has the right to review the record of the transaction required to be kept by these rules.
You have the right to know how much a broker is paid. Yet the FMCSA has refused to issue a decision on how to effectively enforce this regulation. They delayed it until October 2024! The time is nearly here. Tnooa recognized the desperate need for transparency from its many valued members. Members successfully signed a petition & engaged in the last comment period. Since then, (2022), Tnooa has continually applied pressure in the form of advocacy on multiple fronts. Not only with social media, but where it counts. In Washington D.C. with your representatives. In person & virtual meetings. Written correspondence. All avenues within the Dept. of Transportation & FMCSA.
What Else Should I Know?
The trucking industry requires immediate reforms to address outdated regulations from the 1980s. The landscape has significantly changed, and we must adapt to these shifts. Industry stakeholders, regardless of their stance, must prioritize safe operations over profits. Proper enforcement is essential to regulate the industry effectively and ensure transparency.
With a firm goal of educating newcomers, TNOOA strives to truly support the trucking industry. Enforcement of rules deters unethical practices and enhances safety. The FMCSA must enforce regulations to protect the supply chain’s integrity and the trucking industry’s operational safety. The current process & lack of enforcement has led to high levels of fraud, predatory practices, and all stakeholders involved suffering. The industry is being exploited and is vulnerable as a result.
An Example
Are you aware it is illegal for a broker to refuse furnishing these records & illegal to ask you to waive your right to request them? It is also illegal to retaliate against you for such requests. Yet this clause has been embedded over the years by brokers & the TIA into the “carrier packets” that brokers require you to sign before engaging in business.
CFR History
The FMCSA was charged with enforcement of the CFR’s when the ICC was dissolved. Yet, since an original formal request in 2020 (by the SBTC), the FMCSA has failed in its duties to enforce this existing CFR.
Citing a variety of reasons for failing in their responsibilities. It is crucial to understand that the FMCSA retains significant enforcement authority, despite the 2019 decision by a Department of Transportation Administrative Law Judge in the Darlene Riojas et al. case. The agency’s powers under 49 USC 521 remain intact, allowing it to assess civil penalties of up to $1,000 per day against brokers who fail to comply with record-keeping requirements. It is also worthwhile to note that strengthening enforcement will not only ensure compliance with existing regulations but also enhance safety and fairness within the commercial transportation sector. As recently reported, cargo fraud has exploded in our industry. This is directly attributable to the lack of enforcement upon general freight brokers by the FMCSA. As evidenced by their own reports (see image at the bottom).
Did You Know?
Back On September 5, 2013, more than a decade ago, FMCSA published a notice in the Federal Register. You can find it here.
Therein, FMCSA stated:
“During the first phase-in period, FMCSA will accept complaints regarding unregistered brokerage activities of motor carriers through our National Consumer Complaint Database (http://nccdb.fmcsa.dot.gov/). FMCSA will work with industry groups to use this complaint information and other data to ascertain the extent of the unlicensed broker population subset within the motor carrier industry. The agency will then work toward developing a comprehensive enforcement program.”
Over decade later, FMCSA has allowed broker fraud and non-compliance to run rampant and has yet to create the comprehensive enforcement program” they promised industry trade groups.
We are calling on truck drivers to support the upcoming open comment period by submitting the letter below. Send the message loud & clear. Your voice is critical in ensuring fair and transparent operations that protect hardworking drivers and their businesses.
