Q&A

Not all CDLs are created equal

A legal pro breaks down the DOT’s latest changes, and how they could leave some drivers off the road

(Courtesy Greg Reed)

With recent changes around commercial driver’s licenses, fleet owners have yet another task in front of them: keeping up and staying compliant with the new rules.

To help make sense of what these updates mean for the industry, we chatted with Greg Reed, a partner at the law firm Hanson Bridgett,. Reed advises transportation and logistics companies on regulatory compliance, employment law and risk management—making him the perfect person to explain what motor carriers should know about CDLs and how to avoid any legal pitfalls.

— Interview by Shefali Kapadia, edited by Bianca Prieto

With the DOT's recent changes to non-domiciled CDLs, what are the most important things fleets should know?

The emergency regulation on non-domiciled CDLs is a reminder to transportation companies that it may be the case that all CDLs are not created equally. That means current drivers with non-domiciled CDLs may not be able to renew their license a year from now. Worse still, it may also be the case that those drivers should not have been issued a license in the first place and their license could be subject to revocation in the near future. If transportation companies choose to continue using drivers with non-domiciled CDLs, they should work with employment and transportation regulatory counsel to mitigate their risk. Otherwise, transportation companies should anticipate the need to secure new drivers.

How would you advise trucking companies, especially small carriers, to limit their liability and mitigate risk in light of the new CDL rules?

Unfortunately, until the impact of the emergency regulation is fully understood, working with drivers with non-domiciled CDLs is inherently risky. Trucking companies, and especially small carriers, should limit their exposure to these drivers if possible. And while it may be tempting for these companies to conduct their own audit of those drivers with non-domiciled CDLs to determine whether that driver properly received that license and will be able to maintain it at the time of renewal, such audits, without proper counsel, can expose these companies to liability under federal and state employment law.

If a trucking exec employs or works with a driver holding a non-domiciled CDL, what should they do?

The trucking company should consult experienced counsel to ensure that any steps taken to either continue or cease working with that driver do not violate federal or state law.

Beyond CDLs, what are the most common legal pitfalls you see among small business trucking carriers?

There are numerous regulatory compliance, often safety-related, pitfalls that can easily ensnare small trucking businesses, but the greatest risk these companies face is their unmanaged exposure to liability. Failing to properly train or supervise drivers as well as the failure to implement systems to prevent fraud are the quickest way to business-ending losses or a business-ending reputation.

What's your No. 1 piece of advice to small carriers to avoid legal issues?

Do not work in your business, work on your business. As small-business owners, it is easy to fall into the habit of being involved in every little aspect of the business, including jumping behind the wheel. While that may be necessary from time to time, as a regular practice it will prevent you from thinking strategically about how to improve operational efficiency and achieve new growth. Invest in good employees, low-cost software and practical legal counsel to deal with the day-to-day, so you can invest your time envisioning the future.