National Carrier Hiring Standard Introduced in FAA Re-authorization Act

Standards for the national carrier hiring appear imminent. The House of Representatives included hiring standards in an amendment tacked on the Federal Aviation Administration (FAA) Re-authorization Act. This Act will hit the U.S. Senate floor for debate by the early summer at the latest.

About the Hiring Standard

The proposed national hiring standard will establish guidelines for shippers and brokers who employ carriers. The trade organization comprised of freight brokers, known as the Transportation Intermediaries Association (TIA), has favored such legislation for years. If passed into law, the standard will be a major step forward in the quest to eliminate unsafe carriers from the roads. Proponents of the standard argue it will eliminate liability pitfalls to boot. The FAA reform bill passed by the House also features language that will pre-empt state regulations that mandate truck drivers conducting interstate commerce are compensated for sustenance and breaks.

The Letter of the Proposed Law

Take a close look at the amendment's language and you will find it states the following:

• When a carrier is hired, the hiring entity, be it a shipper or freight broker, is forced to guarantee the carrier has a satisfactory safety rating
• The carrier must be properly registered 
• The carrier must have the minimum level of insurance mandated by law

The satisfactory rating is determined by a sub-agency of the Department of Transportation known as the he Federal Motor Carrier Safety Administration (FMCSA). This group oversees safety for trucks and buses. TIA has pushed hard for such a national hiring standard for several years. The group tried to have the standard added to the MAP-21 Highway Funding Bill back in 2015. TIA will push for language pertaining to such a hiring standard in the Senate's FAA Re-authorization.

Detractors to the National Carrier Hiring Standard

Trial lawyers represent the main group in opposition to the amendment described above. Those who are especially concerned with highway safety are also against the standard. It is interesting to note the American Trucking Associations that represent massive fleets has not taken a position on the issue.

Amendment Details

The amendment passed the House with some room to spare. The 212-191 vote represents a step closer to safer highways and roads. The amendment was one of 250 debated for inclusion in the FAA reform bill. Jason Lewis, a Republican from Minnesota and Jimmy Duncan, a Republican from Tennessee co-sponsored the amendment. Those in favor of the amendment argue it standardizes and clarifies practices of hiring motor carriers and puts a stop to the local and state standards that unjustly subject shippers and freight brokers to liability following accidents.

The implementation of a federal standard will also make it difficult to sue brokers in state court for roles in choosing carriers mired in accidents when transporting freight. Trial attorneys have enjoyed considerable success convincing juries that drivers or carriers were employed by brokers at the time of the accident or that brokers failed to provide due care when vetting carrier safety record. In some cases, juries have awarded million-dollar verdicts that threatened the viability of brokers, shippers and carriers alike.