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A perfect example for the ‘Don’t Do This! Files’; FMCSA was forced to take legal action against a passenger carrier that ignored a shut down order.
Over the last year, we’ve brought you numerous stories about the Federal Motor Carrier Safety Administration cracking down on passenger carriers. After facing criticism from Congress that the agency was not doing enough to stop dangerous passenger carriers from operating, the past year has seen FMCSA take scores of troublesome bus companies off the road.
The company in this week’s issue, however, should be of interest to both passenger and property carrying motor carriers. This is the perfect example of what not to do when you face enforcement action from the DOT. In short, if you get in trouble over regulations: Don’t Do This!
Don’t Do This:
Double Happyness Travel Inc., a Pennsylvania Bus Company was ordered by FMCSA to cease all operations due to being declared an ‘imminent hazard’ to public safety.
That was bad enough, however, Double Happyness then compounded the issue by continuing to advertise and sell tickets online. By violating the cease all operations order, the company was operating without an Authority.
This has resulted in FMCSA issuing a Cease and Desist order against the company. Violating such an order would result in an action in United States District Court for equitable and/or declaratory relief. In other words, truly enormous fines.
A Path to Court:
Double Happyness first raised the ire of FMCSA in December when they were initially issued the shut down order. After a review of the company’s operations, they were found to be running with serious, hours-of-service, driver qualification, vehicle maintenance and drug and alcohol testing violations.
A quick look at the company’s SMS scores reveals a shockingly poor safety record:
- Unsafe Driving: 92.8%
- Fatigued Driving: 92.6%
- Driver Fitness: 95.0%
Among other violations, the company was operating with drivers who had not passed pre-employment drug tests, was faking logbooks and was not keeping driver records. Any of these violations by themselves was, probably, enough to shut the company.
What They Should Have Done:
Obviously, violating a shutdown order is not the way to do things but what should the company have done instead?
FMCSA will never leave you high and dry. If you receive a punitive action (up to and including a shutdown order), you will receive a detailed overview of why ,including an explanation of what you need to do in order to get your operating authority back.
It is extremely important that you follow this plan to the letter. (To see a sample of such a plan, you can view the one issued to Double Happyness is December at: http://www.fmcsa.dot.gov/ documents/about/news/2011/ Double-Happyness-IHOOS.pdf). FMCSA will not tolerate you deviating from the remedial action plan in even the slightest fashion — never mind completely ignoring it.
Compliance Help
If you need extra guidance following a remedial action plan, we highly recommend that you talk to a compliance expert. We do not recommend using the internet, especially internet forums as a source of information. In researching this article, we looked at a number of forums and found some shocking examples of people being given the wrong advice.
Much of the information on these forums is put up with the best of intentions. However, well-meant or not, it is very often wrong. Remember, you are betting on the future of your business by using this information; make sure it is from a trusted source.
With the CSA system in place, tracking bad carriers is easier than ever and staying in compliance is more important than at any time previously. If you find yourself in trouble with FMCSA — even if you don’t — remember, the best way to stay on the road is to follow the regulations to the absolute letter. Nothing else will suffice.
