New regulations from the US DOT and the FMSCA will force trucking firms to invest in electronic onboard recording devices (EOBR), at considerable cost. However, the cost of non-compliance of these regulations is significantly higher. This presentation explores the costs to firms that do not fully comply with these new regulations.

1. DOT Compliance
What’s the true cost of
non-compliance?
Presented by Dispatching Solutions

2. Cost of Non-Compliance
Overview
New regulations from the US DOT and the FMSCA
will force trucking firms to invest in electronic
onboard recording devices (EOBR), at considerable
cost. However, the cost of non-compliance of these
regulations is significantly higher. This presentation
explores the costs to firms that do not fully comply
with these new regulations.

3. DOT Compliance Requirements
The DOT’s requirements for Hours of Service reporting
became effective on July 1, 2013:
• Allows only one “34 Hour restart” per week and
must include 2 - 1:00am to 5:00am periods
• Old Rule: 82 Hours per week – New Rule: 70
• Drivers cannot drive after working 8 hours without
having a 30 minute break
• Electronic Onboard Recorders (EOBRs) for onsite
inspection by DOT Officers

4. DOT Compliance Requirements
The DOT’s requirements for Electronic On Board
Recorders:
• Mandate to take affect later in 2013
• Final ruling due out in October 2013
• Requires all motor carriers currently required to
maintain records of duty status (RODS) for HOS
recordkeeping to use EOBRs
• These devices must be made available to inspectors
during roadside inspections.

5. Cost of Non-Compliance
The DOT/FMCSA has several remedies available to them
for handling non-compliant firms:
• Fines
• Out-of-Service Violations
• Lawsuits
• Increased in Inspections/Detailed Inspections
• Impact on Insurance Rates

6. Cost of Non-Compliance
Fines
• In 2011, DOT regulated companies paid $30,674,218
in fines for failure to comply with Federal Motor
Carrier Safety Regulations (FMCSRs)
• The average fine per case was $5,050
• The most costly violation was falsification of a driver
log where carriers paid an average fine of $9,394.

7. Cost of Non-Compliance
Fines
Sample Fines from Actual DOT Compliance Reviews:
• False reports of records of duty status = $26,250.00
• False reports of records of duty status = $17,480.00
• Failing to provide security awareness training $8,550.00
• Using a driver who has tested positive for a drug =
$6,664.00
• Failing to do random drug tests at applicable annual rate
= $5,340.00
• Failing to require driver to prepare vehicle inspection
report = $4,070.00

8. Cost of Non-Compliance
Out-of-Service
• Lost revenue from drivers and vehicles being placed out
of service for non-compliance is a large cost to carriers
• Each hour of down time can cost up to $87.50 when you
consider an average speed of 50 mph and revenue of
$1.75 per mile
• Being placed out of service for 10 hours due to a driver
log violation can cost upwards of $870.00.
• Costs for out of service roadside vehicle violation repairs
can be three to five times the cost of the repair being
performed at the home terminal

9. Cost of Non-Compliance
Lawsuits
• According to transportation legal experts, juries are
relatively accepting of truck drivers who make
mistakes. Juries are much less forgiving when safety
issues are ignored. A trucking company gets to explain
two problems or inconsistencies to the jury. After that,
the jury doesn’t listen and will punish the trucking
company with damages.
• Not only will the carrier pay for damages but the costs
associated with the legal defense. Attorneys, additional
experts, and depositions can add tens of thousands of
dollars to the cost of noncompliance.

10. Cost of Non-Compliance
Additional Costs
Other costs associated with non-compliance:
• Increase in number of inspections
• More detailed inspections
• Impact on insurance rates
• Loss of business due to poor CSA scores
• Reduction in contracted rates because of poor CSA
scores

11. Cost of Non-Compliance
Summary
• While the costs of compliance are considerable; the
cost of non-compliance is significantly more
• Carriers need to invest in compliance
• Spending money on log auditing, drug and alcohol
testing and training drivers is costly but, the bottom
line is, it’s cheaper than non-compliance!

12. Cost of Non-Compliance
Resources
• FMCSA on Hours-of-Service -
http://www.fmcsa.dot.gov/rules-
regulations/topics/hos/index.htm
• FMCSA on EOBRs - http://www.fmcsa.dot.gov/rules-
regulations/administration/rulemakings/notices/EOB
R-Intent.aspx

13. DOT Compliance Solution Overview
DSi Offers a Solution for DOT Compliance
• Web-based - view from
anywhere, any device
• Dashboard – drivers view &
input data on their EOBR
• Violation Warnings – divers
provided early warning
when approaching HoS limits
• LOG Approval – driver’s
approve their logs on their
EOBR, Managers
edit/approve logs on their
dashboard

14. Dispatching Solutions, Inc.
Contact:
Vic Tohak
Director of Sales
On the Phone: 909-460-6404 x103
Cell: 757-708-8347
On the web: www.DispatchingSolutions.com
By Email: vic@DispatchingSolutions.com
440 N. Mountain Ave. Suite 208, Upland, CA 91786