January 2020 Newsletter
Looking in the Rear View Mirror: The Trucking Industry in 2019
From a new hours of service reform to an overall downturn in truck orders, 2019 was a very different year than 2018. The industry saw major operations shut down or file for bankruptcy as business hit a plateau.
FMCSA Increases Random Drug Testing Rate to 50% for 2020
Effective January 1, 2020, the Federal Motor Carrier Safety Administration (FMCSA) increased the minimum annual percentage rate for random drug tests from 25% to 50%.
When the reported positive rate reached 1% in 2018, the FMCSA Administrator increased the random testing rate pursuant to 49 CFR 382.305 (h).
Raising this rate is estimated to increase industry costs by $50-$70 million.
Drug & Alcohol Clearinghouse Is Now Open
As of January 6, 2020, all employers of Class A and B CDL drivers must be registered in the FMCSA Drug and Alcohol Clearinghouse.
Employers must submit testing results and conduct limited and full queries on current and prospective drivers.
If you’re still unsure what needs to be done or where you should start, Fundamental’s white paper gives an overview of what employers must do to comply with this new regulation.
Federal Judge Issues TRO Against Enforcement of California AB 5
The new law that would reclassify self-employed truck drivers and owner-operators as employees was halted by a federal judge in California, placing a temporary restraining order (TRO) against the implementation of Assembly Bill 5 (AB 5).
The TRO has been extended and will remain in effect until the U.S. District Judge Roger Benitez rules on the preliminary injunction. Additional suits have been filed by the Western States Trucking Association, freelance writers and photographers, and Uber and Postmates. In a separate lawsuit, NFI Industries claimed that AB 5 is preempted by Federal Law.