NYTimes.com: Victims of Misclassification

The New York Times reports pro labor forces seek to criminalize use of independent contractors.  The use of owner-operators would be affected.

http://www.nytimes.com/2013/12/16/opinion/victims-of-misclassification.html?emc=eta1&_r=0

Approximately 50 Days and Counting

If you are currently a broker or freight forwarder, or if you are a carrier which arranges for truckload transportation and need to obtain broker or freight forwarder authority, you have approximately 50 days left to comply before the agency begins enforcing the new rules.

A broker’s or freight forwarder’s bond can be obtained in less than 2 weeks and for a qualified applicant should cost less than $2,000 per annum.

Biennial Reports/URS Rulemaking Requires Careful Consideration

On August 23, 2013, the FMCSA issued its Final Rule in the Unified Registration System (URS) matter.  This rulemaking will make massive changes to the application process effective in March of 2015.

In the meantime, two aspects of the Final Rule are effective.  One is a substantial penalty for failing to file the biennial MCS-150 report on time leading up to and including revocation of authority.

Legislative Update - MAP-21 and Broker Requirements

The agency issued its long anticipated guidance on MAP-21 today.  Attached is my summary analysis of its points and a complete copy of the agency’s document. Basically, the agency has given an additional 60 days for brokers and forwarders to file the $75,000 bond. The agency has made clear that in the future motor carriers must obtain a broker’s license in order to arrange for transportation which is not “joint line in nature” (i.e., freight which the origin carrier does not provide service on its own equipment for at least a portion of the journey).

The soft landing on enforcement means that unless Congress acts, existing carriers and brokers need to ensure their surety or bank trust agreements are filed quickly and carriers which wish to continue past practices of convenience interlining must obtain a broker’s license or freight forwarder permit as soon as possible.  Importantly, the agency indicates that a carrier can file for this additional authority in its current corporate name and that the agency will later sort out how to meet the MAP-21 compliance for separating authorities.  The attached summary is fairly comprehensive. 

Yours truly,
Henry E. Seaton

ATTENTION: BROKERS & FREIGHT FORWARDERS NEW $75,000 BOND REQUIREMENT IN EFFECT OCT 1, 2013

ATTENTION: BROKERS & FREIGHT FORWARDERS
NEW $75,000 BOND REQUIREMENT IN EFFECT OCT 1, 2013
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