TRUCKING COMPANY ABRUPTLY CLOSES
A trucking and logistics company in Robinson, IL cut hundreds of jobs across four states when it abruptly closed, and the company now faces a lawsuit from a former employee. According to an online database, the Illinois Department of Labor received a Worker Adjustment and Retraining Notification (WARN) from Midwest Transport, Inc. The database showed 75 employees were being laid off at the Robinson facility and that the layoffs started weeks before the state notification was received.
Under the Illinois WARN Act, employers with 75 or more full-time employees must provide written notice of pending plant closures or mass layoffs at least 60 days in advance. Other state and federal regulations outline similar requirements. A copy of the WARN letter Midwest Transport sent to the Illinois Department of Labor, dated September 27, explains that the company ceased operations on September 9 at all facilities, which include locations in Robinson and Greenup, Illinois, along with facilities in Tennessee, Florida and Pennsylvania.
Midwest Transport said it was seeking capital to continue operating. The company claims it couldn’t give 60-day notice because it would have jeopardized the efforts. Also, the company said a large creditor unexpectedly demanded the business cessation on September 9, preventing the company from giving employees 60-day notice.
In total, just over 500 people were impacted, including truck drivers, support staff, maintenance workers, dispatchers, managers, and regional directors. Only a few administrative staffers remained to wind up the company’s affairs.
A former employee in Florida filed a lawsuit in federal court, which could clear the way for a class action. The suit claims Midwest Transport violated the WARN Act by not providing proper notice of mass layoffs at its Tampa, Florida location, where about 400 people lost their jobs. The plaintiff is asking for unpaid wages and benefits for 60 days.
UNASSIGNED DRIVING TIME
Unassigned Driving Time in an electronic logging device (ELD) and system will come back to haunt you if you don’t deal with it. There are two reasons for this. First, it is a violation of the FMCSA regulations to not deal with it and can lead to a penalty (fine) during an audit. Second, it is a strong indication of drivers trying to falsify their logs. False logs can lead to roadside inspection violations followed by an audit, which will lead to an even larger penalty.
Under 49 CFR 395.32(b), when prompted by the ELD, a driver must review any unassigned driving time when he or she logs into the ELD. If the unassigned records do not belong to the driver, the driver must indicate that in the ELD record. If driving time logged under this unassigned account belongs to the driver, the driver must add that driving time to his or her own record. The regulations related to unassigned driving time (395.32) require one of three things to happen (if none of the following things are done, it will be a violation of 395.32).
1) A driver must accept the unassigned driving time. When a driver logs into an ELD that has unassigned driving time on it, the device must offer it to the driver. The driver must then either accept or reject it.
2) The carrier must assign the driving time to the correct driver. If a driver has not accepted the unassigned driving time, the carrier must investigate it and determine whether it can be assigned to a driver. If it can, it must be assigned to the driver. Typical tools used to investigate include driver assignments (who was operating the vehicle before and after the unassigned driving time) and position and maintenance reports (was the vehicle moving down the road, where did it happen, etc.).
3) The carrier must add a comment to it. If the carrier determines the unassigned driving time does not belong to a driver, the carrier must attach a comment to the unassigned driving time explaining why it could not be assigned to a driver. But just know, this is the last resort, not the first choice.
Falsifying records can be a serious offense. Drivers who create unassigned driving time by driving when logged out of the ELD are in violation of the limits in 395.3 or 395.5. This, in turn, creates a false log under 395.8(e). This is because the driver in effect is logging off duty while actually driving and on duty. Common methods drivers use to falsify their records include manually changing entries in ELDs or paper logs to hide HOS violations, recording false information for previous days to cover up violations, creating fictitious driver profiles to log hours that weren’t actually driven, and misclassifying driving time as off-duty or personal use to extend hours.
CALIFORNIA EASES SOME REQUIREMENTS
As of January 1, 2025, certain vehicles will no longer be subject to California’s 90-day inspection program. Recently enacted Assembly Bill 3278 removes vehicles with a gross vehicle weight rating (GVWR) of under 26,001 from the state’s 90-day vehicle inspection program (sometimes referred to as the California Highway Patrol’s 90-day BIT inspection). Currently, Section 34505.5 of the California Vehicle Code requires a vehicle inspection at least every 90 days on brake adjustments, brake system components and leaks, steering and suspension systems, tires, wheels, and vehicle connecting devices.
These 90-day inspections must be documented and include identification of the vehicle (make, model, license number, and company vehicle number or other means of ID). Other items that need to be documented include the date and nature of each inspection and any repairs performed. Signature of the carrier’s representative attesting to the inspection and the completion of all required repairs is also needed. Inspection records must be maintained for two years.
The FMCSA considers this mandatory inspection program to be equivalent to the federal inspection requirements in Part 396. On and after January 1, 2025, vehicles that are no longer subject to the 90-day inspection requirement described above will be subject to the federal annual inspection requirements in Part 396 of the FMCSA Regulations.
