Digital Compliance

THE DIGITAL SHIFT IN DOT RECORDKEEPING REQUIREMENTS.

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Ever since the Department of Transportation (DOT) announced its new recordkeeping requirements, the compliance community has been buzzing about how the changes will affect them and their fleets. But it’s important to remember that even if you’re not directly subject to DOT regulations, there are still many reasons to keep up with your recordkeeping duties. You don’t want to be caught off guard by these new requirements, so read on to learn more about why they matter and how you can get compliant.

How the FMCSA has updated its audit process 

Federal Motor Carrier Safety Administration (FMCSA) audit teams who look at carriers’ documentation and driver logs have been interpreting the policy more strictly for some time now. However, many carriers still haven’t realized this. What can I do to stay in compliance? When we have a sound compliance document management system in place and a system of checks and balances, everything becomes so much easier than a nightmare.

How an offsite audit differs from an onsite audit 

If you’re a motor carrier, there’s really no avoiding them: safety audits will be a fact of life, either scheduled or random. These annual inspections, ordered by the Federal Motor Carrier Safety Administration (FMCSA), are in place to ensure that your business and your fleet are operating according to the law. As the FMCSA has shifted to digital records, the auditing process has undergone dramatic changes.

A straightforward definition of an onsite audit would be a safety audit conducted at a trucking company’s place of business to verify that basic safety management controls are in place. Basically, the inspector wants to see documentation related to drivers and vehicles and business procedures and records. It is customary for carriers to have up to six weeks to hand in copies of this documentation. That is to say, external reviews are done away from home. Safety auditors assess a carrier’s safety performance and management practices by requesting specific documents. Then, these files need to be uploaded to FMCSA’s secure software platform within 48 hours, where they are inspected by an auditor who identifies any violations and explains how to fix them.

Via offsite audits, inspectors have the authority to assign Unsatisfactory and Conditional ratings as a result of alcohol and drug violations, driver or operator violations, and repair and inspection violations. No matter what we may want, it’s clear that more companies are getting outside audits–mainly over the past year. From .5% in 2017 to 51.6% in 2020, audits have increased.

External audits are faster, and carriers need less preparation time. So, you have to create a digital record to submit your application, which must be completed within two days instead of the several weeks’ turnaround time in the past.

Consequences of sloppy recordkeeping (starting with hefty fines) 

Understandably, you might feel a little uneasy about your records. It sounds like a lot of work, and maybe you don’t have much to show for it yet. In fact, many business owners don’t realize how critical these documents are until they get slapped with hefty fines for mismanaged records. It could happen to anyone — even if your company doesn’t carry hazardous materials. The new rules apply to all businesses that ship goods by land, air, or sea.

The FMCSA (Federal Motor Carrier Safety Administration) raised its baseline civil penalty amounts for trucking violations. This year, it is the second time that the DOT (Department of Transportation) has announced a fee increase. On May 3, 2021, the new fines went into effect. There was an increase in DOT fines, especially related to records-keeping errors. It has been an arduous rule to keep the DOT records, and there was an increase in those penalties. So much is on the line regarding how your company keeps records; Purcell has created a digital online compliance system that solves how you keep your documents organized.

The problem with paper files—and paper files you scan into a computer 

Paper files often get misplaced, damaged, or lost. But even scanned records can fall prey to system crashes and computer viruses. And without proper file management, it’s easy to miss deadlines…audit deadlines. If you’re using paper records that need to be turned into digital files, how can you ensure they will be there when needed? It starts with using the best compliance document system.

How Purcell’s digital solution makes DOT recordkeeping a breeze 

Recently, we talked to our customers about what’s most important to them about their recordkeeping solution and found that organization, user-friendliness, and compliance with US DOT and the FMCSA were their top priorities. Allowing transportation companies and owner-operators to know their compliance needs and how to maintain their records up-to-date. That’s why we have redone Purcell’s compliance document management service with advanced digital driver files, MVR management, IFTA filings, and much more.

Purcell’s usdot record system not only organizes your compliance documents per company, equipment, and drivers but lets you know when you are out of compliance based on your operations and expiring on essential licenses. How do I stay compliant? Sign up for a free trial today!

The many advantages to going digital (you’ll always be audit-ready!) 

Recently, there has been buzz about how all carriers will be moving to paperless recordkeeping, and if you haven’t already made that leap, you might feel like you’re missing out. However, keep in mind how many advantages there are to going digital. You will be able to meet USDOT and FMCSA standards; it will be much easier for you to do so when you use Purcell’s compliance document management system. In this digital age, there’s really no alternative. Reach out to Purcell today, and we will give you a demo.

855-278-2525 or schedule an appointment; click here.

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