Why New Carriers Fail Their Safety Audit (And How To Avoid It)
Getting a USDOT Number is a huge milestone for anyone looking to start their own transportation business. But for new carriers, the biggest hurdle is yet to come.
For all interstate carriers, within your first 12 months of operation, the FMCSA will conduct a New Entrant Safety Audit. If you pass, you continue operating. If you fail, you can be placed out-of-service for a minimum of 30 days until the violations have been corrected. This is the “Great Filter” of the trucking industry. If you pass your audit, you’re more likely to be in business several years down the road… if not, you may be shuttering your operations shortly after.
The good news is that failure is almost always preventable. Most carriers don't fail because they are unsafe on purpose; they fail because they missed a paperwork requirement or misunderstood a specific regulation.
Here are the most common areas where new carriers get into trouble and how you can be aware of them to prevent a failed safety audit.
Records of Duty / Hours of Service Violations
This has increasingly become one of the most common audit failure reasons we see. Many new owner-operators / carriers are either unaware that they are required to keep Records of Duty or comply with Hours of Service regulations; or they have not been recording the correct type of records for their operation.
Failure to require your drivers to maintain Records of Duty is one of the FMCSA’s automatic failure criteria. Meaning even if you do everything else perfectly, missing this critical step means you’ve failed your audit.
You can get a summary of the Hours of Service regulations on the FMCSA’s website. Once you’ve determined what type of Records of Duty you’re required to keep, ensure you and/or your drivers comply with all requirements. Depending on the exemptions you may fall under, such as the short-haul exemption, you’re required to keep one of these forms of Records of Duty:
Electronic Logging Device (ELD)
Paper Logs
Time Records
Always ensure that you are keeping the right type of records for your operation, that they are completed consistently & accurately, and that you are prepared to present these records at a moment’s notice.
Drug and Alcohol Program Violations
Many new owner-operators assume that because they’re the only driver and don’t partake in drugs/alcohol, they’re not subject to the Drug & Alcohol testing requirements. This is incorrect. For owner-operators & drivers alike, if you operate a vehicle requiring a CDL, you must be enrolled into a Drug & Alcohol consortium, complete a pre-employment drug screen, and receive a copy of your negative test results before you get behind the wheel.
The FMCSA lists several automatic failure violations related to this:
No Alcohol and/or Drug Testing Program: You must have a policy and a program in place.
No Random Testing Program: You must be enrolled in a random testing consortium that manages random selections for you.
Using a Driver Who Refused a Test: If a driver refuses a required test, they cannot drive. Period.
Using a Driver with a Positive Test: This seems obvious, but you cannot allow a driver with a verified positive drug test or an alcohol concentration of 0.04 or greater to perform safety-sensitive functions.
Before you hire your first driver (even if that driver is you), enroll in a drug and alcohol consortium and get a pre-employment drug screen on file.
Qualified Driver Violations
Your files need to prove that the person behind the wheel is legally allowed to be there. The auditor will look at your Driver Qualification (DQ) files to ensure everything is being recorded accurately and is current according to FMCSA requirements.
Common pitfalls here include:
Invalid CDLs: You cannot use a driver who doesn't have a valid Commercial Driver’s License for the class of vehicle they are operating.
Suspended or Revoked Licenses: If a driver’s license is suspended (even for non-trucking reasons), they are disqualified.
Medically Unqualified Drivers: Every driver must have a valid medical certificate (Med Card) in their file. If it expires, so does their ability to drive.
Don't just slap some paperwork together and assume that your Driver Qualification Files are sufficient. A DQ file that is missing critical components will guarantee that you fail your audit just the same as if you didn’t have a file put together at all. Review the Driver Qualification checklist provided by the FMCSA here.
Vehicle Maintenance and Inspections
Your drivers are essentially driving a high-speed death trap every moment they’re on shift. Having those vehicles inspected, repaired, and maintained is not only crucial to safe operation, it’s required if you have any hopes of passing your audit. The FMCSA does not take kindly to carriers who ignore mechanical issues.
You will automatically fail if you:
Operate an Out-of-Service Vehicle: If a roadside inspector places your truck Out-of-Service (OOS), you cannot move it until the repairs are made. Driving it before then is a serious violation.
Ignore DVIR Defects: If a driver lists a safety defect on their Driver Vehicle Inspection Report (DVIR), it must be repaired before the vehicle goes out again.
Skip Annual Inspections: Every commercial vehicle must have a periodic (annual) inspection on file.
Getting the vehicle inspected regularly and taking care of preventive maintenance is cheaper than a tow bill or an Out of Service DOT Number. Keep a file that contains vehicle information, inspection reports, maintenance schedules, and repair receipts organized by vehicle.
Protecting Your Business
Passing your New Entrant Safety Audit comes down to preparation. The FMCSA isn't looking for perfection, but they are looking for "safety management controls"—proof that you have a system in place that shows you are both aware of the rules, and know how to follow them.
If you are unsure about your Drug and Alcohol program, your DQ files, or your maintenance records, don't wait for the auditor to call. Review your files today and fill the gaps. Your business depends on it.
If you have questions, concerns, or want to speak with an expert to prepare for an upcoming safety audit, don’t hesitate to contact us.