2020 brings with it a host of new regulations that will change the trucking industry, perhaps not for the better. Let’s unpack 4 of these new 2020 Trucking Industry Regulations that will impact truckers and companies across America.
2020 Trucking Industry Regulations
IMO 2020 – Might Spike the Diesel Price – Date implemented: January 1st, 2020
As of January 1st, 2020, all ocean vessels need to make the switch to ultra-low sulfur fuel. Unfortunately, diesel also relies on the same distillate used in the manufacture of these fuels. Therefore, an increase in demand will spur a rise in the pump price of diesel for trucking companies, adding to operating costs.
Some experts speculate that diesel prices could increase by as much as $0.25 per gallon during 2020. A sharp increase in the diesel price might also push out smaller trucking companies running razor-thin margins to remain competitive.
Drug and Alcohol Clearinghouse Goes Online – Date Implemented: January 6th, 2020
As of January 6th, 2020, all trucking companies must use FMCSA’s Drug and Alcohol Clearinghouse. This online database provides employers with access to information regarding any CDL driver drug and alcohol violations.
The database provides national coverage for all drivers. Therefore, there’s no chance of a driver with a violation of finding work with a carrier in another state. The FMCSA might also pass a decision to permit hair follicle analysis as an alternative to traditional drug testing.
Higher Labor Costs Due to New Overtime Laws – Date implemented: January 1st, 2020
The US Department of Labor is introducing new overtime laws in 2020. As a result, more than 1.3-million American workers stand to benefit from overtime pay this year.
However, truck drivers won’t see much of this, due to pay to be by the mile. However, staff working in the back office might find themselves eligible for overtime. While this sounds great for employees, it can be a crippling financial blow for trucking companies.
California Legislation Limits Independent Contractors – Implementation date: January 1st, 2020
Californian trucking companies were up in arms in early 2020 concerning this law. With the passing of Assembly Bill 5 (AB5), the trucking industry to “lease on” independent contractors. Similarly, brokers can no longer take on “agents” as independent contractors.
Truckers found the classification of an independent contractor to be unfair for their industry. After a much-heated debate between industry representatives and government officials, California decided to make the trucking industry exempt from the passing of AB5.
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