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Clearinghouse Final Rule & How to Avoid Extreme Fees

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What you need to know about FMCSA final rule & Clearinghouse:

A new U.S. Department of Transportation (DOT) directive announced last month could mean steeper fines for drivers, carriers and medical review officers (MROs). The new DOT fine is more than double last year’s $2,500 per violation.

The DOT final rule, a part of the 49 CFR part 382 subpart G of the federal regulations, advises that “any employer, employee, medical review officer, or service agent who violates any provision” of the regulatory code is subject to a civil penalty not to exceed $5,833.

As of the November 2020 report, the FMCSA Drug & Alcohol Clearinghouse reported over 162,000 employers, 1,500 MROs, and 9,000 MROs / TPAs registered, while over 45,000 were cited for violating the regulatory provision and not registering last year.

A Clearinghouse violation could be anything from an employer accessing an employee’s driver’s record without proper consent, or failing to submit a Clearinghouse query when a new employee is on-boarded. A Clearinghouse query is “an electronic check in the Clearinghouse, conducted by an employer or their designated C/TPA, to determine if current or prospective employees are prohibited from performing safety-sensitive functions,” according to its website.

It is important to keep up-to-date with Clearinghouse management, but it can definitely be time consuming for busy employers. Utilizing an external Clearinghouse management team can save employers time and prevent any headaches that may come with the entry and data process. On Demand can help your company manage your Clearinghouse and ensure all information is added and updated regularly. With new, expensive violation fees, it just makes sense to trust a TPA to manage and avoid any fees that may occur.

Additional updates included in the final rule are:

A Commercial Driver’s License (CDL) holder who is convicted of violating an out-of-service order is subject to a civil penalty of at least $3230 for a first conviction and at least $6460 for a second subsequent conviction.

An employer of a CDL holder who knowingly allows or requires an employee to operate a commercial motor vehicle during any period in which the CDL holder is subject to an out-of-service order is subject to a civil penalty between $5833 – $32297.

On Demand TPA is here to help with all of your Clearinghouse needs. A complete management solution for you and your team with competitive prices. Visit our website for more information.

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