New Entrant Safety Audit: How to Pass the First Time

Every new carrier goes through a safety audit in its first months. It's not a trap, and most of it checks records you should be keeping anyway.

But some violations fail the audit automatically, no matter how good the rest of your files are. A failed audit can cost you your registration. Here's what's checked, the 16 violations to avoid at all costs, and how to prepare from your first day.

What the new entrant program is

When you get a USDOT number and start operating, FMCSA puts your company in its New Entrant Safety Assurance Program for 18 months.

During that time, FMCSA watches your roadside inspections and crashes. It must complete a safety audit within your first 12 months as a property carrier. Pass the audit and get through the 18 months without serious problems, and you become a regular carrier.

The audit can be done at your place of business or electronically, with you uploading documents. Either way, you'll get notice and a list of what to provide.

What happens in the audit

The auditor looks at whether you have basic safety management controls in place. In practice, that means records in these areas:

• Driver qualification: application, motor vehicle records, CDL if required, medical certificate
• Drug and alcohol testing: if anyone drives under a CDL, your testing program, pre-employment test results and random pool membership
• Hours of service: records of duty status, ELD data and supporting documents
• Vehicle maintenance: inspection, repair and maintenance records, driver vehicle inspection reports and annual inspections
• Insurance: proof of the required minimum coverage
• Crash records: a crash register, if you've had any reportable crashes

The auditor will also explain the rules and answer questions. Use that. It's free advice from the people who enforce the rules.

The documents to have ready

If your audit is electronic

Many safety audits now happen remotely. You'll get a notice with a deadline and a list of documents to upload or send. To make it go smoothly:

• Scan documents clearly, in color if possible, and name files by category, like "Driver file," "Maintenance" and "Drug and alcohol."
• Send exactly what's asked for, for the dates requested.
• Answer the auditor's follow-up calls and emails quickly. Delays can count against you.
• Keep copies of everything you send and the date you sent it.

The 16 automatic-failure violations

Under 49 CFR 385.321, finding any one of these fails the audit automatically. Most count after a single occurrence; two count when found in 51% or more of the records checked.

1. No alcohol or drug testing program
2. Using a driver with an alcohol concentration of 0.04 or higher
3. Using a driver who refused a required test
4. Using a driver known to have tested positive for drugs
5. No random testing program
6. Knowingly using a driver without a valid CDL
7. Knowingly letting a driver with a disqualified CDL or permit drive
8. Knowingly letting a disqualified driver drive a CMV that requires a CDL
9. Operating without the required minimum insurance
10. Operating a passenger vehicle without required insurance (passenger carriers)
11. Knowingly using a disqualified driver
12. Knowingly using a driver who isn't medically qualified
13. Not requiring drivers to keep records of duty status (51% or more of records)
14. Operating a vehicle declared out of service before it's repaired
15. Not fixing out-of-service defects reported on a driver vehicle inspection report before driving
16. Using a vehicle that hasn't had its periodic (annual) inspection (51% or more of records)

For a one-truck owner-operator, four catch people most often: the drug and alcohol program, an expired medical card, missing logs and a missed annual inspection. If you drive under a CDL, you need a drug and alcohol program even though you're the only driver.

If you fail

A failed audit isn't the end. FMCSA sends written notice explaining what was wrong and what you need to fix. You then submit evidence of corrective action within the time the notice gives you.

For property carriers, that's generally 45 days. If FMCSA accepts it, you stay in the program. If you don't respond, or the fix isn't accepted, your new entrant registration is revoked and you have to stop operating.

Roadside inspections can trigger faster action too. Certain serious violations found at the roadside during your new entrant period can lead to an expedited audit.

How to prepare from day one

1. Set up your files before the first load, not after the audit notice arrives. Our new authority guide lists what to set up while your authority is pending.
2. Enroll in a drug and alcohol consortium and get a negative pre-employment test before you drive under a CDL.
3. Put every deadline on a calendar: medical card, annual inspection, annual MVR review and Clearinghouse query. Here's our owner-operator compliance calendar.
4. Log every day correctly and keep supporting documents. Here's how hours of service works in planning terms.
5. Fix defects before you drive, and keep the repair records.
6. Keep your inspection record clean. Pre-trip inspections and working lights and tires avoid most roadside violations, and every driver should meet the English proficiency requirement inspectors now check.

FMCSA's New Entrant Safety Assurance Program page has the official overview.

A clean first year also builds the record brokers look at. When you dispatch with us as a new authority, we book loads you can run on time and legally. That keeps your inspection and on-time history strong while you're under the closest watch. See our dispatch for new authority carriers.