Lawmakers propose 10% penalty for brokers hiring high-risk carriers

Transportation Broker Safety Act

The bill authorizes the Federal Motor Carrier Safety Administration (FMCSA) to investigate brokers after a crash and to impose operational requirements on those who have acted with “reckless disregard for safety” when hiring a carrier involved in an accident. It also directs that the civil penalties collected be used to fund projects and infrastructure that enhance roadway safety.

If enacted and enforced, the revenue generated could be substantial, as most mid- to large-sized motor carriers have accumulated three or more violations in their public records. In addition, while the FMCSA’s CSA system currently displays only three years of history, the bill proposes evaluating a broader five-year period for the purpose of applying penalties.

However, the initiative has drawn criticism. Chris Burroughs, president of the Transportation Intermediaries Association (TIA), described the bill as “well-intentioned” but warned that it could ultimately be counterproductive. He said it would place brokers in an untenable position by forcing them to oversee safety across the trucking industry and significantly increasing their exposure to litigation nationwide.

The debate emerges amid increased use by brokers of carrier verification platforms, driven by a rise in fraud within freight markets. While the legislation could benefit small carriers and owner-operators with clean safety records, it could also incentivize the hiring of companies with limited public data, introducing additional risks.