November 9, 2004

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Headline News


Performing Unbiased Investigations Into Alleged Employee Wrongdoing Is Essential

By: R. Eddie Wayland
King & Ballow

It is now common sense to advise employers to have policies encouraging employees to report alleged harassment. These policies, of course, are intended to allow the company to investigate and deal with harassing conduct. Many employers, however, still fail to follow through with thorough, unbiased investigations and appropriate corrective action for wrongdoing. This can be a costly mistake.

In Nestler v. Compass Group U.S.A., Inc. an employer’s failure to undertake a proper investigation resulted in a $15 million dollar punitive damage award, reported to be the largest punitive damages award ever for a single plaintiff sexual harassment claim. The plaintiff worked as a marketing coordinator for the company running the on-campus dining facilities at the State University of New York. Soon after she began her employment, her supervisor began making unwanted sexual advances and remarks to her. After enduring the harassment for some time, the employee lodged a complaint with the human resources department, pursuant to company policy. The company concluded the supervisor had an “inappropriate management style.” However, it failed to conclude he had engaged in sexual harassment. The plaintiff was told the investigation had revealed no wrongdoing. The plaintiff subsequently resigned, citing the supervisor harassment and the company’s inaction.

The plaintiff’s proof at trial indicated the company undertook only a limited investigation. She alleged the investigation was not geared toward helping her. Instead, the plaintiff claimed, the company’s investigation was focused on preserving its $15 million dollar contract with the university. The subsequent proof also disclosed information inconsistent with what the plaintiff had been told. By the end of the trial, according to media reports, the jury was visibly angry with the company for its failure to investigate and respond appropriately.

This is just one more example of the need for thorough, unbiased investigations. While investigations may be unpleasant, they are necessary. Thorough, good faith investigations demonstrate an employer’s commitment to its EEO and harassment policies. They are excellent proof of an employer’s attempts to prevent and remedy potential harassment. However, as this case demonstrates, they can be a pitfall for the unwary. Employers should review their investigation procedures and train people responsible for conducting investigations to ensure such efforts are appropriate and accomplish the desired objectives.

R. Eddie Wayland, a labor and employment attorney, is a partner with King & Ballow. King & Ballow is special counsel to the Truckload Carriers Association.

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Do You Have Correct HOS Documents? FMCSA Clarifies Supporting Docs

The Federal Motor Carrier Safety Administration (FMCSA) issued a Supplemental Notice of Proposed Rulemaking (SNPRM) in the November 3, 2004, Federal Register on hours of service (HOS) supporting documents that carriers must keep and use to verify the accuracy of driver’s logbooks. In the SNPRM, the agency intends to clarify that each motor carrier has the duty under the current regulations to:

1) verify the accuracy of driver’s HOS and records of duty status (RODS) – and this obligation extends to the HOS and RODS of independent drivers or owner-operators while driving for the motor carrier;
2) ensure that each driver collects and submits to the employing motor carrier all supporting documents with the RODS; and
3) ensure all motor carriers know of the requirement to maintain supporting documents in a method that allows cross-reference to the RODS.

The SNPRM also proposes a supporting document based self-monitoring system that would be the motor carrier’s primary method for ensuring compliance with the HOS regulations. Furthermore, the agency proposes to permit the use of electronic documents as a supplement to, and, in certain circumstances, in lieu of, paper supporting documents. Industry comments on the SNPRM must be received by FMCSA by January 3, 2005.

Other points of interest in the SNPRM include:

• The FMCSA proposes to allow carriers to use electronic, laser or automated technology (e.g., global positioning systems (GPS), automatic vehicle identifier transponders, electronic bills of lading used by customs officials in the U.S. and other countries, and state driver-vehicle inspection reports (using pen-based computer systems)) in conjunction with paper supporting documents as long as the electronic supporting documents are retained for the same period as the paper documents and can be produced within 48 hours of demand in hard copy;

• The agency is proposing to:

1) add definitions for the terms “supporting document”, “employee”, and “driver”;
2) add a section entitled, §395.10 Systematic verification and record retention;
3) modify the record retention requirements in §§390.29 and 390.31; and
4) clarify the motor carrier’s responsibility to monitor drivers’ compliance with the HOS and verify the accuracy of the drivers’ RODS.

As far as clarifying the definitions of “employee” and “driver” in the SNPRM the agency specifies that all commercial motor vehicle drivers (including independent contractors) are considered to be employees of the motor carrier for the purposes of this rule;

• Under the proposed changes to §390.29, motor carriers could retain their time records, RODS and supporting documents at a location of their choice. However, the location would have to be suitable for preserving the records, and would have to able to be produced within 48 hours of a request by an authorized enforcement official.

• The agency is proposing that the motor carrier must keep the supporting documents for a period of six months after receipt, unless another authority requires a longer period of time.

• The FMCSA proposes in §395.10(h) that a motor carrier would be subject to civil and criminal penalties under 49 U.S.C. 521 for the following:

1) failing to have an effective system to verify and maintain records of duty status and supporting documents;
2) failing to prevent a driver from falsifying his/her records of duty status;
3) failing to prevent alteration of supporting documents;
4) failure to prevent a driver from exceeding the hours of service; and
5) failure to have an effective system to verify and maintain records or duty status and supporting documents.

It should be mentioned as well, that the FMCSA noted in the SNPRM that it is continuing to study electronic on-board recorders (EOBRs) and determining a standard for data collection for these devices. A copy of the November 3 Federal Register notice can be downloaded by clicking here for a PDF and here for an HTML. If you have any questions or feedback on this issue, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.

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Final Rule on Changes to Haz-Mat Communications Requirements

In the November 4, Federal Register, the DOT’s Research and Special Programs Administration (RSPA) issued a Final Rule in which the agency amends the Hazardous Materials Regulations (HMR) to improve hazard communication for hazardous materials transported in commerce (Docket HM-206B). The effective date of these amendments is October 1, 2005, however, RSPA is authorizing voluntary compliance with the amendments adopted in this Final Rule beginning December 6, 2004. In the Final Rule, the agency is adopting the following revisions to the HMR that are intended to enhance the identification of HM in transportation and improve the availability of emergency response information:

• Permitting the use of Pantone Formula, an industry guide for colors, for hazard warning labels and placards;
• Expanding the use of labels specified in the Compressed Gas Association Pamphlet C-7 on cylinders used to transport division 2.1, 2.2 and 2.3 gases to all modes of transportation;
• Requiring a NON-ODORIZED marking on certain packages containing unodorized liquefied petroleum gas;
• Allowing a FUMIGANT marking to be removed from a transport vehicle or freight container before the lading is unloaded provided the vehicle or freight container has undergone sufficient aeration;
• Clarifying that beeper or other types of call-back systems do not meet the requirements in §172.604 for emergency response telephone numbers;
• Clarifying that international shipments of Class 9 materials may utilize the placarding exception for Class 9 materials while the shipment is being transported in the U.S.;
• Clarifying that a return shipment of a package that contains less than a reportable quantity of a Class 9 hazardous substance may be offered for transportation and transported with markings and placards in place; and
• Clarifying emergency response information and training requirements for combustible liquids.

It should be noted as well, that based on the industry comments received to their June 11, 2003 Notice of Proposed Rulemaking (NPRM) on this issue that RSPA is not adopting provisions proposed in that NPRM concerning the design of poison-by-inhalation (PIH) labels and placards, the use of retro reflective materials for certain placards, marking requirement for shipments of temperature-controlled Type B organic peroxides, and the organic peroxide subsidiary FLAMMABLE LIQUID label.

A copy of the complete November 4 Federal Register notice can be download by clicking here for a PDF and here for an HTML. If you have any questions or feedback on this issue, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.

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FMCSA Offers Drug and Alcohol Implementation Manuals

The Federal Motor Carrier Safety Administration (FMCSA) Director, Office of Enforcement and Compliance recently forwarded a memorandum to their Division Administrators and State Directors notifying them of the agency’s recently updated publication “Implementation Guidelines for Alcohol and Drug Regulations in Highway Transportation.” The announcement went on to further state that these revised manuals were being shipped to these Administrators and State Directors for use by them, state partners and any other industry representatives as deemed appropriate.

Charles Horan, FMCSA Director, Office of Enforcement and Compliance was quoted in the memorandum as follows: “Our regulations require motor carriers to implement a successful controlled substances use and alcohol misuse program. This updated information will assist the industry to achieve this goal. It also explains what elements are required if an employer has no controlled substances and/or alcohol testing program in place. In addition, we have revised the guidelines to reflect recent changes to the Federal drug/alcohol testing regulations to help employers meet these requirements. The publication also provides the employer valuable compliance information. The booklet also contains pertinent questions to ask motor carriers and there are a number of new regulations that should help improve compliance in our industry. We believe that sharing information with your State partners, motor carriers and others concerning these guidelines, and incorporating the programs outlined in the publication will be beneficial to motor carrier programs and contribute to our mutual goal of reducing crashes, fatalities and injuries.” For further information regarding this manual go to FMCSA’s website at www.fmcsa.dot.gov.

For further questions or additional information, contact Rich Clemente at (703) 883-8847 or email: rclemente@truckload.org.

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TSA Fingerprint Based CDL-HM Background Checks Protocols Due for Release

The Transportation Security Administration (TSA) recently reported that they plan to issue “in the immediate future” rules governing how they will conduct the fingerprint-based background checks on drivers seeking or renewing a hazardous materials (HM) endorsement on their Commercial Driver’s License (CDL). In a recent letter forwarded to the American Trucking Associations (ATA), the agency addressed the industry’s concerns about the short time between an October release date for the protocols and the January 31, 2005 deadline for implementation. “ATA is concerned that states will not have adequate time or funds to set up the systems needed. This also includes a concern that the shortened time frame will not be sufficient to complete the data collection and background check adjudication processes, due to the transient nature of hazmat drivers…. TSA will do everything possible to assist all states in complying with provisions of the USA Patriot Act related to hazmat drivers,” according to Marianna Merritt, Director of TSA’s Credentialing Program Office. That said, what is anticipated in their upcoming Register notice, [which was “promised” by the end of October] is guidance for the states, with the assistance of a contractor, in performing the fingerprint portion of the background checks.

The agency had issued a Final Rule on April 6, 2004 which amended its prior November 7, 2003 Interim Final Rule (IFR) establishing security threat assessment standards for commercial drivers authorized to transport HM. With that ruling, TSA officially changed the date on which fingerprint-based background checks must begin in all States until January 31, 2005. Other points of interest in that IFR include:

o Prior to January 31, 2005, the TSA will conduct name-based, terrorist-focused checks on drivers who are currently authorized to transport HM;

o Prior to the January 31, 2005 deadline, TSA will work with the States to begin fingerprint collection and submission using pilot programs; and

o The agency will complete a rulemaking proceeding regarding the collection of fees to cover the cost of each security threat assessment.

TCA will keep you posted on future details with this issue, if you have any questions or need further information, please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.

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OSHA National Advisory Committee on Ergonomics Sets November Meeting
Trucking Industry Still Unaffected

The Occupational Safety and Health Administration (OSHA) announced in the October 25 Federal Register that the National Advisory Committee on Ergonomics (NACE) has scheduled its sixth public meeting on November 16-17 in Washington, DC. The NACE was chartered for a two-year term back in late 2002, to provide advice and recommendations on ergonomic guidelines, research, and outreach and assistance. The committee has met five times prior, with the most recent meeting held on May 11-12, 2004. For this upcoming meeting, the Committee’s working groups on Research, Guidelines and Outreach will meet on the 16th, and will report back to the full Committee on the following day. In addition, on November 17th OSHA’s Assistant Secretary John Henshaw will address the Committee.

Voluntary ergonomic guidelines have already been developed and implemented by OSHA for the nursing home and retail grocery industries, and in addition, Administrator Henshaw recently announced on September 2 that employers and workers in the poultry processing industry now have a set of voluntary guidelines to draw on to help reduce ergonomic-related injuries. The trucking industry, however, has of yet been unaffected with any proposed or draft ergonomic guidelines resulting from recommendations by the NACE or other OSHA initiatives on this issue. However, we feel it is important to inform you that the NACE has established a working group to identify additional industries for guidelines based on injury data collected by the Bureau of Labor Statistics (BLS).

The NACE will meet on November 16-17 at the Holiday Inn on the Hill, 415 New Jersey Avenue, N.W., Washington, DC 20001. A copy of the October 25 Federal Register notice can be found by clicking here for a PDF and here for an HTML. TCA will keep you informed if the trucking industry is affected in any way by these on-going meetings and discussions, and if you have any questions or comments please contact Rich Clemente at (703) 838-8847 or email: rclemente@truckload.org.

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Mandatory Controls Proposed by Customs for C-TPAT Program

TCA recently learned that the Bureau of Customs and Border Protection (CBP) is currently circulating a “draft” proposal to the industry that if enacted, would place mandatory requirements for importers involved in the Customs Trade Partnership Against Terrorism (C-TPAT). According to this “draft” initiative, the CBP is proposing minimum mandatory standards in the following areas in which importers enrolled in C-TPAT must comply:

1) business partner requirements;
2) container security;
3) physical access controls;
4) personnel security;
5) procedural security;
6) security training and threat awareness;
7) physical security; and
8) information technology security.

C-TPAT is a joint government-business initiative to build cooperative relationships that strengthen overall supply chain and border security. C-TPAT recognizes that Customs can provide the highest level of security only through close cooperation with the ultimate owners of the supply chain – importers, carriers, brokers, warehouse operators and manufacturers. Through this initiative, Customs is asking businesses to insure the integrity of their security practices and communicate their security guidelines to their business partners within the supply chain.

The “latest” information from the CBP is that they are working on a new version of the C-TPAT initiative based on responses from the industry that they have received to date. In addition, CBP is intending to extend mandatory application of the C-TPAT program to other parties such as motor carriers and intermediaries. It is also expected that the new requirements will be extended to domestic transportation interests. We will keep you posted on further developments with this program, for questions or information please contact Rich Clemente at (703) 838-8847 or be email: rclemente@truckload.org.

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New Driver Drug & Alcohol Testing Accident Information Rules Now Effective

As a reminder on October 29, 2004 FMCSA rules went into effect requiring employers to maintain all accident and drug/alcohol testing information obtained from previous employers as well as drivers’ authorizations to obtain the information. FMCSA states that if an applicant refuses to provide a written consent form to obtain his/her driver safety performance history the motor carrier is forbidden from allowing that person to operate a commercial motor vehicle. Motor carriers will need to keep their drivers’ vehicle accidents for three years beginning retroactively with accidents that occurred after April 29, 2003.

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