By Brian J. Riker
We have all received some very obviously fake emails asking us to file a form or pay for a compliance requirement. As email marketing grows in sophistication, more will receive some convincing emails that appear legitimate; often threatening some sort of legal or regulatory penalty if action is not immediately taken. These solicitations cost the trucking industry millions of dollars each year.
As a compliance specialist and consultant, it infuriates me when less than scrupulous companies send these advertisements under the pretense of official notifications. It makes the legitimate companies look bad, adds confusion to an already complex regulatory environment and scams hard-working towers out of money for services that are usually either free or available at a very low cost when done yourself.
How do you spot these scam messages? With very close scrutiny and a little independent verification.
These solicitations usually come in bunches around certain regulatory compliance deadlines. The most common will come with an official sounding title like “Motor Carrier Compliance Division” or similar; and inform you that you are out of compliance with some common filing requirement such as Unified Carrier Registration (UCR) or the bi-annual update of your US DOT number. While these are legitimate compliance requirements for most towers and the Agencies involved have begun to send out email reminders, they never send out emails with big “action” buttons (click here to file).
Note, the filing period for UCR opens on October 1st this year and must be completed by Dec. 31st. Anyone with an active US DOT number must file UCR, which can be done without a service charge, at www.ucr.gov
Here are some simple tips to help you decide if an email or letter you have received is legitimate or simply a sales pitch. If you still have concerns or doubts after applying these tips then feel free to reach out to a trusted compliance expert of your choosing for more detailed guidance. You can even find some information about these solicitations from the Federal Motor Carrier Safety Administration by typing in “solicitations” in the search bar at the top of their official website.
- Official US DOT or FMCSA communications will come from an email address ending in .gov
- Be sure to look closely at the lettering as some fraudulent emails end in .g0v using the number zero in place of the letter O, or other similar characters.
- The US DOT and FMCSA do not email motor carriers unless you have requested them to either when you registered for your US DOT number or in another form submitted with a specific question or request.
- The US DOT never asks for a credit card or bank access in an email or telephone call
- While some State Agencies do use email as a regular method of communication, they usually do not have action buttons or ask for a credit card in the email, only on their official website
- No governmental agency has a subscription service. If the fine print mentions a recurring fee or cancelation policy, it is from a third-party provider not an official government entity
- Bi-annual updates are the most common scam. While the US DOT will deactivate a US DOT number if these are not current, it doesn’t happen immediately. The status of your US DOT number can be checked for free at www.safer.fmcsa.dot.gov/CompanySnapshot.aspx and the update can be completed for free using the registration tab at www.fmcsa.dot.gov
Bottom line: the state and federal motor carrier enforcement agencies usually do not initiate communication via email but prefer regular US Mail. The biggest exception to this is the new entrant safety audit notice which will arrive via email from a state partner of the FMCSA.
If you get an email or telephone call demanding immediate action, is it likely to be a high-pressure sales pitch at best or an outright scam at worst. If in doubt you can always hang up and call the agency in question directly to confirm.
By Randall C. Resch
Some tow owners don’t fully comprehend what “Care, Custody and Control” is? When vehicles are impounded and stored by means of non-consent towing, private property impounds, or actions by law enforcement, tow companies have responsibilities to care for the property of others.
For the tow and recovery industry, “Care, Custody and Control,” are risk management processes that span the entire duration (of storage) when vehicles, or property of others is entrusted to the company and its employees. The concept of “CC&C” is simple.
Care
Tow companies are responsible for direct damages to a customer’s vehicle during acts of loading, off-loading, during tow operations, test drives, picking up and delivery from a customer’s premises, lawful impound and while parked or being moved with the tow company’s property.
Tow companies are responsible for total actions of its employees, citing “Vicarious Liability” applicable to vehicle operations and driving habits, exposure to contents not of 5their own, or actions that require industry standard training, techniques, and strategies.
A certain “Standard of Care” is necessary in protecting a motorist’s vehicle and included property during tow, transport, and recovery tasks. The same liability is true 24/7 at the company’s facility, shop, and storage yard. To this point, is your facility properly insured to cover unlikely mishaps that cause damage to stored vehicles?
Custody
Is derived when best business practices ensure that vehicles or properties of others are reasonably protected from intentional or accidental damage. This includes harm, theft, or access provided to individuals not directly linked to stored or impounded vehicles while in the tow company’s custody.
Tow companies are entrusted with providing adequate security in order to prevent a vehicle’s theft or liberation of its property/contents while serving time in custody or that of simple storage. It’s essential tow companies reduce opportunities of theft of property from towed, transported, stored or impounded vehicles by continuing business strategies intended to provide the following controls:
1. Install a centralized intrusion alarm that covers the entire premises
2. Provide a 24/7 video surveillance system
3. Maintain a “key control program,” lock-box or key-board
4. Require employee training regarding access and release procedures
5. Implement a “Zero-Tolerance Theft Policy” to prohibit random “shopping by employees”
6. Store vehicles in secured areas until released
7. Inventory, report and/or store items of value
8. Keep facility access gates and portals closed to all non-employee personnel
Control
Tow companies and their employees have direct responsibility to protect vehicles or properties of others by controlling accessibility or actions of persons not the owner/agent while vehicles and property is in the company’s safekeeping.
“Control” is maintained by ensuring vehicles and properties remain safe within secured storage, including acceptable (employee) actions necessary to protect against accidental or intentional damage and theft.
A company shall not allow unauthorized access or release of vehicles or properties to individuals other than those authorized by law enforcement, completed investigation, a valid court order, or documents necessary for release are obtained from the vehicle’s rightful (registered) owners or agents.
I Didn’t Do It
What happens when someone claims "My car wasn’t like that until you guys towed it.” It seems most claims are fictitious and revengeful moves to get back at the tow company, generally filed in attempts to recoup monies paid to bail vehicles out.
Most contracts require companies to accept damage or theft claims filed by vehicle owners or agents. While there’s small certainty a vehicle was damaged in process of load and go, companies may be required to make repairs or “cut a check” for reasonable costs. When claims are made, savvy tow management invites the customer back to file a written complaint. Why?
The company’s complaint form should include a “Perjury Statement,” noting “False claims will be prosecuted.” It’s surprising how many go away when claimant’s note they could be prosecuted for perjury.
A company’s best evidence is tower’s taking plenty of photos that capture “pre-tow damages.” Also include a careful, “plain sight inventory” of the vehicle’s condition and its contents (both inside and out).
Tow operators are tasked with making sure what they see is noted on the officer’s impound report before taking custody of a vehicle. Remember, documentation is key to fighting false claims.
Whatever your processes are in providing Care, Custody and Control, be sure your facility is properly insured to cover unlikely mishaps including fire, theft, vandalism, or extensive damage caused to stored vehicles. If you’re not sure your policy includes Garage Keeper’s Insurance, give your insurance agent a call.
Operations Editor Randall C. Resch is a retired California police officer and veteran tow business owner. As consultant and trainer, he authored and teaches a tow truck operator safety course approved by the California Highway Patrol. For 51-years, he has been involved in the towing and recovery industry. In 26-years, he has contributed more than 700-safety focused articles for American Towman Magazine and TowIndustryWeek.com. He was inducted to the International Towing and Recovery Industry Hall of Fame, was the 3rd recipient of the industry's "Dave Jones Leadership Award," and is a member of American Towman’s Safety Committee. Email Randy at rreschran@gmail.com.
By Brian J. Riker
Does OSHA (Occupational Safety and Health Act) regulate the towing industry? This has been debated for as long as I can recall, and the short answer is YES. Since at least January 2002 there has been an industry classification code specifically for the towing industry, and it has never been on the exempted industries list. Towing industry regulation prior to 2002 was lumped into either general transportation or service stations. For reference the current NAICS Code is 488410.
Now before you panic, OSHA is a complicated but predictable agency, and you may have some protection from random inspections and enforcement if your state has their own occupational safety and health agency.
Ultimately all industries must comply with at least the basic principles of OSHA which makes it an employer’s duty to provide a workplace free from recognized hazards. This is known as the General Duty Clause. Our industry is complicated — while OSHA clearly regulates all activities at a fixed place of business — they do not have jurisdiction over activities that are regulated by another Federal Agency such as the Department of Transportation. Meaning, if your towing company engages in interstate commerce, and is therefore subject to US Department of Transportation regulation, you may have two or more agencies with overlapping areas of responsibility regarding employee health and safety to be mindful of compliance with.
Still not sure about OSHA regulations and the towing industry. A cursory search of OSHA records since 2002 returns hundreds of inspection details with many that involve struck by type accidents mostly occurring alongside public roadways. These inspections resulted in enforcement actions against towing companies with fines ranging from a few hundred to over twelve thousand dollars. These inspections have occurred all across the country, including in some states that have notably strong state run OSHA programs like California.
No state is excluded from OSHA enforcement, nor is any employer, even the self-employed and family only operations.
It is important to note that OSHA has a very wide jurisdiction and often gathers tips to begin investigations from multiple sources including news outlets, social media and reports from current or former employees that may be disgruntled. This is important to consider when posting pictures of jobs online or bragging about abusing your equipment, especially if a failure were to result later, as you may have just given the investigator the evidence needed to condemn yourself.
OSHA has been known to show up at the scene of a large crash because an investigator happened to see it on the news or was in the area, and yes they can just show up unannounced although this is rather unusual and you do have protections against immediate inspection and enforcement unless they witness something that is an immediate hazard to life - then they can shut down a job on the spot with a stop work order.
Please do not confuse the under 10 employee threshold for posting injury reports with the fact that OSHA applies to your operation. Additionally, this threshold does not apply if there is a serious injury resulting in hospitalization, loss of an appendage, eyesight or death. Any accident resulting in any of those conditions must be immediately reported to the nearest OSHA office for investigation. Further, should you be a large employer with 250 or more employees there is also an electronic reporting requirement.
