What can I do Once I Get Fined?
What are your options? Even if you have had contracts that you’ve used in the past for local or long distance or purchased them before 2012, you must hear what I’m about to say next. There are many services in the market that are knowingly selling moving companies rubbish contracts that do not protect them. DOT agents are educated and freely communicate with each other on what these contracts hold and provide. Purchasing our contracts is not a guarantee that you won’t be fined for any infractions that you have done wrong, but it won’t allow other known infractions that actual contracts hold within them in the market today. If you do decide to purchase Moving Authority’s long-distance moving contract
or local state contract you will have one of our personnel explain to you how to execute the population of the contract.
What Is A Moving Contract?
Moving contracts need to be used on every shipment provided to a customer. While the mover is only required to provide a copy of the Bill of Lading, you should have the other supporting documents that protect you and your customers alike. It also shows your pricing for all services, materials, and specialty services you provide. Having a custom tariff populates pricing on your paperwork.
Since the 2012 STB ruling has been released by the DOT a copious amount of moving companies have been closed or fined for simply not being up to date with the new requirements. These fines can range from $1,500 to $120,000.00
Our Company Got Fined!
Okay, now don’t freak out! If you get a $120,000.00 fine, there’s something seriously wrong with your company and you need to make some serious adjustments, but I will say from my experience, the $10,000-$50,000 mark is probably a good average of what companies get fined for contract violations. Each inspection can be different and each violation can be different. Understanding the requirements and boundaries is key to be successful in the moving industry. Knowing these key elements will allow you to prosper, grow and become more profitable.
Common Causes of Fines
One of the biggest problems with new moving companies is the company employee not knowing what to charge in different situations. Let’s say you have a good employee that creates a charge that is not on your tariff and places it on the Bill of Lading, your company has broken the law right there. It could have been a validated charge for a good reason but if you cannot support it on your tariff, it is not legal. There is no grey part in the law with the Department of Transportation. The law is what it is.