Has the FMCSA Clearinghouse Narrowed the Driver Supply Pool and Intensified Hiring Challenges?

The congestion in the U.S. supply chain has drawn attention at the White House level. President Joe Biden has spoken out on port and trucking issues, with media headlines frequently focusing on the record number of anchored vessels off the coast of Southern California, with many reports identifying the truck driver supply as one of the key bottlenecks.

Whetherthe shortage of drayage truck driversis truly the main cause, this situation has directed a great deal of public attention to the shortage of truck drivers. For recruiters, this adds new pressure on top of the industry's chronic problems they have long dealt with.

"We estimate that the reduction in driving school applicants and graduates, the Drug and Alcohol Clearinghouse, and the impact of the pandemic have combined to reduce the number of available drivers by about 220,000 relative to industry capacity needs," said J.B. Hunt Chief Operating Officer Nick Hobbs on an April earnings call.

The FMCSA's Clearinghouse is approaching its second anniversary since going into effect, but the transportation industry is still digesting its initial impact. The COVID-19 pandemic has further complicated the situation.

More than 85,000 positive drug test records on file

"The Drug and Alcohol Clearinghouse... coincided with the pandemic, and, you know, it removed tens of thousands of people who were in the pool, and they just can't come back right now," said Marilyn Surber, a transportation consultant at recruiting software company Tenstreet, in June.

Few companies oppose excluding unsafe drivers from eligibility. But not everyone agrees that the database has had a substantial impact on the depth of the talent pool.

The process seems faster, but is actually slower

An FMCSA spokesperson said in an email that the number of people removed from the available driver pool would be the same with or without the Clearinghouse. The agency has not changed its zero-tolerance stance on drugs and alcohol.

The spokesperson noted that the Clearinghouse's actual role is to make it harder for drivers to bypass the system. In the past, a driver who failed a drug test at one company might have found it easier to apply to another fleet without disclosing the initial failure, because tracking down the paperwork took longer.

Digitization is expected to eventually speed up the process. But so far, the introduction of this new system has actually slowed down the hiring process—especially for fleets that did not have digital processes before.

Eily Cummings, director of corporate communications at UniGroup (whose brands include United Van Lines and Mayflower Transit), explained the reasons in June, citing two main points.

First, employers must screen drivers' drug and alcohol records for the past three years, and the Clearinghouse has not been in operation for three years yet. Therefore, employers must use the database in addition to the old methods. To do this, both drivers and employers need to learn how to use it.

"Drivers need to adapt to the new system," Cummings said. "Once drivers get over the learning curve, the experience is much more positive."

On the surface, removing drivers seems to hurt fleets that already recruit from a small pool, Forward Air Chief People Officer Kyle Mitchin told Transport Dive.

"But the reality is, those are unsafe drivers, and we don't want them anyway," Mitchin said. He added that the Clearinghouse has not significantly changed the fleet's hiring process—although it does add some extra work. "We need to focus on getting more qualified, good drivers into the pool."

Return-to-duty mechanism

One reason the Clearinghouse is frequently mentioned in discussions about the driver pool is that it provides concrete numbers on how many drivers have been removed.

According to the latest FMCSA report, from the compliance date of January 6, 2020, through the end of October, a total of 103,364 violations were reported to the Clearinghouse. As of November 1, 75,337 drivers with violations were in prohibited status, meaning they could not work until completing the return-to-duty process.

Before the Clearinghouse existed, drivers who failed drug tests also had to complete the return-to-duty process, including counseling by a Substance Abuse Professional (SAP). That process remains, but the FMCSA database highlights the importance of getting drivers to successfully complete the process and re-enter the talent pool.

Large fleets typically pay for the return-to-duty process and follow-up testing, especially in unionized workforces, said Jared Rosenthal, founder and CEO of Health Street. But at smaller companies, the payment burden is likely to fall on the driver.

"DOT regulations do not specify who is responsible for paying for drug tests; in other words, companies are not obligated to pay," Rosenthal said in an email. But he added that the rules do require trucking companies to ensure drivers comply with the return-to-duty process and follow-up testing.

If drivers initiate the return-to-duty process on their own, they encounter what Rosenthal calls a "glitch" in the system. Drivers may turn to agencies like Rosenthal's company for testing when preparing to re-enter the job market. But not all third parties have the authority to "clear" drivers.

The Clearinghouse's restriction is that a current or prospective employer, or its designated consortium/third-party administrator, must be responsible for reporting negative test results to the Clearinghouse. This can create an additional administrative burden for drivers.

"They have to find a Medical Review Officer (MRO) in some way," Rosenthal said in an interview. All DOT drug tests require an MRO signature. "In theory, this shouldn't be difficult. But in practice, we see some friction, and drivers have difficulty clearing themselves."

He said this is the only administrative issue he and his company hear people complain about. "When people move from one company to another trying to get cleared, there is indeed some disconnect."

Surber said she believes the trucking industry must confront the return-to-duty process and find solutions that work for all stakeholders. Drivers may not fully understand what the process entails or what is required for successful return to duty.

"What does that look like? How realistic is it? How do we work with insurance companies?" Surber asked.

Even after drivers complete the process and return to the applicant pool, employers may still view them as less than ideal. Surber said carriers are risk-averse, and even if drivers have completed the process, they may still have reservations about putting someone with a violation record back behind the wheel.

"I think the issue is, you know, looking at these different factors and asking yourself: 'Based on the information I have, what calculated risk can I take and make the best decision?'" Surber said.

But after any positive marijuana result in mandatory testing, it is in the industry's best interest to get drivers to successfully complete the return-to-duty process and safely return to the driver's seat.

"How do we educate (those drivers) so they know they can go through the return-to-duty process, and then how do we make this a truly viable path back to work for truck drivers?" Surber asked.

The role of CDL schools

Drivers may first encounter DOT controlled substance requirements at CDL schools. But there are currently no federal standards for drug and alcohol training at CDL schools in the U.S. Curriculum can vary by state, said Bailey Wood, president and CEO of the Commercial Vehicle Training Association.

Roadmaster Drivers School has locations in nearly a dozen states. According to President Brad Ball, the school teaches drug and alcohol requirements, compliance, and regulations through informational slides in classroom presentations and instructor-led training.

"But at Roadmaster, there is a continuous, repeated message from pre-enrollment through training and graduation emphasizing that trucking is a drug-free industry," Ball said in an email.

However, federal standards are coming—on February 7, 2022, the FMCSA's Entry-Level Driver Training (ELDT) regulation will take effect.

The rule sets a baseline of training requirements for new drivers; it is not retroactive. It includes drug and alcohol requirements:

"This unit must teach trainees the rules applicable to the use and testing of controlled substances (including prescription drugs) and alcohol, as they relate to commercial motor vehicle operations," the rule states.

While CDL schools will arm drivers with compliance knowledge, there is little they can do to help drivers get through the Clearinghouse and into the qualified worker pool.

Wood said the FMCSA requires drivers to undergo drug testing before obtaining a commercial learner's permit. Many schools test students for drugs before the course begins to avoid wasting resources and producing drivers who cannot be hired.

But even if CDL schools can commission the initial test, they cannot easily facilitate Clearinghouse testing, Wood said. The FMCSA's Clearinghouse regulations are primarily aimed at employers, and legal precedent clearly indicates that schools are not employers.

Wood and his organization are working to obtain clarification from the FMCSA on the role schools can play in the Clearinghouse ecosystem.

"There's no reason to send someone to a driving school and spend money to have someone complete their studies... if they can't get a commercial driver's license at the end of it," Wood said. "So, we are currently in discussions with the Federal Motor Carrier Safety Administration about what to do next."

A new chapter in recruiting

Rising freight volumes across multiple sectors are requiring expanded capacity. Trucking companies are pushing hard on recruiting and emphasizing retention toseize the opportunity of the freight surge。

"I've been in this industry since 2008, and I've never heard desperation in people's voices like there is today," Surber said.

But in a competitive job market, the old methods may not be enough. The pandemic has changed people's perspectives and priorities globally, and truck drivers are no exception. New strategies, and perhaps help from regulators, may work.

"I think it's about creativity now," Cummings said. UniGroup also focuses on relationship maintenance, calling past drivers to ask if they are ready to return to work. Rehiring drivers familiar with the job can reduce the training burden, she said.

Diversified recruiting is also key, Surber added. This includes ethnic diversity, gender diversity, and age diversity. Federal lawmakers have introduced bills this year seeking toincrease women in the industryand allowdrivers under 21to engage in interstate transportation.

Hobbs said the shortage—the most severe he has experienced in his career—has prompted J.B. Hunt to take a "comprehensive approach to attracting and retaining" drivers. This includes raising pay and benefits while focusing on job quality.

"Over 90% of our driving positions are local and regional, offering stable routes and more opportunities for home time," Hobbs said in April.

Forward Air has also followed this trend and began reviewing its network in June to determine which routes are more attractive to drivers. Over the past year and a half, drivers may have placed more importance on home time than ever before.

Because over 90% of Forward Air's OTR drivers are independent contractors, the company is limited in offering more attractive conditions, especially in terms of benefits.

"The coming years will be challenging, especially if the economy and freight volumes remain strong," Mitchin said of recruiting. "Carriers must pay close attention to driver pay and compensation, as well as other benefits, to ensure we make this job as attractive as possible."

The marijuana issue also deserves attention. More than half of the violations reported to the Clearinghouse are for marijuana use, which some attribute to state-level legalization.

"People are still surprised when they first enter the trucking industry, even if their state says it's legal, the federal government says it's not," said Jared Rosenthal, founder and CEO of Health Street. "In many places, adult marijuana use is becoming socially acceptable, and this is certainly shrinking the available driver pool because once you start driving, it's not easy to quit."

While other industries may be slower to communicate this message to employees, every commercial truck driver has been educated on the DOT's zero-tolerance stance on controlled substances. But cultural factors may be equally important.

"I suspect the reason the numbers in the Clearinghouse are so high is that we simply don't talk about it; it's almost become a political hot potato," said Jo McGuire, executive director of the National Drug and Alcohol Screening Association.

The Fastest Labs team conducts alcohol tests on drivers after accidents and during required quarterly random tests. Looking at the testing data, a trend emerges, said Dave Claflin, founder and CEO of Fastest Labs, in an email.

"Most drivers pass alcohol tests because good education and cultural expectations indicate that alcohol does not belong to someone who is driving," he said. "We hope other substances can adopt a similar education-driven approach and steps."