New Bill Aims to Enhance Freight Broker Accountability in the U.S.

A new piece of legislation introduced in the U.S. House seeks to hold freight brokers financially accountable for their selection of trucking companies, particularly those with questionable safety records. The bill is dubbed the Patrick and Barbara Kowalski Freight Brokers Safety Act, named in memory of Patrick and Barbara Kowalski, who tragically lost their lives in a truck-related accident in 2022.

Key Features of the Bill

Introduced by Representative John Moolenaar, the legislation proposes significant penalties for brokers that engage motor carriers deemed “unsafe.” According to the bill, a broker could be subjected to a civil penalty amounting to 10% of the total value of the cargo covered under their contract if they hire a carrier with three or more Department of Transportation (DOT) violations. This standard would also apply in cases where a carrier employs a driver with a similar history of violations within a five-year timeframe.

Empowering Regulatory Oversight

In addition to imposing financial penalties, the bill seeks to expand the authority of the Federal Motor Carrier Safety Administration (FMCSA). This enhancement would empower the agency to investigate freight brokers more thoroughly and impose operational requirements following fatal crashes.

The Increasing Focus on Broker Liability

As discussions around broker liability intensify, the trucking and logistics industry faces growing scrutiny regarding the responsibility of brokers in accidents involving the carriers they hire. The U.S. Supreme Court recently agreed to hear a case concerning C.H. Robinson and broker liability, marking a significant development in the ongoing debate. The court’s decision has the potential to shape the future landscape for freight brokers and their legal responsibilities.

A Tragic Reminder

“No family should experience the loss the Kowalskis faced,” Moolenaar stated in a recent news release. “It was a preventable tragedy, and this legislation ensures that all freight industry contractors take safety seriously.”

Current Status

As of December 22, the Patrick and Barbara Kowalski Freight Brokers Safety Act does not have any co-sponsors, but the conversation regarding accountability within the freight and logistics sector is gaining momentum. Stakeholders await further developments as the legislative process unfolds.