ATA Safety & HR Conference 2014 Trucking Safety: Best Practices, Compliance & Training Seminar Driver Qualifications/Qualifying Drivers – Background Screening Kent Ferguson, Director Transportation Solutions

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Agenda Topics  Key reasons motor carriers screen  FMCSA screening requirements  Screening over the minimum  FMCSA notification & dispute process  Background screening compliance landscape  Recent/upcoming screening regulatory issues  Q & A 3

Why Motor Carriers Pre-Screen  Regulatory Requirements  Risk Mitigation: »Reduce exposure to accidents/theft »Negligent hiring/retention  Insurance Guidelines  Reduce probability of violence /injury to customers and/or employees  Reduce turnover – Hire the right fit for your company 4

5 The Value of Screening

FMCSA Screening Requirements  Motor Vehicle Reports (MVR) – & »MVR on all licenses/permits held in the preceding 3 years »MVR required annually  Employment History Verification – »DOT recordable accidents as defined by Must include data elements contained in  Drug/Alcohol Violation History & »Driver’s written consent meeting requirements of »Maintain a record of the information released (date, who, summary)  Physical Qualification  Drug Testing – Part 40 6

Additional Inquiries Over the Minimum  Commercial Driver’s License Information System (CDLIS)  Criminal Record Searches »Perfected Database Search »County Searches »State Searches  Credit Bureau Data to Identify Prior Addresses  Pre-Employment Screening Program (PSP) »3 years roadside inspection history »5 years DOT recordable accident information 7

Additional Inquiries… continued  Employment & Drug/Alcohol History Databases »Outside the control of the applicant »Contains information on companies no longer in business »Instant access to improve time to hire  Personality Assessment Tools  Social Security Number (SSN) »Validation/Verification products  Employment Eligibility (E-Verify) 8

FMCSA Notification & Dispute Process Driver Notification of Rights Driver Has the Right to Review Previous Employer Provided Information May Request Correction of Information from Previous Employer Drivers May Submit Rebuttal to the Previous Employer Rebuttals can be Submitted without a Request for Correction Whistleblower Provision for Not Complying 9

Screening Compliance is Evolving  EEOC Guidance on the Use of Criminal Records in Employment Decisions »No blanket exclusion for past arrests/convictions »Must be relevant to position & business necessity »Implement processes for “individual assessments” »Ensure proper notices are given to denied applicants  Expect more EEOC charges and broad-based investigations  Recent State and Local Developments »States restricting usage of credit for hiring/employment purposes (10) »“Ban the Box” laws prohibit inquiring about criminal history on the application 50 th Anniversary of Civil Rights Act

Ban the Box Fair Hiring Laws 11 Source: Ban the Box, National Employment Law Project, September 2014 Six States have removed the conviction history question on job applications for private employers  Hawaii  Illinois  Massachusetts  Minnesota  New Jersey  Rhode Island

12 Criminal Checks Important in Vetting Applicants

Screening Compliance Continued  Ongoing Class Action & Consumer Suits Related to: »FCRA Class Action Lawsuits –Targeting alleged inadequate disclosure/authorization forms –Deficient procedures for providing “adverse action” notices »Employers should review & update procedures related to these issues »CRAs tightening policies around what kind of employment screening data can be returned for hiring purposes 13

Transportation Regulatory Changes  Drug/Alcohol Test Results National Clearinghouse »Comments for the Notice of Proposed Rule Making (NPRM) have been submitted. HireRight’s comments were included with ATA & NAPBS. »Congress originally requested a June 2014 completion date. Not likely to be any sooner than mid  National Registry of Certified Medical Examiners »Medical examiners who conduct DOT physicals must be certified and entered into the national registry »Implementation date was May 21, 2014 where all qualifying medical examinations must be conducted by examiners listed on the registry »Telemedicine process in the works with FMCSA to help address coverage gaps in available certified examiners. 14

Transportation Regulatory Changes  Medical Certification Information Added to Driving Records »Currently 46 states are reporting some form of medical certification information on the MVR »FMCSA is working with states to upgrade their reporting to cover the data elements required in (n)(2)(iii) »Deadline for all states to report extended until January 2015  Participation in an MVR Monitoring Program as an Alternative to the Annual MVR Requirement »FMCSA to issue guidance allowing for participation in these programs to be sufficient for the annual MVR requirement 15

Questions?? 16