What Is an Exempt-For-Hire Motor Carrier?

When hiring truckers for your company, you must effectively navigate their driving status, ensure they possess the proper permits, and abide by strict state regulations outlined in the unified carrier registration. Questions about the specifics always arise when sifting through the paperwork. 

One such question is, “How do you know if you qualify as an exempt-for-hire motor carrier?” FMCA Filings defines and informs about this topic below. Continue reading to learn the specifics.

What Does Exempt-For-Hire Mean?

Exempt-for-hire refers to motor carriers that provide transportation services in exchange for compensation from the entity they serve. In other words, the entity seeking transportation services does not employ the drivers; the carrier does. The carrier will only transport exempt goods. 

What are the differences between exempt and non-exempt commodities? Exempt commodities are unregulated goods such as unprocessed or unmanufactured goods like fruits and vegetables. Nonexempt goods, like dog food and paper, are regulated and manufactured. 

Some business entities may seek exempt-for-hire transportation services to avoid certain shipping regulations for qualified goods. But what is an exempt carrier?  

Who Is an Exempt-For-Hire Carrier?

An exempt-for-hire carrier is a transportation business specializing in transporting unregulated or raw goods. These carriers have more leniency within interstate commerce and federal regulations, unlike for-hire, non-exempt carriers. Thus, exempt carriers can reap the following added benefits:

• More power over service rates
• Diverse shipping competition which allows lower consumer prices
• More freedom fulfilling their services

Exempt carriers also come with some disadvantages. Since certain safety restrictions do not apply to exempt carriers, their fleets and drivers may not operate as safely as non-exempt carriers. Additionally, exempt carriers may have varying levels of insurance, which could imply dubious coverage for businesses shipping their goods. 

Which Regulations Apply to Exempt-For-Hire Carriers?

Although exempt carriers juggle fewer regulations than non-exempt carriers, they still must comply with specific requirements. For example, an exempt carrier must obtain applicable insurance to operate lawfully. Plus, exempt carriers must comply with state regulations, which vary depending on the state and may include.

• Vehicle weight ratings
• Driving shift lengths
• Consecutive workday allowances

When crossing into different states, drivers for exempt carriers should also follow FMCSA rules and specific state laws, regardless of their origin state. The carriers should also maintain detailed driver records to ensure their drivers maintain safe operation habits. 

Understanding Interstate Operating Authority

If an exempt carrier wants their fleet to cross state lines during services, they must obtain the following:

• DOT number
• MC number
• DOT permit
• Any applicable permits to foster federal compliance

The carrier may obtain this material via the United Registration System. As you apply, have any necessary information present for a quick and simple process. 

Acquire Your Permits from FMCA Filings

At FMCA Filings, we keep truckers and carriers informed about pertinent topics. Whether you are exempt-for-hire or non-exempt, you can find answers to essential questions through us. For example, can a motor carrier broker loads to other carriers? 

Chat with us to learn more today!