TANY Milepost 2nd Quarter 2017

Official Publication of the Trucking Association of New York

Second Quarter 2017 • Vol. 5 No. 2

FLEET SAFETY

AWARDS 2017 Safety Symposium

Preparing for the ELD Mandate: No Time to Waste!

New York Sees Significant Workers’ Compensation Reform

Second Quarter 2017 • Vol. 5 No. 2

Published for

TA B L E O F C O N T E N T S

TRUCKING ASSOCIATION OF NEW YORK 7 Corporate Drive Clifton Park, NY 12065 phone: 518-458-9696 fax: 518-458-2525 www.nytrucks.org For information regarding editorial content please contact Karin White at kwhite@nytrucks.org or 518-458-9696.

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7 | 2017 Safety Symposium 12 | Fleet Safety Awards

President’s Message...................................................................................... 5 2017 Safety Symposium ................................................................................ 7 Fleet Safety Awards .................................................................................... 12 TANY Members in the Community.............................................................. 16

Alexis Kierce Publications Manager 717-238-5751 x119 alexis@thinkgraphtech.com For Advertising Information: Jen Smith Account Manager 717-238-5751 x124 jen@thinkgraphtech.com Please note: Editorial and contents of this magazine reflect the records of the Trucking Association of New York (TANY).

TANY has done their best to provide useful and accurate information, but please take into account that some information does change. Graphtech and TANY take no responsibility for the accuracy of the information printed, inadvertent omissions, printing errors, nor do they endorse products and services. We take no responsibility regarding representations or warranties concerning the content of advertisements of products/services for a particular use, including all information, graphics, copyrighted materials, and assertions included in the advertisements.

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Preparing for the ELD Mandate: No Time to Waste!................................... 17 New York Sees Significant Workers’ Compensation Reform ...................... 19 Member Spotlight........................................................................................ 21

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Board of Directors

PRESIDENT’S MESSAGE

OFFICERS

Chairman Christopher Mix, Mr. Bults, Inc. Vice Chairman Eric Hoxsie, HazMat Environmental Group, Inc. Secretary Terry Borwegen, Borwegen Trucking, Inc. Treasurer Mark Giuffre, United Parcel Service

REGIONAL VICE CHAIRS

Western Region Kevin Galas, NOCO Energy Corporation Genesee Region Sean Dubman, Wegmans Food Markets Central Region Robert Copp, Byrne Dairy, Inc. Eastern Region Joe Fitzpatrick, Lightning Express Delivery Service, Inc. Metro Region Barry Panicola, Sprague Operating Resources LLC

REGIONAL SECRETARIES

Western Region Kimberly Ferris, Commercial Drivers Legal Plan Genesee Region John Giovenco, Vulcraft of NY, Inc. Central Region Mark Henderson, Patriot Tank Lines, Inc. Eastern Region Becky Derway, GilDer Transport Solutions, Inc. Metro Region Ken Tirone, Hub Truck Rental Corporation

COUNCIL CHAIRS

Maintenance Council Swede Oun, O&K Truck Repairs, Ltd. Safety Council Joseph P. Peplinski, Haylor, Freyer & Coon, Inc. Safety Group John Simon, Grand Island Sales and Service, Inc.

AT LARGE MEMBERS

Helen Brooks, FedEx Corporation JoAnn Hayes, George Hildebrandt, Inc. Penny Husted, Charles J. Husted, Inc. Kenneth Staub, Riverside Service Corporation

ATA STATE VICE PRESIDENT

Steven Wadhams, Wadhams Enterprises, Inc.

IMMEDIATE PAST CHAIR

John Russell, Tracey Road Equipment, Inc.

TANY Staff Kendra Hems, President Karin White, Vice President Kate Kennett, Director of Safety & Maintenance Programs George Damoretcki, Director of Membership Relations Mark King, Accounts Manager Francesca Pardi, Events Manager Jennifer Andrelos, Administrative Assistant

Dear Member, It is hard to believe that we are already through the first quarter of 2017. The TANY staff has been hard at work during these first three months developing new programs in each region of the state, addressing legislative and regulatory issues and working on new member benefits.

As I wrote in last quarter’s Milepost, each of the five regions are now holding regularly scheduled planning meetings to schedule educational, social and safety events across the state. Make sure you are watching the calendar of events in each week’s Friday Final to see what the association is offering near you.

Legislatively, we started out the year with the association’s annual Trucking Moves NY: Day at the Capitol on February 7. Nearly 30 association members attended the event and met with legislators to discuss the need for an increase in divisible load overweight permits, a repeal of the Highway Use Tax, the need for workers’ compensation reform, and the need for additional truck parking. The event was a success which we believe helped the association as we worked to secure additional divisible load overweight permits as part of the enacted FY 2018 state budget.

Additionally, after hearing from thousands of business owners from across the state, including TANY members during our visits, the legislature finally enacted significant workers’ compensation reform that will benefit employers (see New York Sees Significant Workers’ Compensation Reform on page 19).

Earlier this year, the association hosted two training seminars on the upcoming electronic logging device mandate, a webinar on the Food Safety Modernization Act and the ever-popular NYS Truck Safety & Education Symposium (the full recap of this event begins on page 7). These events help ensure that members are familiar with any regulations that are pending, or recently enacted and provide an opportunity for members to ask questions and get guidance on how the regulations may impact their operations.

The association is currently reviewing all of our benefit offerings to evaluate whether members are taking advantage of them. As part of this review we are also looking at new programs that will help members save time and money. Now is a great time to let us know what you need! If there is a service or program that you feel the association should be providing to the membership, please contact us and let us know!

It has been an exciting first quarter and all of us at TANY are looking forward to continuing to work towards making the rest of 2017 equally as exciting! I hope to see you soon at one of the many events occurring across the state!

Be safe!

Kendra L. Hems TANY President

Milepost Magazine • Second Quarter 2017

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2017 NYS TRUCK

SAFETY and EDUCATION

SYMPOSIUM

The 2017 New York State Truck Safety and Education Symposium and Safety Exhibition kicked off on April 4 in Saratoga Springs, NY. The “Moving the Industry Forward”- themed event brought together people in the private and public sectors involved in the trucking industry.

Keeping with tradition, attendees were welcomed by representatives of the New York State Department of Transportation (NYSDOT) and the New York State Department of Motor Vehicles (NYSDMV): Bill Leonard, Director, Office of Modal Safety and Security, with NYSDOT and Terri Egan, Executive Deputy Commissioner of NYSDMV.

The crowd of over 200 first heard from Leonard who discussed the impact of NYSDOT’s roadside inspection program, which included 115,000 roadside inspections across the state in 2016. He noted that while there has been significant improvement in the safety of commercial vehicles since the inception of the roadside inspection program over 30 years ago, 2016 was not the best year.

“It’s somewhat alarming in that the last time I spoke to you, the out of service rate for vehicles in New York was roughly 20 percent, which was the national average,” he said. “This last year, though, it picked up to 23 percent and the driver out of service rate is at six and a half percent

which is a percentage and a half greater than the national average which is five.”

Leonard explained that NYSDOT is continually trying to improve their processes, adding screening technologies such as roadside license plate readers, weigh-in-motion scales and transponders to monitor and inspect commercial vehicles. He reported that this summer, NYSDOT will be opening new screening sites at four rest areas: one in Clifton Park and three in the Hudson Valley. The sites will allow them to ping information against databases and credentialing systems so they can be alerted right away to any red flags and target those for enforcement.

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Leonard also thanked the trucking industry for its cooperation during a recent snow storm which impacted areas of the state not originally forecasted.

“I would be remiss if I didn’t thank the industry for all your cooperation and assistance,” he said. “This was a very difficult time for us and through our cooperative efforts to minimize the impact of this weather event, we came through it fairly unscathed.”

NYSDMV Executive Deputy Commissioner Egan followed Leonard by discussing some pressing issues, including the Real ID Act, assuring attendees that the state is on extension with the federal government through 2020 to comply with their requirements.

She discussed the state’s success in overall highway safety, suggesting that New York State is on track to become a national example for highway safety, thanks in part to education efforts, and a focus on safety among those on the road.

“It is no accident that our preliminary 2016 crash statistics in New York are showing a seven to eight percent decrease in fatalities while the nation saw a six percent increase,” she said.

Egan also touched on some recent federal rules which will further promote safety on the road including the entry level driver training rule and the drug and alcohol clearinghouse.

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Following the welcome, a DOT Audit Prep session was among the first topics at hand on Tuesday. Federal Motor Carrier Safety Administration (FMCSA) Safety Investigator Tim Grimley began by explaining that the agency has shifted from performing audits (or compliance reviews) to performing compliance investigations, where they interview personnel including drivers, technicians and office staff.

He noted that in 2016, of the 19,327 investigations conducted nationwide, 341 were conducted in the state of New York, primarily by 15 federal agents and three NYSDOT officials certified to conduct federal compliance investigations. There are a total of 495 investigators, inspectors and auditors for the trucking and bus industry’s half a million companies and 3.5 million drivers, to aviation’s 4,000 inspectors for 6,900 companies and 618,000 pilots, he said.

Grimley explained that investigations may be triggered by SMS basic scores, legitimate complaints about a carrier, a significant crash or hazmat incident, or if the carrier has one or more serious violations on a prior compliance review.

Prior to the investigation, a letter will be sent to the carrier outlining all the documents the carrier needs to furnish.

Grimley, FMCSA Safety Investigator Laura Lawton, and NYSDOT Supervising Motor Carrier Investigator Martin Duffy all stressed that being prepared for the

www.nytrucks.org • Trucking Association of New York

investigation is paramount. Having all the documentation readily accessible can make the difference between a two day or two week on-site visit.

“The components of the review letter that we send you tell you exactly what you need…you have time to get these documents together if you didn’t already have them or weren’t aware that you needed them,” said Lawton.

They also stated that driver qualification files contain the most violations.

Above all, they said don’t lie, because it will never work in the carrier’s favor.

“If you’re not doing drug and alcohol testing, just tell us you’re not doing

drug and alcohol testing and make everybody’s life simple,” said Lawton.

The DOT Audit Prep session was followed by a presentation on human resources laws by Frank Kerbein, Director, Center for Human Resources at The Business Council of New York State.

Kerbein started the session by stating, “Employees are clearly our greatest asset but they’re also our greatest risk. You’re more likely to be sued by your employees than by anyone else you deal with in the course of your business.”

The Wage Theft Prevention Act was discussed, as well as what is required at the time of hire (and what can’t be asked), annual reporting requirements, gender issues, on-call scheduling, and overtime laws. Kerbein talked about a recent addition to the law that makes it unlawful for an employee to be paid less than the opposite sex for equal work, and prohibits employers from having a policy prohibiting employees from discussing wages with co-workers.

He also pointed out that in New York, overtime and wage violations are frequently misdemeanors or felonies and the individual responsible, not just the company, is held responsible.

“New York State is the only state in the country where you personally…can be held responsible for misdemeanors and felonies,” he said.

The first day of the symposium continued with sessions on industry “best practices,” and autonomous technology and truck platooning.

Jim Drackley, Safety Specialist from Penske Truck Leasing examined how meeting federal requirements may not be enough during his “Policies Above and Beyond the Motor Carrier Regs” session. Drackley discussed how a carrier who strives to meet the federal minimum standards, leaves themselves at risk because there is no room for failure, while a carrier who sets a higher standard for their operation will still likely meet the minimum standards if they fail to meet their own.

There are significant benefits to doing this, he said.

“My experience has been that the best and safest companies are also the people who have the best and most profitable margins,” Drackley said.

Drackley also posed scenarios in which only meeting the federal standards will leave a company vulnerable. According to the federal regulations, a driver who receives a notice that his or her license or privilege to operate a motor vehicle has been revoked, suspended or withdrawn must notify his or her employer of the contents of the notice before the end of the following business day. Without a company policy that goes beyond the federal regulation and states such a notice is to be reported immediately, that driver could report to work and drive, leaving the company extremely vulnerable.

“If we all try to aspire to a higher standard, we will actually be much better off in terms of our safety and compliance,” he said.

Later in the day, Anand Rao, Partner, PwC discussed truck platooning and autonomous technology, noting that autonomous technology is already here.

He pointed out that there are a number of levels of autonomous technology, ranging from lane departure systems to driver-assisted and fully-autonomous vehicles. While the technology for fullyautonomous vehicles exists, he said he expects it to take a decade before it will be in use, as the “human factor” has not yet been replicated.

Autonomous technology is already there and is being used to different degrees in some states, he reported. Technology for fully-autonomous vehicles won’t be seen for a while, because computers currently can’t incorporate human factors into driving, such as creeping into an intersection to make a left turn.

Rao also examined the increased fuel efficiency and improved safety realized by the vehicle-to-vehicle technology used in truck platooning. He clarified that platooning today isn’t what some people envision: a row of trucks caravanning down the road; rather it is the use of technology for vehicles to communicate with each other, enabling them to travel tightly together.

The hot-button issue “Preparing for the ELD Mandate” was also discussed early on Tuesday. Full coverage of this topic can be found in the “Preparing for the ELD Mandate: No Time to Waste!” article on page 17.

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state and federal agencies. The medical certification process was discussed during the State Agency Updates, as well as the elimination of New York-certified chiropractors from the National Registry of Certified Medical Examiners.

Representatives from NYSDMV reported that they’re currently conducting the new CDL skills test at some locations in the state and expect that it will be statewide in a year. The three-part test should take at least 45 minutes to complete, with failure of a single part resulting in stopping the test entirely. However, they said scores on any parts of the test that are completed successfully will be “banked” so those sections won’t need to be retaken. They also recommended that drivers schedule their skills test at the time they receive their permit to ensure the shortest wait time possible.

A DataQ refresher was conducted in which NYSDOT Chief Motor Carrier Investigator Jonathan Nicastro stated that he views the information learned from the cases where corrections are made due to DataQs, as topics for future in-service training. Nicastro stressed the importance of providing documentation to support your claim that your violation was given in error. New York State Police (NYSP) Sgt. Tom Fuller explained that when a citation is adjudicated by a judge, the carrier must be sure to submit a “record of disposition” from the court with proof of any fines paid, for the record to be changed.

Tony Murray, of the USDOT Pipeline and Hazardous Safety Administration’s

Hazardous Materials Safety Assistance Team discussed the transportation of hazardous materials, and the 4 C’s: Classify (determine the risk by hazard class); Contain (use proper packaging); Communicate (use placards, markings, and appropriate paperwork,); and Comply (reference the Emergency Response Guidebook). Suzanne Ellis from FMCSA discussed the current initiatives in place to improve highway safety and reported that 2015 statistics indicate a 7.2 percent increase in fatalities nationwide among all types of crashes --the largest percent increase in 50 years. “We’ve got a lot of work to do and we’ve got to get this back under control,” she said.

Representatives from NYSDOT, NYSDMV and FMCSA discussed the biennial /MCS150 update requirements, driver qualification files, the Unified Registration System (URS) and what carriers should be doing today to prepare for compliance with this rule. They reported that the URS online system is designed to simplify the FMCSA registration process by combining multiple registration processes, consolidating information technology systems and consolidating multiple forms into a single registration process. While the full URS launch date has yet to be determined, when implemented, paper forms will no longer be accepted for all new and updated registrations and the USDOT number becomes the sole identifier.

Members of the NYSDOT Permit Unit discussed the upcoming soft launch of the Highway Oversize Overweight

Credentialing System (HOOCS) in May. They reported that the system is meant to make the special hauling and divisible load permit process more efficient for everyone, as it allows customers to self-issue permits. HOOCS is also capable of being a centralized permitting system, provided agreements with other agencies are reached.

NYSDOT currently has agreements with the New York State Thruway and Bridge Authorities. HOOCS will be available via New York’s One Stop Credentialing and Registration system (OSCAR) at www.oscar.ny.gov.

The event concluded with the customary Enforcement Roundtable including panelists from the NYSP, NYSDOT, NYSDMV, and FMCSA. NYSP Sgt. Tom Fuller moderated the session and fielded questions from attendees regarding peeling license plates, hours-of-service resets, and how to address inconsistencies with law enforcement, among other things. They stressed that above all, when a driver or vehicle is placed out-of-service, they are out-of-service until that condition is fixed, regardless of if anyone, including a law enforcement official, says it is okay to drive.

The symposium also featured two hours dedicated to the Safety Exhibition on Tuesday, and an hour-long Agency Resource Fair on Wednesday.

TANY’s Fleet Safety Awards were presented during lunch on Tuesday. Full coverage begins on page 12.

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FLEET SAFETY

AWARDS A. Duie Pyle’s Safety Supervisor, Leo Flack, accepts the Fleet Safety Grand Champion Award from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

The Trucking Association of New York has long-promoted safety on our highways. Every year, TANY has the honor of recognizing those member companies who have made safety their top priority with the Fleet Safety Award. The Fleet Safety Award is given to carriers who have an accident rate at or below 0.5 (no more than one accident per two million miles) based on their miles traveled in New York. For 2016, there were over 11 million accident-free miles among the applicants.

The awards are divided into two operation types: long-haul/ truckload, and pickup and delivery. They are further broken out into three categories based on total New York miles: small, medium and large. The top three carriers in each category were recognized at an awards luncheon during the New York State Truck Safety and Education Symposium and Safety Exhibition in Saratoga Springs in April. One overall Grand Champion was selected from the first place winner in each category and those fleets who have received a Fleet Safety Award for at least five consecutive years.

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www.nytrucks.org • Trucking Association of New York

A. Duie Pyle, Inc. of West Chester, Pennsylvania, was named Fleet Safety Award Grand Champion for 2016. They were selected based on out-of-service rates, safety and maintenance programs, performance trends over the last three years and more. A. Duie Pyle logged over 10.6 million miles in New York in 2016 with zero preventable accidents.

Every year, TANY also recognizes carriers for the number of years they have consecutively won a Fleet Safety Award. A Gold Award was given for the first time this year, to Tripifoods, Inc. for winning a Fleet Safety Award for 10 consecutive years. Also recognized were Walmart Transportation, LLC (9 years), ABF Freight System, Inc. (8 years), ARG Trucking Corp. (7 years), Clinton’s Ditch Co-Op, Inc. (5 years), Dimension Fabricators (4 years), Golub Corporation (4 years), Reid Petroleum Corporation (4 years), Sweeteners Plus, Inc. (4 years), and Terpening Trucking Co., Inc. (4 years).

The Fleet Safety Awards are sponsored by Great West Casualty Company.

George Hutcheson of Reid Petroleum receives the second place Fleet Safety Award in the pickup and delivery category-small class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Larry Bigando of Ginsberg’s Foods, Inc. receives the second place Fleet Safety Award in the pickup and delivery categorymedium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Swede Oun accepts the third place Fleet Safety Award in the pickup and delivery category-small class, on behalf of Guard Contracting Corporation from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Mark Henderson of Patriot Tank Lines, Inc. receives the third place Fleet Safety Award in the pickup and delivery categorymedium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Mark Vallely of Terpening Trucking Co., Inc. receives the first place Fleet Safety Award in the pickup and delivery categorymedium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Bob Copp of Byrne Dairy, Inc. receives the first place Fleet Safety Award in the pickup and delivery category- large class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Milepost Magazine • Second Quarter 2017

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Leo Flack of A. Duie Pyle, Inc. receives the second place Fleet Safety Award in the pickup and delivery category-large class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Steve Erwin of Clinton’s Ditch Co-Op, Inc. receives the second place Fleet Safety Award in the long-haul/truckload-medium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Sara Vinson of Grand Island Sales & Service, Inc. receives the first place Fleet Safety Award in the long haul/truckload-small class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Ken Harrison of ABF Freight System, Inc. receives the third place Fleet Safety Award in the long-haul/truckload-medium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Leo Flack of A. Duie Pyle, Inc. receives the first place Fleet Safety Award in the long-haul/truckload-medium class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

Ethan Miller of Leonard’s Express, Inc. receives the first place Fleet Safety Award in the long-haul/truckload-large class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

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www.nytrucks.org • Trucking Association of New York

2016 FLEET SAFETY AWARD WINNERS Pickup and Delivery—Small Class 1st Place: Baker Commodities, Inc. 2nd Place: Reid Petroleum Corporation 3rd Place: Guard Contracting Corporation Pickup and Delivery—Medium Class 1st Place: Terpening Trucking Co., Inc. 2nd Place: Ginsberg’s Foods, Inc. Keith Adams of Old Dominion Freight Line receives the second place Fleet Safety Award in the long-haul/truckload-large class, from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

3rd Place: Patriot Tank Lines, Inc. Pickup and Delivery—Large Class 1st Place: Byrne Dairy, Inc. 2nd Place: A. Duie Pyle, Inc. Long-Haul/Truckload—Small Class 1st Place: Grand Island Sales & Service, Inc. 2nd Place: P. L. Gaetano Transportation, Inc. 3rd Place: R.S. Maher & Son, Inc. Long-Haul/Truckload—Medium Class 1st Place: A. Duie Pyle, Inc. 2nd Place: Clinton’s Ditch Co-Op, Inc. 3rd Place: ABF Freight System, Inc. Long-Haul/Truckload—Large Class

Bill Costello of ARG Trucking Corp. receives the third place Fleet Safety Award in the long-haul/truckload-large class (tie), from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

1st Place: Leonard’s Express, Inc. 2nd Place: Old Dominion Freight Line, Inc. 3rd Place: ARG Trucking Corp.

3rd Place: FedEx Freight, Inc. Additional Fleet Safety Award Winners: 3B Timber Co. Inc., C. T. Express, Inc., Curtis Lumber Co., Inc., Dimension Fabricators, Inc., Genesee Bulk Transport, LLC, George W. Burnett, Inc., Golub Corporation, Grocery Haulers, Inc., Kuhnle Brothers, Inc., Lightning Express Delivery Service, Inc., New York Bandit Trucking, Ray’s Transportation, Inc., Schinn Transport, Inc., Silk Road Transport, Inc., Sweeteners Plus, Inc., Tripifoods, Inc., and Walmart Transportation.

Brandon Gill of FedEx Freight, Inc. receives the third place Fleet Safety Award in the long-haul/truckload-large class (tie), from TANY President Kendra Hems and TANY’s SMMC Safety Chairman Joe Peplinski.

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TANY Members in the Community TANY member Metropolitan Recycling showcased their truck, “Geraldine” during the WBAB Touch-a-Truck event on April 29 in East Meadow. The event raised $4,500 for the Ronald McDonald House of Long Island. Geraldine is named in memory of the sister-in-law of the company’s president, Gregory Bianco and also bears the names of Gregory’s cousin, Joanne, who passed away from breast cancer, and his mother Agnes, who is a breast cancer survivor. Additional names are being added as the company accepts donations from their company team and customers, to benefit local breast cancer charities.

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www.nytrucks.org • Trucking Association of New York

Preparing for the ELD Mandate: No Time to Waste!

On December 18, 2017, motor carriers will be subject to the electronic logging device (ELD) rule, established to improve compliance with the hours-ofservice rules. The rule was established by the Federal Motor Carrier Safety Administration (FMCSA) in response to a congressional mandate. Only an act of Congress or a ruling by the Supreme Court can overturn the upcoming ELD rule.

While it may seem like December is quite a while away, carriers who have implemented ELDs within their fleets warn that it takes four to six months to fully implement an ELD in a fleet.

During the New York State Truck Safety and Education Symposium and Safety Exhibition in April, the ELD mandate was discussed in detail. Federal and state officials, as well as representatives of carriers who have implemented programs examined the rule and offered their perspectives on how to prepare and what to expect.

Who is subject to the Rule?

FMCSA Safety Investigator Tim Grimley stated that a simple rule-of-thumb is that if you are required to keep a paper log now, you’ll be subject to the ELD requirement. If you’re exempt today, you’ll be exempt under the ELD rule, with some exceptions. Drivers who operate out of the short haul exemption more than eight times within 30 days are subject to the ELD rule. New exemptions have also been added, including certain limited use situations, such as “drive away-tow away” operations, and older trucks (manufactured before MY 2000) whose computer systems cannot support the new ELD standards. Currently, the regulation requires that if a motor carrier has to lease a vehicle, it is the responsibility of the

motor carrier to provide an ELD for the leased vehicle.

What is an ELD? ELDs are connected to the engine via hard wire or Bluetooth. It automatically records a driver’s driving time, is integrally synchronized with the engine of the vehicle, and captures the engine’s power status, vehicle’s motion status, miles driven and engine hours.

Additionally, it automatically records the date, time, CMV geographic location information, engine hours, vehicle miles, driver or authenticated user identification, vehicle identification and motor carrier identification. ELDs also record events including driver login/logout, duty status changes, personal use or yard moves, and malfunction of diagnostic events.

What are the different methods in which hours-of-service can be shown?

Currently there are four ways that a driver’s hours-of-service can be shown: • A paper log (not compliant with the new rule) • A stand-alone application which is not connected to the truck (not compliant with the new rule)

• Automatic On Board Recording Devices (AOBRDs) (grandfathered until December 16, 2019) • ELDs (compliant with the new rule)

How do I know what ELD to use?

Does FMCSA certify ELDs? “We don’t actually certify the vendors,” Grimley said. “The vendors self-certify on our website.” (https://3pdp.fmcsa. dot.gov/ELD/ELDList.aspx) There are currently more than 35 vendors who have self-certified. Many legacy AOBRD providers are awaiting FMCSA to release EROD software before certifying their devices. Many AOBRD providers are advising their devices can be turned into ELD’s with a simple over the air update. Regardless of an update, AOBRDs installed now will be grandfathered in as compliant until December 16, 2019.

The rule doesn’t go into effect until December. How long can I wait before implementing an ELD system in my fleet?

A fleet’s size and the geographic location of the vehicles play roles in the time required to implement the system, as well as the number of people who require training to use the devices and manage

Milepost Magazine • First Quarter 2017

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their data. Mark Henderson, Safety Manager for Patriot Tank Lines and E&V Energy, said their fleet just passed their one-year mark of having an ELD system in place. He said it took a full month get the ELD units installed in their 36 trucks, located in New York and Maine and took approximately four months for full implementation. Ken Johnson, CEO of Leonard’s Express, Inc. said that it took five to six months to fully implement the system in their large, nationwide fleet, when they installed AOBRDs in 2012.

What is law enforcement looking for roadside?

• Verification the ELD is registered with FMCSA • Information output is compliant with 49 CFR 395.8 with the exception of main address • Display or printout is available (motor carrier’s choice) • Display can be viewed without entering the vehicle

What are the “rules” for unassigned driving miles?

Drivers are required to review any unassigned driving time when they log into the ELD. If driving time logged under the unassigned driving account belongs to the driver, the driver must add that driving time to his or her own record. A motor carrier must review the unassigned record to either explain why the time was unassigned or assign the time to the appropriate driver. The unassigned miles will be examined roadside, in addition to driver miles, according to New York State Police Sgt. Ray Weiss.

“A lot of times when the driver is putting himself off for a 10-hour block, 15-, 20minutes, a half an hour of that time period is actually moving of the vehicle, or pulling into the rest area, or looking for a rest area, or post-trip inspection of the vehicle,” Weiss said. “That’s all accountable time that should be properly accounted now but often is not. With these electronic devices now, it’s going to hold you accountable really, to the minute.”

18

How much does this change the way I manage my operation?

What is the biggest challenge I can expect to face?

By all accounts, the biggest challenge seen by both carriers and law enforcement is the absence of any flexibility regarding hours-of-service. It poses a challenge for drivers and those managing logistics operations, alike.

“Probably the biggest challenge with the drivers was that guys that couldn’t do paper logs well, did not do well with electronic logs,” Johnson said. “Most of them got frustrated and left. At the time, they could go other places and use paper logs.”

Henderson said he’s had issues with drivers who have come on-duty or off break just a minute or so too soon. “I’ve had drivers only 5 to 7 seconds short, but once they start the vehicle, the ELD system is activated and impacts the next 10 hours because they didn’t wait that extra few seconds before starting the truck.”

Johnson implemented electronic systems three times: once with Leonard’s Express, then twice with companies they acquired. He said with each fleet that was integrated, they saw a five to 10 percent reduction in productivity in that fleet mostly from operations not being used to planning. They understood the hours-ofservice rules, but not “the implications of what they did or didn’t do in the planning process,” he said. “If you arrive at a customer location with 90 minutes on the clock and they take longer than that, you’re out of hours and it’s on your record,” Johnson said.

How does the ELD rule impact the required 30-minute break?

Carriers have found that parking challenges have dictated how to plan for the mandated 30 minute break. A driver can take 45 minutes to an hour to find a safe place to park and without planning ahead for that time, the driver can go over hours, Johnson noted.

Henderson recalled a call he received from a veteran driver who made a delivery to JFK Airport without much time to spare. He quickly found a safe location to take his 30 minute break, but within

www.nytrucks.org • Trucking Association of New York

minutes of when his break needed to begin, he was told by airport security to move. Henderson advised the driver to leave and find the next available stop. “I always emphasize to the drivers security and safety are the first priorities,” he said.

“We’ll take our licks if there is an issue.”

“We have worked with our customers and explained to them our situation and said if they want a load delivered, they’re going to have to make accommodations for us to have a spot to park in afterwards, and that has worked out well,” Henderson said.

What should I do to help facilitate a smooth transition to ELDs? • Start now. Allow for a 4 to 6 month implementation.

• Train your drivers AND your logistics personnel on the real-world ramifications of their actions.

• Leave notes on the steering wheel until a driver becomes accustomed to certain things including having a paper back up log, an ELD instruction card for inspectors, and starting the pre-trip inspection only after the ELD is powered up.

• Plan drivers’ 30 minute breaks early in the first 8 hours. If a driver plans a break at a location that is full, or gets stuck in traffic towards the end of their first 8 hours, they will be in violation.

• Identify multiple parking places along the route to ensure that the driver is able to stop when necessary.

• If time will be tight on a delivery, work with your customers to arrange for parking immediately after delivery.

Preparation is the key to a successful transition to ELDs, experts agree and glitches are to be expected. “It was a challenge for all of us,” Henderson said.

“Probably half our fleet or better, the guys are older drivers, veterans, they’ve seen a lot out there in 25 plus years. Everybody was worried about how it was going to play out.

We’ve been in the system for over a year and it’s helped us safety- and maintenance- wise and caught small items before they become big items. After over a year, we don’t have many issues.”

Johnson echoed that sentiment. “In the end it has made us a better company,” he concluded.

New York Sees Significant Workers’ Compensation Reform Ten years in the making, New York employers finally received some relief in the form of Workers’ Compensation reform in the enacted FY 2018 NYS budget. While the reform measures don’t include everything that business groups wanted, it is a vast improvement over the current situation.

In 2007, then-Gov. Elliot Spitzer passed workers’ compensation reform that was meant to improve benefits to injured workers but also provide significant savings to employers. Unfortunately, while many of the employee benefits were enacted, the provisions intended to benefit employers were not, resulting in one of the costliest workers’ compensation programs in the nation.

Last year, the Trucking Association of New York joined a coalition headed by the Business Council of New York, of more than 200 associations, businesses and chambers of commerce, pushing for workers’ compensation reform. As a result of the coalition’s efforts, significant reforms benefitting employers were included in the enacted FY 2018 state budget.

One of the biggest costs of New York’s workers’ compensation system is permanent partial disability (PPD) awards. While the 2007 legislation “capped” payouts to 10 years, there was no defined start date of the 10-year period, resulting in payouts well beyond 10 years from the actual date of injury. The 2017 reform establishes a 130 week general rule for reaching maximum medical improvement (MMI) for the purpose of classifying for PPD awards. If an employer has paid the employee for 130 days and the employee has not yet reached MMI, all future payments will be credited to the employer’s account.

Another significant cost is the Scheduled Loss of Use (SLU) guidelines. The current guidelines have not been changed in over 20 years. They were initially released in 1996 and are based on medicine from

several years earlier. There have been numerous medical and technological advances over the years that have not been incorporated into the system. The 2017 reform requires that new SLU guidelines, reflecting today’s modern medicine, be developed and implemented by 2018. The current guidelines will be deemed repealed effective January 1, 2018 and the new guidelines will become effective immediately on that same date.

In an effort to address the opioid epidemic, the 2017 reform provides for a comprehensive prescription drug formulary to be established by December 31, 2017. The formulary will include a tiered list of high-quality, cost-effective medications that are pre-approved to be prescribed and dispensed, as well as additional non-preferred drugs that can be prescribed with prior approval.

The reform also includes provisions designed to enhance coverage for injured workers by: • Decreasing the threshold for the PPD “safety net” from an impairment of 80 percent to 75 percent; • Removing the requirement that an injured worker, who was entitled to benefits and attached to the labor market at the time of classification, continue to demonstrate attachment;

• Expediting some hearings to 45 days from the date of request; and • Changing the threshold for proof for mental health claims for firstresponders.

Finally, there are additional provisions to: • Create a panel to study independent medical examinations; • Wind down Special Funds; • Create minor modifications to the New York Compensation Insurance Rating Board’s (NYCIRB) public reporting and recertify NYCIRB as the rate setting organization until 2028; and • Establish performance standards for penalties and assessments on carriers and self-insured employers.

Overall, the changes are anticipated to create significant savings in 2017 but will continue to create savings well into the future as the new SLU guidelines are implemented at the beginning of 2018. It is estimated that the 2017 reform will save employers hundreds of millions of dollars annually – savings that have been long overdue.

Milepost Magazine • Second Quarter 2017

19

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Spotlight BARRY PANICOLA Director of Transportation, Sprague Operating Resources, LLC Lawrence, NY

Where did you grow up?

I grew up in New York City and currently live in Long Beach, NY.

What is one goal you’d like to accomplish during your lifetime?

I’d like to restore a classic car with my son.

What was your first job?

I was an auto parts counterperson when I was in high school.

Where would you like to visit?

I’d like to go back to Italy to learn more about my heritage.

What was your first car?

1970 Dodge Coronet. It had been my dad’s but I modified it quite a bit.

What does Sprague Operating Resources do?

Sprague is one of the largest independent suppliers of energy and materials handling services in the Northeast with products including home heating oil, diesel fuels, residual fuels, gasoline and natural gas. The company was founded in 1870 and is now publicly traded on the NYSE.

What are some things you do in your spare time?

In the summer, I like to relax at the beach.

I enjoy travel and sports- I’m an avid New York Yankees, Giants and Rangers fan. I have recently begun working with videography for my son’s hockey team. I put together highlight reels after games and at the end of the past two seasons.

I also collect vintage wrist watches. I’m amazed at the amount of technology in a mechanical wristwatch and the accuracy they can maintain without a battery.

My attention turned to watches when I no longer had enough time or space to work on cars. I’m interested in anything mechanical- if it’s mechanical I want to know about it; I always have. I’m told I used to spend hours as a toddler taking apart my mother’s metal drip coffee pot and putting it back together.

What was the last book you enjoyed?

The End of Diversity As We Know It by Martin Davidson.

How many employees are in the company?

700 throughout the Northeast.

What is your job?

I oversee and manage all truck-delivered petroleum products on our proprietary fleet in New York City and outside carriers from Maryland to Maine.

How did you get into your line of work?

I started my career as a diesel truck mechanic but knew I wanted to get into the management side. I took every opportunity to take on more responsibility and was in the right place at the right time a few times, so I was able to move up the ladder fairly quickly and transition into fleet management.

What do you like most about your job?

I enjoy the variety of tasks and challenges every day brings.

What do you find most challenging about your job?

Dealing with the unique personalities in the large scope of people I interact with.

What are some of your professional goals?

Short-term I’d like to surpass all of our safety goals. Long-term, I’d like to expand my area of responsibilities and grow our territory.

What would be your dream job?

Professional baseball player.

If you could switch places with someone for a day, who would it be and why?

I’d switch places with my son to see the world through his eyes.

What characteristics do you admire most in others?

I admire creativity and vision to think outside the box to advance business goals and solve challenges.

What is the best advice you ever received?

Be fair, but firm in your interactions with clear and concise communications at all times.

What advice would you give someone going into this line of work?

Always have goals you are striving to reach, but make them attainable so they can guide you and help measure your success.

Milepost Magazine • Second Quarter 2017

21

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www.nytrucks.org • Trucking Association of New York

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