Moving Company Laws - violation for no license

Law Offices of Michael Garcia

Transportation law • Tariff Publishing • Regulatory Compliance • Consumer Protection

Legal compliance for interstate moving companies:

Note: In addition to the above general requirements, an interstate moving company must continue to follow all provisions of federal law governing interstate moves. Federal laws regulating moving companies are designed to help protect consumers and create an even playing field for moving companies. By following the law, moving companies can avoid government fines, lawsuits, and provide better service to their customers.

$25,000 Violation

WARNING: The US DOT has been enforcing a new law where a motor carrier will be fined $25,000.00 for each job performed while their license was "inactive" or when the carrier went "out of service." 49 USC § 14901(d)(3) states that if a motor carrier or a broker operates without a license (Out of Service or Inactive) the carrier must be fined $25,000.00.

Frequently carriers will go "Inactive" based on an insurance lapse or during the time when they are changing insurance policies. Unfortunately, many carriers do not even know that they went "inactive." It is the carrier's duty to monitor and maintain their authority in an "Active" status. Not knowing that your license went "Inactive" is not a defense to the violation and penalty. To check your authority history please check FMCSA Licensing & Insurance website.

If a carrier's license goes "inactive" they should not perform any services during that period of time. Performing services includes: booking jobs, picking up, loading, transporting, off loading, or using an agent to perform on your behalf under your authority.