FMCSA Clarifies Role in Post-Montgomery Broker Liability Era

Key Details FMCSA Deputy Administrator Jesse Elison addressed the freight industry at FreightWaves' Freight Fraud Symposium in Cleveland, tackling questions about the Supreme Court's Montgomery decision and its impact on broker regulations. The ruling significantly expanded potential broker liability in crashes and safety incidents, forcing the industry to reassess existing protections. Why It Matters Elison initially stated that Montgomery "doesn't change anything for us," but then clarified that broker activity is now considered part of motor vehicle operations, placing it squarely within FMCSA's purview. This represents a substantial shift in how the agency views its regulatory authority over freight brokers. The Broker Protection Gap Brokers previously relied on two key defenses: protection under the Federal Aviation Administration Authorization Act and the assumption that unvetted carriers with clean FMCSA records posed acceptable risk. Montgomery eliminated the first defense, and only about 92% of carriers are fully certified by FMCSA, creating significant liability exposure. What's Next The agency must now clarify expectations for broker vetting and carrier selection standards. Industry leaders are watching closely to understand how FMCSA will implement these new interpretations and what compliance requirements brokers should anticipate moving forward.