Freight brokers face a new legal landscape after the United States Supreme Court ruled in May 2026 that negligent hiring claims against brokers are no longer automatically preempted by federal law. This guide is designed for freight brokers seeking to understand their legal obligations and practical steps for carrier vetting in light of recent Supreme Court changes. At Focused Compliance Group, we help brokers build carrier vetting programs that hold up in court. This guide breaks down what changed, what it costs to get wrong, and how to fix your process. Understanding CDL requirements and carrier vetting is now critical for freight brokers to protect their business, ensure compliance, and reduce liability after the Montgomery decision. Freight brokers must now be proactive in understanding and implementing robust carrier vetting processes, as well as ensuring that all drivers meet CDL requirements, to avoid costly litigation and maintain trust with shippers and customers.

Carrier Vetting 101: What It Is and Why It Matters in 2026

Carrier vetting is the systematic review of a motor carrier’s identity, operating authority, safety performance, and insurance coverage before tendering a single load. For any freight brokerage arranging shipment of goods, this process is the first line of defense against both physical harm and financial loss. Carrier vetting reduces risk and improves supply chain security. Another clear benefit is stronger supply chain reliability for brokers, while also protecting them from the legal consequences of putting freight in the hands of bad actors.

Freight fraud and cargo theft are increasing across the transportation industry. Multiple factors are driving the need for tighter vetting, including ghost carriers and chameleon carriers using stolen USDOT number credentials to haul freight and disappear, along with rising customer expectations across the transportation industry. Fraudulent carriers can damage customer trust and reputation in ways that take years to repair. Poor carrier selection can lead to cargo loss or theft.

A defensible vetting process, from Focused Compliance Group’s perspective, is one that can be demonstrated with dated records, written standards, and consistent application across every carrier in your network. Core goals include:

• Confirming carrier identity and screening for fraud
• Verifying safety data and driver qualification records
• Validating insurance coverage against contractual minimums
• Building a litigation defense record that shows reasonable care
• Assuring shippers and customers that their freight is in qualified hands

The Supreme Court’s Montgomery Decision and Its Impact on Freight Brokers

On May 14, 2026, the Supreme Court decided Montgomery v. Caribe Transport II, LLC. Shawn Montgomery was severely injured when a truck driven by a driver for Caribe Transport struck his stopped vehicle. The load was arranged by C.H. Robinson. Montgomery alleged that Robinson knew or should have known about Caribe Transport II’s documented deficiencies, including a conditional safety rating, hours-of-service violations, and driver qualification failures.

The district court and the Seventh Circuit had dismissed the negligent hiring claim, ruling it preempted by the FAAAA, an economic deregulation statute. The Supreme Court reversed. Justice Barrett, writing for the majority (with Justice Alito concurring in part), held that state tort claims for negligent carrier selection fall within the FAAAA’s safety exception, which preserves state authority to regulate safety of motor vehicles with respect to trucks and broker responsibilities in carrier selection. The Supreme Court ruled brokers must vet carriers thoroughly; brokers can be held liable for carrier accidents under certain conditions where they failed to exercise reasonable care.

What this means for daily operations:

• Brokers can no longer rely on automatic federal preemption to dismiss negligent hiring claims.
• Plaintiff attorneys now have access to broker records, including emails, TMS logs, and internal notes, to evaluate the adequacy of carrier selection.
• Liability exposure is significant even when brokers win, because discovery and litigation defense costs run into six figures.
• These costs can also affect consumers through higher costs or weaker safety incentives.
• Carriers with poor safety ratings increase risk for brokers, who must now show they reviewed and acted on that data.
• Freight brokers may be liable for carrier accidents when they ignore red flags or lack a documented vetting process.

The True Cost of Inadequate Carrier Vetting for Freight Brokerages

The largest financial hit from weak vetting is often the defense cost and business disruption, not just the verdict itself. But the verdicts are staggering. In July 2026, a jury awarded approximately $604 million against C.H. Robinson for a 2021 crash. The jury disregarded the carrier’s “satisfactory” FMCSA rating.

Across the transportation industry in 2024, trucking and automotive sectors received $4.1 billion in nuclear verdicts across 15 cases. The median verdict rose to $51 million, up from $21 million in 2020. Insurance liability losses per mile climbed 33.1% in the same period, even as crash rates fell 2.6%. Freight brokers risk liability if they control carrier operations or fail to vet the company hauling their customers’ freight.

Cost categories brokers face:

• Legal fees for defense, depositions, expert witnesses, and document production.
• Higher insurance premiums, increased deductibles, and difficulty obtaining coverage.
• Operational costs for compliance remediation, staff training, and new technology adoption.
• Reputational damage, lost shipper contracts, and increased demand for proof of vetting.

Spending modestly on carrier vetting systems and periodic audits is far cheaper than responding to subpoenas after an accident.

Building a Defensible Carrier Vetting Process

This section is the blueprint for brokers who want to move beyond minimal FMCSA checks. Using carriers with a good history is essential for safety, and the steps below help you verify that history before tendering a load.

Carrier Identity Verification

• Match MC and DOT numbers to legal company name and address in FMCSA SAFER.
• Verify phone and email.
• Screen for recent ownership changes or name swaps that signal chameleon carriers.

Authority and Insurance Review

• Confirm active operating authority.
• Validate insurance coverage amounts and expiration dates, and review contractual agreements, against your contractual minimums.
• Check that interstate carriers carry at least $750,000 in liability or more if required by shippers or indemnification clauses, and ensure agreements with carriers and shippers clearly allocate insurance requirements and related responsibilities.

Safety Performance Analysis

• Review SMS BASIC scores for Unsafe Driving, Crash Indicator, Hours-of-Service, and Vehicle Maintenance.
• Check inspection and violation history.
• Trigger a documented exception process for carriers with a conditional safety rating.

Driver Qualification Review

• CDL stands for Commercial Driver’s License, required for certain large or hazardous-material vehicles.
• CDLs are categorized into three classes: A, B, and C.
• Class A covers combinations of vehicles with a combined weight rating of 26,001 pounds or more.
• Class B covers single vehicles with a GVWR of 26,001 pounds or more.
• Class C covers smaller vehicles designed to transport 16 or more passengers or certain hazardous materials.
• Endorsements may be required for specific vehicle types and operations.
• Verify that drivers hold valid CDLs with appropriate class and endorsements for the load being tendered.

Written Standards and Exceptions

• Establish minimum thresholds for BASIC percentiles, out-of-service rates, and violations.
• Document every exception with who approved it and why.

Recordkeeping

• Save time-stamped screenshots or PDFs of every check.
• Record who performed each step.
• Document the vetting process to avoid liability.

FOcused COmpliance Group can help design these standards, customize them to your risk tolerance, and map them into workflows your dispatchers and carrier reps follow daily.

From One-Time Check to Ongoing Monitoring: Carrier Vetting as a Lifecycle

Carrier vetting is not a one-time onboarding task. Carrier qualifications should be reviewed regularly for compliance, because a carrier that passed vetting six months ago may have accumulated new violations, lost insurance, or changed ownership since then.

Daily or Weekly Monitoring

• Automated checks for authority status changes, insurance lapses, or identity alerts via your TMS or compliance tool.

Monthly Monitoring

• Review updated SMS BASIC scores, new inspections, and DataQs outcomes for active carriers.

Annual Audit

• Deep-dive audit of your top carriers by load volume.
• Verify driver qualification files and service history.

Immediate Actions

• Block any carrier after a crash, a serious roadside violation, a safety rating downgrade, or a complaint from drivers or shippers.

Documentation

• Record every monitoring event, temporary block, exception approval, and permanent removal.

Continuous monitoring creates a timeline that defense counsel can present to show you exercised reasonable care throughout the carrier relationship, not just at onboarding.

Partnering for Risk: How Focused Compliance Group Supports Freight Brokerage Compliance

FOcused COmpliance Group is a risk and compliance partner for freight brokers, not a software vendor. We help you build and maintain a carrier vetting program that fits your business, your budget, and your risk profile.

• Carrier vetting program design and carrier selection criteria development.
• Audit and gap assessments against post-Montgomery legal standards.
• Litigation-ready documentation frameworks tied to your TMS.
• Training for carrier reps and dispatchers on consistent process application.
• Ongoing tracking of evolving case law, including state appellate decisions and emerging negligent hiring precedents.
• Collaboration with your insurers and legal counsel to align vetting standards with policy language and indemnification clauses.

We focus on right-sizing programs for small and mid-size freight brokerages that lack dedicated compliance officers. Contact FOcused COmpliance Group to schedule a preliminary vetting audit tailored to your operations.

Practical Carrier Vetting Checklist for Brokers

Adapt these items into your SOPs or TMS workflows. Each check should produce a dated, stored record.

Identity and Authority

• Confirm USDOT number and MC number match legal entity name and physical address.
• Verify operating authority is active and not revoked or suspended.
• Check for recent name, address, or ownership changes.

Safety and Compliance

• Review current FMCSA safety rating; flag conditional or unsatisfactory ratings.
• Pull SMS BASIC scores; set internal thresholds for each category.
• Review inspection and violation history for the past 24 months.
• Confirm no recent out-of-service orders.

Insurance

• Verify liability insurance limits meet your contractual minimums.
• Record policy expiration dates; set automated alerts for lapses.

Driver Qualification

• Federal regulations require Entry-Level Driver Training from a registered provider before a driver can obtain a CDL.
• Drivers must possess a valid standard driver’s license before obtaining a CDL.
• A Commercial Learner’s Permit is required before taking the CDL skills test.
• Applicants must hold a Commercial Learner’s Permit for at least 14 days before testing.
• Drivers must pass written knowledge and skills tests to obtain a CDL.
• Drivers must pass a physical examination to qualify.
• Minimum vision standards must be met.
• Drivers must be at least 21 years old to drive across state lines or transport hazardous materials.
• Drivers must be at least 18 years old to drive a commercial vehicle within state lines.
• Verify that the carrier’s drivers meet these requirements for the specific service and load type.

Fraud Screening

• Compare email domains to company names.
• Verify bank details through a separate communication channel.
• Check for duplicate MCs or recently created authority.
• Watch for mismatched documents across carrier filings.

Documentation

• Save screenshots or PDFs of every check with date and time stamps.
• Record who performed each step and the outcome.
• Store notes on any risk-based exceptions for future reference and informed decisions.

FAQ

How often should a freight broker re-vet or re-approve existing carriers?

• Authority and insurance status should be monitored daily through automated tools.
• Formal re-approvals work best at 6- to 12-month intervals.
• Any crash, serious violation, or rating change should trigger an immediate review before the next load tender.

Does relying on a third-party carrier vetting platform fully protect a broker from liability?

No. Third-party tools are useful for data aggregation, but brokers must still:

• Establish their own written standards.
• Review exceptions.
• Ensure staff follow the documented process.

A platform is a tool, not a legal shield.

What carrier safety data do courts expect brokers to review after the Montgomery decision?

Courts generally expect review of:

• FMCSA authority status.
• Safety ratings.
• Inspection and violation history.
• Insurance coverage.
• Any obvious red flags such as recent crashes or conditional ratings.

What constitutes reasonable care depends on the broker’s size, sophistication, and documented standards.

Can small or new freight brokers realistically afford a robust carrier vetting program?

Yes. A defensible program is scalable. Small brokers can start with:

• A focused checklist.
• Simple documentation habits.
• Periodic reviews.

Focused Compliance Group tailors processes to fit limited staff and budget while improving legal defensibility against claims.

What should a broker do immediately after a crash involving one of its contracted carriers?

• Preserve all vetting and load records without alteration.
• Notify your insurer and legal counsel.
• Review whether the incident reveals gaps in your vetting or monitoring process.
• Focused Compliance Group can help assess those gaps and strengthen your program before the next audit or claim.