Enhanced Driver Qualification – Testing, Physicals and Background Checks

1. Attention Attendees: • Thank you for attending! • The presentation will start in a few minutes at 1:00 PM Central. • Please use your computer speakers to listen to the event. If you have audio issues, dial-in info is below. • You will be muted during the event. • Please use the Question feature to text questions to “Q & A”. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • The slides will be posted in 1-2 days and the recording in 7 days at http://www.jjkeller.com/nptcinfo Enhanced Driver Qualification – Testing, Physicals and Background Checks This webcast will cover ... The Driver Qualification Process--Beyond Compliance, Basic Regulatory Requirements and a Regulatory Update, Medline’s Screening Program, and Question & Answer Moderator Dr. Gary Petty, President & CEO, NPTC Panelists Tom Bray, Editor – Transportation Management, J. J. Keller & Associates, Inc. Tom Moore, Vice President of Education, NPTC Ricky Abell, CDS, CTP, Regional Manager - Safety & Compliance, Med Trans LLC

2. Dr. Gary Petty President & CEO National Private Truck Council

3. Disclaimers and Housekeeping • The content in this webcast is intended for information purposes only and should not be construed as providing legal advice. • This is an introductory program and is intended to highlight critical safety and compliance topics. • We welcome your specific questions but reserve the right to modify the questions to make them applicable to a general audience. • Housekeeping issues: • You will be muted during the event. • Please use the Question feature to text questions to the Q&A Panelist. We’ll try to answer them during the Q&A period if they are not covered in the presentation. • If you lose sound at any point, you can dial-in by phone using the number and Pass Code listed below. • If you lose the program window and need to re-login be sure to enter a different e-mail address to avoid being denied access for multiple logins. Gary Petty National Private Truck Council

4. Tom Bray Editor, Transportation Management J. J. Keller & Associates, Inc. Ricky Abell, CDS, CTPRegional Manager - Safety & Compliance Med Trans LLC Tom Moore, CTP Vice President of Education National Private Truck Council

5. The “Pool of Qualified Candidates” Gary Petty National Private Truck Council

6. Driver Recruiting, Qualification and Hiring Process Gary Petty National Private Truck Council

7. Med Trans LLC Fleet Operations • Fleet consists of : • 202 Drivers • 186 Power Units and 190 Trailers • Staged at 26 Distribution Centers • Number one privately held manufacturer and distributor of health care products inthe U.S. • 40+ years of consecutive growth • 4th generation family leadership seeks long-term generational growth • Medline put the color into the medicalscrubs Ricky AbellMed Trans LLC

8. Finding Qualified Drivers • Driver shortage is re-developing • 2006-08: growth caused carriers to hire below average drivers to satisfy demand • 2009-10: carriers parked/sold equipment and released such drivers • Carriers raising standards reducing pool of qualified candidates • Economy is improving creating competition for qualified drivers • CSA 2010 Impact • Time to get creative, again! Tom MooreNational Private Truck Council

9. CSA 2010 Update CSA 2010 Data Review is available now Scored data available August 2010 National roll-out of SMS delayed until November 2010 Interventions coming on line in 2011 Regulatory changes (i.e., declaring carrier unfit without a compliance review) delayed until January 2011 No driver qualification regulation changes due to CSA 2010 Tom BrayJ. J. Keller & Associates, Inc.

10. Policy Phase • Age • Driving experience • Customer service experience • Length of stay at previous employer(s) • Job physical requirements • Presentation • Driver profile • Values • Disqualifying findings Tom MooreNational Private Truck Council

11. Minimum Requirement and Entry-level Drivers • Age - 21 • CDL/DL/Not disqualified • Medical Certificate • English Proficiency • Regulatory changes • Learner’s permit changes • Updates knowledge and skills testing • Domicile requirement • 30 days between LP and actual CDL • LP must meet “Real ID” requirements • Creates new CDL restrictions • Entry-level driver training requirement changes • Behind the wheel components required • Classroom hours and topics specified Tom BrayJ. J. Keller & Associates, Inc.

12. Med Trans Driver Qualification Policy • Online Medline application asks specific prequalifying questions • Are you 21 years of age or older? • Do you have a CDL and have more than 2 years of experience? • Have you ever refused or failed any DOT Drug & Alcohol Test? • Have you ever been convicted of a felony or driving under the influence of drugs or alcohol? • Do you have freight-handling experience and customer serviceskills related to product delivery? • Please list all moving violation convictions in the past 3 years. Ricky AbellMed Trans LLC

13. Recruiting Phase • Recruiting – How/where do you locate qualified drivers? • Referrals from drivers • Job boards • Truck stops • College campus • Job fairs Tom MooreNational Private Truck Council

14. Med Trans Recruiting • Recruiting • HR using job boards • Medline website • Driver word of mouth • Temp-to-Hire programs • Pre-screen against application screening criteria Ricky AbellMed Trans LLC

15. Interview Phase • Hierarchical • HR  Area Management  Driver Manger/Dispatch  Other Drivers • Team approach • Interview questions • Phone v. web/video conference v. in-person • Route shadowing • Temp to hire (“Try before you buy”) Tom MooreNational Private Truck Council

16. Med Trans Interview Process • HR and/or DC performs preliminary interviews of candidates that meet Med Trans’ application screeningcriteria • Branch Management Review • Branch interviews prequalified applicants • Branch initiates a call with their VP and the Med Trans Director of Safety • Applicants’ qualifications and applications are reviewed for approval Ricky AbellMed Trans LLC

17. Screening Phase • Relationship to job requirements • Additional physical requirements • Drug & Alcohol Testing • Hair follicle testing, 10-panel • Intangibles • “Honesty” tests • Personality tests • Background Tom MooreNational Private Truck Council • I9/E-verify • Criminal background – FBI, US, state, county, sex offender • Social security number trace • Credit • Education • Employment history (non-driving) • Reference / investigative

18. Verifying Training or Experience • Regulations require road test or acceptable equivalent • Road test must consist of… • CDL acceptable equivalent, unless… • Many companies still road test all applicants Tom BrayJ. J. Keller & Associates, Inc.

19. DOT Driver Physicals Carrier not required to “physical” new hires Carrier can accept valid medical card Requiring company DOT physical not forbidden If adding components, they must be addressed separately Physical must follow Part 391 Fed-Med Certification will be combined with CDL starting 2012 Tom BrayJ. J. Keller & Associates, Inc.

20. DOT Background Checks Completed application MVRs for previous three years CDLIS Safety Performance History Specialized requirements Has to do with Hazardous Materials Endorsement Carrier not required to perform (TSA does the screening) Tom BrayJ. J. Keller & Associates, Inc.

21. FMCSA Pre-Employment Screening Program Available now: http://www.psp.fmcsa.dot.gov What: electronic access to a driver’s record of past 36-month’s inspection and crash records for sole purpose of pre-employment screening How: Execute an enrollment agreement $100/year annual fee, $10 per driver report (direct charges) Access direct through above website, or through background check provider Requires driver’s prior written authorization using approved form Fair Credit Reporting Act compliance required Tom BrayJ. J. Keller & Associates, Inc.

22. DOT Drug & Alcohol Testing Pre-employment Pre-employment exceptions Random Reasonable Suspicion Past history part of Safety Performance History Tom BrayJ. J. Keller & Associates, Inc.

23. FMCSA Drug & Alcohol Testing Clearinghouse Track failures, refusals, and completion of Return to Work Proposal due out November 2010 Several states already have similar programs Either carrier or MRO must enter failure Carrier is required to check before hiring Tom BrayJ. J. Keller & Associates, Inc.

24. Med Trans Contingent Offer andPre-employment Testing • Presented with a “Contingent 90-Day Offer Letter” • Given a “Road Test” using an in-house point-driven observation form. • California applicants tested and approved for all equipment they will operate. • Applicant completes Driver Qualification/Release forms • Sent for their DOT 5-Panel Pre-employment Drug Test • Applicant must also have a company-required “Medline Hair Follicle Test” • Perform DOT Physical if medical card is over 1 year old Ricky AbellMed Trans LLC

25. Med Trans Pre-employment Background Checks • Corporate Med Trans Safety & Compliance Office – Performs: • Criminal Background and Drivers’ Record Check • Choose a reputable and dependable 3rd party provider. • A provider that actually sends an investigator to the local county court house • Previous Employer Safety Performance History Requests/Checks • Verify company thru FMCSA Carrier Database • Search the Internet to verify company name, address, phone number, etc. • Pre-employment Screening Program (PSP) Request is performed. • Above results are compared against each other as well as the applicant’s Med Trans LLC driver application Ricky AbellMed Trans LLC

26. Sample PSP Record Ricky AbellMed Trans LLC

27. Sample PSP Record Ricky AbellMed Trans LLC

28. Driver Onboarding • Orientation / Probation period • Job shadowing • Ongoing background investigations Tom MooreNational Private Truck Council

29. Maintaining Driver Qualification Annual Review Date Completed Person Completing Motor Vehicle Record Accidents and Citations/Convictions State Pull Notice Random, Reasonable Suspicion and Post Accident Drug & Alcohol Testing Driver Physical – Medical Card Hazmat security screening Tom BrayJ. J. Keller & Associates, Inc.

30. Med Trans New Hire Onboarding • Corporate Med Trans Safety & Compliance Office – Performs: • Upon completion and review of all Criminal Background and Drivers’ Record Check – Start date set - Applicant reports to work. • 1st Day of Work – New Hire completes: • Final DQ file form - 7 Previous Day Work History • Receives/Signs for DOT/Med Trans Drug and Alcohol Policy • Receives/Signs for Driver Handbook – Completes online testing within 30 days. • Driver begins Orientation Period (90 day) • Facility Walkthrough – Meet and Greet • Review of Medline & Med Trans Policies • Begins required online training • Driver job shadowing Ricky AbellMed Trans LLC

31. Beyond DOT Compliance • Clear, documented policies and standards • Stick with requirements based on core job duties • Stay away from processes that are “too personal” or “gather potentially discriminatory information” • Remember “reasonable accommodations” requirement • Clear additional processes with HR or legal • Discriminatory effects are not allowed • DOT regulations DONOT safeguard screening and background investigation practices that exceed DOTmandates Tom MooreNational Private Truck Council

32. Question & Answer Please submit questions to “Q&A” using the Q&A tool Tom BrayJ. J. Keller & Associates, Inc. Ricky AbellMed Trans LLC Tom MooreNational Private Truck Council Gary Petty National Private Truck Council

33. Closing Remarks Checkout the archive of past topics at: http://www.jjkeller.com/nptcinfo PowerPoint slides up in 1-2 days Recording up in 1 week Topics for 2010: August 25 – Fleet Excellence – Customer Service October 20 – Fleet Excellence – Driver Recruiting & Retention Gary Petty National Private Truck Council