PSP & The Future of Driver Screening Justin Reed, Director Industry Relations

1. PSP & The Future of Driver ScreeningJustin Reed, Director Industry Relations

2. FMCSA’s Pre-Employment Screening Program (PSP) • Overview • Congress authorizes MCMIS data for CDL background screening • 3 yrs roadside inspection & 5 yrs crash data • Approximately 4 million drivers in the database • FMCSA site launched May 11 • Motor carriers must enroll through federal contractor (NIC Technologies) http://www.psp.fmcsa.dot.gov • HireRight is a qualified 3rd party provider – launched PSP 6/10 • Can facilitate enrollment • Current restrictions • Non-motor carriers not yet approved • Cannot be used for current driver inquiries • 3rd party providers not authorized to deliver actual PSP data • Current model does not fit existing industry work flow • FMCSA, ATA & HireRight Meeting • Discussed problems with 3rd party restrictions • Explained work flow & document management process • Non-motor carriers who hire commercial drivers • Favorable response to changing the process

3. FMCSA PSP, cont. • Search Criteria • First/Last name, DOB, state and license number • Motor Carrier Responsibilities • FCRA obligations apply to users • Must obtain written consent • Provide driver a copy if used in hiring decision • Retain PSP/FCRA related records for 3 yrs • Will be subject to an audit process • Driver Dispute Process • Driver disputes will be processed through the FMCSA DataQs system, https://dataqs.fmcsa.dot.gov • Pricing $12 fee to integrate PSP into your HireRight/DAC ordering program

5. PSP Sample Report, cont.

6. PSP Report Data and CSA Safety Measurement System - SMS

7. BASIC Scoring Formula Time Weight 1, 2 or 3 Severity Weights 1 to 10 Violation Score

8. Top 10 Most Common Violations with Severity Weighting

9. PSP and Background Screening • Pre-Employment Screening • Comprehensive background screening and drug/alcohol testing programs more critical with CSA 2010. • Minimum FMCSA investigations still required. • How does PSP fit in this process? • Not mandatory but an important screening tool • Driver’s past history does not change the hiring motor carrier’s safety rating • Must be considered from a liability exposure position • Provides insight into an applicant’s past behavior and professionalism • PSP pointer information important • Past employers Pre-employment Screening Driver Training CSA 2010 Compliance Regulatory follow-up & monitoring Equipment Maintenance

10. PSP – How should you use it and when? Establishing PSP Guidelines • Criteria for using PSP should be in-line with company hiring standards • Know your BASIC ratings and adjust criteria to address deficient areas (will be fluid) • Impact on future safety rating • Motor carriers should not accept applicants • Whose record indicates a safety problem • Behavior that endangers public safety • Would adversely affect the carrier’s CSA rating • Negatively impact the carrier’s safety/business reputation • Determine when/where to use • Experience level of applicant • Price in comparison to other background screening reports • Can be used after making a conditional job offer

11. Background Screening Best Practices • Do more than the regulatory minimum • Commercial Drivers License Information System (CDLIS) • Expand employment verification (5 or 7 yrs) • Perfected national criminal database search • Use sources outside the control of the applicant • Pre-Employment Screening Program (PSP) • Employment History Database • Drug/Alcohol History Database • CDLIS • Monitor existing fleet • MVR monthly monitoring program (DVA) • On-road observation programs

12. Questions Kent Ferguson – 800-331-9175 x2253 kent.ferguson@hireright.com