Application for Employment: CloudTrucks, LLC., Application for Exemption
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Issuing agencies
Abstract
FMCSA announces its decision to deny CloudTrucks, LLC's (CloudTrucks) request for an exemption from the requirement to collect the following information from prospective drivers: list of employers' names, addresses, and dates of employment, reason for leaving, whether the driver was subject to the Federal Motor Carrier Safety Regulations (FMCSRs) while employed by the previous employer, and if the driver was subject to the alcohol and controlled substances testing requirements. FMCSA has analyzed the exemption application and the public comments and has determined that the exemption is not likely to achieve a level of safety that is equivalent to, or greater than, the level that would be achieved in the absence of the exemption.
Full Text
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<title>Federal Register, Volume 91 Issue 25 (Friday, February 6, 2026)</title>
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[Federal Register Volume 91, Number 25 (Friday, February 6, 2026)]
[Notices]
[Pages 5554-5555]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-02368]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
[Docket No. FMCSA-2025-0128]
Application for Employment: CloudTrucks, LLC., Application for
Exemption
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department
of Transportation (DOT).
ACTION: Notice of final disposition; denial of application for
exemption.
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SUMMARY: FMCSA announces its decision to deny CloudTrucks, LLC's
(CloudTrucks) request for an exemption from the requirement to collect
the following information from prospective drivers: list of employers'
names, addresses, and dates of employment, reason for leaving, whether
the driver was subject to the Federal Motor Carrier Safety Regulations
(FMCSRs) while employed by the previous employer, and if the driver was
subject to the alcohol and controlled substances testing requirements.
FMCSA has analyzed the exemption application and the public comments
and has determined that the exemption is not likely to achieve a level
of safety that is equivalent to, or greater than, the level that would
be achieved in the absence of the exemption.
DATES: The decision is effective February 6, 2026.
FOR FURTHER INFORMATION CONTACT: Ms. Bernadette Walker, FMCSA Driver
and Carrier Operations Division; Office of Carrier, Driver and Vehicle
Safety Standards; 202-507-0363; <a href="/cdn-cgi/l/email-protection#652700170b0401001111004b1204090e001725010a114b020a13"><span class="__cf_email__" data-cfemail="195b7c6b77787d7c6d6d7c376e7875727c6b597d766d377e766f">[email protected]</span></a>. If you have
questions on viewing or submitting material to the docket, contact
Docket Services, telephone (202) 366-9826.
SUPPLEMENTARY INFORMATION:
I. Public Participation
Viewing Comments and Documents
To view any documents mentioned as being available in the docket,
go to <a href="https://www.regulations.gov/docket/FMCSA-2025-0128">https://www.regulations.gov/docket/FMCSA-2025-0128</a> document and
choose the document to review. To view comments, click this notice,
then click ``Browse Comments.'' If you do not have access to the
internet, you may view the docket online by visiting Dockets Operations
on the ground floor of the DOT West Building, 1200 New Jersey Avenue
SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays. To be sure someone is there to
help you, please call (202) 366-9317 or (202) 366-9826 before visiting
Dockets Operations.
II. Legal Basis
FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant
exemptions from the FMCSRs. FMCSA must publish a notice of each
exemption request in the Federal Register (49 CFR 381.315(a)). The
Agency must provide the public an opportunity to inspect the
information relevant to the application, including the applicant's
safety analysis. The Agency must provide an opportunity for public
comment on the request.
The Agency reviews applications, safety analyses, and public
comments submitted and determines whether granting the exemption would
likely achieve a level of safety equivalent to, or greater than, the
level that would be achieved absent such exemption, pursuant to the
standard set forth in 49 U.S.C. 31315(b)(1). The Agency must publish
its decision in the Federal Register (49 CFR 381.315(b)). If granted,
the notice will identify the regulatory provision from which the
applicant will be exempt, the effective period, and all terms and
conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is
denied, the notice will explain the reason for the denial (49 CFR
381.315(c)(2)). The exemption may be renewed (49 CFR 381.300(b)).
III. Background
Current Regulatory Requirements
Under 49 CFR 391.21(b)(10)(i)-(iv), prospective driver employees
(meaning applicants for employment) are required to provide prospective
motor carrier employers with the following information: name and
address of the driver's employers during the 3 years preceding the date
of the application, dates of employment, reason for leaving, and for
any driver employed after October 29, 2004, confirmation whether the
driver candidate held a position that was subject to the FMCRSs or
designated as safety sensitive by any DOT mode subject to controlled
substance and alcohol testing.
[[Page 5555]]
In addition, Congress required in 49 U.S.C. 31303(c) that an
applicant applying for a position to operate a CMV that requires a
commercial driver's license must provide the driver's employment
history for the preceding 10 years, rather than 3 years (49 CFR
391.21(b)(11)). In contrast, the motor carrier is required to
investigate the driver's safety performance history for only the
preceding 3 years (49 CFR 391.23(a)(2)).
Applicant's Request
CloudTrucks's application for exemption was described in detail in
a Federal Register notice published on July 1, 2025 (90 FR 28856) and
will not be repeated as the facts have not changed.
IV. Public Comments
The Agency received five unique comments: \1\ one in support, three
in opposition, and one taking no position either for or against the
exemption. CloudTrucks also submitted a response to an opposing
comment. James Wiseman supported the exemption request and stated, ``I
believe this request reflects a thoughtful and responsible effort to
modernize the application and onboarding process for commercial drivers
through the use of advanced technology.''
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\1\ The docket shows that six comments were filed during the
comment period, however, two of the anonymous comments are
duplicates with matching attachments. The duplicate entries can be
found at docket comment ID number FMCSA-2025-0128-0005 and FMCSA-
2025-0128-0006.
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Among the commenters in opposition, one anonymous commenter said,
``I would think it would be a better option that all carriers need to
report to one national data base not another pay for service that does
not link all CDL verification services to one.'' Steve Sutherlandgray
stated that FMCSA should deny the exemption for multiple reasons,
including concerns about mandatory, non-negotiable terms in the lease
agreement between CloudTrucks and its owner-operators. He said, ``The
exemption, if granted, would reward a business structure that
obfuscates regulatory liability and imposes hidden obligations on
drivers.'' Another anonymous commenter expressed concern with alleged
tax, labor, consumer protection, and other violations. The anonymous
commenter also stated that the Clearinghouse, PSP, and CDLIS do not
contain employment history information.
AWM Associates, LLC (AWM) and an anonymous commenter cited concerns
with CloudTrucks's safety data, including driver fitness violations.
AWM stated that the databases CloudTrucks intends to use are not an
adequate substitute for the requirements in the FMCSRs. In response to
AWM's comment, CloudTrucks stated that its vehicle and driver out-of-
service rates are comparable to those of other carriers of similar
size. CloudTrucks wrote, ``We respectfully request that FMCSA evaluate
our exemption on its own merits, including our compliance architecture,
safety protocols, and ability to meet the goals of [49 CFR] 391.23
through alternative, verifiable means.''
V. FMCSA Decision
FMCSA has evaluated CloudTrucks's application and the public
comments, as well as CloudTrucks's safety performance record, and
denies the exemption request. As noted by commenters, CloudTrucks's on-
road safety data, including driver fitness violations, indicate ongoing
safety management concerns. CloudTrucks met the criteria for FMCSA's
``High Risk'' definition (81 FR 11875) as recently as March 2025.
CloudTrucks was cited for 27 driver fitness violations in the past two
years during inspections, 20 of which were out-of-service violations.
Given CloudTrucks's safety performance record and recent designation as
``high risk,'' FMCSA does not find that the requested exemption will
likely achieve a level of safety equivalent to, or greater than, the
level achieved by complying with the regulations.
For the above reasons, the CloudTrucks, LLC exemption application
is denied.
Derek Barrs,
Administrator.
[FR Doc. 2026-02368 Filed 2-5-26; 8:45 am]
BILLING CODE 4910-EX-P
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