MVRs: Managing Driver Risk

Art Liggio
President
Agenda
Value
Compliance
MVRs
Personalize
Analysis
Who Is Driving Your Vehicle?
© 2015
DRIVING DYNAMICS, INC.
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© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
© 2013
DRIVING DYNAMICS, INC.
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© 2013
DRIVING DYNAMICS, INC.
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The Value of MVR Data
© 2013
DRIVING DYNAMICS, INC.
Value
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MVR - Key Predictor
Study Statistics:

Drivers with one traffic conviction during the previous two years
had two times as many crashes as a corresponding group having
no convictions during the previous two years*

Drivers with two convictions had 2.9 times as many crashes as
the no-conviction group*

Drivers with three convictions had 4.3 times as many crashes*

Crash risk increases as a function of the number of crashes and
citations on the driver’s prior record, and prior total citation
frequency continues to be the most significant predictor of crash
involvement, followed by prior accident involvement frequency**

CDL Fatalities: 1 speeding offense = 1 fatal crash per 1,111 drivers
2 or more offenses = 1 fatal crash per 588 drivers ***
* From a University of North Carolina Highway Safety Research Center study
** California DMV study: “Traffic Accident Risk Factors”
*** 2008 study by Univ. of Michigan Transportation Research Institute
© 2015
DRIVING DYNAMICS, INC.
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MVR - Key Predictor

American Transportation Research Institute


Findings:


The occurrence of a single moving violation dramatically increases
the likelihood of becoming involved in a crash
Specifics:

© 2015
Study evaluated close to 590,000 drivers, their MVR data, and
subsequent crash history.
Convictions with the highest likelihood of a future crash include:
88%

improper passing
80%
improper or erratic lane change

68%
failure to obey traffic signs

67%

speeding @ 15+ mph
64%
aggressive or inattentive

DRIVING DYNAMICS, INC.
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MVR - Key Predictor

American Transportation Research Institute


Findings:


Study evaluated close to 590,000 drivers, their MVR data, and
subsequent crash history.
The occurrence of a single moving violation dramatically increases
the likelihood of becoming involved in a crash
Specifics:

Convictions with the highest likelihood of a future crash include:
What to most of us seems to be a relatively benign violation is
“Failure To Use – Improper Turn Signal”
96%: likelihood of a future crash
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DRIVING DYNAMICS, INC.
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Interesting MVR Fact
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DRIVING DYNAMICS, INC.
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MVR Value?
Value
SIGNIFICANT
When applied in a
properly constructed
grading & risk severity
matrix.
INTELLIGENCE
But First Some
“Regulatory Housekeeping”
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DRIVING DYNAMICS, INC.
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Regulatory Compliance
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DRIVING DYNAMICS, INC.
Compliance
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ADEA
ADA
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DRIVING DYNAMICS, INC.
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Today’s Focus
Will Be
FACTA
DPPA
State Laws
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FCRA
Results of Compliance Audits
Employers Continue to Struggle
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DRIVING DYNAMICS, INC.
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Recent Example
News Headlines
February 2012
“Domino’s Pizza Drivers
Reach $2.5 Million
Tentative Settlement For
Violations of the Fair
Credit Reporting Act”
© 2015
DRIVING DYNAMICS, INC.
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Fair Credit
Reporting Act
© 2015

Applies to use of consumer
reporting agencies by
employers to obtain MVRs

Several critical steps of
disclosure required since 1997

Circumventing any requirement
will inevitably get an employer
into trouble
DRIVING DYNAMICS, INC.
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FCRA: 5 Steps to Compliance
© 2015
1.
Certification of Compliance
2.
Disclosure of Intent to obtain a MVR
3.
Driver Authorization
DRIVING DYNAMICS, INC.
+
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© 2015
DRIVING DYNAMICS, INC.
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also voluntarily authorize Hammerdingle, Inc. to obtain a Motor Vehicle Report regarding me as Susquehanna
Hat Company’s MVR administrator. I understand that Hammerdingle, Inc is not the employer or prospective employer.
ACKNOWLEDGEMENT OF DRIVER SAFETY RESPONSIBILITIES
I have been presented with the Susquehanna Hat Company’s Fleet
Safety Program Booklet which includes the company’s New Hire and Ongoing Driving Record Acceptability Criteria. I understand that should my
circumstances change which affects my status as an Authorized Driver of a
Company Vehicle, I will immediately notify my manager. I understand and
accept all my obligations and responsibilities for the safe use and operation
of my Company Vehicle.
I understand and agree that I can revoke this authorization only in writing and the revocation will be effective
only upon receipt.
Signature
© 2015
Date
DRIVING DYNAMICS, INC.
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History Lesson
The FCRA
Singleton v. Domino's Pizza
The FCRA requires an employer to disclose in advance in a
standalone document consisting solely of the disclosure that the
employer intends to obtain a background check.
Failing to strictly follow the letter of the FCRA invites a conclusion that
the employer willfully violated the FCRA, which exposes an employer
to substantial liability, including statutory damages of between
$100 to $1,000 per violation.
© 2015
DRIVING DYNAMICS, INC.
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FCRA: 5 Steps to Compliance
1.
Certification of Compliance
2.
Disclosure of Intent to obtain a MVR
3.
Driver Authorization
4.
Pre-Adverse Notification



5.
Copy of report
A “Summary of Your Rights Under the FCRA”
A deadline to respond
Notice of Adverse Action


© 2015
+
Name, address and toll-free phone number
of Credit Reporting Agency
60 days to obtain a free report
DRIVING DYNAMICS, INC.
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“Summary of Your Rights
Under the FCRA”
The
CONSUMER FINANCIAL PROTECTION BUREAU
has taken over the enforcement of the
“Fair Credit Report Act”
from the
FEDERAL TRADE COMMISSION
The correct agency must be
identified in this document
© 2015
DRIVING DYNAMICS, INC.
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Don’t Think It Can’t Happen
To You
2011 - First Group: Incomplete Disclosure Process
$5.9 million
2012 – Domino’s: multiple issues - reviewed herein
$2.5 million
2013 - Kmart: Outdated “Summary of Rights”
$3.3 million
2014 - Publix: Stand Alone Disclosure Not Used
$6.8 million
2014 - Swift: Incomplete Disclosure Process, Lack
of Pre-Adverse & Adverse Notifications
$4.4 million
2015 - Delhaize America: Disclosure & Adverse
Action Processes
$3.0 million
© 2015
DRIVING DYNAMICS, INC.
All Rights Reserved
The Disposal Rule

Any business using a Consumer
Report for a business purpose is
subject to the requirements of the
Disposal Rule.

“Proper Disposal” - the Rule requires
disposal practices that are reasonable
and appropriate to prevent the
unauthorized access to – or use of –
information in a consumer report.
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DRIVING DYNAMICS, INC.
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The Disposal Rule
Reasonable measures for disposing of consumer
report information could include establishing and
complying with policies to:
© 2015

Burn, pulverize, or shred papers containing consumer
report information so that the information cannot be
read or reconstructed

Destroy or erase electronic files or media containing
consumer report information so that the information
cannot be read or reconstructed

Conduct due diligence and hire a document destruction
contractor to dispose of material specifically identified
as consumer report information consistent with the Rule.
DRIVING DYNAMICS, INC.
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Driver Privacy Protection Act
© 2015

Restricts the public disclosure of
personally identifiable information
contained in DMV records … such
as an MVR

Personal Info includes: Photograph,
SS Number, License Number, Name,
Address, Phone Number, Medical or
Disability information

Recipient of such information must
have a Permissible Use as defined by
the DPPA.
DRIVING DYNAMICS, INC.
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DPPA Compliance
Recommendation
© 2015

Institute a formal written Privacy Policy.

Associates with access to other drivers’ MVRs
need to sign and acknowledge receipt of such
policy.
DRIVING DYNAMICS, INC.
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Using MVR Data
© 2013
DRIVING DYNAMICS, INC.
Analysis
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Most Crashes Are Preventable
90% caused by driver error
Driver Controllable Causes Include:
 Attitude and insensitive behavior
 Inattention, distraction, drowsiness
 Inadequate safe driving skills
 Alcohol and drugs
 Speed
 Poor judgment
Employer Lack of Adherence to:
 Driver Safety Policies


© 2015
Oversight / Remediation
Hiring Practices
DRIVING DYNAMICS, INC.
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Risk Assessment Matrix
(Fleet Safety Policy)
Standardized Grading & Remediation
- And Start With The Right Driver © 2015
DRIVING DYNAMICS, INC.
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Grading
What Is An “Acceptable” MVR
Does possession of a driver’s license = Safe Driver?
© 2015

Do not be Complacent … Challenge Assumptions.

Socially acceptable driving record.
 will your standards hold up with a jury?
 are you consistent?

It all boils down to this:
 if the worst happens, will your fleet safety program
be defensible, or
 will you be forced to make it more stringent after the
settlement or worse … a verdict?
DRIVING DYNAMICS, INC.
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Risk Identification

Uniformly Grade MVR Violations

Violation Point Assessment (weighted)
based on Severity of Violation


Determine Risk Levels

Determine Measurement Period


© 2015
e.g. – Speeding 10MPH
vs.
– Speeding School Zone
recommend rolling 3 year average
Create Action Plans by Risk Levels
DRIVING DYNAMICS, INC.
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Grading Example
American Transportation Research Institute
-No Action Required
-Supervisor to review record and discuss any opportunities for
improvement. Employee will be advised of responsibility to drive in
a safe, courteous manner, free of distractions, in accordance with
the “One Second Advantage™” defensive driving principles and
practices.
Convictions with the highest likelihood
of a future crash
include:
-Supervisor to review record and discuss specific opportunities for
96% 
88% 
80% 
68% 
67% 
64% 
improvement based on details within the report.
-Remedial training: DD e-lesson(s) – specific to risk type.
-Employee to submit brief personal Safety Action Improvement
Plan. Progress to be reviewed in 6 months.
failure to use – improper turn signal
improper passing
-Supervisor to review record and any Safety Action Improvement
improper
orby erratic
lane
change
Plans submitted
employee within
the past
3 years.
-Employee given written warning (HR approved).
failure
to obey traffic signs
-Possible loss of company vehicle.
-Spouse/ domestic partner driving privileges are suspended.
speeding
@ 15+ mph
-Remedial training: DD Behind-The-Wheel Training to be scheduled
with DD within 25 days.
aggressive
or inattentive
Determined by
repair costs.
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Grading Example
American Transportation Research Institute
-No Action Required
-Supervisor to review record and discuss any opportunities for
improvement. Employee will be advised of responsibility to drive in
a safe, courteous manner, free of distractions, in accordance with
the “One Second Advantage™” defensive driving principles and
practices.
Convictions with the highest likelihood
of a future crash
include:
-Supervisor to review record and discuss specific opportunities for
96% 
88% 
80% 
68% 
67% 
64% 
improvement based on details within the report.
-Remedial training: DD e-lesson(s) – specific to risk type.
-Employee to submit brief personal Safety Action Improvement
Plan. Progress to be reviewed in 6 months.
failure to use – improper turn signal
improper passing
-Supervisor to review record and any Safety Action Improvement
improper
orby erratic
lane
change
Plans submitted
employee within
the past
3 years.
-Employee given written warning (HR approved).
failure
to obey traffic signs
-Possible loss of company vehicle.
-Spouse/ domestic partner driving privileges are suspended.
speeding
@ 15+ mph
-Remedial training: DD Behind-The-Wheel Training to be scheduled
with DD within 25 days.
aggressive
or inattentive
Determined by
repair costs.
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Grading Example
American Transportation Research Institute
-No Action Required
-Supervisor to review record and discuss any opportunities for
improvement. Employee will be advised of responsibility to drive in
a safe, courteous manner, free of distractions, in accordance with
the “One Second Advantage™” defensive driving principles and
practices.
Convictions with the highest likelihood
of a future crash
include:
-Supervisor to review record and discuss specific opportunities for
96% 
88% 
80% 
68% 
67% 
64% 
improvement based on details within the report.
-Remedial training: DD e-lesson(s) – specific to risk type.
-Employee to submit brief personal Safety Action Improvement
Plan. Progress to be reviewed in 6 months.
failure to use – improper turn signal
improper passing
-Supervisor to review record and any Safety Action Improvement
improper
orby erratic
lane
change
Plans submitted
employee within
the past
3 years.
-Employee given written warning (HR approved).
failure
to obey traffic signs
-Possible loss of company vehicle.
-Spouse/ domestic partner driving privileges are suspended.
speeding
@ 15+ mph
-Remedial training: DD Behind-The-Wheel Training to be scheduled
with DD within 25 days.
aggressive
or inattentive
Determined by
repair costs.
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Grading Example
American Transportation Research Institute
-No Action Required
-Supervisor to review record and discuss any opportunities for
improvement. Employee will be advised of responsibility to drive in
a safe, courteous manner, free of distractions, in accordance with
the “One Second Advantage™” defensive driving principles and
practices.
Convictions with the highest likelihood
of a future crash
include:
-Supervisor to review record and discuss specific opportunities for
96% 
88% 
80% 
68% 
67% 
64% 
improvement based on details within the report.
-Remedial training: DD e-lesson(s) – specific to risk type.
-Employee to submit brief personal Safety Action Improvement
Plan. Progress to be reviewed in 6 months.
failure to use – improper turn signal
improper passing
-Supervisor to review record and any Safety Action Improvement
improper
orby erratic
lane
change
Plans submitted
employee within
the past
3 years.
-Employee given written warning (HR approved).
failure
to obey traffic signs
-Possible loss of company vehicle.
-Spouse/ domestic partner driving privileges are suspended.
speeding
@ 15+ mph
-Remedial training: DD Behind-The-Wheel Training to be scheduled
with DD within 25 days.
aggressive
or inattentive
Determined by
repair costs.
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Risk Level Example
-No Action Required
-Supervisor to review record and discuss any opportunities for
improvement. Employee will be advised of responsibility to drive in
a safe, courteous manner, free of distractions, in accordance with
the “One Second Advantage™” defensive driving principles and
practices.
-Supervisor to review record and discuss specific opportunities for
improvement based on details within the report.
-Remedial training: DD e-lesson(s) – specific to risk type.
-Employee to submit brief personal Safety Action Improvement
Plan. Progress to be reviewed in 6 months.
-Supervisor to review record and any Safety Action Improvement
Plans submitted by employee within the past 3 years.
-Employee given written warning (HR approved).
-Possible loss of company vehicle.
-Spouse/ domestic partner driving privileges are suspended.
-Remedial training: DD Behind-The-Wheel Training to be scheduled
with DD within 25 days.
-Supervisor to advise employee that his or her driving privileges
have been revoked.
-Loss of company vehicle.
-If the employee can no longer perform the essential functions or
his or her position, and/or other job assignments are not an
option, termination may result.
Determined by
repair costs.
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Start With The Right Driver
Sample Criteria:
“It is the policy of this company to hire and retain
only drivers who have less than 2 moving
violations in any 3 year period. No D.U.I.’s
accepted.”
© 2015
DRIVING DYNAMICS, INC.
All Rights Reserved
A Tale of 2 Fleets
Their Profile

Approximately 5,000 Vehicles

Similar Industries

Drivers are Service Professionals
 similar job descriptions


© 2015
22% turn over rate
Light Vehicles (predominantly vans)
DRIVING DYNAMICS, INC.
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A Tale of 2 Fleets
New Hire Policy
© 2015
Unacceptable – Fleet A

More than 3 violations in the
past 24 months

2 or more preventable
accidents in the past 24
months
Currently suspended, invalid,

revoked license
Unacceptable – Fleet B

More than 2 violations in the
past 24 months

2 or more preventable
accidents in the past 24
months
Currently suspended, invalid,

revoked license
22% crash rate
17% crash rate
47% from new drivers
35% from new drivers
DRIVING DYNAMICS, INC.
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A Tale of 2 Fleets
New Hire Policy
Unacceptable – Fleet A
More than 3 violations in the

past 24 months
2 or more preventable

accidents in the past 24
months
Currently suspended, invalid,

revoked license
Unacceptable – Fleet B
More than 2 violations in the

past 24 months
2 or more preventable

accidents in the past 24
months

Currently suspended, invalid,
revoked license
$2.2 Million
Crash Reduction Savings
for Fleet B
© 2015
DRIVING DYNAMICS, INC.
All Rights Reserved
Use
Research Based
MVR Grading Matrix
- Relevant & Effective -
© 2013
DRIVING DYNAMICS, INC.
All Rights Reserved
Up Close & Personal
Personalize
Personalize Safety Goals

Successful organizations do not rely solely on data
driven, policy enforcement.

An impersonal, “Command & Control” methodology
never achieves the highest levels of safety performance.

Instead – “Cooperation & Collaboration” should be the
glue that binds the entire safe driving initiative.

Supervisors can and should play a central role in this.

Engaging the driver with his/her supervisor in a safety
partnership can play a effective role in personalizing
safety.
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DRIVING DYNAMICS, INC.
All Rights Reserved
Safety Partner Coaching
(coaching techniques for non-safety professionals)
SIMPLE TO USE
personalizing
the
business
 By
intelligence obtained in MVRs, this
coaching method can break down the
barriers of communication between a
supervisor and team member on vital
safety issues which are directly putting
the driver at risk.

© 2015
Building on the fleet safety policy action
plan, this coaching method encourages
and helps drivers reach their own
conclusion, the “AH-HA” moment, to
make positive, discernible changes in
their safe driving performance.
DRIVING DYNAMICS, INC.
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Coaching Techniques
for Non-Safety Professionals

LISTENING is the key tool used in
Safety Partner Coaching – using OpenEnded Questions to learn more about a
person’s priorities and help them
determine how these priorities can be
achieved without the need to assume
unwarranted risk.




© 2015
Help drivers accept and adjust to
ownership of changes in safety priorities
Encourages drivers to have a
commitment to and follow through on
safety issues
Can inspire associates to become more
involved and concerned about safety
Builds a positive and supportive working
relationship with supervisors
DRIVING DYNAMICS, INC.
W
I
I
F
M
 Observation/Diagnosis
(MVR Details)
 Gaining Mutual Insight
 Reaching Agreement
 Action Planning
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Questions?
Art
Thank You