How Does the ELD Mandate Apply to Rented and Leased Trucks?

Arecurring question related to the electronic logging device (ELD) regulation is, “How does the ELD mandate apply to a driver using a rented or leased truck?” An issue that is leading to some confusion in this area is that the Federal Motor Carrier Safety Administration (FMCSA) has stated that it does not regulate truck leasing and rental operations, and they are correct. They only regulate carriers.

Carriers and their drivers are who must obey the hours-of-service regulations, including the ELD mandate. Equipment providers, as in leasing and rental companies, are not covered by these regulations as they are not carriers and they do not employ the driver driving the vehicle.

While the device must be mounted in the vehicle, the key here is that the ELD regulation is actually a driver requirement. The regulation does not require that all commercial vehicles in the United States be equipped with an ELD. An ELD is only required if the driver operating the vehicle is required to use an ELD.

According to the FMCSA, if the carrier puts a driver that must use an ELD into a rented or leased truck, it is up to the carrier to make sure the vehicles has an ELD. The only exception is a property-carrying vehicle that has been rented for a period of 8 days or less. In this case, the driver can use paper logs while operating the rented vehicle. To use this exemption:

• The driver must have a copy of the “rental agreement,”
• The rental agreement must clearly identify the carrier and the dates of the rental period (and that the rental period is 8 days or less in duration),
• The driver must have a copy of the Federal Register notice that created the exemption, and
• The driver must have records of duty status for the previous seven days (printouts from a previously-used AOBRD/ELD system are acceptable).

A word of warning: If an investigator determines that a carrier has replaced one rental unit that has reached the end of the 8-day period with another rental vehicle in an attempt to avoid complying with the ELD requirement, the carrier will be cited and penalized for not using ELDs when required.  If the vehicle has been rented for a period of more than 8 days, or is leased, it is up to the carrier and the equipment provider to come up with business practices that keep the carrier compliant. A carrier can accomplish this either of two ways: install one of its ELDs in the vehicle, or use a ELD already installed in the vehicle by the equipment provider.

If the carrier puts a driver that must use an ELD into a rented or leased truck, FMCSA has stated that it is up to the carriers and equipment providers to come up with business practices that allow the carrier to comply with the requirement. If the vehicle is being rented, and the rental agreement shows the vehicle has been rented for 8 days or less, the driver can use paper logs rather than an ELD. If the rental agreement is for more than 8 days, or the vehicle is being leased, an ELD must be in the vehicle if the driver is required to use one.

There are two ways this can be done. The first is for the carrier to install one of its devices in the vehicle (bring your own ELD). The second is to use a device already installed in the vehicle by the equipment provider.

The first option involves the rental/lease provider allowing the carrier to install an ELD into the vehicle. This may require some calibration as many ELDs need some basic vehicle information to work with a “new” power unit.

In many cases, equipment providers will not be thrilled with carriers altering wiring and drilling holes into vehicles they own, and may place harsh restrictions on where devices can be mounted, harnesses run, and connections made.

If the carrier is entering into a long-term lease, the provider may install the carrier’s ELDs or allow the carrier to mount its own devices. However, the provider is likely to have specific instructions on ELD hardware installation. On the other hand, if the vehicle is involved in a short-term lease or rental, the equipment provider may restrict what the carrier can do as far as hardware installation.

Another consideration is the carrier’s man-hours spent installing and removing the device from vehicles that are on short-term leases or rentals. If the carrier’s ELDs require several hours to install and remove, they may want to consider purchasing spare ELDs of a different design that can be more quickly and easily installed.

An alternate to this option is the equipment provider installing the device for the carrier. This could be done by the carrier’s driver bringing the ELD to the equipment provider or the provider having a few of the carrier’s devices in stock at their facility for future use. When a rental or short-term lease unit is needed by the carrier, the provider uses the carrier’s device and installs it as part of the prep. This way, the install is done to the provider’s liking and the carrier has its own device in the vehicle. This makes device setup and data exchange protocol easier.

The second option is for the equipment provider to provide the carrier with a vehicle that already has an ELD in it. In this case, the ELD would be installed, maintained, and managed by the rental or leasing company. When the vehicle is assigned to a carrier, the carrier would provide the rental company with the driver’s login information and password in its system, and the equipment provider would “turn on” the ELD and allow the driver to log in and use it with his/her credentials.

The equipment provider would then forward the electronic hours-of-service records to the carrier or allow the driver to forward records directly to the carrier via cell connection, email, or file download. The carrier would then import the records into its system.

If the carrier is using a device that is “plug and play friendly,” then all options are open as the carrier or the equipment provider will not have to invest several hours installing and removing the device each time a unit is rented or leased. Also, as discussed above, if the provider is willing to shelve a couple of devices for the carrier, and the devices are plug and play friendly, this would help make the process fairly easy.

If you want to start using rental/leased equipment, have conversations about ELD compliance with the equipment providers you will be using. Then, based on those discussions, determine your best course of action. Don’t wait until the last minute and hope it all works out. If you're not sure where to start, J. J. Keller's ELD Quick Comply Program helps you get ELDs up and running easily.

The J. J. Keller® ELD installs in less than 10 minutes, making it an ideal mandate-compliant ELog solution for use with rented and leased vehicles.  And the driver-friendly Encompass® ELD mobile app works with iPhone® and Android™ devices, helping fleets who need on-the-go flexibility. Learn more.