How Canada’s New ELD Rules Affect U.S. Companies

The Government of Canada announced its new electronic logging device (ELD) rule June 13, 2019. Canada’s rules and regulations regarding ELDs are largely similar to the United States’ standards, but there are a few differences that could affect U.S.-based companies that send their drivers north of the border.

Canada’s mandate includes a provision that ELDs are required to be certified by a third-party group. In other words, ELD vendors cannot certify their own products. According to industry experts, some devices introduced under U.S. standards have been shown to be prone to tampering, such as allowing drivers to falsify statistics like hours spent behind the wheel.

Requiring certification from a third-party will mean that U.S.-based companies whose drivers cross the border will need to have their devices approved in Canada. If a company’s ELD provider chooses not to go through the third-party certification process, the company will have to switch to a different manufacturer that is willing to do so.

Accommodating the new rules in Canada could be as simple as a software update to existing devices, although industry experts noted that some companies could start having to use two separate ELDs in the same vehicle in order to meet both U.S. and Canadian standards.

Canada’s mandate also includes a hard deadline. The United States adopted its ELD rules in 2017 but has allowed for a transition period during which companies can continue to use less advanced automatic onboard recording devices (AOBRDs) until December 2019. Canada’s rules demand fully compliant devices by the June 12, 2021, deadline.

To read the full mandate, click here. Hierl Insurance Inc. will provide any relevant updates as they are announced.

Newsletter Provided by: Hierl's Property & Casualty Experts

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