The Rules for Principal Place of Business

A trucker has an office in Nashville and terminals in Jackson and Seattle. What is the principal place of business? Here is what the FMCSA says:

The regulatory guidance in this notice responds to recurring questions FMCSA has received
concerning the definition of “principal place of business” in 49 CFR 390.5.
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Notice of regulatory guidance.
SUMMARY: The FMCSA announces regulatory guidance concerning its definition of “principal place of business.”
The regulatory guidance is presented in a question-and-answer format and is generally applicable to motor
carrier operations subject to the Federal Motor Carrier Safety Regulations. No prior interpretations or regulatory
guidance concerning the term “principal place of business,” whether published or unpublished, may
be relied upon as authoritative if they are inconsistent with the guidance published today. This
guidance will provide the motor carrier industry and Federal, State and local law enforcement
officials with uniform information for use in determining which locations may be designated by a
motor carrier as its principal place of business.
DATES: Effective Date: This regulatory guidance is effective on August 12, 2009.
G U I D A N C E :
Question: What location may a motor carrier
designate as its “principal place of business”?
Guidance: In instances where a motor carrier has
more than one terminal or office, the regulations do
not explicitly place a restriction on which location a
motor carrier may designate as its principal place of
business. The definition states that such a location is
“normally” the carrier's headquarters; the rule does not
require motor carriers to use the company's corporate
headquarters as its principal place of
business. However, motor carriers are limited
to using an actual place of business of the
motor carrier. Moreover, a motor carrier may
designate as its principal place of business
only locations that contain offices of the
motor carrier's senior-most management executives,
management officials or employees responsible for the
administration, management and oversight of safety
operations and compliance with the FMCSRs and
Hazardous Materials Regulations. In determining its
principal place of business, a motor carrier must
consider the following factors: (a) The relative
importance of the activities performed at each
location, and, if this factor is not determinative, then
(b) time spent at each location by motor carrier
management or corporate officers.
Question: May a motor carrier with a single business
location, including a private residence, designate a
different location as its “principal place of business”?
Guidance: No. The definition of “principal place of
business” in 49 CFR 390.5 allows a carrier with multiple terminals or offices to designate a single terminal or office as
its primary business location for identification purposes. Consistent with this definition, a motor carrier with a single
place of business may designate only its actual place of business as the “principal place of business.”
For the complete Notice, go to http://edocket.access.gpo.gov/2009/E9-18142.htm