Many truck dispatchers find loads and handle paperwork for owner-operators and small fleets. Federal law draws a line between that work and brokering freight, and the line decides whether a person needs broker registration and a $75,000 bond or trust fund. This guide sets out the statutory definition, the regulation's definition of a bona fide agent, and the penalty provision, with a self-check at the end. It does not decide where any individual business falls. This is general information, not legal advice.
The Broker Definition
Under 49 U.S.C. 13102(2), a broker is a person, other than a motor carrier or an employee or agent of a motor carrier, that as principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement or otherwise as selling, providing or arranging for, transportation by motor carrier for compensation. The regulation, 49 CFR 371.2, says a broker is a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier.
The regulation then carves out carriers and their agents. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they have accepted and legally bound themselves to transport (371.2).
What Makes an Agent Bona Fide
Section 371.2 defines bona fide agents as persons who are part of the normal organization of a motor carrier and perform duties under the carrier's directions pursuant to a preexisting agreement which provides for a continuing relationship, precluding the exercise of discretion on the part of the agent in allocating traffic between the carrier and others. The text of the rule breaks into parts:
| Element in 371.2 | A question to ask |
|---|---|
| Part of the normal organization of a motor carrier | Does the person work as part of one carrier's operation, rather than as an outside intermediary? |
| Duties performed under the carrier's directions | Who decides which loads are taken and on what terms? |
| Preexisting agreement providing a continuing relationship | Is there a standing agreement made before the work, rather than one made load by load? |
| No discretion in allocating traffic between the carrier and others | Can the person choose which carrier gets a load, or move freight to others? |
The exception in the rule is limited to shipments the carrier is authorized to transport and has accepted and legally bound itself to transport. It does not mention freight the carrier has not accepted.
The same section defines the two kinds of service a broker does: brokerage, which is the arranging of transportation or the physical movement of a motor vehicle or of property, performed for a motor carrier, consignor or consignee, and non-brokerage service, which is all other service the broker performs for them.
Registration and the Penalty Provision
A person may provide service as a broker for transportation subject to the Department's jurisdiction only if registered (49 U.S.C. 13901). The Secretary registers a person as a broker if it has sufficient experience and is fit, willing and able to comply, subject to the financial security rule (13904(a)), and each broker must employ an officer with at least 3 years of relevant experience, or provide satisfactory evidence of the officer's knowledge of related rules and practices (13904(c)). The financial security is $75,000 (13906(b)(3); 49 CFR 387.307), covered in Freight Broker Bond and Trust Fund Rules.
Section 14916(a) states the prohibition: a person may provide interstate brokerage services as a broker only if registered under 13904, in compliance with it, and with the financial security of 13906 satisfied. Three groups are excepted (14916(b)):
- non-vessel-operating common carriers and ocean freight forwarders, when arranging inland transportation as part of an international through movement involving ocean transportation;
- licensed customs brokers, only to the extent they are engaged in a movement under a customs bond or in customs business; and
- indirect air carriers holding a TSA-approved Standard Security Program, only to the extent of their activities as an air carrier.
A person who knowingly authorizes, consents to or permits a violation, directly or indirectly, alone or with another, is liable to the Government for a civil penalty not to exceed $10,000 for each violation, and to the injured party for all valid claims without regard to amount (14916(c)). The liability applies jointly and severally to any corporate entity or partnership involved and to the individual officers, directors and principals of those entities (14916(d)).
A Self-Check, Not a Ruling
These questions follow the text above and show which part of the law each one touches. They do not produce an answer. A business unsure where it falls may want to ask FMCSA or a transportation attorney.
| Question | Points toward |
|---|---|
| Does the business advertise or hold itself out as providing or arranging transportation for shippers? | Broker (13102(2): "holds itself out") |
| Does it choose which carrier moves a load, or hand a load to a carrier other than the one it represents? | Broker; discretion in allocating traffic is what the bona fide agent definition rules out (371.2) |
| Does it work for one or more carriers under a standing written arrangement, and take direction from them on which loads to accept? | Closer to a bona fide agent, if all four elements are met |
| Is the compensation paid by the shipper, or taken as the difference between what a shipper pays and what a carrier is paid? | Not decided by the text read for this guide; the rule speaks of arranging "for compensation" without limiting who pays |
Related Broker Rules
A registered broker must also keep a record of each transaction for three years (371.3), may not operate under a name other than its registration or present itself as a carrier (371.7), and may not rebate (371.9). See What Is a Freight Broker? and the dispatcher guide.
Frequently Asked Questions
Does the regulation prohibit a dispatcher from charging a percentage?
The sections read for this guide do not address fee structures. The test in 371.2 turns on the agent's relationship with the carrier and its discretion over allocating traffic.
Can a dispatcher sign carrier-broker agreements for a carrier?
The sections read do not address signing authority. A person who signs for a carrier should have that authority in writing from the carrier.
Who is liable if unauthorized brokering occurs?
Under 14916(d), the corporate entity or partnership and the individual officers, directors and principals, jointly and severally, for a person who knowingly authorizes, consents to or permits the violation.
Scope: the three provisions above. Not covered: how FMCSA enforces the rule, case law, State law, and the application of these tests to a particular dispatch business.
Sources
- 49 U.S.C. § 13102: Definitions, § 13901: Requirement for registration and § 13904: Registration of brokers
- 49 U.S.C. § 14916: Unlawful brokerage activities
- 49 CFR § 371.2: Definitions
Last Verified and Change Log
Last verified: 2026-11-04, against the eCFR text of 49 CFR 371.2 (current to 2 November 2026) and the text of 49 U.S.C. 13102, 13901, 13904 and 14916. Not verified, and so not in this guide: FMCSA's guidance on the broker definition and the Federal Register preamble to the 2024 amendment of 371.2, any list of operating factors, fee structures, signing authority, load-board practices, and any claim about daily penalties or court decisions.
- Updated 2026-11-04: verified against 49 CFR 371.2 and 49 U.S.C. 13102, 13901, 13904 and 14916.
- 2026-11-04: Replaced the guidance-factor table, daily-penalty, percentage-fee and load-board statements, which could not be verified, with the text of the statute and regulation.
- 2026-10-11: Original guide published.
