MONTPELIER, VERMONT — Vermont is on the verge of dramatically raising the stakes for commercial vehicles that ignore restrictions and enter Smuggler’s Notch on Route 108, with fines jumping from $1,000 to as high as $20,000 and a new structure that attempts to hold carriers financially responsible — while a five-point CDL penalty still lands on the individual driver regardless.
S.326 passed the Vermont Senate in March and is moving through final House review. If signed into law, the new penalties take effect July 1, 2026.
What the Bill Does
The base fine for operating a prohibited vehicle on Route 108 through Smuggler’s Notch rises from $1,000 to $10,000. If the vehicle substantially impedes traffic — which a tractor-trailer blocking a mountain pass routinely does — the fine doubles to $20,000. A second offense within three years doubles it again.
In a notable departure from how most states handle these violations, the bill directs the fine to the employer — the carrier or trucking company — when the driver was operating in the scope of employment. If the driver was on a personal trip, the operator pays. The Vermont Legislature drew a line that most states have not.
The reasoning behind that structure is rooted in how trucks end up in the Notch in the first place. Route 108 through Smuggler’s Notch has no physical way for large vehicles to navigate it — yet GPS navigation apps and dispatch systems continue routing commercial vehicles onto it. The decision is often not made by the driver but by an algorithm confirmed by a dispatcher in another state.
The CDL Problem
However, the bill also adds Smuggler’s Notch violations to Vermont’s point assessment schedule — five points on the individual operator’s driving record, every time, regardless of who pays the fine. For a commercial driver, five points on a CDL is a serious career consequence.
Josh Klein, Deputy Communications Director for the Owner-Operator Independent Drivers Association, told Compass Vermont that OOIDA views both the five-point penalty and the $10,000 fine as significant. But on who ultimately bears the financial cost, Klein was direct: “While the bill language seems well-intended by penalizing the carrier, most fines we’ve seen in other states ultimately are passed along to the driver.” Employment contracts, lease agreements, and carrier policies have a history of redirecting statutory liability back to the person behind the wheel regardless of what state law specifies.
Signs and Physical Barriers
The House Transportation Committee added a provision requiring VTrans to update signage at the Notch entrances to reflect the new penalty amounts. Vermont has tried numerous approaches to the problem over the years — signs in English and French, pictographs, and physical chicanes installed in 2024 that reduced annual stuckages from five to one in their first year.
Todd Sears, who led the Notch management effort for VTrans, described the persistent challenge. “Our signage was very clear, saying that you will get stuck. Do not attempt to drive through the Notch, and don’t trust your GPS — but they would try anyway. I mean, it’s a mystery,” Sears said.
What the Law Still Cannot Reach
S.326 gives Vermont sharper tools than it has ever had — a $10,000 fine, employer liability on paper, five CDL points, and updated signage. What it still cannot reach is the dispatcher who chose the route, the routing platform that recommended it, or the carrier policy that failed to flag the restriction before the truck left the yard. The law is smarter. The gap it cannot close is structural.
Analysis courtesy of Compass Vermont.
📸 Image(s) used under fair use for news reporting.
