Operating Authority is FMCSA's legal permission for a company to transport regulated commodities or passengers for compensation in interstate commerce — distinct from a USDOT number, which is primarily a registration and identification requirement. A company needs Operating Authority specifically when it's engaged in for-hire transportation (hauling for someone else's freight for pay); a private carrier moving its own goods generally doesn't need it. Authority is granted under one or more specific types depending on what the company does and for whom — Common Carrier Authority and Contract Carrier Authority for property carriers, Broker Authority for freight brokers, and separate authority types for passenger carriers and household goods movers. Each authority type is tied to a docket (MC, FF, or MX) number, and a single company can hold multiple authority types simultaneously, such as a carrier with both common and contract authority. FMCSA can suspend or revoke operating authority for cause, including failure to maintain required insurance, so an Active authority status is one of the more important things to verify before doing business with an unfamiliar company; an inactive or revoked status is a serious red flag.
A carrier can have an active USDOT number but inactive Operating Authority — meaning it's registered with FMCSA but not currently allowed to haul freight for compensation.
Shown as 'Operating Authority' in the Safety & Compliance section, and as the authority-type chips in the Operation Classification section, on every carrier profile.