Clarifying Worker Classification; How to Reduce Liability When Contracting with Independent Owner-operators.

Either way, it is incumbent upon the motor carrier to ensure that the lease agreements you have with your drivers are commensurate with your practices. Download our full eBook for more information.

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QUESTION 1

What's your method of payment?

Drivers paid by the hour will be considered employees in a court of law. Independent contractors paid by the load or mile are truly "independent."

QUESTION 2

What's your method of termination?

An employee can be terminated mid-load, while an independent contractor must finish the job and get paid for it.

QUESTION 3

Who owns the tools of the trade?

Drivers who independently own or lease their own trucks separate from the motor carrier (or owned by the motor carrier, but under a different entity), are truly independent contractors.

QUESTION 4

Does the driver have the ability to refuse a load?

Drivers who can choose and refuse loads are truly independent contractors.

QUESTION 5

Does the driver have the ability to influence his own profits or losses?

Drivers that have autonomy over where and when to buy fuel and service their truck are truly independent contractors.

QUESTION 6

Do you, the motor carrier, have employees in the same capacity?

When the motor carrier employs drivers and owner-operator independent contractors, it is important to have an up-to-date, clearly-stated lease agreement that describes the owner-operator independent contractor's benefits as separate from those of the motor carrier's employees. Equally as critical in this case is to practice different treatment of the two groups. For example, notifying an owner-operator independent contractor of an available load will be a different process than assigning a load to an employee driver.