TAKE THE QUIZ

Independent Contractor Classification

Do you manage your independent contractors like employees? If so, your business could be open to significant liability. Take this quiz to pinpoint your exposure.
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QUESTION 1

What's your method of payment?

A

We pay drivers by the hour.

A

We pay drivers by the hour.

B

We pay drivers by the load or mile.

B

We pay drivers by the load or mile.

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."

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QUESTION 2

What's your method of termination?

A

We typically fire a driver mid-load if there's an issue.

A

We typically fire a driver mid-load if there's an issue.

B

After the job is completed, we will terminate the driver.

B

After the job is completed, we will terminate the driver.

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

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QUESTION 3

Who owns the tools of the trade?

A

We own the truck and the driver leases it from us or he uses our truck to haul our loads.

A

We own the truck and the driver leases it from us or he uses our truck to haul our loads.

B

The driver owns the truck or has the truck under lease/purchase.

B

The driver owns the truck or has the truck under lease/purchase.

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.

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QUESTION 4

Does the driver have the ability to refuse a load?

A

No. We assign our drivers their loads and they are obligated to take them.

A

No. We assign our drivers their loads and they are obligated to take them.

B

Yes. We offer our drivers a load and they have right of refusal without any penalties.

B

Yes. We offer our drivers a load and they have right of refusal without any penalties.

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

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QUESTION 5

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

A

We dictate when and where the driver refuels and services his truck.

A

We dictate when and where the driver refuels and services his truck.

B

The driver can refuel and service his truck at his discretion.

B

The driver can refuel and service his truck at his discretion.

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

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QUESTION 6

What's your method of payment?

A
Yes we do. Our employees and owner operators do a similar job, but are reimbursed differently. Employees receive corporate benefits while the independent contractor drivers do not.
A

Yes we do. Our employees and owner operators do a similar job, but are reimbursed differently. Employees receive corporate benefits while the independent contractor drivers do not.

B

No. Our fleet is made up entirely of owner-operator independent contractors.

B

No. Our fleet is made up entirely of owner-operator independent contractors.

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.
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