contracts with drivers

homeless andy · Sep 1, 2002

Do any of the o/o's or fleet owners posting here have a contract made up to clarify who is responsible for what? Is there a standard form that most of you use? I am a driver preparing to sign on with an o/o and want to make sure everything is understood before I get on the road. Can you give me some ideas of what to include in a contract if the o/o I'm going with does not have one already? Should this be notarized or written up by an attorney? Any help will be greatly appreciated.

tr · Sep 1, 2002

If it were me, I would not enjoin in any enterprise with another
party without a written contract. I'm confident that I speak for the majority of other buisness minded individuals. In my opinion you should have a written contact laying out all the details regardless how minor. That way if there is any dispute both parties will have acknowledged that they are in agreement. There's an old saying in the government, if it is not on paper--it didn't happen. Also think back if you know any families who have split up, the same for friends.
Many think that a business adventure with a family member or friend does not require anything other than a verbal agreement and in some cases this has and will continue to work well, but not all cases. It starts off well then something goes wrong, one party is claiming one thing and the other is claiming the opposite. A contract spells it out. Good luck.

Wild Bill · Sep 1, 2002

Andy,

I agree with TR wholeheartedly. I have known too many owners AND drivers who was screwed by each other using the verbal contract method.

My current owner went to an local attorney and had an agreement written. I believe it cost him $75.00 a lot less than court proceedings at a later date.

A written agreement keeps everyone on the square. Each sides responsibilites are spelled out in writing. There is no gray area to deal with.

Hope it helps

Bill

homeless andy · Sep 1, 2002

Thanks tr and wild bill for the replies. I'm sure the average attorney wouldn't have a clue what expediting is, so is there any web site with attornies who specialize in trucking? Also, other than who pays for fuel, truck maintenance, washes, tolls, etc., what else should be considered and included? Do o/o's usually pay detention pay or layover pay? Do they normally charge the driver for late deliveries? I understand these things will change from one o/o to another, I just want to make sure I cover all the bases. Anything else I haven't considered? Again, thanks for all your help.

RichM · Sep 1, 2002

Probably the most important thing to get on paper is your status with the owner. Will you be his emploee or a independent contractor utlizing his vehicle.the IRS looks at how much control the owner has over you and your daily lifestyle.Examples are,can you accept or reject loads without his knowledge or permission,can you come home when you feel like it, can you drive to a different layover location without his OK,etc. If you can do all that you are a contractor and at the end of the year he will issue you a 1099 form for tax purposed.If you are an employee subject to his direction,he should hold back taxes and SS from your pay and at the end of the year give you a standard W2 form. This can be sticky so it!s best to work this out up front.
As far as detention and layover pay,the revenue will probably be paid to the owner and he should give you whatever percentage he gives for the trips. As Bill says get it all in writing,particularly road and
maintenance expenses. The Owner Operators Association in Grain Valley MO can give you the name of a transportaion type attorney in your area.Their phone # is 1-800-444-5791. but a decent general attorney ought to be able to advise you. Good luck

homeless andy · Sep 1, 2002

Thanks Rich and everyone else. I always get great info and advice here. I want to go into this with all my ducks in a row. I'm checking into a DBA right now and will contact the company you mentioned for advice on this as well. Although I will be driving (team) for someone else, I still want to treat it as a business, so if and when we decide to get our own truck, we'll be able to make the transition as smoothly as possible.
Just out of curiosity, what the heck is TPS and DVA?

Wild Bill · Sep 2, 2002

Andy,

Most owner/driver agreements I have seen was between 50-60% going to the driver. The owner (In my opnion) should pay for the maintenance, repairs...etc. As for tolls That is a toss up. I have seen it go both ways. I myself have never heard of layover pay in the case of expediters. I would suggest including the owner paying for a motel in case of a vehicle breakdown. That has always been a sore spot with me.

I think when Mitch (My current owner) had his document written he took a copy of his lease with FedEX in with him and they pretty much copied it verbatium. He became the company or lesser and I became the "leasee"

My current agreement between Mitch, my codriver and I is we (My codriver and I) split 60% of the gross revenue and he pays for tolls, repairs...etc. All we pay for is fuel. That has pretty much been approx. the same agreement I have had with all of my owners over the years.

Hope it helps,

Bill