Independent Contractors/owner operators: what's th

jbrbears

Seasoned Expediter
As a new recruiter, I've learned a ton of stuff over the last 5 months...but here's a new question that we are discussing around the office. What's the difference between an Owner operator and an independent contractor? I'm on the phone with another applicant now, let me know what you guys think. peace.
 

arkjarhead

Veteran Expediter
RE: Independent Contractors/owner operators: what'

to me independent contractor and owner operator is a different way of saying the same thing. when i think of a true independent i think of someone who owns their own truck, trailer if applicable, have their own authority , and find their own loads, not leased to a company. just my oponion. there is nothing wrong with being leased to a company.it has its benefits and draw backs just have ones own authortiy has benefits and draw backs.
 

ACE

Veteran Expediter
Charter Member
RE: Independent Contractors/owner operators: what'

An Owner operator is a person who owns the equipment and uses it.
An Independent Contractor can lease or drive other peoples equipment.

That is what I believe the difference is.
 

markafd

Expert Expediter
RE: Independent Contractors/owner operators: what'

I think they are on in the same, but if I had to differentiate (and thats a big word sure glad I didnt mess it up) I would use Ace's definition.
 

highway star

Veteran Expediter
Owner/Operator
RE: Independent Contractors/owner operators: what'

An O/O is someone that owns the truck and drives it. An O/O can be an independant contractor or have their own authority. That's my story and I'm sticking to it.
 

terryandrene

Veteran Expediter
Safety & Compliance
US Coast Guard
RE: Independent Contractors/owner operators: what'

An O/O can be either an Independant Contractor or an employee of, or to, another party.

An Owner/Operator owns and operates a vehicle either for himself or for another party
 

Deville

Not a Member
RE: Independent Contractors/owner operators: what'

I do both, So what does that make me?
I'll tell you, Stressed out & usually very aggravated.
x(
 

Jayman

Expert Expediter
RE: Independent Contractors/owner operators: what'

LOL Atleast you still have your sense of humor! :D
 

jbrbears

Seasoned Expediter
RE: Independent Contractors/owner operators: what'

OK, I'm getting a better idea, keep em coming guys....;)
 

greg334

Veteran Expediter
RE: Independent Contractors/owner operators: what'

Ok so just to get this straight, you are an offical recruiter for UPS?

As for your question;

An Independent Contractor is not an employee by anymeans, there is no employment arrangement but a 'value provider' arrangement (yea I had to throw that BS in somewhere) to do a specific task or job that includes a rate arrangment, for example doing a job for CPM or by the hour. Being independent, a company can not tell you how to do the task or job within reason (exceptions are like company procedures, safety laws and financial procedures), can not tell you to circumvent laws or legal requirments to complete the job. for example FedEx offers me a load and I take it, which means my requirments to fulfill the contract we have is to ensure an on time pick up and on time delivery within reason. They can suggest a route but can't tell me a route to take or how to drive my truck - except when it violates safety policies.

An owner/operator can be an independent contractor but also be a plain contractor - being employed (as Terry said) by a third party with equipment. The IT industry is a good example of an owner/operator when a contractor is employed by a contracting house and placed at a customers site with their own equipment and software to complete a task or job.

A driver is usually a sub-contractor who for all intent and purpose is treated as an Independent Contractor (really techncally is) but in a few cases, like Bambam are employees and can be told what to do and how to do it. There is a fine line with drivers who are sub-contractors that a few owners step over a lot.
 

jbrbears

Seasoned Expediter
RE: Independent Contractors/owner operators: what'

Greg,

I'm THE official recruiter for UPS Expedite. there are four people in our group, and I screen applicant call/applications. thanks for your input on this subject.
 

greg334

Veteran Expediter
RE: Independent Contractors/owner operators: what'

You're welcome.

But I do have a suggestion which comes from a newbie looking around the site and asked to pass on, please add a signature line saying who you are and what company you represent. She seems to be confused of who is a recruiter and who is not.
 

fastrod

Expert Expediter
RE: Independent Contractors/owner operators: what'

An o/o is someone who owns the truck or van and also drives it. Most of the expedite companys use o/o because it is not cost effective to buy a fleet of trucks and vans, hire drivers and then have them set at truckstops waiting for loads. That is a massive overhead for the companys. One way around this is "Independent Contractors" with "Exclusive Use Agreements". This supplys the companys with all the trucks they need without having to lay out any money. If they were truly independent they could haul for any company at any time, but this arrangement would be a real nightmare for the companys. This is the reason for the exclusive use agreements. The company is now assured of having the trucks they need when they need them. In the end there are lots more important sounding names and terms used, but most are just owner/operators leased to a company.
 
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