A happy ending, I guess!

[greg334]

Dave,
The IRS is the least of any worries one should have on the contract issue. With a decent accountant by your side (not tax preparer) you won't have a problem with any 1099 contractor status that comes up. Been there, done that.

It is the liability you as an owner have when you put that driver in that seat and expect them to perform in a legal and safe manner. I really feel that people are just plain lucky when they don't operate with a contract and actually nothing prevents them from litigation when something happens on the road or with finances. As complicated as some make this out to be, it only takes one crooked lawyer to haul you into court for something that you didn't do or did do to a driver and not compensating them for it.

I am thinking that the DOT should adopt recommendations if not policies on contracts for sub-contractors and owners.

 

[x06col]

Thats one problem with a expediters workshop I attended once. By the time the event was finished, i'd have RUN to the table to see where I could "sign up for this gravy train", IF I had not been around for a while in this business. Some are in fact "experts" in their own right. However, the "scope" of expertise limits what advice should be given to whom. If you have not eaten the whole meal, try not to explain how each menue item tastes.

 

[davekc]

Greg,
That goes without saying. I threw the IRS audit issue into the mix because some disregard your comments and think they have no exposure.







Davekc
owner
23 years
PantherII
EO moderator

 

[ATeam]

In this business, the following people and items can be found in various combinations:

Well-written contracts
Porly-written contracts
Honorable drivers
Dishonorable drivers
Honorable fleet owners
Dishonorable fleet owners
Driver/fleet-owner relationships that are contracturally based.
Driver/fleet-owner relationships that are not contracturally based.

I am mindful of newbies who may be reading this thread. A number of red flags would rise, as would questions about how to avoid the hazards and capture the benefits. That is a special challenge for someone new to the business since one would not easily know how one's fleet owner or contract compared to others.

So, what can a newbie do? You can only do what you can do, and the better you do it, the better your future will be as an expediter.

Starting out, do the best research you can do on your fleet owner and contract if the fleet owner has one. Know that things may not turn out for the best, but give it YOUR best just the same.

Once you are in a truck, do the same thing...give it your best. While your fleet owner or contract may turn out to be less than desired, do not become a less-than-desirable driver in return. Give it your best.

If things work out well from the begining, that's fantastic! If they do not, it's not about the bad fleet owner or bad contract you had. It's about you moving forward with your own good track record intact, and with the satisfaction of knowing you gave it your best.

That produces more than good numbers and a good feeling. It opens numerous doors with numerous fleet owners and carriers the next time around; and a set of options to review with a more educated eye.

 

[greg334]

I got it Dave, I used it for a spring board for my other comments.

I know that I have little experience in this profession, I have only been in the game since mid-05 but I have dealt with contractors and employees more so than the average expediter. Expert? no where near an expert like others who are claiming to be through advice they give because as I see it there are no experts in this profession as there are none in IT.

I think that x06col said a lot, more so than I could with my ramblings so I would take his comments and enshrine them as part of the big hall of fame of advice.

But to the newbie, who is entering this world of uncertainty and ambiguity, where the training curve can be either steep or shallow, the best advice anyone can give you, the newbie, realize that this is a business, not a paid vacation, a real business with real liabilities, real safety issues and sometimes people will lose everything trying to get that apartment on wheels. (yes I know there are too many commas there) There are regulation that we all must follow and laws we must obey, it is just like other business that have to follow banking laws or FDA policies.

Protect yourself by doing two things first, get legal advice right from the start (meaning a real lawyer) and get a good accountant who can help you. Don't worry about researching the owner, chances are there is not much to research and if there is something wrong you will know it with the contract and having a lawyer at the start puts the owner on notice that you are not BSing around(side bar here - why is it that some say research the owner? How does one do that? hire a PI? Get his tax returns? All I can see is talking to others who drove for him if that is at all possible).

If the owner has a contract and can't explain it to you, go to your lawyer who you have a relationship with it and have him tell you what it is all about. If he does not have a contract, walk away. This is a business, the days of the hand shake deals are gone outside the diamond business, so protect yourself.

 

[x06col]

On the other hand, it might be wise to walk away from anyone, on either side, owner or driver who has a "relationship" with a lawyer.

I have discovered there are not any happy endings (totally) in any driver owner partnership. Partnerships are really, really frail, depending on expectations from the other entity. It is not worth bantering about, we can't solve it. Thats why you see 10 to 50 newbees in class every week.

Be realistic. Had a fella whom I regarded as a able candidate with me last week. Unknown to me he had $100 in his pocket (to his name) and we headed out for parts unknown. Did a couple round trips to Manhattan, a run to Tn, then to Manhatten again. He was broke somewhere New york and Tennessee. You newbees need some realistic expectations. My question is---- how could someone in their right mind go on the road with a hunderd bucks??? Recruiting??? Maybe??

 

[davekc]

I don't know that I would agree with that. We have had some great relationships with many drivers. Some are current members here on EO.
In the future I quess it would be wise to ask if they have enough money to survive to their first paycheck? Traveling on just $100 seems more like bus fare home.











Davekc
owner
23 years
PantherII
EO moderator