Are You A Contractor or an Employee

Turtle

Administrator
Staff member
Retired Expediter
There are many different kinds of independent contractors, and not all of them are like the construction industry. Taxi cab drivers are independent contractors, and are rarely able to contract lease with more than one cab company. Cosmetologists are usually booth renting independent contractors and usually cannot booth rent at more than one location. Signing a contract to allow yourself to be leased onto a specific carrier, even to the exclusion of all others, in no way affects the independent contractor status.

Simply put, an employee is anyone who performs services for an employer if the employer can control what will be done and how it will be done.

Independent contractors are defined so that the payer or employer has the right to control or direct only the result of the work done, and not the means and methods of accomplishing the result.

Details of how things other than means and methods are to be done are outside of the independent contractor classification, and may be dealt with via contract or mutually agreed to policies.

There are certainly some similarities between expediting and a franchise, but the key differences are things like in a franchise, the "book" not only tells you what to do, but how to do it. In expediting the carrier cannot dictate to an independent contractor how to do much of anything, only that the result must be there. How you accomplish the result is up to you. They cannot dictate things like how to secure the freight, what speeds to drive, what routing to take, etc. They most definitely cannot dictate to you where to go and when to be there. A load offer is just that, an offer, not a mandate. If you agree to the terms of the load offer, then you are bound by those term, including where to go and when to be there. But they were not dictated to you, only offered to you. You have the option to either renegotiate the terms, or reject them outright, just like any other independent contractor.

As for having your contract canceled by some carriers after being OOS for a month or more, that all depends on what is in the contract you signed with the carrier. If you signed it, then you agreed to it. But it doesn't necessarily mean you are an employee for merely agreeing to that particular provision.

If you want to lease on to several carriers at the same time, well, first recognize what the term "lease" means, then apply it with respect to running under several authorities at the same time. When you lease on with a carrier, you are literally transfering the right to possession and/or use of goods or equipment (your truck) for a term in return for consideration. The only way you can do that with multuple carriers is to get your own authority and then contract out, not lease, your goods and services to whomever will pay you for them on a job-by-job basis.
 
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blizzard2014

Veteran Expediter
Driver
The carrier dictates how you do everything. lol. They dictate how you respond to a load, how much time you have to accept it, what routes they feel you should take. Also, the carrier can force you to stop, or swap out with another truck whenever they see fit to do so. So, some carriers do control more than the result.
 

blizzard2014

Veteran Expediter
Driver
Now, Turtle, before you go all paralegal on me again, let me say that you are right in your definitions of the legal differences between an employee and an independent contractor. I did some research before I posted my comments. I just wanted to try and describe the reality of being an independent contractor in a different way. But what I really ment to describe was the difference between a "traditional independent contractor" and an actual "independent agent!" Nonetheless, we are still operating under the company franchise rules. If we did not work for "separate franchises" all of our trucks would look the same and we would all act the same. This is my humble opinion. You just had to get all "Perry Mason" on my a** lol..
 
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nightcreacher

Veteran Expediter
I believe there is a DOT rule that you cant carry the authority of more than 1 company at a time.As far as employees working as contract labor,its a very gray area.The contract i have states he can give his services to anyone he wishes at any time.The hard part is ,when he's your co-driver,you cant tell him what to do.
 

nightcreacher

Veteran Expediter
The carrier dictates how you do everything. lol. They dictate how you respond to a load, how much time you have to accept it, what routes they feel you should take. Also, the carrier can force you to stop, or swap out with another truck whenever they see fit to do so. So, some carriers do control more than the result.

When a carrier is telling you you have to swap out a load ,its mostly from a safety issue,as there are rules as how many hours you can drive and work.When you lease a truck to a carrier,you have to abide by these rules,and that doesn't make you a company driver.As far as dictating how I respond to a load,I'm given choices based on information I am given,and that in turn makes my decision if I want the job or not.If I were told I have to do this work,then yes,I would be an employee.As far as dictating how I run my business,they dont.Yes I get a suggested routing,but I dont have to take it,and if I check out my GPS,its useually the same routing
 

Tennesseahawk

Veteran Expediter
Sure you can, Night... but you can only have one set of numbers on the truck at a time. Then you have to have insurance with each company, and logs for each company, yada yada. It doesn't make much sense, but I've heard of a few doing it.
 

nightcreacher

Veteran Expediter
Sure you can, Night... but you can only have one set of numbers on the truck at a time. Then you have to have insurance with each company, and logs for each company, yada yada. It doesn't make much sense, but I've heard of a few doing it.

The reason for 1 set of numbers is because you cant be leased to more than 1 at a time.By only having 1 set,no one knows about the other companies you may be leased to.as i said,cant be leased to more than one,doesnt mean your not going to,biggest case would be a guy that is leased to a carrier,and also has his own ahthority,When hes out of a freight area and needs to get back,he can cover the company numbers and put up his own
 

CharlesD

Expert Expediter
As Leo said: all carriers have warts.

I don't anymore. They have medicine for those things. It works pretty well too.

All kidding aside, and this is kind of related, I think I read something recently but I can't remember where that companies can't force independent contractors to wear uniforms. Maybe that was just a rumor, since all those courier companies have their drivers wear uniforms even though they're contractors. I did courier for a while and had a uniform that they took so much out of my settlement for each week. I never gave it much thought back then.
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
Here is what the IRS says about behavioral control.



Behavioral Control

Behavioral control refers to facts that show whether there is a right to direct or control how the worker does the work. A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done – as long as the employer has the right to direct and control the work.

The behavioral control factors fall into the categories of:

Type of instructions given
Degree of instruction
Evaluation systems
Training
Types of Instructions Given

An employee is generally subject to the business’s instructions about when, where, and how to work. All of the following are examples of types of instructions about how to do work.

When and where to do the work.
What tools or equipment to use.
What workers to hire or to assist with the work.
Where to purchase supplies and services.
What work must be performed by a specified individual.
What order or sequence to follow when performing the work.
Degree of Instruction

Degree of Instruction means that the more detailed the instructions, the more control the business exercises over the worker. More detailed instructions indicate that the worker is an employee. Less detailed instructions reflects less control, indicating that the worker is more likely an independent contractor.

Note: The amount of instruction needed varies among different jobs. Even if no instructions are given, sufficient behavioral control may exist if the employer has the right to control how the work results are achieved. A business may lack the knowledge to instruct some highly specialized professionals; in other cases, the task may require little or no instruction. The key consideration is whether the business has retained the right to control the details of a worker's performance or instead has given up that right.

Evaluation System

If an evaluation system measures the details of how the work is performed, then these factors would point to an employee.

If the evaluation system measures just the end result, then this can point to either an independent contractor or an employee.

Training

If the business provides the worker with training on how to do the job, this indicates that the business wants the job done in a particular way. This is strong evidence that the worker is an employee. Periodic or on-going training about procedures and methods is even stronger evidence of an employer-employee relationship. However, independent contractors ordinarily use their own methods.

References/Related topics

Independent Contractor (Self-Employed) or Employee?
 

LakeSide

Not a Member
Wasn't this same horse beaten just a few weeks ago?



YES......Pelican, of course it was.

But in ones attempt to stay in the "spotlight" , some folks have that urge to direct attention to themselves regardless of content.

.......and "the beat goes on"

..............and so does the PARTY in FedEx dispatch.
 

Turtle

Administrator
Staff member
Retired Expediter
The carrier dictates how you do everything. lol.
Only if you let them. :)


"They dictate how you respond to a load,"

No they don't. You can respond with a YES or a NO, it's up to you. You can respond over the QC or via phone, it's up to you. They are your client, you are paying them to find you loads, and as your client, they can expect certain things for the money they are paying you for your services, not the least of which is you being able to provide services that allow them to satisfy their needs (in servicing their customers).

"...how much time you have to accept it,"
Name me one industry in which there is no time frame for accepting or rejecting a contract offer. Even in construction, as a contractor or a subcontractor, eventually the time will come that you must decide, because the paying party will not wait forever for your decision. Sometimes that time frame is days, weeks or even months, and sometimes it's minutes.


"...what routes they feel you should take."


Absolutely not true. If you have a load from Cincinnati to Columbus, you can go through Denver if you want to, just as long as you deliver it safely, legally and on time.


"Also, the carrier can force you to stop,"

They can ask you to stop, even intimidate you get you to stop, but they absolutely positively cannot force you to stop as long as you are complying with the terms of the contracted load offer and your contract lease agreement.


"...or swap out with another truck whenever they see fit to do so."

In some rare extreme cases, sure, but for the most part, no, they can't force you to swap the load whenever they see fit. Not without good cause, and if you don't agree, you don't have to swap. There may be consequences for refusing to swap, of course, since you are leased onto them and are thus giving them possession and use of your goods and services, but if you don't want to swap it you don't have to.


"So, some carriers do control more than the result."

Some certainly try, and some contractors certainly let them get away with it.


"But what I really ment to describe was the difference between a "traditional independent contractor" and an actual "independent agent!""

By "traditional independent contractor" you mean an independent contractor in the construction business, right? Construction may be the most well known type of independent contractor, but it's not uniquely traditional. An actor or entertainer an independent contractor, in the same traditions as a construction independent contractor. An actor can also sign a contract that limits where he can work and who he can work for, but that doesn't necessarily make him an employee.

As someone who spent many years in the food service industry, including some of it managing franchise restaurants, I can appreciate the comparison of expediting to a franchise, and there are many very valid comparisons. But again the key difference is the "book" for a franchise dictates not only the result, but also the ways and means, and equipment used, to achieve the result. That's not the case with an expediting independent contractor.
 

Bruno

Veteran Expediter
Fleet Owner
US Marines
YES......Pelican, of course it was.

But in ones attempt to stay in the "spotlight" , some folks have that urge to direct attention to themselves regardless of content.

.......and "the beat goes on"



But since I'm show boating and trying to be in the "spotlight" as you say. Maybe You better look at how many post I have done.
 
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LakeSide

Not a Member
But I don't hide behind BS names either.



You remind me of the co-Driver I had a few years back that took a crap in my waste basket when I was driving down the road.

BS name ?? You really don't get it.....you really don't.
It's called a "nick" or nickname in layman terms. Most
forums follow a typical format of "nick" usage, as opposed
to using ones common name.
 
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