Contracts do people read them?

[Bruno]

I got a call in regards to a post that was placed in the open forum in regards to Mayfield Express LLC. Mayfield Express LLC follows all the laws set in place by DOT. This former Contractor was terminated for a MAJOR violation of our contract and our carriers. Our contract clearly states that if you violate our contract which cause our carrier to terminate the contractor as a driver, you will wait 45 days for your finale settlement. Because in the past we have paid contractors that have been terminated only to get hit with a $2000.00 freight claim or unreported accident we had to pay after the contractor left.

So do drivers even read the contract they sign? I won't say what this driver name is, but no carrier would hire this driver for this violation. So we had to deadhead the other driver 1889 miles because this violation was so bad that the driver had to be taken to a bus station because the carrier wanted this driver off the truck. Now this contractors actions caused Mayfield Express LLC a great deal of money which we haven't even charged back to the contractor. Most carriers I know hold some kind of escrow for 45 days after you leave the carrier. We don't ask our contractors for a escrow and it clearly states this in our contract in regards to the 45 days settlement hold. Our operations manager put this drivers settlement on hold starting today because he is going to go by our contract. The contractor will be paid when his 45 days are up.

This former contractor said some nasty things in regards to our company that was untrue, so we have turned it over to our lawyer. What would you do if you had this problem?

 

[paullud]

I would consider charging a security deposit. As a contractor I have no issues with it as long as it is returned in a timely manner.

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[Bruno]

I would consider charging a security deposit. As a contractor I have no issues with it as long as it is returned in a timely manner.

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That is what a few others are telling me. I really don't want to go that route but it seems we may need too. We don't want to keep peoples money, we just want them to do the right thing. Not lie to us, mess up our trucks, and quit with a notice. Is that to much to ask. We know people come and go, as people want to own their own truck someday. Just be honest and do the right thing.

 

[cheri1122]

Dave: I don't think honest people have a problem with escrow, provided it's done with integrity [documented, terms stated clearly in contract.] They should know that the owner has a right to protect his investment, and they will get it back, so no big deal, IMO.

 

[paullud]

That is what a few others are telling me. I really don't want to go that route but it seems we may need too. We don't want to keep peoples money, we just want them to do the right thing. Not lie to us, mess up our trucks, and quit with a notice. Is that to much to ask. We know people come and go, as people want to own their own truck someday. Just be honest and do the right thing.

I would give it some serious thought, especially with all the people that come in and out of the industry and companies. If I were in your shoes I would want enough to cover the insurance deductible.

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[BigCat]

Well I read the contract well dave and wouldn't have signed if I had a problem with any of it. As for the slander from said contractor that was going on on the truck and I put him in his place a few times as well as calling you in regards to it. I feel the matter was handled well also.

I got to say dave im pretty happy with Mayfield Express and feel im treated well also.

 

[greg334]

Bruno (dave),
I've mention this to you and in this forum, I go through the entire contract, page by page, section by section with a driver and have them initial each section as we go through it. It is done to prevent any problems like this because you can spend the time explaining things in a forum or finding another driver and honestly I would spend it finding another driver.

I read what you are referring to and thought "who cares" because the poster said something about a class action suit which meant he didn't have a leg to stand on.

By the by, I would think that you should consult a lawyer to have them create an ethics clause - no bad behavior or no pay.

 

[Bruno]

Bruno (dave),
I've mention this to you and in this forum, I go through the entire contract, page by page, section by section with a driver and have them initial each section as we go through it. It is done to prevent any problems like this because you can spend the time explaining things in a forum or finding another driver and honestly I would spend it finding another driver.

I read what you are referring to and thought "who cares" because the poster said something about a class action suit which meant he didn't have a leg to stand on.

By the by, I would think that you should consult a lawyer to have them create an ethics clause - no bad behavior or no pay.

Thanks Greg as you know me to well. We go over the contract that way and even record the meeting of them signing it.

 

[ChrisGa23]

This day in age If I owned a fleet of trucks I would take out escrow no matter what. My old fleet owner took out $2000. Which was fine with me because I knew unless something bad went down I would follow his contract and give him his notice. I got my escrow money back in a timely matter and all was good. In my opinion escrow gives another incitive to people to do the right thing or they know they will lose a chunk money.

 

[cheri1122]

Don't forget, though, that escrow can give an unscrupulous owner a fund to keep for whatever bogus 'reasons' he can invent. Forfeiture should be included in the contract, and amended as creative people come up with new ways to cost the owner money. [You'd think it'd be easier to just work for a living...]

 

[Bruno]

Don't forget, though, that escrow can give an unscrupulous owner a fund to keep for whatever bogus 'reasons' he can invent. Forfeiture should be included in the contract, and amended as creative people come up with new ways to cost the owner money. [You'd think it'd be easier to just work for a living...]

Cheri

We have never asked for an escrow from our drivers ever. I do understand why fleet owners do. If people would just do the right thing people wouldn't have to pay an escrow.

 

[BigCat]

Well many drivers want to drive for fleet owners because they dont care about equipment enough to own a truck. So escrow may or may not make a difference.

 

[Bruno]

Well I read the contract well dave and wouldn't have signed if I had a problem with any of it. As for the slander from said contractor that was going on on the truck and I put him in his place a few times as well as calling you in regards to it. I feel the matter was handled well also.

I got to say dave im pretty happy with Mayfield Express and feel im treated well also.

Thank you, I heard you have in over 4100 miles this week? Great job and after you drop the 1509 mile load your on now call me and I will put you in a hotel for the night.

 

[osumike33]

Cheri

We have never asked for an escrow from our drivers ever. I do understand why fleet owners do. If people would just do the right thing people wouldn't have to pay an escrow.

Just started this in late summer and considered getting an escrow from the drivers, but decided against it. Hopefully it won't come back to bite me like it has you this time, but guess I have the same faith that you have in people...we'll see. Of course I've paid an escrow with the companies we're leased to...but for now that's just on me. Right now I don't see a problem, but one never knows what the future could bring with other drivers.

 

[Monty]

If they are true "drivers", not contract labor, you may be at odds with legal concerns for with holding funds.

It has always been my contention, (in my early years of driving for others), if you do not like my performance, then eliminate me. But do NOT mess with my pay. I did you a job, pay me for it.

 

[davekc]

If a fleet owner has had no prior relationship with a contractor, asking for a minimum escrow against a 100k or higher piece of equipment/investment is hardly out of bounds.

 

[JimmyB]

I foresee asking a contractor driver for an escrow may be quite the deterrent. I believe our current contractual agreement is both fair and protects the fleet owner investment.

Someone who is honest will put in a 2 week notice and their settlements are released on schedule. Someone who up and quits without notice or is disqualified because of an accident or behavior not acceptable for truck driver opens the fleet up to risk. We have ran into issues in the past of drivers having freight damage claims or unreported accidents creeping up as weeks after they have quit. It is very easy for one of these trucks to do substantial damage to personal vehicles without showing any evidence an accident or negligence had ever occurred.

The post in question that Greg mentioned, that driver was disqualified for something that could very well have resulted in any of the above, and I'm sure he will pay for his mistake by never being allowed to drive a truck anywhere again. (No details will be discussed either)

As for having contractors sign each paragraph of the contract seems redundant to me. I'm not saying it's a bad idea, just not necessary from a legal standpoint. Then again, IANAL. But I'm sure if it are necessary our lawyer would have included that option.
I personally sit down with each contractor and review all portions of the contract and P&P with each contractor, hitting every paragraph and explaining each portion. Each contractor is then supplied with a copy of both to keep with them at all times. There is absolutely no reason that any contractor does not understand exactly what they are signing.

I think this topic's Title is a bit misleading to the above facts. Contractors do in fact read each contract and explained what each portion means. I think they problem is this, some contractors think that their contract is "not worth the paper it's written on". This false perception is their own to deal with.

As for the escrow. I still am not convinced this is the best way to go. Most drivers in todays economy are coming into the expedite business with barely a shirt on their back. They are already being hit with fee's from the carrier which impact their settlements in the beginning. No two parties can have 100% protection from loss. That's life and that's business. The goal is to minimize the amount of loss in which either party may experience.

Some of you know me from back at EW and as a driver. I have had offers from other owners to come work for them and I have politely refused. I am loyal to a company that feel treats contractors fairly. When the day comes that I feel contractors are being forced to drive equipment that is dangerous and that a company is trying to "keep" money from those that deserve it, I will be looking for work elsewhere. I value my personal morals and ethics above monitory gain and working for this company has not put either in jeopardy. So, despite the false claims and accusations from one disgruntled ex-contractor, I will sleep well tonight knowing they are unfounded.

 

[Tennesseahawk]

Oh the drama!

Why don't we have a popcorn smiley?

 

[Bruno]

Oh the drama!

Why don't we have a popcorn smiley?

No drama Hawk. As Davekc has said, " an escrow is needed for owners to cover their investment in the truck that drivers lease". I see nothing wrong with an escrow, I just choose not to have one at this time because drivers have settlements that can be tapped into if there is damage to a truck. We do the same thing that Panther does if a contractor is off for more than seven days. We hold their settlement if they are off for more than seven days until they return to back to driving. It's nothing personal, it's business and our drivers understand it.

 

[greg334]

As for having contractors sign each paragraph of the contract seems redundant to me. I'm not saying it's a bad idea, just not necessary from a legal standpoint. Then again, IANAL. But I'm sure if it are necessary our lawyer would have included that option.

Actually this idea came from a judge who presided over a case involving a driver who claimed not to understand the contractual clause, so the suggestion was made when thee contract is explained to the driver, the clause is signed off on and then the contract is signed as a whole. Your lawyer may not agree with it but by doing that, you are ensuring that everyone is on the same page and no claim can be made otherwise in court.

A two week notice is not a reason that can be used against a driver - you are not hiring an employee or having them work for a specific amount of time - you are hiring them as an independent contractor to do a specific job. Most contracts are open ended which means that there is no expiration date so there is no way to hold them accountable for their exit at any given time. The only exception would be if they are under a load and leave. Outside of that, two weeks is a courtesy nothing more.