I know that you read this forum. Would someone from Panther contact me. I am waiting for an answer to my emails and phone calls.
Hello Panther II
- Thread starter Bob and Hooligan
- Start date
bigguy1001
Expert Expediter
In reality it's not the lack of contact. Someone spoke with you about
this issue on 1-3 and twice on 1-4. It's the answer that you aren't happy with. Right?
this issue on 1-3 and twice on 1-4. It's the answer that you aren't happy with. Right?
Yep, sounds about right. Most folks don't understand that if they ask a direct question, they will get an answer. Not necessarily the answer they want to hear, but, an answer. Then seems like they didn't hear the one they didn't want to hear. Human nature! Most don't get broke of going from one parent to another when they are kids looking for the right answer.
Actually here is the problem.
Panther has a "policy" that puts a hold on a contractor's check if a truck is out of service for more than about 7 days.
My contention is that if the money has been earned, the money should be paid. I simply don't agree with this "policy". In fact, I didn't think there was room for policy in a contract.
I did speak with someone and was given the policy line. They said that the hold is placed to protect Panther's interest. It seems that the QC is quite valuable. Mine is at least 4.5 years old. I don't think it would have any value on the black market. Qualcom would not activate a stolen unit. Even if they did, it could be used to locate the stolen property.
So I got to thinking. What could be their other reasons for holding money due a contractor? I talked to several other drivers and we
came up with some posibilities.
1. They hold on to the money longer. This seems lodgical
2. It is a means of controling in service time. The only problem with this is, the control could be considered a change of status from independent operator to employee... That's interesting.
What do you think.
I am happy to say I have solved my problem with this "policy"
When I am going on vactation in the future, I will not submit any bills for work done until I am back in service and have made a run.
I am interested in what others think. I am also interested in how other people know about what and when I discussed private matters!
Panther has a "policy" that puts a hold on a contractor's check if a truck is out of service for more than about 7 days.
My contention is that if the money has been earned, the money should be paid. I simply don't agree with this "policy". In fact, I didn't think there was room for policy in a contract.
I did speak with someone and was given the policy line. They said that the hold is placed to protect Panther's interest. It seems that the QC is quite valuable. Mine is at least 4.5 years old. I don't think it would have any value on the black market. Qualcom would not activate a stolen unit. Even if they did, it could be used to locate the stolen property.
So I got to thinking. What could be their other reasons for holding money due a contractor? I talked to several other drivers and we
came up with some posibilities.
1. They hold on to the money longer. This seems lodgical
2. It is a means of controling in service time. The only problem with this is, the control could be considered a change of status from independent operator to employee... That's interesting.
What do you think.
I am happy to say I have solved my problem with this "policy"
When I am going on vactation in the future, I will not submit any bills for work done until I am back in service and have made a run.
I am interested in what others think. I am also interested in how other people know about what and when I discussed private matters!
Hi Bigguy,
Just how do you know when I spole to someone at Panther?
Just how do you know when I spole to someone at Panther?
Bigguy,
I just realized who you were. I am still chuckling about that good one you told about how much QC equipment is worth.:+
I just realized who you were. I am still chuckling about that good one you told about how much QC equipment is worth.:+
Hey Bob, I like that idea of holding off until you comeback fom vacation.To me this Panther Policy is a strong method of control.
Take time off but forget about being paid until you are available again . That simply is not right,you did the work,you should get paid.
Take time off but forget about being paid until you are available again . That simply is not right,you did the work,you should get paid.
I've heard of, but have not confirmed, a federal regulation that requires a motor carrier pay an O/O for services rendered within 14 days of submittal of all documentation relevant to a freight delivery. Does anyone know this to be a fact? If this regulation exists, it cannot be overridden by a company policy, even if agreed to by the O/O.
If the above is correct, and the carrier's out of service procedures were properly followed by R-H, perhaps the withholding of settlement is inappropriate. Then again, how is settlement transmitted? If direct deposit, it should be deposited. If by check in the mail, perhaps a holdback has been agreed to, for the purpose of protecting the security of the check, until you return to service.
In any event, the withholding of your run documents until you return to service would be an inappropriate driver action. I'm quite confident you've agreed to a speedy remittance. Sorry Bob, but I don't think you should consider it.
If the above is correct, and the carrier's out of service procedures were properly followed by R-H, perhaps the withholding of settlement is inappropriate. Then again, how is settlement transmitted? If direct deposit, it should be deposited. If by check in the mail, perhaps a holdback has been agreed to, for the purpose of protecting the security of the check, until you return to service.
In any event, the withholding of your run documents until you return to service would be an inappropriate driver action. I'm quite confident you've agreed to a speedy remittance. Sorry Bob, but I don't think you should consider it.
If Panther has an escrow account that should certainly cover the cost of a 4.5 year old Q Comm. I am sure Panther bills the customer when they receive the PPWK so it seems to me,that the person who did the work should be paid irregardless of his available status. What would happen if Bob had an accident deadheading to a customer,got laid up for 2 months. Meanwhile he had 9-10 shipments that he he had sent in. Would Panther withold this money until he was available? Now if this policy is part of the Panther contract that Bob agreed to it is a different story..
greg334
Veteran Expediter
>I've heard of, but have not confirmed, a federal regulation
>that requires a motor carrier pay an O/O for services
>rendered within 14 days of submittal of all documentation
>relevant to a freight delivery. Does anyone know this to be
>a fact? If this regulation exists, it cannot be overridden
>by a company policy, even if agreed to by the O/O.
>
>If the above is correct, and the carrier's out of service
>procedures were properly followed by R-H, perhaps the
>withholding of settlement is inappropriate. Then again, how
>is settlement transmitted? If direct deposit, it should be
>deposited. If by check in the mail, perhaps a holdback has
>been agreed to, for the purpose of protecting the security
>of the check, until you return to service.
>
>In any event, the withholding of your run documents until
>you return to service would be an inappropriate driver
>action. I'm quite confident you've agreed to a speedy
>remittance. Sorry Bob, but I don't think you should
>consider it.
Actually Terry, there is such a regulation and read it the other day. (yea I was really bored) I don’t have the exact regulation number but essentially it says that a carrier has to pay the contractor within 14 or 15 days of receipt of paper work.
Now I am wondering about the panther ii policy that holds your check for something that is covered with the escrow account. I mean isn’t that the purpose of the escrow account. So holding anything back could be considered part of the escrow and hence it would also have interest applied to it and paid out when the check is issued. Just a thought.
Oh yea, just because it is policy does not make it legal.
>that requires a motor carrier pay an O/O for services
>rendered within 14 days of submittal of all documentation
>relevant to a freight delivery. Does anyone know this to be
>a fact? If this regulation exists, it cannot be overridden
>by a company policy, even if agreed to by the O/O.
>
>If the above is correct, and the carrier's out of service
>procedures were properly followed by R-H, perhaps the
>withholding of settlement is inappropriate. Then again, how
>is settlement transmitted? If direct deposit, it should be
>deposited. If by check in the mail, perhaps a holdback has
>been agreed to, for the purpose of protecting the security
>of the check, until you return to service.
>
>In any event, the withholding of your run documents until
>you return to service would be an inappropriate driver
>action. I'm quite confident you've agreed to a speedy
>remittance. Sorry Bob, but I don't think you should
>consider it.
Actually Terry, there is such a regulation and read it the other day. (yea I was really bored) I don’t have the exact regulation number but essentially it says that a carrier has to pay the contractor within 14 or 15 days of receipt of paper work.
Now I am wondering about the panther ii policy that holds your check for something that is covered with the escrow account. I mean isn’t that the purpose of the escrow account. So holding anything back could be considered part of the escrow and hence it would also have interest applied to it and paid out when the check is issued. Just a thought.
Oh yea, just because it is policy does not make it legal.
We have had this issue only come up once. Prior to the extended leave we were asked to notify contractor relations in order to be paid for runs that were at or close to the 15 day mark.
They paid and it was our understanding that they be notified in advance. We called and no problem.
I don't know any more than that, so a rep from Panther would have to explain whatever their policy is.
As mentioned, the QC and permits should be covered through the general escrow.
Davekc
owner
21 years
PantherII
EO moderator
They paid and it was our understanding that they be notified in advance. We called and no problem.
I don't know any more than that, so a rep from Panther would have to explain whatever their policy is.
As mentioned, the QC and permits should be covered through the general escrow.
Davekc
owner
21 years
PantherII
EO moderator
Terry
Ditto to what Greg said.
There is a law, a federal law, a carrier must pay a driver for the delivery of a load within 15 days, not the 14 you stated. Someone may want to cut your head off for that one day, mistake.
Bob
Seams to me this company loves to hold onto your money! If my memory is right they did this to you a few months ago. Tell them if they do it again you'll turn holigan on their butts. Ha Ha
I'll research and post the link to the fed law, so you can show that carrier, and hopefully they will do the right thing.
As for the statement of why their holding the money relating that to employee status, I don't see it. I do see them as acting like a second-class carrier though.
Ditto to what Greg said.
There is a law, a federal law, a carrier must pay a driver for the delivery of a load within 15 days, not the 14 you stated. Someone may want to cut your head off for that one day, mistake.
Bob
Seams to me this company loves to hold onto your money! If my memory is right they did this to you a few months ago. Tell them if they do it again you'll turn holigan on their butts. Ha Ha
I'll research and post the link to the fed law, so you can show that carrier, and hopefully they will do the right thing.
As for the statement of why their holding the money relating that to employee status, I don't see it. I do see them as acting like a second-class carrier though.
greg334
Veteran Expediter
I would also like to add, turn in all you paperwork as soon as possible simply because they can not have any excuse to hold any money back. As stupid as this sounds, you only hurt yourself by holding anything back. Let the burden be on them.
As for a contractual obligation, as my lawyer has said it don’t matter what you agree on when the judge looks at the regulation and the contract, what do you think he will base his decision on. The regulations usually win the case for you.
As mentioned about employee status, it is funny that companies much bigger than Panther ii (Microsoft, Oracle to mention a couple) have lost a lot of cases where contractors sued to become employees. Two key factors were pay schedules and incorrect application of policies. If this would happen (I know wishful thinking) to a few of these companies maybe many expediters would be treated better. WOW image being paid by the hour for all your runs you did for the past two years.
As for a contractual obligation, as my lawyer has said it don’t matter what you agree on when the judge looks at the regulation and the contract, what do you think he will base his decision on. The regulations usually win the case for you.
As mentioned about employee status, it is funny that companies much bigger than Panther ii (Microsoft, Oracle to mention a couple) have lost a lot of cases where contractors sued to become employees. Two key factors were pay schedules and incorrect application of policies. If this would happen (I know wishful thinking) to a few of these companies maybe many expediters would be treated better. WOW image being paid by the hour for all your runs you did for the past two years.
Thanks for all the feedback. Hooligan and I are just small town, country truckers. We enjoy our jobs and just want to get paid for the work we do.
I have looked at the contract. Article V deals with compensation, and Article X covers the escrow account. My conclusion is that they owe me money. Maybe I am the only one in the fleet having this problem. If so, I am sorry to bother you. If not, something should be done to correct the problem.
Are there any others out there having similar problems?
Working for Peace and Justice
Bob and Hooligan
I have looked at the contract. Article V deals with compensation, and Article X covers the escrow account. My conclusion is that they owe me money. Maybe I am the only one in the fleet having this problem. If so, I am sorry to bother you. If not, something should be done to correct the problem.
Are there any others out there having similar problems?
Working for Peace and Justice
Bob and Hooligan
This may be of some help, part of DOT Regulation pertaining to Truth in Leasing. Cuts to the Chase in my opinion. Also intresting facts on ESCROW and INSURANCE: Hope it helps: TITLE 49--TRANSPORTATION
DEPARTMENT OF TRANSPORTATION
PART 376_LEASE AND INTERCHANGE OF VEHICLES--Table of Contents
Subpart B_Leasing Regulations
Sec. 376.12 Written lease requirements.
Except as provided in the exemptions set forth in subpart C of this
part, the written lease required under Sec. 376.11(a) shall contain the
following provisions. The required lease provisions shall be adhered to
and performed by the authorized carrier.
(a) Parties. The lease shall be made between the authorized carrier
and the owner of the equipment. The lease shall be signed by these
parties or by their authorized representatives.
(b) Duration to be specific. The lease shall specify the time and
date or the circumstances on which the lease begins and ends. These
times or circumstances shall coincide with the times for the giving of
receipts required by Sec. 376.11(b).
(c) Exclusive possession and responsibilities. (1) The lease shall
provide that the authorized carrier lessee shall have exclusive
possession, control, and use of the equipment for the duration of the
lease. The lease shall further provide that the authorized carrier
lessee shall assume complete responsibility for the operation of the
equipment for the duration of the lease.
(2) Provision may be made in the lease for considering the
authorized carrier lessee as the owner of the equipment for the purpose
of subleasing it under these regulations to other authorized carriers
during the lease.
(3) When an authorized carrier of household goods leases equipment
for the transportation of household goods, as defined by the Secretary,
the parties may provide in the lease that the provisions required by
paragraph (c)(1) of this section apply only during the time the
equipment is operated by or for the authorized carrier lessee.
(4) Nothing in the provisions required by paragraph (c)(1) of this
section is intended to affect whether the lessor or driver provided by
the lessor is an independent contractor or an employee of the authorized
carrier lessee. An independent contractor relationship may exist when a
carrier lessee complies with 49 U.S.C. 14102 and attendant
administrative requirements.
(d) Compensation to be specified. The amount to be paid by the
authorized carrier for equipment and driver's services shall be clearly
stated on the face of the lease or in an addendum which is attached to
the lease. Such lease or addendum shall be delivered to the lessor prior
to the commencement of any trip in the service of the authorized
carrier. An authorized representative of the lessor may accept these
documents. The amount to be paid may be expressed as a percentage of
gross revenue, a flat rate per mile, a variable rate depending on the
direction traveled or the type of commodity transported, or by any other
method of compensation mutually agreed upon by the parties to the lease.
The compensation stated on the lease or in the attached addendum may
apply to equipment and driver's services either separately or as a
combined amount.
(e) Items specified in lease. The lease shall clearly specify which
party is responsible for removing identification devices from the
equipment upon the termination of the lease and when and how these
devices, other than those painted directly on the equipment, will be
returned to the carrier. The lease shall clearly specify the manner in
which a receipt will be given to the authorized carrier by the equipment
[[Page 911]]
owner when the latter retakes possession of the equipment upon
termination of the lease agreement, if a receipt is required at all by
the lease. The lease shall clearly specify the responsibility of each
party with respect to the cost of fuel, fuel taxes, empty mileage,
permits of all types, tolls, ferries, detention and accessorial
services, base plates and licenses, and any unused portions of such
items. The lease shall clearly specify who is responsible for loading
and unloading the property onto and from the motor vehicle, and the
compensation, if any, to be paid for this service. Except when the
violation results from the acts or omissions of the lessor, the
authorized carrier lessee shall assume the risks and costs of fines for
overweight and oversize trailers when the trailers are pre-loaded,
sealed, or the load is containerized, or when the trailer or lading is
otherwise outside of the lessor's control, and for improperly permitted
overdimension and overweight loads and shall reimburse the lessor for
any fines paid by the lessor. If the authorized carrier is authorized to
receive a refund or a credit for base plates purchased by the lessor
from, and issued in the name of, the authorized carrier, or if the base
plates are authorized to be sold by the authorized carrier to another
lessor the authorized carrier shall refund to the initial lessor on
whose behalf the base plate was first obtained a prorated share of the
amount received.
(f) Payment period. The lease shall specify that payment to the
lessor shall be made within 15 days after submission of the necessary
delivery documents and other paperwork concerning a trip in the service
of the authorized carrier. The paperwork required before the lessor can
receive payment is limited to log books required by the Department of
Transportation and those documents necessary for the authorized carrier
to secure payment from the shipper. In addition, the lease may provide
that, upon termination of the lease agreement, as a condition precedent
to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the case of identification painted
directly on equipment, return them to the carrier. If the identification
device has been lost or stolen, a letter certifying its removal will
satisfy this requirement. Until this requirement is complied with, the
carrier may withhold final payment. The authorized carrier may require
the submission of additional documents by the lessor but not as a
prerequisite to payment. Payment to the lessor shall not be made
contingent upon submission of a bill of lading to which no exceptions
have been taken. The authorized carrier shall not set time limits for
the submission by the lessor of required delivery documents and other
paperwork.
(g) Copies of freight bill or other form of freight documentation.
When a lessor's revenue is based on a percentage of the gross revenue
for a shipment, the lease must specify that the authorized carrier will
give the lessor, before or at the time of settlement, a copy of the
rated freight bill or a computer-generated document containing the same
information, or, in the case of contract carriers, any other form of
documentation actually used for a shipment containing the same
information that would appear on a rated freight bill. When a computer-
generated document is provided, the lease will permit lessor to view,
during normal business hours, a copy of any actual document underlying
the computer-generated document. Regardless of the method of
compensation, the lease must permit lessor to examine copies of the
carrier's tariff or, in the case of contract carriers, other documents
from which rates and charges are computed, provided that where rates and
charges are computed from a contract of a contract carrier, only those
portions of the contract containing the same information that would
appear on a rated freight bill need be disclosed. The authorized carrier
may delete the names of shippers and consignees shown on the freight
bill or other form of documentation.
(h) Charge-back items. The lease shall clearly specify all items
that may be initially paid for by the authorized carrier, but ultimately
deducted from the lessor's compensation at the time of payment or
settlement, together with a recitation as to how the amount of each item
is to be computed. The lessor
[[Page 912]]
shall be afforded copies of those documents which are necessary to
determine the validity of the charge.
(i) Products, equipment, or services from authorized carrier. The
lease shall specify that the lessor is not required to purchase or rent
any products, equipment, or services from the authorized carrier as a
condition of entering into the lease arrangement. The lease shall
specify the terms of any agreement in which the lessor is a party to an
equipment purchase or rental contract which gives the authorized carrier
the right to make deductions from the lessor's compensation for purchase
or rental payments.
(j) Insurance. (1) The lease shall clearly specify the legal
obligation of the authorized carrier to maintain insurance coverage for
the protection of the public pursuant to FMCSA regulations under 49
U.S.C. 13906. The lease shall further specify who is responsible for
providing any other insurance coverage for the operation of the leased
equipment, such as bobtail insurance. If the authorized carrier will
make a charge back to the lessor for any of this insurance, the lease
shall specify the amount which will be charged-back to the lessor.
(2) If the lessor purchases any insurance coverage for the operation
of the leased equipment from or through the authorized carrier, the
lease shall specify that the authorized carrier will provide the lessor
with a copy of each policy upon the request of the lessor. Also, where
the lessor purchases such insurance in this manner, the lease shall
specify that the authorized carrier will provide the lessor with a
certificate of insurance for each such policy. Each certificate of
insurance shall include the name of the insurer, the policy number, the
effective dates of the policy, the amounts and types of coverage, the
cost to the lessor for each type of coverage, and the deductible amount
for each type of coverage for which the lessor may be liable.
(3) The lease shall clearly specify the conditions under which
deductions for cargo or property damage may be made from the lessor's
settlements. The lease shall further specify that the authorized carrier
must provide the lessor with a written explanation and itemization of
any deductions for cargo or property damage made from any compensation
of money owed to the lessor. The written explanation and itemization
must be delivered to the lessor before any deductions are made.
(k) Escrow funds. If escrow funds are required, the lease shall
specify:
(1) The amount of any escrow fund or performance bond required to be
paid by the lessor to the authorized carrier or to a third party.
(2) The specific items to which the escrow fund can be applied.
(3) That while the escrow fund is under the control of the
authorized carrier, the authorized carrier shall provide an accounting
to the lessor of any transactions involving such fund. The carrier shall
perform this accounting in one of the following ways:
(i) By clearly indicating in individual settlement sheets the amount
and description of any deduction or addition made to the escrow fund; or
(ii) By providing a separate accounting to the lessor of any
transactions involving the escrow fund. This separate accounting shall
be done on a monthly basis.
(4) The right of the lessor to demand to have an accounting for
transactions involving the escrow fund at any time.
(5) That while the escrow fund is under the control of the carrier,
the carrier shall pay interest on the escrow fund on at least a
quarterly basis. For purposes of calculating the balance of the escrow
fund on which interest must be paid, the carrier may deduct a sum equal
to the average advance made to the individual lessor during the period
of time for which interest is paid. The interest rate shall be
established on the date the interest period begins and shall be at least
equal to the average yield or equivalent coupon issue yield on 91-day,
13-week Treasury bills as established in the weekly auction by the
Department of Treasury.
(6) The conditions the lessor must fulfill in order to have the
escrow fund returned. At the time of the return of the escrow fund, the
authorized carrier may deduct monies for those obligations incurred by
the lessor which have been previously specified in the lease, and shall
provide a final accounting to the lessor of all such final deductions
[[Page 913]]
made to the escrow fund. The lease shall further specify that in no
event shall the escrow fund be returned later than 45 days from the date
of termination.
(l) Copies of the lease. An original and two copies of each lease
shall be signed by the parties. The authorized carrier shall keep the
original and shall place a copy of the lease on the equipment during the
period of the lease unless a statement as provided for in Sec.
376.11(c)(2) is carried on the equipment instead. The owner of the
equipment shall keep the other copy of the lease.
(m) This paragraph applies to owners who are not agents but whose
equipment is used by an agent of an authorized carrier in providing
transportation on behalf of that authorized carrier. In this situation,
the authorized carrier is obligated to ensure that these owners receive
all the rights and benefits due an owner under the leasing regulations,
especially those set forth in paragraphs (d)-(k) of this section. This
is true regardless of whether the lease for the equipment is directly
between the authorized carrier and its agent rather than directly
between the authorized carrier and each of these owners. The lease
between an authorized carrier and its agent shall specify this
obligation.
[44 FR 4681, Jan. 23, 1979, as amended at 45 FR 13092, Feb. 28, 1980; 47
FR 28398, June 30, 1982; 47 FR 51140, Nov. 12, 1982; 47 FR 54083, Dec.
1, 1982; 49 FR 47851, Dec. 7, 1984; 51 FR 37406, 37407, Oct. 22, 1986;
52 FR 2412, Jan. 22, 1987; 57 FR 32905, July 24, 1992; 62 FR 15424, Apr.
1, 1997]
DEPARTMENT OF TRANSPORTATION
PART 376_LEASE AND INTERCHANGE OF VEHICLES--Table of Contents
Subpart B_Leasing Regulations
Sec. 376.12 Written lease requirements.
Except as provided in the exemptions set forth in subpart C of this
part, the written lease required under Sec. 376.11(a) shall contain the
following provisions. The required lease provisions shall be adhered to
and performed by the authorized carrier.
(a) Parties. The lease shall be made between the authorized carrier
and the owner of the equipment. The lease shall be signed by these
parties or by their authorized representatives.
(b) Duration to be specific. The lease shall specify the time and
date or the circumstances on which the lease begins and ends. These
times or circumstances shall coincide with the times for the giving of
receipts required by Sec. 376.11(b).
(c) Exclusive possession and responsibilities. (1) The lease shall
provide that the authorized carrier lessee shall have exclusive
possession, control, and use of the equipment for the duration of the
lease. The lease shall further provide that the authorized carrier
lessee shall assume complete responsibility for the operation of the
equipment for the duration of the lease.
(2) Provision may be made in the lease for considering the
authorized carrier lessee as the owner of the equipment for the purpose
of subleasing it under these regulations to other authorized carriers
during the lease.
(3) When an authorized carrier of household goods leases equipment
for the transportation of household goods, as defined by the Secretary,
the parties may provide in the lease that the provisions required by
paragraph (c)(1) of this section apply only during the time the
equipment is operated by or for the authorized carrier lessee.
(4) Nothing in the provisions required by paragraph (c)(1) of this
section is intended to affect whether the lessor or driver provided by
the lessor is an independent contractor or an employee of the authorized
carrier lessee. An independent contractor relationship may exist when a
carrier lessee complies with 49 U.S.C. 14102 and attendant
administrative requirements.
(d) Compensation to be specified. The amount to be paid by the
authorized carrier for equipment and driver's services shall be clearly
stated on the face of the lease or in an addendum which is attached to
the lease. Such lease or addendum shall be delivered to the lessor prior
to the commencement of any trip in the service of the authorized
carrier. An authorized representative of the lessor may accept these
documents. The amount to be paid may be expressed as a percentage of
gross revenue, a flat rate per mile, a variable rate depending on the
direction traveled or the type of commodity transported, or by any other
method of compensation mutually agreed upon by the parties to the lease.
The compensation stated on the lease or in the attached addendum may
apply to equipment and driver's services either separately or as a
combined amount.
(e) Items specified in lease. The lease shall clearly specify which
party is responsible for removing identification devices from the
equipment upon the termination of the lease and when and how these
devices, other than those painted directly on the equipment, will be
returned to the carrier. The lease shall clearly specify the manner in
which a receipt will be given to the authorized carrier by the equipment
[[Page 911]]
owner when the latter retakes possession of the equipment upon
termination of the lease agreement, if a receipt is required at all by
the lease. The lease shall clearly specify the responsibility of each
party with respect to the cost of fuel, fuel taxes, empty mileage,
permits of all types, tolls, ferries, detention and accessorial
services, base plates and licenses, and any unused portions of such
items. The lease shall clearly specify who is responsible for loading
and unloading the property onto and from the motor vehicle, and the
compensation, if any, to be paid for this service. Except when the
violation results from the acts or omissions of the lessor, the
authorized carrier lessee shall assume the risks and costs of fines for
overweight and oversize trailers when the trailers are pre-loaded,
sealed, or the load is containerized, or when the trailer or lading is
otherwise outside of the lessor's control, and for improperly permitted
overdimension and overweight loads and shall reimburse the lessor for
any fines paid by the lessor. If the authorized carrier is authorized to
receive a refund or a credit for base plates purchased by the lessor
from, and issued in the name of, the authorized carrier, or if the base
plates are authorized to be sold by the authorized carrier to another
lessor the authorized carrier shall refund to the initial lessor on
whose behalf the base plate was first obtained a prorated share of the
amount received.
(f) Payment period. The lease shall specify that payment to the
lessor shall be made within 15 days after submission of the necessary
delivery documents and other paperwork concerning a trip in the service
of the authorized carrier. The paperwork required before the lessor can
receive payment is limited to log books required by the Department of
Transportation and those documents necessary for the authorized carrier
to secure payment from the shipper. In addition, the lease may provide
that, upon termination of the lease agreement, as a condition precedent
to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the case of identification painted
directly on equipment, return them to the carrier. If the identification
device has been lost or stolen, a letter certifying its removal will
satisfy this requirement. Until this requirement is complied with, the
carrier may withhold final payment. The authorized carrier may require
the submission of additional documents by the lessor but not as a
prerequisite to payment. Payment to the lessor shall not be made
contingent upon submission of a bill of lading to which no exceptions
have been taken. The authorized carrier shall not set time limits for
the submission by the lessor of required delivery documents and other
paperwork.
(g) Copies of freight bill or other form of freight documentation.
When a lessor's revenue is based on a percentage of the gross revenue
for a shipment, the lease must specify that the authorized carrier will
give the lessor, before or at the time of settlement, a copy of the
rated freight bill or a computer-generated document containing the same
information, or, in the case of contract carriers, any other form of
documentation actually used for a shipment containing the same
information that would appear on a rated freight bill. When a computer-
generated document is provided, the lease will permit lessor to view,
during normal business hours, a copy of any actual document underlying
the computer-generated document. Regardless of the method of
compensation, the lease must permit lessor to examine copies of the
carrier's tariff or, in the case of contract carriers, other documents
from which rates and charges are computed, provided that where rates and
charges are computed from a contract of a contract carrier, only those
portions of the contract containing the same information that would
appear on a rated freight bill need be disclosed. The authorized carrier
may delete the names of shippers and consignees shown on the freight
bill or other form of documentation.
(h) Charge-back items. The lease shall clearly specify all items
that may be initially paid for by the authorized carrier, but ultimately
deducted from the lessor's compensation at the time of payment or
settlement, together with a recitation as to how the amount of each item
is to be computed. The lessor
[[Page 912]]
shall be afforded copies of those documents which are necessary to
determine the validity of the charge.
(i) Products, equipment, or services from authorized carrier. The
lease shall specify that the lessor is not required to purchase or rent
any products, equipment, or services from the authorized carrier as a
condition of entering into the lease arrangement. The lease shall
specify the terms of any agreement in which the lessor is a party to an
equipment purchase or rental contract which gives the authorized carrier
the right to make deductions from the lessor's compensation for purchase
or rental payments.
(j) Insurance. (1) The lease shall clearly specify the legal
obligation of the authorized carrier to maintain insurance coverage for
the protection of the public pursuant to FMCSA regulations under 49
U.S.C. 13906. The lease shall further specify who is responsible for
providing any other insurance coverage for the operation of the leased
equipment, such as bobtail insurance. If the authorized carrier will
make a charge back to the lessor for any of this insurance, the lease
shall specify the amount which will be charged-back to the lessor.
(2) If the lessor purchases any insurance coverage for the operation
of the leased equipment from or through the authorized carrier, the
lease shall specify that the authorized carrier will provide the lessor
with a copy of each policy upon the request of the lessor. Also, where
the lessor purchases such insurance in this manner, the lease shall
specify that the authorized carrier will provide the lessor with a
certificate of insurance for each such policy. Each certificate of
insurance shall include the name of the insurer, the policy number, the
effective dates of the policy, the amounts and types of coverage, the
cost to the lessor for each type of coverage, and the deductible amount
for each type of coverage for which the lessor may be liable.
(3) The lease shall clearly specify the conditions under which
deductions for cargo or property damage may be made from the lessor's
settlements. The lease shall further specify that the authorized carrier
must provide the lessor with a written explanation and itemization of
any deductions for cargo or property damage made from any compensation
of money owed to the lessor. The written explanation and itemization
must be delivered to the lessor before any deductions are made.
(k) Escrow funds. If escrow funds are required, the lease shall
specify:
(1) The amount of any escrow fund or performance bond required to be
paid by the lessor to the authorized carrier or to a third party.
(2) The specific items to which the escrow fund can be applied.
(3) That while the escrow fund is under the control of the
authorized carrier, the authorized carrier shall provide an accounting
to the lessor of any transactions involving such fund. The carrier shall
perform this accounting in one of the following ways:
(i) By clearly indicating in individual settlement sheets the amount
and description of any deduction or addition made to the escrow fund; or
(ii) By providing a separate accounting to the lessor of any
transactions involving the escrow fund. This separate accounting shall
be done on a monthly basis.
(4) The right of the lessor to demand to have an accounting for
transactions involving the escrow fund at any time.
(5) That while the escrow fund is under the control of the carrier,
the carrier shall pay interest on the escrow fund on at least a
quarterly basis. For purposes of calculating the balance of the escrow
fund on which interest must be paid, the carrier may deduct a sum equal
to the average advance made to the individual lessor during the period
of time for which interest is paid. The interest rate shall be
established on the date the interest period begins and shall be at least
equal to the average yield or equivalent coupon issue yield on 91-day,
13-week Treasury bills as established in the weekly auction by the
Department of Treasury.
(6) The conditions the lessor must fulfill in order to have the
escrow fund returned. At the time of the return of the escrow fund, the
authorized carrier may deduct monies for those obligations incurred by
the lessor which have been previously specified in the lease, and shall
provide a final accounting to the lessor of all such final deductions
[[Page 913]]
made to the escrow fund. The lease shall further specify that in no
event shall the escrow fund be returned later than 45 days from the date
of termination.
(l) Copies of the lease. An original and two copies of each lease
shall be signed by the parties. The authorized carrier shall keep the
original and shall place a copy of the lease on the equipment during the
period of the lease unless a statement as provided for in Sec.
376.11(c)(2) is carried on the equipment instead. The owner of the
equipment shall keep the other copy of the lease.
(m) This paragraph applies to owners who are not agents but whose
equipment is used by an agent of an authorized carrier in providing
transportation on behalf of that authorized carrier. In this situation,
the authorized carrier is obligated to ensure that these owners receive
all the rights and benefits due an owner under the leasing regulations,
especially those set forth in paragraphs (d)-(k) of this section. This
is true regardless of whether the lease for the equipment is directly
between the authorized carrier and its agent rather than directly
between the authorized carrier and each of these owners. The lease
between an authorized carrier and its agent shall specify this
obligation.
[44 FR 4681, Jan. 23, 1979, as amended at 45 FR 13092, Feb. 28, 1980; 47
FR 28398, June 30, 1982; 47 FR 51140, Nov. 12, 1982; 47 FR 54083, Dec.
1, 1982; 49 FR 47851, Dec. 7, 1984; 51 FR 37406, 37407, Oct. 22, 1986;
52 FR 2412, Jan. 22, 1987; 57 FR 32905, July 24, 1992; 62 FR 15424, Apr.
1, 1997]
Tennesseahawk
Veteran Expediter
TR... good job posting that. When I first saw it, I was wondering why you didn't cut to the chase. But I found out all of it is good reading to anyone signing on with a company. In fact, I recommend anyone going to orientation, take a copy of the leasing regs, and question them beforehand. Perfect example would be questioning FXCC about seeing the original tariff, since they pay percentage.
But yes, that proves that what Panther does, with regards to holding pay while you're on vacation, is a violation of the law. Don't let these companies tell you "the way it is".
But yes, that proves that what Panther does, with regards to holding pay while you're on vacation, is a violation of the law. Don't let these companies tell you "the way it is".
payment to the
lessor shall be made within 15 days after submission of the necessary
delivery documents and other paperwork concerning a trip in the service
of the authorized carrier. The paperwork required before the lessor can
receive payment is limited to log books required by the Department of
Transportation and those documents necessary for the authorized carrier
to secure payment from the shipper. In addition, the lease may provide
that, upon termination of the lease agreement, as a condition precedent
to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the case of identification painted
directly on equipment, return them to the carrier. If the identification
device has been lost or stolen, a letter certifying its removal will
satisfy this requirement. Until this requirement is complied with, the
carrier may withhold final payment
==============================================
That last line is what makes it legal unless you have complied with the other above mentioned items.
Any large carrier I would think has had a attorney review this document more than once when setting their policies.
Davekc
owner
21 years
PantherII
EO moderator
lessor shall be made within 15 days after submission of the necessary
delivery documents and other paperwork concerning a trip in the service
of the authorized carrier. The paperwork required before the lessor can
receive payment is limited to log books required by the Department of
Transportation and those documents necessary for the authorized carrier
to secure payment from the shipper. In addition, the lease may provide
that, upon termination of the lease agreement, as a condition precedent
to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the case of identification painted
directly on equipment, return them to the carrier. If the identification
device has been lost or stolen, a letter certifying its removal will
satisfy this requirement. Until this requirement is complied with, the
carrier may withhold final payment
==============================================
That last line is what makes it legal unless you have complied with the other above mentioned items.
Any large carrier I would think has had a attorney review this document more than once when setting their policies.
Davekc
owner
21 years
PantherII
EO moderator
raceman
Veteran Expediter
I will admit I did not read everything as it does not pertain to me. I just wanted to say, I thought somewhere in the Thread someone mentioned this being in the contract. If that is the case and someone signs it, well you gotta live by it.
I only stick my nose in here to point out ot folks they need to READ CONTRACTS as they lease on. Many people get mad when they are changing companies due to contract issues they di not read when they were all excited and signing on The Dotted Line.
I am not attacking anyone here this is meant to help others. It is a lot of wording but it should always be read and digested before signing. Good luck to all
Raceman
OTR O/O
I only stick my nose in here to point out ot folks they need to READ CONTRACTS as they lease on. Many people get mad when they are changing companies due to contract issues they di not read when they were all excited and signing on The Dotted Line.
I am not attacking anyone here this is meant to help others. It is a lot of wording but it should always be read and digested before signing. Good luck to all
Raceman
OTR O/O