chefdennis
Veteran Expediter
Write a "RENTAL" agreement, and take the agreed to amount be it weekly or monthly..anything beyond that is on the driver that is renting the unit..cut and dry....
Owner and driver contract
- Thread starter yayashas
- Start date
Slacktide
Seasoned Expediter
It surprises me that nobody has mentioned this yet, so I will.
You all seem to be harping on time off. The industry "standard" seems to hover somewhere between 70-75% in service rating per unit, to the point where most just keep it simple by saying 3 weeks on, 1 week off. IMO a good owner doesn't look at it as a "use it or lose it" with their drivers. There is a large contingent of drivers that will stay out for extended periods of time (more than 3 weeks). As such, if a driver or team were to stay out for 8-9 weeks without going home they are entitled to 3 weeks off if they so choose. The owner should not look at the added revenue from contractors staying out extended periods as a bonus but rather bank that for when the contractors take their home time.
A good source to style your contract after would be the contract that you (general you, meaning the owner) signs with your carrier of choice. They (the carrier) have high priced lawyers that have drafted that contract. It would also ensure that the owners contract with the driver(s) would not conflict with the requirements in the carrier contract. The carriers are likely to be just as concerned about the verbage in the contract to keep them from dealing with the "employee vs independent contractor" issue.
Not being familiar with the van/sprinter side of things my above statements are derived from my ST experience. I would think that looking at the carrier contract as an outline would still offer valuable insight as where to start.
You all seem to be harping on time off. The industry "standard" seems to hover somewhere between 70-75% in service rating per unit, to the point where most just keep it simple by saying 3 weeks on, 1 week off. IMO a good owner doesn't look at it as a "use it or lose it" with their drivers. There is a large contingent of drivers that will stay out for extended periods of time (more than 3 weeks). As such, if a driver or team were to stay out for 8-9 weeks without going home they are entitled to 3 weeks off if they so choose. The owner should not look at the added revenue from contractors staying out extended periods as a bonus but rather bank that for when the contractors take their home time.
A good source to style your contract after would be the contract that you (general you, meaning the owner) signs with your carrier of choice. They (the carrier) have high priced lawyers that have drafted that contract. It would also ensure that the owners contract with the driver(s) would not conflict with the requirements in the carrier contract. The carriers are likely to be just as concerned about the verbage in the contract to keep them from dealing with the "employee vs independent contractor" issue.
Not being familiar with the van/sprinter side of things my above statements are derived from my ST experience. I would think that looking at the carrier contract as an outline would still offer valuable insight as where to start.
zorry
Veteran Expediter
This is one area that Fedex is way ahead of the curve. In one segment they are forcing owners to incorporate and do payroll. When, not IF, the IRS knocks on your door and says you've been doing it wrong, I hope you have the funds to start doing it right. And pay back taxes, too Include those costs in your business plans and you may be able to stay in business.
Fedex has been bumping the edge of contractor/employee status for a long time. Some wins and some losses in court, leaving much of it somewhat unsettled. I would go with the original comments in hiring a transportation attorney in the state you reside to construct and guide your contract. There is no real reason to avoid these kinds of steps. If it is just to do it on the cheap, then you likely aren't ready to be a fleet owner.
chefdennis
Veteran Expediter
Davekc wrote:
Bingo!!!
Bingo!!!
LisaLouHoo
Expert Expediter
Watch the wording. That is the toughest part. Don't compose a contract with too much legalese, but then again don't write as if you are contracting 4 year olds with Big Wheels and Red Flyer wagons.
Be very clear about pay scale, fuel responsibilities, faxes, tolls. Make sure you begin with a paragraph describing the driver as "contracted". Avoid words such as employ, hire, employee.
If they are in your vehicle, spell out the expectations of their treatment of such; what you consider normal wear and tear, reprecussions of vehicle abuse, abandonment or if they sell the darn thing, zero tolerance on DUI or other criminal activity (i.e. no Lizards in the vehicle).
Make certain when you spell out the payroll portion of the contract that it is one you can, without question, honor.
Leave the contracted drivers an out; you can have a notation in the contract that THEY may terminate their contracted driver agreement without explanation (but final pay will be held until return of vehicle in satisfactory condition).
Be firm...but not demanding. Keep your cool, at times you will have to play mediator between your contracted drivers and the discombobulated hothead carrier in Ohio who sent the driver on the wrong cargo pickup then blamed the driver, calling them up and cussing them out (yep. Actually happened).
Treat them like you would want to be treated in this fast paced business. Write the contract in a way that you would contract with you. Never promise more than you can deliver. You'll be the fleet owner everyone loves.
Sent from my ADR6300 using EO Forums
Be very clear about pay scale, fuel responsibilities, faxes, tolls. Make sure you begin with a paragraph describing the driver as "contracted". Avoid words such as employ, hire, employee.
If they are in your vehicle, spell out the expectations of their treatment of such; what you consider normal wear and tear, reprecussions of vehicle abuse, abandonment or if they sell the darn thing, zero tolerance on DUI or other criminal activity (i.e. no Lizards in the vehicle).
Make certain when you spell out the payroll portion of the contract that it is one you can, without question, honor.
Leave the contracted drivers an out; you can have a notation in the contract that THEY may terminate their contracted driver agreement without explanation (but final pay will be held until return of vehicle in satisfactory condition).
Be firm...but not demanding. Keep your cool, at times you will have to play mediator between your contracted drivers and the discombobulated hothead carrier in Ohio who sent the driver on the wrong cargo pickup then blamed the driver, calling them up and cussing them out (yep. Actually happened).
Treat them like you would want to be treated in this fast paced business. Write the contract in a way that you would contract with you. Never promise more than you can deliver. You'll be the fleet owner everyone loves.
Sent from my ADR6300 using EO Forums
