There seems to be some confusion about the various aspects of this business, as far as drivers are concerned. I hope this can clear up some of the confusion.

Company Driver - This is someone who drives a truck for a carrier.

Lease Operator - A driver who leases a truck from the carrier to whom he is leased. The Lease Operator has most of the same responsibilities of an Owner Operator, but doesn't own the truck. Some carriers will never allow the Lease Operator to buy out his lease. Most Lease Operators must leave their truck should they decide to leave the carrier to whom the truck is leased.

Owner Operator - This individual owns his own truck but leases to a motor carrier. He is responsible for all maintenance and operating costs. He is free to leave the carrier to whom he is leased at any time and can take his truck with him. These people usually run a fixed rate for the miles they run (mileage pay) or percentage. The percentage owner operator usually has more freedom or say as to what loads he takes and where he runs.

Fleet Owner - This individual owns 2 or more trucks and leases them to a motor carrier in much the same fashion as an owner operator. He has his own drivers who work for him, not the carrier.

Motor Carrier - A motor carrier is someone who has their own authority. This can be a single truck operation or several thousand. The process is the same for every one, regardless of size. A motor carrier is assigned a MC number and also a DOT number. He is responsible for all insurance, filing all permits and fuel taxes. He can also lease on owner operators under his authority. There are very specific guidelines to leasing on owner operators. Some people confuse being an owner operator with being a motor carrier due to the size of the company. A case could probably be made that the single truck carrier is also an owner operator if the owner drives the truck, but the term owner operator usually applies to those who own their equipment and lease to a motor carrier.

 

Hmmm- I bet the terms will remain muddled.

I've heard o/o leased to carriers referred to as lease operators because they are leased on to the carrier. I've heard independent contractors (is my term right- this would be the o/o who has his own authority etc and is NOT leased to a carrier) referred to as the only true owner operators.

There's some validity to all that. But I think you have the better definitions, GMAN.

 

Thanks, tweety bird. I think you are right about the terms being somewhat muddled. That is the main reason that I decided to post this.

 

According to whom? You?

Steve Booth is an owner operator and a motor carrier, just like you are.

Plus, your definitions don't cover a single truck owner who doesn't operate his own equipment.

An independent contractor is someone who works for themselves, but is contracted to do jobs for someone else. Anyone who gets paid on a 1099 is technically an independent contractor.

 

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You're making it far more complex than it needs to be. Why, I have no idea.

 

Just trying to be accurate, Rev. By the way, how is the truck doing?

 

Truck is doing great. I'm home right now installing my generator system and A/C. Should be finished on Friday some time. I'll post pics and results when it's done. I'm really quite curious to see how loud the generator is. Doghouse has me spooked that it's going to be way too loud. :lol:

 

Gman, you did leave one term..well abbreviation out.

$10,000 can be accurately abbreviated with the letter "K"...as in $10k :mrgreen: :mrgreen:


Just had to do it...when I saw the thread title, I just knew this would be the topic :lol: