Standard agreement for O/O

LRod

Member
I am trying to help a new company, recruit some O/Os. They are not paying anything out of the ordinary that would make a trucker WANT to go work for them that I can see.
they pay 75% (driver pays fuel with their fuel card for discount, and they pay 1/2 of the insurance)
their 25% pays for other 1/2 of insurance, fees/permits/dispatch service.
I just found out that they put language in contract that ties them for 3yrs. Is that pretty standard?
Your input is appreciated!
 

VictorRostov116

Active Member
I've been an O/O for 4 years now and have never run across anything that ties me to a company. I own my own truck, though, so that could be a difference. Lease/Purchase agreements usually have some sort of stipulation whereby the lease has a length of term with penalties for early termination of it.

75% of the gross isn't too bad if the rates are good to start with. What about the fuel surcharge? Does the O/O get 100% of that? And by 1/2 the insurance, I am guessing you mean the cargo/liability insurance? Really, the company should be paying 100% of that. After all, if there is a claim, the O/O isn't going to get anything out of it.

I'd say that this isn't the greatest package and it wouldn't make me want to sign up.
 

LRod

Member
Thanks @VictorRostov116 he is looking for drivers that own their own trucks, but under his authority
he even wants them to have their own plates.. I cannot see the "Want" factor in any of this
 

VictorRostov116

Active Member
I can understand the plates. If he were to buy plates for a truck that he didn't own and then that truck left the company 6 months later, he'd have a set of plates sitting around that he might or might not have gotten full restitution from the truck owner for. The guy I'm leased to gets plates for me but I pay him back in about 6 weeks worth of settlement deductions. However, he charges me for the cargo/liability insurance which is about a 36 week deduction schedule. The only reason I don't scream bloody murder over it is that I can then write off that cost on my taxes each year. Every $6000 helps, you know?

Just out of curiosity, what kind of trailers/freight is he hauling?
 

LRod

Member
all kinds, I believe he is getting overloads from 3rd party carriers. He has Reefer/Dry Van trailers.
 

LRod

Member
Most of the drivers I have found dont have plates, and since he is new funds are limited to purchase, so it will be a struggle
 

daniel2505

New Member
Thats a standard package company I work for gives 90% to drivers with fuel card and option to rent trailer from if you needed one.
Its probably one of the best packages I've seen.
Plus always have loads its pretty good company
 
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