Define "Leased-on"...

Depends on Bofa.

 

Deez Nutz!!!

 

Leased on- one working under another companies authority as an employee or independent contractor. FMCSA, lawmakers, TTR members, lawyers and IRS will argue which term is correct. These individuals may or may not own their equipment outright, lease equipment, or bring equipment financed traditionally.

leasing- is generally an employee/IC renting equipment from their employer or 3rd party to lease on.

lease purchase- one who does the rent to own scheme like is done at a buy here pay here car lot or furniture sales.

A guy at prime may think he is a O/O, a guy owning his own equipment and leased on to a carrier believes prime guy is not, but he is. Even further down the line an independent believes he is the only one that is a true O/O. And look at the company driver, couldn’t care less bout it all and is racking up some ultra credits to buy a meal a petro and later go on vacation to Guam with 2 nice ladies after receiving the driver of the year award for saving the company fuel and not washing his truck with a squeegee at the fuel island.

 

I think of the term “leased on” in the traditional sense being that I own my truck but am leased onto a carrier using their operating authority.

A lot of the newer people in the industry often confuse being leased onto someone’s authority and doing a lease purchase. I’ve had people look at my truck before and see the “Operated By such and such” and then proceed to tell me how I’ll go broke doing a lease purchase. Then they look at me like I’m crazy when I tell them my name is on the title.

 

Why not just look through the regulations?

FMCSA Regulations and Interpretations – 49 CFR Parts 300-399 | FMCSA

 

Ayup i get the exact same response. My view of leased on has always been that the company is leaseing your equipmemt and driver. In exchange they provide tags, insurance, ifta and their D&A consortium as required as well as access to their own contracts and loads.

You still own and maintain the truck and gotta keep all your crap as a driver up. It just gives you better access to high paying loads you wouldnt otherwise get as well as a benifits package tradionally only avalible to a larger carrier. In exchange the company gets an exclusive trucking contract.

 

It’s not a sponsorship. Legally they are leasing your equipment to run under their authority and transport freight.

 

Agreed. When leased on you are working For the Motor carrier. It may be your truck and your body but it is not your interstate business. Liability, record keeping, compliance is all on the MC. Many argue that is why it is a employee/employer relationship. When you haul a load, it is not your load. All the snake oil ads may advertise “ run your own business” whelp there ain’t much of anything to run. Shippers are not paying you directly. They did not hire you. They hired the MC to get the job done and the MC pays you for your services. Not much different than a company driver. One may not get many benefits since leased on is 1099 tax scheme, however many carriers do some hand holding with assistance in IFTA, tag, tire discounts, and loans.
Shoot, being leased on works well for some. If a carrier has good business deals with shippers things can be nice, especially in times like today. Generally, one has a little more say in work schedule and lanes sometimes. Leased on is similar structure a car mechanic owning his own tools. Both own equipment and work under 1 roof. The whole 1099 pay structure is generally different. Lots of legal actions coming soon for one arguing a O/O leased on is not an employee. In the end one can say, I’ll take myself else where it I’m not happy. - Company driver can do the same.