Just wondering, as a lease op you're considered an independent operator and not an employee. You are running your own business.
Since you are a business, don't you have the right to charge shippers independently for things that the company you're leased onto won't pay?
Example: You are dispatched to pick up a load. You're appt time is 9 am. You get there at 8 am. They tell you that something went wrong and the load won't be ready until tomorrow at 9 am. Company won't pay you anything for the wait. Can't you bill the shipper yourself? After all, you are a business just like they are and the company you are leased on with. Don't you have the right to charge the shipper for the delay? Couldn't you draw up a bill under your own company's name and give it to the shipper for payment?
Question about Layovers as a Lease Op
Discussion in 'Ask An Owner Operator' started by Southern Star, May 15, 2011.
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You can do any thing you want.
Its highly unlikely they'll pay. Its very likely word will get back to the company you are leased to. And they are not going to be happy with you.Southern Star Thanks this. -
It would be nice but,your company will not go for it.
You probably know how it works. Your company tells you they will get you layover pay. Then you hope it happens and if it does it is never enough.
I think giving the shipper a bill will only cause you problems. You will have to handle this through your company.Southern Star Thanks this. -
Agreed, it's not your customer, it's theirs. If you bill them they will beach at your carrier and you will need a new lease.
Your beef is with the carrier.....Southern Star Thanks this. -
Seems like then you don't have the right to run your own business then. If the company you're leased onto retaliates against you for billing a shipper for a delay that was not your fault, couldn't you report them to a labor board, even take them to court and sue them for damages?
They way I see it, I am partnering with the company I'm leased onto. It's not "their" customer its "our" customer. If I were a company driver, it would be "their" customer.
How do you, as a buisness owner, protect yourself from loss if the company you're leased onto won't pay for the delay? Do you just eat it? What if it happens several times a month to you? What if you count how many times its happened to you in a year and comes out to about 50 days? That would be almost 2 months of lost revenue.
I know what immediately comes to mind, find a new company to lease with. But that still doesn't account for the lost revenue.
By the way, this is not currently happening to me, I'm just wondering what rights you have as a business owner lease op. -
In most lease agreements, layover/detention pay is addressed in the contract. You're contract is with the carrier not the shipper...you are the carriers agent, so you don't have direct negotiation rights with the shippers or receivers, the carrier does. And that also includes the Fuel Surcharge rates.
Southern Star Thanks this. -
Roger that. That's the info I was looking for. Your answer explains WHY you wouldn't be able to bill directly.
If I do decide to lease, I'll be looking at the layover/detention part of the lease contract very carefully.
Thanks for all the input. You guys are great!
May your miles be many and your weight be light.
otherhalftw Thanks this. -
You won't be a business owner either...You'll be a company driver that's paying all the expenses on the truck and being scammed by the company.
If you actually owned the business...The company that you're leased to would have very little input as to how you ran the business:
They would have no control over your governed speed.
They would have no control over where you fueled.
They would have no control over what you do to your truck.
They would have no say so if you decided to take the truck and lease it onto another carrier.
If the company has any control over any of these things...You are not a business owner!Brickman and otherhalftw Thank this. -
My first truck was a '64 Emeryville that looked like the one in your picture. I bought it in 1974. The only difference is mine was a sleeper cab. I wish I still had it.
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I never had a Emeryville...But my old pal Karl had one for years, It was a tough old truck too.
It's still around and I see it from time to time and it makes me think of old Karl...He passed away in the mid 90's.
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