Until recently I love working for the company I lease to. I have stumbled across some information on many discrepancies in rates between owner operators and company drivers. Equating to millions of dollars across the whole company yearly. Ill try to explain what I have found the best I can.....
Example:
The rate to do the work is $2000
O/O makes $1440 for one specific load at the rate of 72%
Company driver makes $302.40 at the rate of 21%
This is the exact same load and lets disregard fuel surcharges.
How do you explain this?.........this is what I have found after about a month of digging and requesting other drivers pay statement....
What the company is actually doing is taking the "original rate", in this case would be $2000, and removing the companies portion that they would normally remove if they were paying an O/O, in this example it would be 28%. After that they then pay the company driver at the rate of 21% of whats left.
Shouldn't the company guy get paid on the same rate as the owner operator? In this case 21% of the original $2000, $420.
What is everyone's opinion? Please leave the "look for a new company" crap out of this. I'm looking for real answers. I am not going anywhere, I do make good money doing what I am doing.
Company is double dipping on my rate!! Illegal?
Discussion in 'Experienced Truckers' Advice' started by zero5672, Aug 13, 2014.
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i would say if you are getting your money
it isn't your business how anyone else is paid
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[/SUP]Last edited by a moderator: Aug 14, 2014
scottied67, RedForeman, Chinatown and 2 others Thank this. -
The company driver usually gets less than an o/o. An o/o has more skin in the game. Whereas the company driver receives benefits usually, medical, dental etc. And the company pays part of that expense as a benefit.
So naturally the company driver receives less on his/her check. But is compensated by way of more benefits.
That being said of a normal company. Not a fly by night trucking company. -
if you are not going anywhere what is the point..you must look at the driver contract or pay agreement and the O/O comtract..if you are an O/O what ever they pay their drivers is really none of your business and the same of you are a company driver the O/O contract is none of your business
tell us who is the company is might explain a lot, -
That is not my point. My point is the money I get is not the money I worked for for years......the company scammed me and others for years. I am looking for an opinion on the topic at hand.
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I dont know diddly about it except for this-i once asked a O/O friend if mine (he gets 72% to the truck + fuel surcharge i believe)?
I asked him what keeps the company from just plain lying about what the load pays and giving him the 72% of that.
He said there are some pretty big laws about companies doing something like that and the company would be in big trouble.
He gave me a specific name of that or of a law name about that.
I will ask him again because i really don't remember what he said.
That still doesn't mean they wouldn't do it anyway. -
I transitioned to an O/O with this company and 2 of my family members started working for them after I switched. Its a family discussion at this point on if we should talk to the company, or start our own and forget about them. If it is illegal then I would peruse compensation for 2 years worth of misappropriated funds , equating to around 30 grand.....
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[QUOTE="Hang - Man";4185790]I dont know diddly about it except for this-i once asked a O/O friend if mine (he gets 72% to the truck + fuel surcharge i believe)?
I asked him what keeps the company from just plain lying about what the load pays and giving him the 72% of that.
He said there are some pretty big laws about companies doing something like that and the company would be in big trouble.
He gave me a specific name of that or of a law name about that.
I will ask him again because i really don't remember what he said.
That still doesn't mean they wouldn't do it anyway.[/QUOTE]
If you can provide the name of the specific law that would be greatly appreciated! -
Give me a few days and i will get back to you, he did mention things like a company wide audit and stuff like that.
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It looks like your company has decided that 28% of the linehaul is their operating cost and profit. They have office space, utility bills, yard expenses, sales people to find loads, insurance, etc,etc,etc. So technically they are taking 28% from the O/O and 28% from the company driver for these expenses right off the top.
Now for the company driver who makes 21% of the 72%. The 51% of 72% is used to purchase fuel, equipment, additional insurance on tractor, repairs, tires, tags, etc,etc,etc that an O/O is paying out of his money. If you have a contract with this company and it says company drivers are paid 21% of the linehaul then, yes you are being short changed. If it says 21% of 72% then if you are happy with your company, stay there. You are making what you and the company agreed to.
If a $2000 linehaul is around 500 miles ,the company retains $1137 from that load. Fuel alone would be around $380. Add .13 per mile in just maintanance cost for tractor. Add another .04 per mile for trailer maintanance. Add another .12 per mile to replace that equipment when it wears out. Add IFTA taxes, HVUT, insurance, etc. Are they paying you any bonuses ? Are they paying your health insurance ? Are they paying you any layover or extras ? All these expenses have to come out of that money. And, at the end hopefully there is some left over to keep the shareholders happy or the owner of the company can pay his bills. LOL
As an O/O I can tell you that it looks like they are making out like bandits but when you look at the expenses involved it is mind boggling. Hope that makes sense and you don't feel like they are taking advantage of the company driver.scythe08, RedForeman and Moving Forward Thank this.
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