Binding arbitration clauses with job application: Is this the norm?

Discussion in 'Questions From New Drivers' started by Hornswoggled, Oct 10, 2014.

  1. Hornswoggled

    Hornswoggled Light Load Member

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    Haven't done any job apps in years, but I just saw one for a trucking company that required acceptance of binding arbitration in case of a dispute that might otherwise become a lawsuit. I was just wondering how widespread this practice is in the trucking industry? Are most carriers doing this?

    There are of course arguments on both sides about binding arbitration; limiting time and cost compared to a dispute in the courts is a common argument for it. At the same time, there have been arguments that the arbitration process can be unfair and favor the employer (since that is who developed the written process), with the deck effectively stacked against the employee. I've never been involved in any legal disputes before, but just the same, I'd prefer to not limit my options if a dispute ever did arise.

    Are these binding arbitration clauses common in order to be considered for employment in the trucking industry?
     
    Last edited: Oct 11, 2014
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  3. AppalachianTrucker

    AppalachianTrucker Heavy Load Member

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    I'd say yes.
    Most drivers don't realize that they sit on the tiny tip of a gigantic legal liability iceberg.
    Filling out the Werner application/orientation package online (a friend told me this, mind you), there are pages and pages of legal conditions that you can "accept" or forget the job.

    Just a taste:
    Notice: Each section must be read carefully and understood completely. Please indicate you have read and understood each paragraph by checking 'Accept'. If you do not understand any part of this document, speak with your Orientation Director. Details about Nebraska Workers’ Compensation laws and benefits are available at any Drivers Management location. You also may choose to consult a lawyer before applying your full name.
    Prospective employee (hereinafter referred to as “driver”) hereby acknowledges, if hired, he/she will be an employee of Drivers Management LLC. (Hereinafter referred to as DM), a Delaware Limited Liability Company located in Omaha, Neb. *
    Accept

    [HR][/HR]​
    Driver hereby acknowledges that, regardless of where he/she signs this application, all DM decisions to hire employees and contracts for hire are made only in Omaha, Neb., and an employee/employer relationship between the driver and DM can be entered into only in Omaha, Neb. *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges and states he/she is fully aware, if DM hires the driver, the driver will be a state of Nebraska-based employee, and all employees of DM regardless of where employees claim residence, are subject to Nebraska’s workers’ compensation jurisdiction and laws and Nebraska’s labor and employment laws. *
    Accept

    [HR][/HR]​
    The driver hereby waives jurisdiction of any state (other than the state of Nebraska) for workers’ compensation benefits and protection. The driver hereby consents to jurisdiction of the state of Nebraska for workers’ compensation coverage and benefits. *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges states (other than the state of Nebraska) in which the driver may or may not claim a residence, may have workers’ compensation benefits that are either greater than, less than, or substantially different from those offered in the state of Nebraska. However, the driver does waive jurisdiction of any said workers’ compensation state (other than Nebraska) and does hereby fully and knowingly consent to the state of Nebraska’s workers’ compensation laws. *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges he/she has been informed that information about Nebraska’s workers’ compensation law is available for examination by the driver at corporate headquarters in Omaha, Neb. *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges, if hired, DM may, for accounting or other purposes, withhold taxes from the driver’s paychecks for states other than Nebraska. By withholding taxes for other states, DM does not waive or compromise Nebraska workers’ *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges he/she has been free to consult the workers’ compensation authorities in jurisdictions other than Nebraska and to consult legal counsel, if necessary, to investigate the differences between other jurisdictions’ workers’ compensation benefits and those of the state of Nebraska. The driver also agrees, if hired, to freely and knowingly waive jurisdiction of any state (other than Nebraska) for a workers’ compensation claim against DM. *
    Accept

    [HR][/HR]​
    The driver hereby acknowledges the workers’ compensation terms of this application do not, in any manner, alter the at-will basis of the driver’s employment with DM. *
    Accept

    More:

    Good To Go: I pledge to drive when I am well rested and focused on the task at hand. I realize most accidents occur after coming out of the house or after a break. I understand I am the only person who has control of my destiny and I must communicate if I am not fit to drive. *
    Accept

    [HR][/HR]​
    Following Distance: I pledge to maintain at least 8 seconds of following distance or more depending on the road conditions when traveling 65 mph or less between myself and the vehicle in front of me. *
    Accept

    [HR][/HR]​
    Awareness: I understand the vehicles around me are carrying precious cargo as well (sons, daughters, grandchildren, mothers, fathers etc.). *
    Accept

    [HR][/HR]​
    U-Turns Prohibited: I am fully aware of the company policy and my employment will be terminated if I attempt such a maneuver. *
    Accept

    [HR][/HR]​
    Rollovers – Take 10 Off Posted Speeds for Exit/Entrance Ramps: The posted speeds are for cars, and I will travel at least 10 mph under the posted speed on exit ramps. *
    Accept

    [HR][/HR]​
    Seatbelt Usage: I will wear my seatbelt while operating a Company, Owner-Operator or Leased Vehicle or while on Company business in accordance with Company policy and Federal Motor Carrier Safety Regulations 392.16. *
    Accept

    [HR][/HR]​
    3-Point Method: When entering or exiting the cab, I will always have 3 points of contact with the cab. I will never get out of the truck face first and I will never jump out of the truck. I know that by using the 3-point method I am protecting my family and my income. *
    Accept

    [HR][/HR]​
    G.O.A.L.: I will always “Get Out And Look” before I back. I will walk to the back of my unit and stand in the center of the parking spot to check my set up. I would rather take the few minutes to do this then impact my record and have to take the time to complete an accident report and review. *
    Accept

    More:
    Stopping/Parking on Roadway: I will NEVER stop or park on the road or shoulder unless I have a breakdown, need to stop for a medical emergency or am rendering aid as a result of an accident. This includes entrance and exits ramps. If I am broke down, need to stop for a medical emergency or am rendering aid as a result of an accident, I will turn on my four-way flashers; set out my triangles and call for help. I will also send macro 24 for road breakdown notification and macro 15 to advise my Fleet Manager of the delay. *
    Accept

    [HR][/HR]​
    24/7 Support: I understand if at anytime I perceive I may not be able to comply with Federal Regulations or Company policy I am to contact the Safety Department immediately. They will research and address any safety issues promptly. *
    Accept

    [HR][/HR]​
    Patience: I will have patience and tolerance regardless of the situation; I will not let my ego drive my truck. *
    Accept

    [HR][/HR]​
    Professionalism: I will always consider myself an example to other drivers by displaying courteous and safe driving skills. *
    Accept

    [HR][/HR]​
    Captain of My Ship: I fully understand I am the only one who really knows my condition and whether I am fit to drive; I recognize even if I have driving hours available I may be too tired to drive. If I am too tired or not good to go, I will not drive and will inform my Fleet Manager. *
    Accept

    [HR][/HR]​
    I Will Not Assume: I will not assume that anyone else knows if I am fit to drive or focused on the task at hand. I will communicate and understand I have support 24/7. *
    Accept

    [HR][/HR]​
    Accident Free: I will drive accident free! *
    Accept

    More:
    "I understand that drivers are required to accept all loads assigned in the 48 contiguous United States and Canada as long as they have sufficient time to safely complete the delivery within the hours of service regulations."
    I understand that Company Drivers are under forced dispatch and will run all 48 contiguous United States and Canada. I agree to abide by that Company policy.
    I understand and agree that the DOT physical examination shall include substance screening.
    I understand and agree that Werner Enterprises and Drivers Management hereafter referred to as "the Company", reserve the right to use substance tests 1) at random, 2) for reasonable cause, 3) after any accident and 4) during re-certification of physicals - according to DOT regulations or Company policy.
    I UNDERSTAND THAT THE INFORMATION IN THIS APPLICATION WILL BE USED AND THAT PAST OR PRESENT EMPLOYERS WILL BE CONTACTED FOR PURPOSES OF INVESTIGATION AS REQUIRED BY THE FEDERAL DEPARTMENT OF TRANSPORTATION REGULATIONS.
    You are hereby notified of your due process rights as specified in 391.23i(1) of the Federal Motor Carrier Safety Regulations. 1: The right to review information provided by previous employers; 2: The right to have errors in the information corrected by the previous employer and for that previous employer to re-send the corrected information to the prospective employer; 3: The right to have a rebuttal statement attached to the alleged erroneous information, if the previous employer and the driver cannot agree on the accuracy of the information.
    I also understand and agree that the Company or its Agents may investigate my background to ascertain any and all information of concern to my record, whether that information is of record or not, and I release all former employers, driving schools and persons named in the EMPLOYMENT RECORD section of this document from all liability for any damage caused by the release of such information.
    I further understand that as a result of making this application for employment my criminal record may be examined by the Company or its Agents, I hereby authorize the Company or its designated Agents to make any lawful examination of my criminal record.
    I understand that at any time in the future, whether actively employed by the Company or not, that upon the request of any party or any surety, the Company may furnish reports and information relative to my record and services with the Company. I agree that this information may be furnished without any liability or damages on behalf of the Company.
    As a part of the pre-employment process, a medical examination, including drug testing, will be required after a conditional offer of employment. I further agree to provide access to previous medical records if required.
    Withholding, omitting or falsifying any information used in the consideration of my application may result in the rejection of my application or the termination of my employment. (Identifying yourself as a special disabled veteran or handicapped individual on the Applicant Tracking Form of this application will not jeopardize or adversely affect any consideration you may receive for employment).
    The Company conducts its business by telephone. Therefore, I understand that my telephone calls to the office may be periodically monitored to determine the volume,type and professional quality of service provided.
    I UNDERSTAND THAT, DURING THE TERM OF MY AT-WILL EMPLOYMENT, I WILL COMPLY WITH THE GUIDELINES SET FORTH IN THE COMPANY’S POLICIES, RULES, REGULATIONS AND PROCEDURES, WHICH SHALL BE AMENDED FROM TIME TO TIME. I ALSO AGREE THAT MY AT-WILL EMPLOYMENT AND COMPENSATION CAN BE TERMINATED WITH OR WITHOUT CAUSE AND WITHOUT NOTICE OR LIABILITY WHATSOEVER, AT ANY TIME, AT THE OPTION OF EITHER THE COMPANY OR MYSELF.
    I agree to furnish any additional information and complete any examinations that may be required to complete my employment application.
    I understand and agree that this application for employment in no way obligates the Company to employ me.
    I understand that Drivers Management uses an electronic filing system, which includes the imaging and storing of employment applications and that my original application and submitted materials will not be retained.
    I consent to the procurement of any consumer reports deemed necessary by Werner Enterprises or its subsidiaries in their consideration of my employment.
    All entries were completed by me and the information that I have provided in this application are true and complete to the best of my knowledge. Any misrepresentation or omission of any fact in my application, resume or any other materials submitted to the Company of during my interviews (pre- and post-offers of employment) may result in denial of employment and discharge.
    I have read and I understand all of this Agreement.
    More:
    I understand that if hired, I will be an employee of Drivers Management LLC, (hereinafter DM) located in Omaha, Nebraska and any employee/employer relationship entered into will be based in Omaha, Neb. I understand that DM reserves the right to discharge or discipline any employee, at anytime as DM, in its discretion, considers necessary in individual circumstances. All employees are employed at will, and both they and DM may terminate the employment relationship at anytime without cause. *
    Accept

    More:
    I agree not to change, alter or add any unauthorized equipment to any tractor assigned to me. Also, I agree to not place any load locks or self manufactured items (such as handmade tool boxes, etc.) behind the cab between the air-foil wings. *
    Accept

    [HR][/HR]​
    Further, I agree to accept full responsibility for all equipment and items assigned to me in the event the equipment/item is lost, stolen or damaged. If any item issued to me is stolen, I will provide DM, or any person(s) as directed by DM, a police report stating such incident has taken place. *
    Accept

    [HR][/HR]​
    I agree to maintain the interior/exterior of the tractor according to the specifications in my Driver’s Handbook. *
    Accept

    [HR][/HR]​
    I understand, if I fail to maintain the equipment according to those specifications (either while still employed by DM or when the equipment is returned upon leaving DM for any reason), a cleaning charge will be deducted from my paycheck. *
    Accept

    [HR][/HR]​
    I understand I am responsible for complying with all Federal and DM rules, regulations, procedures, policies and instructions as set forth in the Federal Motor Carrier Regulations and DM Driver’s Handbook. I agree to carry the Regulations and the Driver’s Handbook with me at all times and will comply with them in order to continue my employment with DM. *
    Accept

    [HR][/HR]​
    I understand that when I am paid by the mile, I will be paid by point-to-point mileage as set forth in the Household Goods Carriers’ Bureau (HHG) Mileage Guide (as published by Rand McNally©) and that the pay mileage will in most cases be different than actual miles driven or odometer miles. *
    Accept

    [HR][/HR]​
    I understand, effective 4/1/09, the following information replaced the information referenced in Chapter 2 of the current DM Driver's Handbook I received: Monthly Mileage: Driver chargeable accidents and driver chargeable cargo claims are qualifiers for divisions which have a monthly mileage bonus. If I have a driver chargeable accident or a driver chargeable cargo claim during the monthly mileage bonus period, I will not earn a bonus. Also, Annual Achievement: A driver chargeable accident is a qualifier for my annual achievement bonus. If I have a driver chargeable accident during the annual achievement bonus period, I will not earn the bonus. Only driver chargeable accidents after 4/1/2009 will count against my eligibility for both bonus programs. *
    Accept

    More:

    I understand when leaving the employment of DM, I will
    a. complete any tasks then currently being performed;
    b. immediately return DM’s equipment to a place designated by dispatch;
    c. take all reasonable precautions necessary to protect all assigned equipment from theft or vandalism;
    d. cooperate in the future in the defense of motor vehicle accident claims. *
    Accept

    [HR][/HR]​
    I understand I will not receive compensation for miles I drive to return DM’s equipment, other than those traveled while I am carrying freight. *
    Accept

    [HR][/HR]​
    If I do not perform according to the guidelines above, I authorize DM to charge me 80 cents/mile for any miles incurred in recovering and returning the assigned equipment to the nearest terminal or other Werner facility, whichever location is nearest. I understand in addition to the mileage charge of 80 cents per mile, additional charges may be imposed by DM in order to recover lost revenue during this period of abandonment, incapacity or to compensate for miles driven without the consent of Werner. These charges may be satisfied with amounts otherwise owed to me by DM. *
    Accept

    [HR][/HR]​
    I realize my inability to perform according to the guidelines defined above may be caused by my own voluntary act, physical incapacity or the termination of my employment with DM. *
    Accept

    [HR][/HR]​
    In addition, I authorize DM to withhold from my final paycheck(s) any and all money due to DM at the time my employment is terminated. This includes advances made to me, other collectible sums and/or other money I owe DM for whatever reason. *
    Accept

    [HR][/HR]​
    I authorize DM to withhold from each of my paychecks (while I am employed by DM) any advances received by me and/or payments for any purchases I have made from the Company Store. *
    Accept

    [HR][/HR]​
    I also understand I must return my DM photo identification card if my employment is terminated or I resign. *
    Accept

    [HR][/HR]​
    I acknowledge during my period of employment there is a chance while driving a vehicle dispatched by Werner Enterprises, Inc. or one of its subsidiaries, I could become involved in a motor vehicle accident. If the occurrence of such an accident brings about the filing of a claim or lawsuit seeking damages against Werner Enterprises, Inc. or one of its subsidiaries (including Drivers Management LLC) and/or myself, I agree as a condition of my hire I will fully cooperate in the future with Werner Enterprises, Inc., or one of its subsidiaries, in investigating and defending such claims or lawsuits, even after my employment with DM has terminated. *
    Accept

    More:
    A DOT reportable accident is defined as an occurrence involving a commercial motor vehicle operating on a public road that results in:

    1. a fatality;
    2. bodily injury to a person who, as a result of the injury, immediately receives medical attention away from the scene of the accident;
    3. disabling damage to one or more motor vehicles, causing the vehicles to be towed from the scene.

    • Any driver who is involved in a DOT reportable accident and is issued a citation (ticket) for a moving violation as a result of the of the accident must submit to drug testing no later than 32 hours and alcohol testing within 2 hours after the accident.
    • Any driver of a truck that is the property of Werner Enterprises, Inc. (Werner) or any person driving a truck that is under contract to Werner Enterprises, Inc., who is involved in an accident, shall immediately report the accident to Werner’s Risk Management department and/or Safety department.
    • In the event the accident has been designated a DOT reportable accident by authorities or is believed by Risk Management or Safety to be a DOT reportable accident, the driver must follow all instructions given to him/her by Werner Risk and/or Safety personnel for compliance with the Federal Post Accident Drug and Alcohol Testing requirements. The driver must then submit to a drug test within 32 hours of the accident and alcohol testing within 2 hours of the accident.
    • Any driver who refuses to submit to a drug and/or alcohol test or who does not comply with all Post Accident Drug and Alcohol Testing regulations, shall be disqualified from operating a commercial motor vehicle for a period of one year.
    I understand the above regulation and requirements and will comply with them. *
    Accept

    More:
    [HR][/HR]​
    I hereby certify I have read the above alcohol and controlled substance testing policy and fully understand the terms thereof. I also consent, by way of my signature on this document, to Werner Enterprises, Inc., and/or Drivers Management LLC investigating my background and history with respect to alcohol and controlled substance testing as directed by part 382 of the Federal Motor Carrier Safety Regulations. *
    Accept

    [HR][/HR]​
    I further agree to comply with the procedures and requirements set forth in the policy and acknowledge that should I fail or refuse to comply with said procedures, policies and regulations I shall be considered medically unqualified to drive and my contractual lease agreement or employment with Werner Enterprises and/or Drivers Management may be terminated. *
    Accept
     
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  4. VagabondTrucker

    VagabondTrucker Light Load Member

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    That makes for some fun bathroom reading.....holy cow!
     
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  5. AppalachianTrucker

    AppalachianTrucker Heavy Load Member

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    Check the little boxes, driver, if you want this job.
    Be sure never to park on ramps and to stay eight seconds behind everyone on the road!
     
  6. G/MAN

    G/MAN Road Train Member

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    I don't know if binding arbitration is part of most contracts these days, but carriers have to protect themselves. We live in a litigation happy society where some people will file a lawsuit over just about anything. It isn't just motor carriers, but anyone who is in business is a target of potential litigation. Just about anyone who is in business for any length of time has been involved in some sort of lawsuit. Business used to be conducted with a verbal agreement or handshake. No more. In answer to your question about whether it is binding or not, if you sign the contract then you are bound to the terms. The contract is presented as a condition of employment. In other words, if you want the job then you must agree to the terms of employment. If you don't agree, then you don't sign the contract and look elsewhere for a job. If you don't like the terms, such as binding arbitration, then either get them to make changes to the contract or don't sign it. I am something of a stickler for making changes to contracts that only protect one side. Sometimes the other side will accept my changes and other times they may not. If they don't, then I move on. Not all carriers have such a lengthy contract. But, more are having drivers sign employment contracts. I put a contract for my drivers many years ago. It defines the relationship and what both can expect of the other. It is a simple contract, but I felt it was necessary to protect myself and my company. It is a good idea to run any contract by your lawyer if you are not clear on the terminology or what is contained in the agreement.
     
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  7. gpsman

    gpsman Road Train Member

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    Can't say that, but it is very common in probably ~every industry. For some odd reason you must sign away your right to sue your employer to attain employment. It's all perfectly legal, of course.

    As a member of the 99% you are not helpless enough to satisfy the countless lawyers of the 1% until you're dead.
     
  8. rambler

    rambler Road Train Member

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    It seems that carriers have gone beyond protecting themselves ( which I understand ) from every possible scenario that could happen in terms of liability. It appears they want drivers to agree they are to blame for any issue that could arise, even if the carrier is wrong and at fault.
     
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  9. TheDude1969

    TheDude1969 Heavy Load Member

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    They give you keys to a $100k, and possibly $1,000,000+ in payload, and the weight to crush Superman... Why wouldn't they cover their arse?
     
  10. AppalachianTrucker

    AppalachianTrucker Heavy Load Member

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    Because it's more profitable and simpler to just throw a loyal trusted employee under the bus?
     
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  11. TheDude1969

    TheDude1969 Heavy Load Member

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    I can understand the hesitation when faced with a book size contract full of legal jargon. However 'Binding Arbitration' by definition is a means by which you have a right to be heard infront of an 'arbitraitor' <---unbiased person(s) that will hear arguments regaurding your employment, and other punishments.
    What is contained within the contract, sets the expectations of your employment. Lists the employees and employer's obligations. And likely describes punishable deveations.
    If you were to be heard infront of the arbitraitor, this contract can save your arse as well.

    Finally this is not much different from getting an employee handbook and signing off that you received, read, and understand it. The difference being the means by which you may be heard.
     
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