it is agreed that an escrow fund is set up at the time of the execution of the Agreement. to withhold the following:
$250 from the first statement followed by
$250 per week to the maximum of $2500
If for any reason, XXXXXX does not withhold dollars in a given week,
authorizes xxxxxxxxx to withhold (in subsequent weeks) any additional funds necessary to
make up for such deficiency. If Kxxxxxxxxy does not keep his Equipment operating for the
full term of the Agreement, the minimum fee paid to any regulating agency to certify such
equipment, or drivers, may be deducted from sums held in escrow. All escrow funds may be held
after the period of 45 days after termination of this Agreement, to insure payment of Kxxxxxxxxxxy
obligations, including cargo claims and liability claims advances, equipment rental costs, fuel
card advances or any other costs which are the sole responsibility of the xxxxxxxxxxn. Should
any claim not be resolved at the end of said 45 days, the xxxxxxxxxxx may retain the escrow
funds until claim is closed and Fuel Tax Return has been filed. If xxxxxxxx retains any
escrow funds beyond 45 days, the -x-x-xx-x-x-x- shall release any remaining funds after the fuel
tax return has been filed within thirty (30) days of the closing of the remaining claims. The xxxxxxx shall provide xxxxxxxx with an accounting of any transaction involving the
escrow account upon request of the xxxxxxxxxx.
Escrow: From an Owner Operator: Is this BS
Then yes, it's a scam. It's not your job to pay his business expenses.
Plus, it's very unlikely it's an actual escrow. More than likely it's a loan you are giving the company. An escrow is when something (money) is held by a third party to be released to either party on set conditions only. The fact he has 100% control of the money makes it not an escrow.
No, you need to avoid people like this. Let me guess, he wants to pay on a 1099 also?
Again, 1099 is not a legal way to pay an employee, so if he starts off lying and running illegal, what makes you think he won't treat you the exact same way.
And even if he is legal on a w-2, a fake escrow is almost as bad.