Fair Agreement for Contracted Driver question

Well... 20% of 30% is 6% so that would put it at 26% in this scenario.

 

He can’t be O/O unless he owns the tractor.


When I had drivers doing intermodal I paid them 33% of the gross to the truck.
Intermodal just doesn’t pay as much as other cargo .
And all the chassis are total garbage. And never maintained. The tires brakes and lights are always defective .

 

A good driver should be getting 75c a mile, equal to top LTL pay or roughly 30-33% to keep a good driver. Remember he can go to a big company and make good money so you have to set yourself apart from the rest and make it attractive

 

I mean top hand not a steering wheel holder for that $$$

 

Ok, Driver meaning those driving your vehicles, not there own are employees. Paying them 1099 screws them in the long run, and 66 comes sooner than people realize.
My opinion is to pay them Hourly or Mileage. Percentage is very difficult for you (the employer) to keep on a even keel. Percentage means say 29% of the load before you deduct any of your expense, in other words of the gross, and having your bookeeping open for the driver to view. I have worked for all of these and for me hourly works out the best because it gives the company the incentive to take care of business. In todays driving enviroment it is very easy for the company to make sure the drivers do there job.
Hourly pay should be in the 25 - 30 dollars per hour, Mileage should be in the range of 53 cpm and up, for teams you pay all the miles each driver drives, easy enough with electronic logs, percentage should be around 30 -33 percent. Companies should also supply basic health coverage for the driver and 50 % of the dependant coverage.
As a new company owner you need to undrestand you will get back what you put in. View your non-driving employee's as drivers support personel and make sure they understand that.

You ask I think so theres my opinion. Good Luck and be safe on this most important celabration of freedom.

 

Dunno about this situation. But I was doing intermodal also.

Opening the books to the hired drivers being paid in a percentage wasn’t a problem.
Because there was no secret what the intermodal paid. The intermodal company paid x$ per mile, and y$ per stop ,
It was not a secret , they advertised it in their newspaper ads looking for O\Os

the intermodal company didn’t have any company drivers and some of the O/O/ has more than one truck and were called grower owners . How the small fleet owners paid their drivers was their business but they all paid on a percentage of the gross.
because in slow weeks the drivers didn’t get as much and on busy weeks the drivers got more.

In my experience the driver got 1/3 the fuel was 1/3 and the other 1/3 went to truck payment and insurance and maintenance . And there was very little left over for the owner:

Intermodal doesn’t pay very well.
Just look at the tractors , they are all worn out old junker tractors that could never be used over the road .
In my experience There’s not enough money in intermodal to hire drivers , I’m afraid the OP is going to learn that.
Intermodel isn’t big money OTR using a load board where loads are paying $4 a mile for 1200 mile trips.
Intermodal is probabaly $ 1.60 a mile plus $25 per stop or something like that.

You can do OK driving you own tractor , at least I did, if you can handle the minor repairs yourself , and you get a cheap reliable tractor.
But there just wasn’t enough meat on the bone to hire drivers . Because hired drivers will only work 2/3 as hard as the owner will.

it looks like there was profit to be made , so I bought several more trucks . And hired drivers,
Lookd good on paper, But it just didn’t work out in reality.

my wife is an accountant and she did the math and my hired drivers worked 66% as hard as I did.
They generated 1/3 less gross revenue to the tractor they were assigned , as I did in my tractor.
And the Maint costs went to the moon.
I’d get five years from a clutch and the hired drivers would get maybe 9 months out of a clutch.