Tax Credit for Hire/Training exchange: Incentives for New Driver bringing a check to the party?

Hi Folks,

I'm sure it is no secret to anyone reading this that there is a demand for new drivers. So, new safe and responsible drivers who provide an immediate tax advantage to the business should be even more in demand, right?

I’ve found limited recent info on the WOTC topic here, so I thought I might offer some potential help for others in a similar situation who are considering a move into a driver role. If anyone reading this falls into the target groups in the attachment I've provided, then read on. For me personally, I'd like to find out what companies out there would be willing to negotiate terms.

Snapshot of my situation:

- Honorably discharged Vet (Army)
- Unemployed (> 6 months)
- Already have ClassA CLP through home state (1/2018)
- Already have DOT physical with drug screen (2/2018)
- No accidents, dings, etc on record within past 5 years
- Based out of Charlotte, NC

***Seeking trucking company sponsorship through CVTA or NAPFTDS certified school (read: my new employer foots the bill) or company with own 3rd party certified in-house driver training program (read: my new employer foots the bill) to gain my CDL Class A and hit the road.

Now, I know there are plenty of companies out there offering tuition reimbursement for schooling. I don't have the cash and the credit financing terms out there for non title IV school funding is just ricockulous so neither are a consideration for me.

I'm seeking recommendations for companies who are willing to negotiate terms/make a business decision that just makes sense: As a member of the target groups identified in the attachment below, I bring with me up to a $5600 tax credit for their business during the next 2 years I help drive whatever I'm hauling for them from point A to B. Since the tax credit is both income and hours based - the more they pay me and the longer they pay me - the bigger the tax credit for the company I hang my hat at. I've already confirmed eligibility through my state's Dept of Commerce/Workforce Connections Division. All my future employer has to do is take 10 mins to create a free account (if they don't already have one) and submit the paperwork within 28 days of my hire date (I've already filled out my piece on that).

So, does this translate to qualifying for the hiring bonuses I see floating around out there? Increased pay during training? Increased guaranteed pay? An air ticket vs. a bus ticket to travel to their in-house tng loc? Shortening of contract term/forgiveness of whatever dollar fig they associate with their in-house training or partnership with a school?

I don't yet know the answers to these questions, but I'd love to have a discussion with a trucking recruiter who "gets it" and can at least put me in contact with someone within the company authorized to negotiate a mutually-acceptable arrangement. Any thoughts, comments, complaints, or recommendations?


Thank you in advance from a trucking "newb".

 

Generically, your point is well-taken, @Money-Mike.

We may disagree on what most companies are looking for and the gamble impact though. Qualified, safe and responsible drivers are in demand at all levels. The benefit to being a "newb" is a company can train me in their image: Little in the way of bad habits to unlearn. And, I'm finding that the training process is different at every company so I'll be focusing on those where I can minimize any negative "newb" impact and get my own truck sooner rather than later.

I drove "deuce and a halves" with M35 trailers in tow to/from plenty of field exercises without incident and with the CLP and DOT physical already knocked out, I've pretty much done everything I can do on my own to demonstrate my commitment to this move. If you think it would help, I'll take an hour or two for Hazmat endorsement study and go in to test out for that at the DMV as well to get it added to my license. I know the real training begins with pre-trip anyway...

The half dozen certified schools I've called around to have hours completion component of 120-180 that they will try and convince you is either state or federally mandated. I'm one of those silly people who enjoy reading dense regulations, though, and those claims are just B.S. In fact, the guidelines state the opposite - instead relying on skills based qualification. BUT, the 120-180 hours you spend in a certified program are what helps reduce insurance costs to employers hiring new drivers.

As far as GI Bill, congress only extended post 9/11 entitlement to "forever" (use it until you use it all up). Though I have entitlement remaining, I'm beyond the delimiting date so I'm appealing that for extenuating circumstances right now. Either way, I'm not looking to sit on my hands that could better be served driving while waiting on the govt to make the call on the final ruling.

 

I didn't think you were being "mean", @Money-Mike . Besides, if you and I agree with the 20+ people I've spoken to in the trucking world these past couple of months (ie. Drivers are in demand), then I'll just say I make a habit of not disagreeing with folks when they are making my point for me. hehe.

I obtained my CLP and knocked out my physical/drug screen just to demonstrate that I was serious about the move into the role. I don't have any expectations that someone would hand me the keys to a truck and say "good luck" on day 1. Frankly, I'd have serious reservations about that company if they did.

Still, in a general sense, your points are well taken. I do disagree, though, on the specifics of your 2 main points:

I dealt with Risk Management a ton in a past professional life, so I'll begin with your second point and my comfort zone: Part of obtaining the CDL is ~150 hours (depending on the company) classroom theory & BTW. As you may know, that isn't a DOT requirement. In fact, they made it clear in the updated guidance ruling (re: 49 CFR 380) that the opposite was true on # of hours. So, who is requiring it? The trucking companies in order to reduce the insurance premiums they pay for new drivers. Can't fault them for good business practices...

Apart from my military driving experience, I've had 7 bikes over the past 25 years and never laid one down (I don't have any wood within reach so I'm knocking on my glass desk top). Is either a replacement for commercial tractor/trailer driving experience? Nah. But they do share some common themes around paying attention and defensive driving/riding.

So, I don't expect to compete against an experienced OTR driver for the same role at "XYZ trucking co". Given the shortage of/demand for drivers I don't have to. That existing pool of experienced drivers who, for personal or financial reasons might be enticed to drive into a role with XYZ, are a separate group and higher pay tier because of their experience.

All of my research has been confirmed by every company I've spoken with so far: It seems clear that the demand for licensed drivers is outstripping supply of the existing pool of available ones. That said, I'm a "newb" and open to the possibility that I'm wrong there. Am I?

If not, then I'm merely saying that they are better served to hire me (and any other serious driver candidates in a similar WOTC position) using X dollars they would have spent anyway to satisfy the needs/requirements of their customers in the supply chain. Why? Well, for a lot of reasons! hehe. Since we're talking about money though I'll just say they significantly shorten their payback period to recoup their investment which goes a long way to mitigate any "gamble" you've mentioned - particularly when compared to other CDLA candidates or licensees who don't show up to in-house tng with a tax rebate "check" in hand.

To your 1st point related to the money, it's at most 1.5x not 2 (even if they have a really big fella train me). Every company is different but, generally, I've found that no one is providing income for the 3-4 week period to get licensed. And, after that, they generally land on somewhere between $500-$700 wk for the 2-3 month "apprenticeship" period. Either way that's a sunk cost - unless they aren't interested in growing the business, reducing their risks to safety and equipment, and/or meeting the needs of their customers.

Bottom line: If it wasn't/isn't a "drivers market" I may be less motivated to seriously explore the possibility of sharing in that benefit. So, if you, along with a mess load of other experienced drivers tell me differently here and our elected leaders wake up tomorrow with amnesia on infrastructure improvements/bringing biz back from overseas, I'm also open to reconsidering the ask about benefit sharing. What do you think?

V

 

LOL, speaking of "CEO" of your trucking biz within a biz...Are you fellas company drivers or contract for jobs with your own equipment? Either way, what trucking-oriented apps/programs/spreadsheets have you come across to help you with your record keeping on mileage, pay and/or receipts for any unreimbursed expenses? BTW, @Numb thanks for your service