Self-Employed Independent Contractor Agreement Between an Owner / Operator Truck Driver and Common Carrier Company or Organization
What this document covers
This Self-Employed Independent Contractor Agreement is a legally binding document between an owner/operator truck driver and a common carrier company or organization. It establishes the terms under which the contractor provides transportation services, detailing responsibilities regarding insurance, compensation, and liability. This agreement is essential to clarify the independent contractor's status, distinguishing them from employees or agents, ensuring that the contractor maintains control over their work and is only accountable for their direct actions during transportation services.
Key components of this form
- Identification of the Contractor and Carrier, including addresses.
- Responsibilities regarding transportation of goods, including documentation required for payment.
- Insurance requirements, detailing coverage amounts and types needed by both parties.
- Liability clauses outlining the contractor's responsibility for loss or damage during transport.
- Terms of payment and the invoicing process for services rendered.
- Non-solicitation agreement to protect the Carrier's business interests.
Situations where this form applies
This agreement should be used when a truck driver operates as an independent contractor for a common carrier company. It is necessary when establishing a formal relationship that defines the terms of work, clarifies insurance obligations, and delineates responsibilities concerning the transport of goods. Use this agreement to ensure legal protection and outline expectations for both parties in transportation arrangements.
Who can use this document
- Truck drivers who work as independent contractors.
- Common carrier companies hiring independent truck drivers.
- Organizations needing to outline contractual terms for transportation services.
- Anyone in the logistics or freight transport industry seeking to formalize agreements.
How to prepare this document
- Identify and enter the names and addresses of both the Contractor and Carrier.
- Specify the types of goods to be transported and establish terms for pick-up and delivery.
- Outline the insurance coverage details, including minimum amounts and policy provisions.
- Include payment terms, invoicing procedures, and deadlines for submitting necessary documents.
- Sign and date the agreement to validate the terms.
Notarization guidance
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
Common mistakes
- Failing to specify insurance requirements clearly, leading to potential liability issues.
- Not including all necessary documentation for payment, which can delay compensation.
- Misunderstanding the independent contractor relationship, affecting legal protections.
Why use this form online
- Easy access to customizable templates for specific needs.
- Immediate download options, allowing for quick implementation in business operations.
- Legally vetted forms crafted by licensed attorneys ensure reliability.
Legal use & context:
- This agreement helps clarify the independent contractor's status, limiting the Carrier's liability.
- All terms must comply with federal and state transportation laws.
- The document functions as legal evidence of the relationship and terms agreed upon between the parties.
What to keep in mind
- This form is essential for establishing clear terms between independent contractors and common carriers in the transport industry.
- It outlines responsibilities for insurance, liability, and payment, protecting both parties.
- Using this legally vetted form can help avoid common pitfalls associated with contractor agreements.
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FAQ
A 1099 employee is one person or an entire company that you hire to do a specific job for you.In trucking, your 1099 employee would be an owner-operator or an independent contractor. A 1099 employee is not a company driver, so that means you don't provide benefits for them (say, such as health insurance).
A 1099 employee is one person or an entire company that you hire to do a specific job for you.In trucking, your 1099 employee would be an owner-operator or an independent contractor. A 1099 employee is not a company driver, so that means you don't provide benefits for them (say, such as health insurance).
Independent contractors, also called owner-operators, typically earn a percentage of the freight bill for every load. You get to be your own boss and lease the truck of your choice.
Truck drivers' employment status is classified based on a variety of factors. Generally speaking, companies can only classify truck drivers as independent contractors if the truckers have control over how and when they perform their duties.
Independent contractors pay their own Social Security and Medicare taxes and do not receive employee benefits.Truck drivers are often owner-operators of their own freelance business and are therefore considered independent contractors.
Basically, an owner operator is an independent contractor with a business attached to their name. However, you can be an independent contractor in trucking without being an owner operator.
Are Truckers Self Employed Independent Contractors or Employees? According to the National Employment Law Project, four out of every five truck drivers are classified as independent contractors.
1099 employees are generally individuals who are in an independent trade, business, or profession in which they offer their services to the general public (not just a single customer or employer), including: Doctors. Dentists.
