CDL Driver Leasing

CDL Driver Leasing offers companies many benefits for achieving success. This blog is going to describe the specific positive attributes that Driver Leasing can bring to a company.

YOUR INDEPENDENT CONTRACTOR DRIVERS MAY COST YOU

A recent state’s Superior Court ruling upheld the state’s Labor Commissioner’s decision that drivers working for JOHN DOE TRUCKING (not its real name) were not independent contractors but company employees. 

The owner of JOHN DOE TRUCKING claimed the decision was “very, very unfair”. 

This did not stop the court from requiring JOHN DOE TRUCKING to pay violation costs of over $100,000 despite their claim that drivers had signed agreements declaring themselves independent contractors.

The case originated from wage claims filed by four drivers with the Labor Commissioner’s office. The drivers claimed unreimbursed business expenses and unlawful deductions, including weekly truck rental fees and liability insurance costs for the JOHN DOE TRUCKING trucks they drove for the company. Hearings on the claims resulted in a decision requiring JOHN DOE TRUCKING to pay $105,089.15 for violations including unlawful withholding of wages, interest and waiting time penalties.  JOHN DOE TRUCKING appealed the hearing decision with the state’s Superior Court.

The state’s Superior Court ruling upheld the labor commissioner’s hearing decision and ordered JOHN DOE TRUCKING to pay $107,802, including interest. The drivers will get the full amount of that award.

“In this case, drivers had signed agreements labeling them independent contractors but the court saw the truth behind the label,” the court said in a statement. “The court found that the company exerted sufficient control over the drivers such that the drivers were employees of the company and thus, enjoy all basic labor law protections.”

The perceived protections afforded by labeling drivers independent contractors – when they are not – are coming to an end.

If JOHN DOE TRUCKING had elected instead to outsource their drivers with Pro Source, Inc, all wage and tax issues would have been properly addressed.  Consider outsourcing as a low cost, convenient way to stay in legal compliance of all federal and state wage and hour laws, while still maintaining reasonable oversight of your transportation operation.  Or continue to put yourself at unnecessary risk.

Driver Leasing News – FMCSA Proposes Tough Sanctions for Carriers That Repeatedly Disregard Safety Rules

Safety regulators want to impose the ultimate penalty, loss of registration, on truck and bus operations that show egregious disregard for the rules.

The Federal Motor Carrier Safety Administration says that every year a small number of carriers try to avoid compliance or disguise non-compliance. These carriers often submit new applications under a different name after they have been placed out of service, the agency said.

In a proposed rule posted this week, the agency said it needs to take strong action to deter this kind of behavior.

With the legal authority it gained in this year’s highway law, the agency proposes to suspend or revoke the operating authority of carriers that disregard the rules. The rule also targets carrier officers or employers who either disregard the rules or permit others to do so.

The proposal targets failure to comply with safety rules, as well as concealment of that failure. It also goes after those who do not comply with orders to fix safety problems, who do not pay fines for safety violations, or who do not respond to enforcement actions.

The most reliable way to correct potential violations related to drivers, driver safety and DOT compliance is to consider driver leasing with PRO SOURCE, INC. PRO SOURCE, INC becomes solely responsible for meeting all FMCSR 391 driver regulations.

FMCSA is looking for comments on the proposal by Jan. 14.

Transportation Staffing – Why Companies Use Pro Source.

WHY DO SO MANY COMPANIES IN GEORGIA USE PRO SOURCE TO FIND, QUALIFY, AND HIRE CDL DRIVERS?

  1. EXPERIENCE MATTERS – Since 1958, Pro Source has been providing companies, both large and small, with professional drivers, warehouse workers, and other logistics personnel. We only recruit and hire the best of the best professional drivers.
  1. QUALITY PEOPLE – Small companies and corporations alike know that when they need a driver, they are guaranteed to get one that exceeds their requirements, is safety conscious, and will represent your company with integrity and professionalism.
  1. TIME IS MONEY – How much money do you spend on job advertising, recruitment, qualifying, drug tests, DOT physicals, new-hire training, and everything else involved with bringing someone new to your team? And wouldn’t your time be better spent elsewhere, like growing the business?
  1. CONSISTENCY – We are experts at finding and qualifying personnel that are a perfect fit for your organization. Once accepted by you, your driver will never be assigned anywhere else. We only offer long-term leasing and temp-to-hire leasing so you can rest assured that the people you choose to be on your team, will always be on your team.

WHY OUTSOURCE?

  • Control and Reduce Costs, Save Time, Consolidate Business
  • Your Management Concentrates on Core Business
  • Reduce Head Count, Improve Transportation Efficiencies
  • Provide Regulatory Compliance (DOT, OSHA, EEOC, IRS etc)
  • Provide Professional Human Resource Services
  • “A Rated” Benefit Packages to Hire & Keep the Best
  • Reduce Accidents & Injuries; Lower CGL and vehicle PL&PD Costs
  • Superior Claims Management for Faster Return to Work
  • Eliminate Paperwork Hassles re: Payroll, Discipline, Documentation
  • Improve Delivery Performance, Create Happier Customers
  • One Invoice Handles All Labor Cost

WHAT IS INCLUDED IN MY COST?

  • Qualified CDL Drivers
  • Workers Comp. Insurance
  • FICA Taxes
  • FUTA Taxes
  • SUTA Taxes
  • Employee Management
  • Safety & Compliance
  • Pre-employment Drug Tests
  • Random Drug Tests
  • DOT Physicals
  • Accounting & Overhead

 

 

Larry Hilbert

www.ProSourceinc.net

Driver Leasing Benefits with Transportation Staffing

Driver Leasing Company discussion on Benefits from 3PL companies

  1. Cash Flow Control – Workers compensation is not paid up front. It is built into the rate so you pay-as-you-go.
  2. Budget Control – Your labor costs are set and will stay constant. Knowing your actual labor cost is essential to a transportation budget.
  3. Lower Admin Costs – Our cost to your company is usually significantly lower than your own internal costs. Pro Source handles payroll, benefits, recruitment advertising, hiring, DOT physicals, drug screening, taxes, and everything else associated with employees. All you have to do is report their weekly gross earnings and you’re done.
  4. Decrease in Liability – CDL drivers are the highest risk element when it comes to insurance costs. By eliminating drivers and/or warehouse personnel from your coverage, you lower your overall risk factor. This will lower company costs for the entire organization.
  5. Return On Investment – By utilizing Pro Source, the money saved by your company can be reinvested into your sales force, your marketing campaign, new equipment, or anything else that is necessary to grow your business.

Five Key Essential Components for a Transportation Company

3pl driver leasing benefits contain 5 essential components

There are five key components that are essential for a transportation company to exist: Equipment, Maintenance, Fuel, Insurance, and Labor.

A successful fleet manager knows that he can only control the cost of Labor.  As external forces raise the price of fuel, insurance, equipment and maintenance, your margins continue to be squeezed. You can only control the cost of labor… where else can you bring those margins back to profitability?

With Pro Source, you will know your exact labor cost for an entire year and can rest assured that this cost is constant. Knowing this cost is constant is key to budgeting for transportation executives.

What is “Pay As You Go” Workers Compensation Insurance?

warehouse personnel services and 3PL solutions Pro Source is one of the few CDL driver leasing companies that utilizes pay as you go workers comp insurance for the benefit of the client. Most companies have to pay 25% -40% of their premiums at the beginning of the year. This number is based on projected payroll for the upcoming year.

For example, ABC Inc has fifty employees, with each earning a salary of $50,000. ABC Inc would have a projected paroll of $2,500,000. If their insurance company requires 40% paid up front, ABC Inc would have to pay $1,000,000 before cutting one payroll check.

With Pro Source’s “Pay As You Go” workers comp insurance, this cost is already built into the rate so you avoid all up-front costs and increase your cash flow.

Questions for Transportation Industry Stakeholders

Transportation Staffing Company Pro Source Inc from Atlanta GA

Do you know your risks involved with commercial drivers?

Does your company still pay 25% – 40% of workers comp insurance at the beginning of each year?

What is “Pay-As-You-Go” workers compensation insurance? Pay As You Go Workers Compensation

What are the benefits of CDL Driver Leasing?

How does truck driver leasing work exactly?

Are your competitors gaining market share because of Logistic Services?