by Anne Stjern

Created on: December 29, 2008   Last Updated: January 06, 2009

Business owners strive to be successful and they work hard to make an honest profit. Trucking owner-operators are no exception. Sometimes, however, despite their best efforts to protect their business and make a living, problems arise with the lease with their carrier. The most common problems experienced by owner-operators with their carrier are receiving properly calculated payments on time and/or improper charge-backs. The Federal Motor Carrier Safety Administration Truth in Leasing law (49 CFR Part 376, Lease and Interchange of Vehicles) specifically addresses leasing requirements and the individual responsibilities of owner-operators and carriers. Knowing your rights can save countless hours, frustration, and money.

Truth in Leasing addresses two areas vital to successfully managing commercial truck leases. The first, 49 CFR Part 376.11, deals with the general conditions of a commercial truck lease. In all cases, a written lease detailing the use of the equipment, specific identification of the equipment and the length of time, with start and end dates, that the lease covers must be given to the owner. Additionally, the owner must be given a receipt listing the equipment with the date and time that the lease was activated. A second receipt must be provided to the owner at the end of the lease.

The second area is compensation. The law states that carriers must pay the owner-operator of the leased commercial truck within 15 days after the logbooks required by the Department of Transportation and documentation the carrier needs in order to be paid are submitted. Payment for hauling is based only on what is in the lease regardless of what other verbal promises are made by carrier representatives, company recruiters, or other owner-operators. If compensation is based on freight bills, then the carrier must provide a copy to the owner. The carrier cannot withhold payment for non-receipt of additional document that the carrier requests, even if they are listed as required documents. The law makes it clear that the 15-day count down begins when the required documents are submitted, not when the carrier receives payment and may not be withheld by the carrier for documents other than those previously identified, including a bill of lading that has not been.

Part 376.12 also discusses what the lease must include in clearly presented language. The lease must state who is responsible, the owner-operator or the carrier, for charges such as "the cost of fuel, fuel taxes,

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