What is Driver Inc.?
Nov 27, 2024
Driver Inc. is a business model that involves a trucking company classifying its Drivers as independent contractors rather than employees. The primary reason behind this classification is to minimize the company’s tax/insurance liabilities and avoid providing the benefits normally required for employees by treating them as partners rather than employees. In theory, this is a great way to reduce overhead costs on the part of the trucking company. Still, it has been criticized by many in the industry because of the red flags it raises around worker rights, insurance requirements, and taxes.
What’s The Impact?
Driver Inc. impacts the trucking industry in several ways- some more profound than others.
Driver Inc. can lower carrier costs by reducing employee-related expenses, resulting in artificially lower bids for freight services. These lower prices come at the expense of the Drivers by stripping them of the rights, protections, and benefits that typically come with an ’employee’ status.To read more, log into your member account and click here
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