The Owner Operator Independent Contractor Agreement is essential for transportation companies operating in the United States who engage independent contractors for freight and delivery services. This document ensures compliance with federal and state regulations while clearly defining the independent contractor relationship, preventing misclassification issues. It covers crucial aspects including operational requirements, insurance obligations, compensation terms, and safety standards, while adhering to DOT, FMCSA, and state-specific regulations. The agreement is particularly important for maintaining clear distinction between employees and independent contractors under IRS guidelines.
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1. Parties: Identifies contracting parties - the company and the owner-operator
2. Background: Establishes context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the transportation services to be provided
5. Independent Contractor Status: Explicitly establishes nature of relationship and compliance with IRS guidelines and federal regulations
6. Equipment and Operations: Specifies vehicle requirements and operational responsibilities including DOT compliance
7. Compensation: Payment terms, rates, and settlement procedures
8. Insurance Requirements: Required coverage types and minimum limits
9. Term and Termination: Duration and conditions for ending agreement
1. Non-Compete: Restrictions on working with competitors during and after the agreement term
2. Fuel Program: Terms of fuel card or discount programs if offered by the company
3. Equipment Lease: Terms for leasing equipment from company if applicable
4. Technology Requirements: Specifications for required technology systems and software
1. Schedule A - Rate Schedule: Detailed breakdown of compensation rates and payment terms
2. Schedule B - Insurance Requirements: Comprehensive list of required insurance coverage and minimum limits
3. Schedule C - Operating Procedures: Detailed operational guidelines and requirements including safety protocols
4. Schedule D - Equipment Specifications: Detailed vehicle requirements and maintenance standards
5. Schedule E - DOT Compliance Checklist: List of required compliance documents and regulatory requirements
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