Larry's Weekend Rant: So You Want to Add a Driver?

April 20, 2019 - Larry W. Long

Time for my weekend rant.

I'm seeing a lot of drivers wanting to add another truck and hire a driver to put in it, especially since the boom in trucking late last year. This was very a predictable reaction and for many drivers it could even be a good way to expand and grow their business.

Larry W. Long

However, as a long time businessman and employer, let me take a few minutes to make sure you understand all the ramifications of this decision if you are considering or have recently added drivers/trucks.

First of all is the classification confusion, especially in trucking. If you buy a truck and hire a driver, he is an employee...period. No amount of language, justification, rationale, etc. can change that. He can only be a contractor if he OWNS the truck or is buying/leasing-to-buy the truck from you. I have previous posts that go into this in depth and explain how this is not in the driver's best interest, or yours legally.

With that being said, your next step is to setup your business to have employees. You will need a FEIN and your state's equivalent to the FEIN. You will need to be able to provide payroll service to this new employee. National companies are doing this for very small fees and I recommend you leave this to the professionals. Federal and state unemployment accounts will need to established and funded along with a workers compensation plan with your insurance company. I would also recommend a considerable amount of liability umbrella coverage for you since you are now legally responsible for all the employees actions.

Taking on an employee is a lot like having another child or buying a pet...they add lots of responsibilities to you!
You are the income source for him and his family. They are counting on you to be a responsible employer that they can rely on when they are deciding on major purchases like cars and houses. This relationship between employee and employer is a sacred trust. You as the employer cannot take this lightly. This means that when things get tight, you still meet your ethical and financial obligations to them...in other words you NEED TO PAY THEM, regardless of all the unexpected things that are going wrong in your life.

This is just the beginning, if you aren't ready for this level of responsibility and accountability I highly recommend you not make the decision to add trucks until you are. I receive many calls from drivers wanting my advice who are stranded with no pay checks or their truck is broken down and the owner can't/won't fix it, etc., etc. If you think this is an acceptable way of doing business you definitely shouldn't be an employer. I have been in businesses over 35 years and have never missed a payroll. Being in business is a huge responsibility to many other people besides just you. If you're not willing to do it right, please don't do it at all.

Have a good, prosperous, and safe weekend and IF your ready and in a good position..."see the opportunity".