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Owner Operator Truck Driver Overview
An owner operator truck driver is a trucker that owns their truck and equipment, meaning they are their own boss.
These truckers differ from other drivers because they have far more responsibility than drivers working for a company. They either completely own their own business and work under their own authority or lease their truck under a trucking business.
If owner operator truck drivers own their own business, they will likely have a Department of Transportation (DOT) and Motor Carrier (MC) number which identifies their registration. According to the OOIDA foundation, there are around 350,000 registered owner operator truck drivers in the United States.
Owner Operator Truck Drivers: Pros and Cons
There are numerous positives that come along with working as an owner operator truck driver, most of which revolve around the freedom of the job. These truckers own their trucks and equipment, meaning they can personalize it however they want and know that it is their property.
Owner operator truck drivers also have the potential to make more money than company drivers because they have tax advantages and can charge higher rates, though sources vary widely on how much these truckers make, on average. Another financial advantage is that an self-employed trucker is completely in control of their own finances and are not at the whim of a large trucking company.
However, there are definitely negatives associated with being an owner operator trucker. These truck drivers are responsible for the maintenance and fueling of their owned trucks, which can cause financial strain. Additionally, the initial financial investment to purchase a truck or put a down payment on one is significant.
While owner operators are in charge of their own business, they need to be very skilled in time management so that their income is consistent.
Company Drivers: Pros and Cons
There are also positives associated with company drivers who drive for a trucking company. Company drivers are not responsible for the upkeep of their trucks, including oil changes, maintenance, and insurance costs. Company truckers are also entitled to the benefits and protections of employment, including minimum wage, health insurance, and work-related reimbursement, among other things.
Negatives associated with working as a company driver are often associated with the lack of freedom. Contract drivers are usually assigned a truck by their company, meaning truckers may not be as comfortable with their rigs. Additionally, company drivers could be paid less than owner operators because the larger company determined salary.
Which Option Is Better?
The choice between being a company driver and an owner operator is entirely personal. Some individuals may prefer the freedom and independence associated with the owner operator option. Others may view this responsibility as overwhelming and not worth it.
Regardless of which track truckers choose to take, it is important to remember than all employees have rights. Individuals who are contracted with a company as an owner operator should remember that, if they own their truck, the company cannot take the vehicle from them. If companies terminate a contract and attempt to seize the truck, this may be against wage and hour laws.
Another wage and hour violation to look out for? The misclassification of a truck driver as an independent contractor when they should be considered an employee instead. Truck driver misclassification is an issue all around the U.S. Sometimes, truck driver misclassification may be unintentional, but in other cases, companies may be trying to avoid paying for employee benefits, wages, and protections.
