How to Create the Ideal Truck Driver Contract Agreement Template

Contract 101

One of the first things a truck fleet manager should consider when creating a driver contract is whether they are creating an employee contract or an independent contractor contract. To clarify, an employee contract lays out the terms and conditions of the employer-employee relationship between the leasing company and the individual drivers. Unlike with an employee contract, there is generally no legal requirement for a written contract with individual independent contractors. However, having such a contract provides clarity and uniformity.
In a legal sense, a contract is a "binding agreement between two or more persons or parties" under which the parties agree to do a particular thing(s). So, what makes a contract legally binding? There are a few essentials for establishing a binding contract. According to California Civil Code §1550, these include:
There’s a saying, "if it isn’t in writing, it didn’t happen." When it comes to employee contracts for truck drivers, there is no legal requirement for a written contract but having one protects all involved and sets clear expectations for the employer-employee relationship. Having a solid, readable contract protects all drivers under the independent contractor agreements as well, as it lays out specific things like their responsibilities and consequences for breach of contract or fraud (like concealing previous convictions on an application).
Although each company has its own style, the best employment contracts are those that use plain language and are easy to read . That doesn’t mean that legal jargon can’t be used, however.
Reducing Confusion with Plain Language While some employers may be tempted to use legal jargon in their employee contracts to look more official, a better option is to use plain language and avoid unnecessary jargon. That’s because of the potential for confusion with certain legal terms or convoluted legalese. For example, with employment contracts, many truck driver companies will use the language "Employer", "Employee" and "Company" and in the context of their legal definitions. The problem with that is, if the reader – the employee – is not familiar with the legal definitions for those terms, then they are going to be confused with their responsibilities and obligations under the contract. That confusion could have a negative impact on the company, as that driver may not understand the importance of their role under the contract. Or worse, they may even challenge the enforcement of a contract term.
The key is to simplify language and ensure the essential elements are identified. With a contract for a truck driver, that could include things such as: No matter how long the contract, how detailed or what kind of language is used—employers are always going to want to make it clear what kind of contract it is (owner-operator, employee) and what the employee’s responsibilities are in the circumstances detailed in the contract.

Key Clauses for Truck Driver Agreements

Creating a contract agreement template for your truck driver employees does not need to be a daunting process. However, there are a number of essential clauses and terms that should be incorporated into the contract to ensure it is legally compliant. Below is a short list of the key contract elements to include:

• Job responsibilities – you will need to include a description of the tasks and duties that a truck driver will be expected to perform as part of their job role. You could categorize this into main responsibilities and other duties to allow for greater flexibility for you to assign any extra work.
• Payment terms – similar to when you hire regular employees, you will need to address how much the truck driver will be paid and how the payment will be made, whether it be on an hourly, daily or weekly basis. This section can also address any overtime that the individual may accrue.
• Duration of contract – you should be clear whether the contract will be permanent, for a fixed period or if either party can terminate it. It is advisable for employers to try and have one employee for the long-term, to save the cost and hassle of new recruitment. In some situations, employers may prefer for a driver to work for a short-term and they have the opportunity to review their performance before making any long-term decisions.
• Termination – the contract should clearly set out the circumstances under which you may terminate the employment. In the UK, employees on a zero-hour contract or a temporary contract have the same employment rights as employees with a regular contract, so it’s important that you comply with this when considering termination.

The Benefits of the Template

It’s essential that every single truck driver contract agreement is done according to federal laws, state employment regulations, and corporate policies. That’s why it’s so important to have a model or template that you can work with; someone else has already figured out all of these legal requirements, leaving you to plug in the blanks.
You’ll save not only time but potential legal headaches down the line by working off of a quality template. Each truck driver contract agreement template should include spaces for:
Date of the agreement
Truck driver’s name
The legal name of the company, as well as the mailing address
The truck driver’s mailing address
Name and title of person signing the contract on behalf of the company
The date and the name of the trucking company
Truck driver’s license number and truck identification number
The type of work—interstate versus intrastate—and type of freight
Terms like the "hold harmless" clause found in most truck driver contract agreements
Duration of insurance coverage provided by your company to the employee
Compensation
Method of payment
Hours of service (HOS)
Work duty cycles like those outlined in 49 CFR 395.3
Time for meals and rest periods
Breaks
Equipment monitoring
Vehicle maintenance
Violation documentation
Substance and alcohol abuse
Training
Disciplinary actions and termination
Blank lines for any extra information your company might want to include
By using a template, you’re ensuring contract uniformity. It shows that your company is professional, knowledgeable, and that you favor logic over improvisation.

Personalizing Your Template

Customizing your template goes beyond the name at the top. Take advantage of all the ways you can tailor your template to fit specific business needs. Your state may have specific rules or requirements. For instance, California has specific rules regarding meal period requirements and it’s a good place to identify whether any of your company specific policies should be added to the template. In addition to state law requirements, many trucking companies have their own company specific rules or policies that must be adhered to or that simply reflect company culture – such as a no-harassment policy.

Common Errors

When creating a truck driver contract agreement template, many companies unknowingly commit some common mistakes. One of the most frequent pitfalls is using vague and ambiguous language. For example, simply stating that the driver "will agree to abide by all company policies and procedures" without specifying what these policies are can lead to confusion and create legal problems for the company.
Another common error is failing to have all parties sign the contract. A driver might refuse to sign after the fact, which can cause issues if the contract is ever challenged in court. It is best to use an electronic signature processor, such as DocuSign, to ensure that there is no ambiguity over whether the document has been signed .
In addition, companies often do not take the time to specifically detail the scope of the driver’s responsibilities. For example, the trucking company might assume that the driver understands what is considered proper operation of the vehicle, but it’s important to explicitly state in the contract what steps must be taken to ensure that the vehicle is in working order.
There is also the possibility that the same contract will be used for multiple drivers. While this certainly saves time, it’s something that should be avoided as much as possible. For best practices, an incident should be reported through a specific channel, and driver safety training should be taught at least every six months. By customizing contracts, you’ll have a better chance of successfully managing the actions of your drivers.

Staying Compliant and Following Industry Standards

As with any other type of contractual matter, the specifics contained in your truck driver contract agreement template must reflect full compliance with all applicable industry-related standards, as well as local, state and federal law. For example, if your company offers drivers bonuses for exemplary driving records or other specific behaviors, your bonuses must not violate or conflict with any U.S. Department of Transportation (DOT) regulations. Similarly, if your standards for pay, drug testing, training, rest periods and overtime doesn’t meet these regulatory requirements (or, worse, run counter to them), your contracts are legally susceptible to challenge with punitive damages.
Of the various legislative measures relevant to the trucking industry, the U.S. Federal Motor Carrier Safety Administration (FMCSA) regulations is perhaps the most important. Issued under the auspices of the DOT, the FMCSA regulations govern the nation’s commercial trucking industry, including: trucking inspection guidelines, operational records maintenance, data and information collection, truck driver hiring practices, truck driver and passenger safety, and intrastate and interstate trucking standards.
In 2012, the FMCSA enacted a total of 46 regulatory standards for commercial trucking operations. These include, but are not limited to: establishing a drug- and alcohol-free workplace; optimizing over-the-road operations by establishing minimum hours of service (HOS) and operating period standards; establishing allowable HOS and operating period schedules; ensuring proper driver training in both educational and practical operations; establishing minimum insurance coverage and limits; establishing minimum knowledge, skill and performance recordkeeping requirements for the hiring and assignment of new drivers; establishing enforcement procedures to ensure compliance with all federal and state regulations; and developing a research program to determine the causal relationship between highway crashes and fatigue.

When to Review and Revise

It is essential to maintain compliance with all applicable laws and regulations when drafting a contract agreement for truck drivers. This includes not only employment law but state and local regulations that may vary by jurisdiction. One of the best ways to ensure that you have not overlooked any important requirements is to consult with an experienced attorney who specializes in these types of agreements, particularly to familiarize yourself with the requirements specific to your jurisdiction. Consulting with an attorney who focuses on contract review and employment law may also help to avoid running afoul of any state or federal laws, such as the National Labor Relations Act, which prohibits a clause in a contract that requires; "any employee to [o]btain membership in any labor organization as a prerequisite to being hired , becoming a member of, or continuing employment with an employer." It is also generally a good idea to revisit your contract template after an extended period of time has passed to determine whether there is a need to make any adjustments in response to changes in the law or developments in employment law or trucking regulations. If there have been changes in the law or your company’s policies or position since the last revision of your agreement, these changes should be reflected in your contract template. Additionally, it is helpful to keep the document updated to avoid any future questions regarding the enforceability of provisions of the contract should a dispute arise. Having a current contract template can also help you to avoid disputes arising from disagreements about specific provisions of the contract agreement.