Ultimate Guide to Using a Driver Contract Template

What is a Driver Contract Template?

A driver contract template is a single-page form that truck drivers can use to guide their job performance. Much like a contract, the document outlines the truck driver’s responsibilities, obligations, and behavior while on the job.
During employment, both parties agree to follow the terms set out by the written contract. If the driver or employer performs tasks contrary to the terms of the contract, they can be in breach of the contract. A disgruntled driver could use this breach to file an employment law claim against you.
You can set up the contract so that it benefits you, the employer and limits the driver’s actions while on the job. By setting the company’s preferences in writing, the driver is limited in his or her actions. The broadest action that is listed in the contract is that of termination for any reason . Limited actions may include requiring the truck driver to have a commercial driver’s license, be rated as an expert driver, or to have a clean driving record.
By having drivers sign a contract, you make them aware of the types of behavior or actions that are not in line with company standards. Without the contract, it is difficult to enforce or discipline a driver whose actions go against your preferences.
Just as the term, "contract," implies, the agreement is a quid pro quo between you and the driver. The truck driver receives something of benefit from you while agreeing to carry out your preferences. In many ways, the document serves as a confidentiality agreement, which allows you and the driver to divulge information and requires him not to disclose it outside the company.
Because each company has different policies and preferences, each driver must have his own personalized contract. No two contracts are the same.

Essential Elements of a Driver Contract

When you are hiring a driver, there are key features that should be included in the contract so that you have full protection for yourself, your employees, and your customers. Each state has differences among their employment laws, so it is very important that you get a knowledgeable local attorney to review your driver contract template to make sure that it complies with your state’s requirements. A comprehensive driver contract will help the employer avoid issues with the authority of the driver to enter into the contract and whether the driver has committed fraud or misrepresentation. Your driver contract template will typically include the following: term of employment, job duties, pay, health benefits, start and end dates, termination, and arbitration. The term of employment may be for the length of the job or the length of the event that they are driving. Make sure you specify the job duties by name and/or type of vehicle. If you are hiring a driver for a specific route, make this clear and include other parameters. If your driver is an independent contractor, then include in the contract driver’s payment terms. If you are hiring the driver as an employee, include when you will pay the employee, that you will deduct taxes and other expenses, and how overtime will be handled. Include provisions that address the driver’s obligations for health insurance and other benefits if an employee. Add terms for termination of employment if you can choose to send them home at any time, or if they start drinking on the job. If they have specific transportation responsibilities, add provisions for choosing whether to fire them for violating the rules of the road, or for not stopping for their designated meal breaks. You can also add other termination provisions here. If you choose to use arbitration for disputes, you should specify those procedures in your driver contract template. You may also make it a general employee handbook.

Advantages of Using a Template

Cost-Effectiveness: Generally speaking, using a free contract template can save you money. Rather than paying an attorney for an original contract or engaging in the time-consuming process of going back and forth to create a custom one, you can simply download and print a template when you need it. This not only saves both money and time during the contract creation period, but it can also save you time further down the line. If you are contacted by the driver to discuss or make changes to the contract, and you relied on a custom-written contract before, it can rankle them to learn that they will need to wait until your next appointment to discuss the driver contract. In contrast, if you relied on a template, your driver simply needs to compare their copy of the contract to the master template to see what is being changed, which should save valuable time when there is limited time for communicating with clients.
Time-Saving: Depending on how elaborate your company is, maintaining a suite of ten to twenty driver contracts can take up a lot of space and can use a lot of paper over the course of a year. By keeping a template on hand that you can reference when you need to create a new contract, you can significantly cut down on the paper usage of your company. You will likely use an online document storage system to keep track of your contracts, making them secure and easy to find, and saving even more time.
Flexibility: By relying on a template system, you can introduce a system that allows for greater flexibility in your contract terms. If you make small changes to the template either because you have added a new clause you would like to standardize across all contracts, or because you have clarified an existing clause, it is much easier to do this with an electronically stored template. By revising only the template, the changes will be automatically applied to all of the driver contracts for any employee who has been hired lately.

Customizing Your Driver Contract

A comprehensive guide would be remiss not to mention that the best driver contracts are those that have been specifically tailored to your operations. Fortunately, modifying a driver contract template in consideration of your particular business circumstances is often fairly straightforward. In many instances, it is merely a matter of making small alterations to the contractual language. For instance, when using an on-demand model, you will likely want an explicit provision confirming that part-time drivers are considered as such. Likewise, if your company’s payment structure (e.g., flat rate, percentages) requires further elaboration, then it is usually a good idea to simply include that information in the contract. Finally, if your company has certain policies and procedures (i.e., things drivers must do and/or must not do), you probably want to codify those in a contract. Such modifications are important because they communicate to your drivers that they are working for a legitimate business as opposed to downloading an app, picking up rides/food, and collecting a paycheck for nothing more than what they have done. It also goes a long way toward putting the brakes on a misclassification challenge down the road. Convincing a court that your on-demand drivers are independent contractors rather than employees is always going to be difficult, but having an effective contract can make it even harder for a judge or jury to rule against you. Fundamentals first: just like having a strong business model, building an impactful company brand, and designing solid marketing strategies, drafting effective contracts is essential for properly classifying your drivers.

Common Pitfalls

The most common mistake when using a driver contract template is to leave the default, generic stipulations in place rather than updating them based on the specific particulars of the situation. For example, those working with an independent contractor should not include legal jargon related to an employee. It is important to use the most up-to-date legal information. While changes in the law happen infrequently, they do happen, and using a template that has not been updated can leave you legally exposed . When workers compensation laws change, for example, you may need to revise the specific responsibilities for reporting injuries and filing claims.
Other common mistakes include adding unnecessary or burdensome terms or clauses. You need a contract that is fair and provides a clear framework for cooperation. If your driver contract template includes a clause that is obviously one-sided, it may seem overly controlling to the other party. This can undermine your relationship as you try to present yourself as an equal partner in the risk and reward involved in engaging a commercial driver.

Legal Implications

Considerations such as worker classification, compensation, confidentiality, nondisclosure and non-competition need to be considered when a driver contract template is drafted. Other key factors are the applicable Federal Motor Carrier and Commercial Driver License Regulations. Any contract document will need to meet the standards set out for those laws and remain compliant with any at-will employment statutes that may apply.
These types of contracts fall within the broad area of employment law. Employment law governs the relationship between employer and employee, their rights, their obligations and agreements made between the two. These contractual agreements should always be drafted to conform to relevant employment law provisions.
State and local laws, in addition to federal employment laws, may apply to the employee and employer relationship. The contract of agreement is subject to, and must comply with, all applicable laws in all jurisdictions.
As with all employment law related documents, there may be practical and legal considerations to observe when the document is drafted. For example, is the independent contractor or the employee required to carry any special licenses, such as a commercial driver’s license? Does the employer require the driver to use his or her own vehicle? Is health insurance provided? Does the driver have authority to pay tolls or park in lots of his or her own choosing? Are gas and engine maintenance fees reimbursed? Does the driver have opportunity for promotion or advancement? What factor do longevity and seniority play?
Many factors, both prospective and retrospective, need to be weighed. As an illustration: An independent truck driver is not eligible for unemployment benefits if he or she is terminated. Conversely, if that person is classified as an employee, he or she could be entitled to that benefit according to state and federal law. Whether the driver enters into the contract as an employee or independent contractor can have significant impact on applicable taxes, insurance, benefits, overtime pay, work breaks, meal allowance, wage garnishment and more.

Sources for Trusted Templates

If you’re convinced that a driver contract template is the right way to go for your business, the next logical question is: where can I find a reliable template? There are multiple places to obtain a template, but some resources carry more credibility than others.
Legal Websites
Some online legal services offer templates for driver contracts. These templates are often modelled after boilerplate forms that have been used and tested for years, so you can have confidence that you’re working from a solid foundation. This can save you the time it would take to draft a contract yourself, which is a necessity if you’re starting from scratch, as you would be in the case of commission driver contracts. Be sure to follow any guidance the provider offers about how to ask questions, as they may not offer personalized help for your specific needs.
Online Template Libraries
If you have experience with writing, or don’t mind reading through templates to identify the types of terms you want to use, then you can search for templates yourself. Online template libraries are a good option if you’re willing to browse for examples you can model your contract after. Of course, this means you’re responsible for choosing between the provisions available, as there’s no guidance on the specific terms of your contract.
Professional Legal Services
Rarely will you be able to go wrong with hiring a lawyer to create a driver contract for you, but it will be expensive. If you’re relying on this option, you’re typically working from an existing contract that you’ve had positive interactions with, making it impossible to make significant changes if needed. The terms and conditions are likely set in stone once your lawyer has already created a driver contract for you.
Driver contract templates should be used only as a starting point in the contract creation process.

Contract Updates and Management

Once a driver contract template is in place, it is crucial for all parties to acknowledge that this must be a living document. As a driver gets acclimated to new cargo a changing job, changes to their responsibilities, or if the business has experienced growth, this document will need to change with them. A driver contract template is not set in stone. Being aware of what can come down the pipeline can help you manage a change when the time comes. For example, you should watch for any changes your state of business makes that could impact current contracts or any changes in the industry. Many of these changes could impact the contract without impacting the business. Even if you and your staff are keeping a close eye on these potential changes, the law is not static. As well as state laws , federal laws also evolve frequently. The federal laws that govern how you operate your business absolutely must be reflected in each and every individual contract. It is essential to address any changes made to ensure that all current contracts reflect the new terminology. As with any business document, gatekeeper status is also vital. Make sure that only certain key individuals have access to them, to avoid confusion. It is also worthwhile to draft copies of the driver contract template that are explicitly marked "draft" or "sample." This helps to avoid confusion if any copies are inadvertently shared. Finally, it is vital to maintain back ups and archives of your driver contract template. Even if you have switched from a paper-driven office to a fully electronic one, maintaining paper copies of signed contracts is still in your best interest. You can never be too cautious in terms of which documents might need to be produced if there are questions about your contracts or to verify when a change might have occurred.