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would realize from leasing driver-employees from TLC. Those
advantages included TLC’s (1) recruiting truck drivers,
(2) obtaining workers’ compensation insurance for such truck
drivers, (3) substantiating the per diem amounts that TLC paid,
(4) filing Federal and State tax forms, (5) withholding Federal
and State income taxes, (6) maintaining truck driver files in
accordance with Department of Transportation (DOT) specifica-
tions, (7) providing safety programs, and (8) handling any
unemployment claims filed by a driver-employee.
A principal advantage of leasing driver-employees from TLC
related to TLC’s ability to obtain cost-effective workers’
compensation insurance, especially in States where trucking
company clients were paying substantial amounts to obtain such
insurance. Generally, the premium rates for workers’ compensa-
tion insurance on truck drivers were significantly higher than
premium rates for most other occupations. As a result, workers’
compensation insurance was a major expense for trucking compa-
nies. Whenever possible, trucking companies attempted to obtain
workers’ compensation insurance in the private market. However,
they were frequently unable to do so and were forced to obtain
such coverage through their respective States’ assigned risk
plans. The cost of workers’ compensation insurance under such
assigned risk plans was typically quite high. In soliciting a
trucking company’s business, TLC’s sales representatives ex-
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Last modified: May 25, 2011