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Pursuant to each exclusive lease agreement, each payroll
period each trucking company client paid TLC a lease fee (lease
fee) that was not broken down into component parts.28 Each
exclusive lease agreement set forth a factor (factor)29 to which
TLC and each trucking company client agreed and which such client
was to multiply by the batch report lump sum amount in order to
determine the lease fee that such client owed to TLC for each
driver-employee whom TLC leased to such client.
The factor to which TLC and each trucking company client
agreed was intended to produce a lease fee sufficient to cover:
(1) The batch report lump sum amount for each driver-employee
whom TLC leased to such trucking company client; (2) the em-
ployer’s share of employment taxes on the gross wages paid to
each such driver-employee; (3) workers’ compensation insurance
28Pursuant to each exclusive lease agreement, each trucking
company client, and not TLC, selected the method used to “compen-
sate * * * [TLC] * * * for the services provided by * * * [TLC’s]
* * * drivers”. Virtually all of TLC’s trucking company clients
selected a cents-per-mile or a percentage-of-load-gross-revenue
basis as the applicable method.
29Pursuant to the exclusive lease agreement, TLC had the
right to modify the factor in the event Federal and State employ-
ment tax rates and/or workers’ compensation insurance rates
changed. From time to time, TLC modified the factor that it
charged each trucking company client in order to reflect changes
in TLC’s workers’ compensation insurance premiums. TLC and each
trucking company client also had the right to modify the factor
if, inter alia, the information that TLC collected from a truck-
ing company client in order to substantiate the per diem amounts
that TLC paid to the driver-employees whom it leased to such
client changed (e.g., if a trucking company client reduced its
over-the-road trucking business).
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