Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 3

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          chandise.3  Prior to the times such trucking companies entered              
          into driver-leasing arrangements with TLC (described below), they           
          had generally made payments only to their respective over-the-              
          road4 truck drivers who worked for them that were intended to               
          cover the amounts that such truck drivers spent for food and                
          beverage expenses while traveling away from home.                           
               During the years at issue, the number of trucking company              
          clients to which TLC leased driver-employees ranged from 100 to             
          300, with most such companies located in Minnesota, Montana, and            
          Pennsylvania.5  As of the time of trial in this case, TLC leased            
          a total of 5,563 driver-employees to a total of 453 trucking                
          company clients.                                                            
               In soliciting business, TLC’s sales representatives ex-                
          plained to prospective trucking company clients the advantages              
          that they would realize from leasing driver-employees from TLC.             
          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                 

               3We shall refer to each trucking company that leased one or            
          more truck drivers from TLC as a trucking company client and to             
          each truck driver whom TLC leased to a trucking company client as           
          a driver-employee.                                                          
               4The term over-the-road means that the length of travel                
          required a truck driver to stay away from home overnight.                   
               5During the years at issue, the number of truck drivers that           
          each trucking company client leased from TLC ranged from 1 to 50.           

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Last modified: May 25, 2011