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the transport of such goods and merchandise; and (5) had the
authority to determine whether to permit a driver-employee whom
TLC leased to it to take any vacation days. TLC did not own any
interest in, had no rights in the profits of, and had no respon-
sibility for the losses of the business of any trucking company
client.
TLC sponsored certain employee benefits for its driver-
employees, including: (1) A section 401(k) plan; (2) a section
125 flexible benefit plan; (3) group or individual health insur-
ance; (4) a $5,000 group term life insurance policy; and (5) the
option of purchasing additional group term life insurance. TLC
paid the premiums and any administrative costs associated with
the $5,000 group term life insurance policy. TLC bore the
administrative costs but no other costs associated with the
various other employee benefits that it sponsored for its driver-
employees. Each driver-employee paid such other costs through
payroll deductions.8
Pursuant to each exclusive lease agreement, each trucking
company client had the right to decline using a particular
driver-employee whom TLC wanted to lease to it. While TLC was
8Certain trucking company clients paid at least part of the
premiums associated with the health insurance plan that TLC
sponsored for the driver-employees whom TLC leased to them. In
such instances, TLC paid the trucking company client’s share of
such health insurance premiums and charged such premiums to the
trucking company client.
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Last modified: May 25, 2011