Transport Labor Contract/Leasing, Inc. & Subsidiaries - Page 42

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          driver-employee his or her route assignments, direct each driver-           
          employee as to the loads assigned to him or her and as to the               
          times by which such driver-employee had to deliver those loads,             
          and relay to each driver-employee any instruction of its                    
          customers relating to such loads.                                           
               In contrast, in order for TLC to operate its driver-leasing            
          business successfully, TLC had to direct and control the work and           
          conduct of its driver-employees in order to, inter alia, minimize           
          workers’ compensation claims of such driver-employees.  A                   
          principal advantage for a trucking company of leasing driver-               
          employees from TLC, as opposed to employing truck drivers                   
          directly, related to TLC’s ability to obtain cost-effective                 
          workers’ compensation insurance for TLC’s driver-employees.  Id.            
          at 158.  In order to minimize workers’ compensation claims and              
          thereby enable TLC to maintain cost-effective workers’                      
          compensation insurance, TLC had to, and did, control the work and           
          conduct of each driver-employee.  If TLC had not controlled the             
          work and conduct of each driver-employee so as to minimize                  
          workers’ compensation claims, its workers’ compensation insurance           
          expense would have increased substantially, thereby negating a              
          principal advantage for a trucking company in leasing driver-               
          employees from TLC, instead of employing truck drivers directly.            
               As discussed above, each exclusive lease agreement provided            
          in pertinent part that TLC had the right to, and did, exercise              






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Last modified: May 25, 2011