Peno Trucking, Incorporated - Page 5




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               As compensation, petitioner received 75 percent of the total           
          amount paid to Ohio Transport by its customers for each load                
          hauled by a leased truck.8                                                  
               The leases required Ohio Transport to provide liability                
          insurance for petitioner’s trucks while they were “under                    
          dispatch”.9  Otherwise petitioner provided the insurance.  If a             
          driver intentionally damaged a truck or its cargo, he or she was            
          responsible for the damage, to the extent it was not insured.               
          B.   Relationship Between Petitioner and Drivers                            
               Petitioner entered into an agreement (agreement) with each             
          of its drivers during the periods at issue which expressly                  
          provided that the drivers were independent contractors and not              
          employees.  The agreement, in pertinent part, stated:                       


               8 During the periods at issue, petitioner and Ohio Trucking            
          also had an oral agency agreement by which petitioner was paid a            
          9-percent agency fee on all loads it solicited from customers on            
          behalf of Ohio Transport.  The 9-percent fee was over and above             
          the 75 percent Ohio Transport paid petitioner for each load                 
          hauled under the leases.  The drivers were paid no portion of the           
          separate 9-percent agency fee.                                              
               These loads were hauled by petitioner’s trucks or by                   
          individuals who owned their own trucks (owner-operators).  A                
          number of owner-operators hauled steel for Ohio Transport and               
          were dispatched by petitioner.  The owner-operators’ employment             
          relationship with petitioner is not at issue in this case.                  
               9 The term “under dispatch” means Ohio Transport had                   
          contacted petitioner to haul a particular load, petitioner agreed           
          to haul the load, and the truck used to haul the load was:  (1)             
          En route to pick up the load; (2) was picking up the load; (3)              
          was transporting the load; or (4) was returning to the location             
          where the truck was garaged having delivered the load.                      





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Last modified: November 10, 2007