For the miles that aren’t the carrier’s.

When the lease starts and ends

Non-trucking liability is built around the line between the carrier's time and yours, so the paperwork that marks the start and end of a lease matters as much as the policy.

• The start receipt, 376.11(b). When the carrier takes possession, it must give you a receipt that identifies the equipment and states the date and time possession transferred. A receipt when possession ends is required only if the lease calls for one, so ask for that clause.
• The term, 376.12(b). The lease must state the time and date, or the circumstances, on which it begins and ends, and those must line up with the receipts.
• Identification during the lease, 376.11(c). The carrier must mark the truck under FMCSA's vehicle identification rules in 49 CFR part 390. If a copy of the lease isn't carried on the truck, the carrier keeps a statement on board certifying it operates the truck and naming you as owner, the lease date and length, any commodity limits, and where the original lease is kept.
• Removing identification, 376.12(e). The lease must say which party removes identification devices when it ends, and when and how devices not painted on the truck go back to the carrier.
• Final pay, 376.12(f). Payment is due within 15 days after you submit the delivery documents and other trip paperwork. The lease may make returning the carrier's identification devices a condition of final payment; if one was lost or stolen, a letter certifying its removal satisfies that condition.

If you switch carriers, send me the new lease and receipt the same week so the file matches who controls the truck. Keep your removal letter with your policy papers.

California owner-operators and AB 5

Federal leasing rules and California's worker-classification law answer different questions. 49 CFR 376.12(c)(4) says the carrier's exclusive control under the lease is not intended to affect whether you are an independent contractor or an employee. In California, that question runs through Labor Code 2775, the ABC test, which treats a worker as an employee unless the hiring entity shows freedom from control, work outside its usual course of business, and an independently established business of the same nature.

The California Trucking Association and two owner-operators argued federal law preempts AB 5. On April 28, 2021, in California Trucking Association v. Bonta, the Ninth Circuit reversed the preliminary injunction, holding that AB 5 is a generally applicable labor law that the Federal Aviation Administration Authorization Act does not preempt as applied to motor carriers. The U.S. Supreme Court denied review on June 30, 2022, which left that ruling in place. For anything since, check with an employment lawyer.

Labor Code 2776 sets out a business-to-business exemption with 12 criteria, and the state's employment-status site posts a motor carrier chart applying them. The hiring entity carries the burden on all 12. If it meets them, the Borello test applies; if not, the ABC test does. Points from the chart that owner-operators can document:

• Operate as a sole proprietor or a partnership, LLC, LLP or corporation, with a business location that can be your residence.
• A written contract stating the payment amount, rate of pay, services and pay date.
• The ability to work with multiple motor carriers and to choose which loads to accept.
• Advertising to the public, such as a logo, business cards, trade websites or load boards. Having worked for others is not enough on its own.
• Rates you actually negotiated or could negotiate. Turning down work is not enough.

Classification matters for insurance because the ABC test applies to workers' compensation for injuries on or after July 1, 2020. See occupational accident vs. workers' comp. This is general information, not legal advice.