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Reading a lease-on agreement before you sign

Owner-operators who lease onto a carrier sign a lease that controls pay, deductions and escrow. Federal rules require certain terms to be in writing.

Trucking3 min readCorvane Ashmoor & Co.

Federal leasing rules generally require a written lease between an owner-operator and an authorized carrier that spells out key terms. Read it closely, and ask questions before signing.

Look for

  • How you are paid: percentage or per mile, and when.
  • Every chargeback or deduction, and how it is calculated.
  • Escrow: the amount, what it can be used for, interest, and when it is returned.
  • Who pays for insurance, and what coverage the carrier provides.
  • How either side can end the lease, and what happens to the escrow then.
  • Copies of rated freight bills or other proof of what the load paid, if your pay is a percentage.

Our lease-on checklist lists what to check. Have an attorney review anything unclear.

General information, not legal, tax or financial advice.

This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.

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