A truck driver contract takes two distinct forms: a company-driver employment agreement (per-mile pay typically $0.50–$0.75, or percentage-of-load at 25–35% gross, with detention/layover pay defined) and an owner-operator lease agreement, which federal Truth-in-Leasing rules (49 CFR Part 376) require in writing — covering compensation, chargeback itemization, escrow accounting, and equipment terms. Misclassification is the industry's biggest legal risk: an 'independent' driver under carrier control on the carrier's truck usually tests as an employee.
Truck Driver Contract Template
Reviewed by the Agiled editorial teamUpdated June 2026
Trucking agreements live under more federal regulation than almost any other work contract. An owner-operator leasing onto a carrier is entitled by federal...
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TRUCK DRIVER CONTRACT
This Truck Driver Contract ("Agreement") is entered into as of [Date] by and between:
Carrier: [Business Name], USDOT No.: [Number], MC No.: [Number], located at [Address], Phone: [Phone], Email: [Email] ("Carrier")
Driver: [Full Name], CDL No.: [Number], State: [State], residing at [Address], Phone: [Phone], Email: [Email] ("Driver")
1. Employment Classification and Term
a) The Driver is engaged as a [W-2 employee / 1099 independent contractor].
b) This Agreement is effective as of [Start Date] and shall continue [for a term of [Number] months / indefinitely] until terminated as provided herein.
c) If the Driver is an independent contractor, nothing in this Agreement shall create an employer-employee relationship. The Driver maintains control over the manner and means of performing services.
2. Driver Qualifications
a) The Driver represents that they hold a valid Commercial Driver's License (CDL), Class [A / B], with the following endorsements: [List, e.g., Hazmat, Tanker, Doubles/Triples].
b) The Driver represents that their driving record meets the Carrier's hiring standards and FMCSA requirements.
c) The Driver shall immediately notify the Carrier of any traffic violations, license suspensions, or changes in driving status.
d) The Driver shall comply with all pre-employment, random, post-accident, reasonable suspicion, return-to-duty, and follow-up drug and alcohol testing as required by 49 CFR Part 382.
3. Duties and Responsibilities
a) Operate assigned commercial motor vehicles safely and in compliance with all federal, state, and local laws.
b) Complete pre-trip and post-trip vehicle inspections as required by FMCSA regulations and report all defects.
c) Load, secure, and unload freight as required, ensuring compliance with load securement standards.
d) Complete all required paperwork, including bills of lading, delivery receipts, fuel receipts, and inspection reports.
e) Maintain accurate records of hours of service using the Carrier's ELD system.
f) Communicate proactively with dispatch regarding delays, mechanical issues, accidents, or any concerns.
g) Maintain a professional appearance and conduct while representing the Carrier.
4. Equipment
[For Company Drivers:]
a) The Carrier assigns the following vehicle: [Year] [Make] [Model], VIN: [Number], Unit No.: [Number].
b) The Driver shall operate the vehicle solely for Carrier business and shall not make any modifications without written approval.
c) The Driver shall keep the vehicle clean and report all mechanical issues immediately.
d) The Carrier is responsible for all maintenance, repairs, and inspections.
[For Owner-Operators:]
a) The Driver shall provide the following vehicle: [Year] [Make] [Model], VIN: [Number].
b) The Driver is responsible for all maintenance, repairs, fuel, and inspections for their vehicle.
c) The vehicle must pass a Carrier inspection before the first load and must be maintained to DOT standards at all times.
d) The Driver shall lease their vehicle to the Carrier under the terms of the attached Equipment Lease Addendum, in compliance with 49 CFR Part 376.
5. Compensation
a) Pay Structure: [Select applicable method(s):]
- Per Mile: $[Amount] per loaded mile / $[Amount] per empty (deadhead) mile.
- Percentage: [Number]% of the gross revenue for each load.
- Per Load: Flat rate as stated on each dispatch confirmation.
- Hourly: $[Amount] per hour (for local/regional routes).
b) Detention Pay: $[Amount] per hour after [Number] hours of free time at shipper/receiver.
c) Layover Pay: $[Amount] per day when required to wait between loads.
d) Accessorial Pay: Additional compensation for [e.g., tarping $Amount, stop-offs $Amount each, etc.].
e) Safety Bonus: $[Amount] per [month / quarter] for zero accidents and zero violations.
f) Payment Schedule: Settlements/paychecks issued [weekly / bi-weekly] via [direct deposit / check / fuel card + check].
6. Deductions (Owner-Operators)
The following deductions may be withheld from the Driver's settlement:
a) Cargo/liability insurance contribution: $[Amount] per week.
b) ELD/tracking system: $[Amount] per week.
c) Trailer rental (if applicable): $[Amount] per week.
d) Advance repayments and escrow contributions as agreed.
e) All deductions shall be itemized on each settlement statement.
7. Insurance
a) The Carrier shall maintain primary liability insurance with a minimum coverage of $[750,000 / $1,000,000] as required by FMCSA.
b) The Carrier shall provide cargo insurance with a minimum coverage of $[100,000] per occurrence.
c) [For Company Drivers:] The Carrier shall provide workers' compensation insurance.
d) [For Owner-Operators:] The Driver shall maintain occupational accident insurance with a minimum coverage of $[Amount] and provide proof of coverage. The Driver shall maintain physical damage insurance on their vehicle.
8. Hours of Service and Compliance
a) The Driver shall comply with all FMCSA Hours of Service regulations (49 CFR Part 395).
b) The Driver shall use the Carrier's ELD system to record all driving and on-duty time accurately.
c) Falsification of ELD records is grounds for immediate termination and may result in FMCSA enforcement action.
d) The Driver shall comply with all DOT vehicle inspection, maintenance, and repair requirements.
9. Drug and Alcohol Policy
a) The Carrier maintains a drug and alcohol testing program in compliance with 49 CFR Part 382.
b) The Driver shall submit to pre-employment, random, post-accident, reasonable suspicion, return-to-duty, and follow-up testing as required.
c) A positive test result, refusal to test, or violation of the Carrier's substance abuse policy shall result in immediate removal from safety-sensitive duties and may result in termination.
d) The Driver shall not consume alcohol within [8] hours of operating a commercial motor vehicle and shall not operate a vehicle with a blood alcohol concentration of 0.04% or greater.
10. Safety and Accident Reporting
a) The Driver shall operate the vehicle defensively and in compliance with all traffic laws.
b) In the event of an accident, the Driver shall: secure the scene, call 911 if there are injuries, contact the Carrier's dispatch and safety department immediately, exchange information with all parties, obtain a police report, take photographs, and complete an accident report.
c) The Driver shall not admit fault or make statements to third parties without authorization from the Carrier.
d) The Driver shall complete any safety training or retraining required by the Carrier.
11. Confidentiality
The Driver agrees to keep all Carrier business information confidential, including customer lists, rate sheets, route information, operational procedures, and financial data. This obligation continues after termination of this Agreement.
12. Termination
a) Either party may terminate this Agreement with [14 / 30] days' written notice.
b) The Carrier may terminate immediately for cause, including: positive drug or alcohol test, CDL suspension or revocation, material violation of FMCSA regulations, theft, dishonesty, insubordination, abandonment of load or equipment, or any act that endangers the safety of others.
c) Upon termination, the Driver shall return all Carrier property, including the assigned vehicle (company drivers), fuel cards, ELD devices, keys, and documentation, within [3] business days.
d) The Carrier shall issue final payment within [15] business days of termination, less any authorized deductions for outstanding advances, damage, or unreturned equipment.
13. Dispute Resolution
Disputes shall be resolved through good-faith negotiation. If unresolved within [30] days, the parties agree to binding arbitration in [City, State]. This Agreement shall be governed by the laws of the State of [State] and applicable federal transportation regulations.
14. Entire Agreement
This Agreement constitutes the entire understanding between the parties. Amendments must be in writing and signed by both parties.
SIGNATURES
Carrier Representative: ___________________________ Date: _______________
Print Name / Title: ___________________________
Driver Signature: ___________________________ Date: _______________
Print Name: ___________________________
- Company driver
- $0.50 – $0.75/mile typical
- Percentage pay
- 25% – 35% of load gross
- Owner-operator lease
- Written, per 49 CFR Part 376
- Escrow return
- ≤45 days after lease ends (federal)
What your truck driver contract should cover
Engagement type, stated plainly
Company driver (employee, W-2) or owner-operator under lease (contractor with their own or leased equipment). The structures have different legal homes — mixing their terms is how misclassification cases start.
Compensation formula
Per-mile (practical vs. household-goods miles — name which), percentage of load gross, or hourly for local work. The mileage basis alone can swing pay 5–10%; the contract names the calculation, the source, and the pay period.
Detention, layover, and accessorial pay
Detention after a stated free period (commonly 2 hours) at $25–$75/hour, layover pay when stranded between loads, stop pay, and tarp pay. Unpaid detention is the industry's biggest hidden wage cut — it's only payable when it's in the contract.
Truth-in-Leasing compliance (owner-operators)
Federal law (49 CFR Part 376) requires the lease in writing, signed, stating compensation, payment timing (within 15 days of submitting paperwork), itemized chargebacks, insurance responsibility, and escrow terms. Non-compliant leases generate federal claims.
Chargebacks, itemized
Fuel, insurance, ELD fees, trailer rental, plates, tolls — every deduction from settlement listed with its computation. The federal rule exists because unitemized chargebacks were how settlements went to zero.
Escrow accounting
Amount held, what it may be applied to, interest paid on it, and return within 45 days of lease termination with a final accounting — all federal requirements that leases routinely violate.
Equipment, maintenance, and who pays
Owner-operator: their truck, their maintenance, carrier's trailer typically. Lease-purchase arrangements need brutal clarity on payments, balloon terms, maintenance escrow, and what happens to equity on termination — the FTC and DOL have both targeted predatory lease-purchase programs.
Insurance allocation
Carrier covers auto liability while under dispatch (federal minimum $750k, commonly $1M); occupational accident or workers' comp coverage stated; physical damage on the tractor is the owner-operator's. Bobtail/deadhead coverage assigned.
Compliance duties
CDL validity, medical certificates, hours-of-service and ELD compliance, drug-and-alcohol testing program participation (pre-employment, random, post-accident), and the FMCSA Clearinghouse consent — assigned to the right party in writing.
Termination and final settlement
Notice period, equipment and placard return, final settlement timing, and escrow return per the federal clock. 'Quit and lose your last settlement' is the dispute the paperwork exists to prevent.
Typical truck driver pay structures (U.S., 2026)
| Structure | Typical range | Notes |
|---|---|---|
| Company driver, per mile | $0.50 – $0.75 | Experience and freight type |
| Percentage of load | 25% – 35% gross | Owner-operators: 65% – 85% |
| Local/hourly | $22 – $35/hr | Plus overtime where applicable |
| Detention (after 2 hr free) | $25 – $75/hr | Only if contracted |
| Layover pay | $75 – $150/day | Between-load stranding |
| Carrier liability minimum | $750k – $1M | Federal financial responsibility |
| Escrow return deadline | 45 days | 49 CFR 376.12(k) |
Pay varies by freight segment (dry van, reefer, flatbed, tanker), region, and experience. Owner-operator gross must cover fuel, maintenance, insurance, and equipment costs — comparing it to company-driver pay requires netting those out.
How truck driver contracts work in practice
The company driver agreement
A W-2 employment relationship: per-mile or hourly pay, the carrier's truck, the carrier's dispatch, benefits per company policy. The agreement's value is in the pay-package details drivers otherwise learn by surprise — which mileage calculation, what detention pays and when it starts, layover and breakdown pay, home-time policy, and rider/pet policies. Orientation pay and sign-on bonus clawback terms (commonly tied to 6–12 months' tenure) belong in writing, because they're the first things disputed when a driver leaves early.
The owner-operator lease-on
An owner-operator leases their tractor and services to a carrier's authority: 65–85% of load gross or a per-mile rate, with the carrier providing trailers, dispatch, and the operating authority. Federal Truth-in-Leasing rules make this the most regulated independent-contractor agreement in America — the lease must itemize every chargeback, pay within 15 days of paperwork, account for escrow, and return it within 45 days of termination. Owner-operators should read the chargeback schedule like a second pay rate: a strong percentage with heavy chargebacks nets less than a modest one with clean settlements.
The misclassification trap
Carriers that control 'independent' drivers like employees — mandatory dispatch, forced dispatch acceptance, carrier-owned trucks via lease-purchase, no other-carrier freedom — keep losing classification cases under both the IRS factors and state ABC tests (California's AB5 reshaped West Coast drayage for exactly this reason). The lease-purchase version is the sharpest edge: a driver 'buying' the truck through settlement deductions, terminable at will, often ends with no truck, no equity, and a wage claim. The agreement should match the real relationship — genuine independence, or honest employment.
Mistakes that weaken a truck driver contract
Signing a lease without the chargeback schedule
The percentage is the headline; the chargebacks are the price. Federal rules require itemization — a lease that lists 'administrative deductions' without computation is both a red flag and a violation.
Leaving detention out of the contract
Drivers lose hours weekly at docks, and detention pay only exists where it's written. The free period, the hourly rate, and the documentation method (ELD timestamps) belong in the agreement.
Treating the escrow casually
Federal law requires the lease to state the escrow amount, permitted uses, interest, and the 45-day return clock with final accounting. Walked-away escrow is among the most common owner-operator claims.
Calling a controlled driver independent
Forced dispatch, carrier equipment, and no outside work make an employee, whatever the title page says. The misclassification bill — back taxes, overtime, benefits — lands on the carrier.
Vague mileage math
Practical miles, shortest miles, and household-goods miles can differ by thousands of paid miles a year. Name the calculation and the software source in the pay clause.
How to use this template
- 01
Download the truck driver contract template in Word or PDF.
- 02
Choose the form: company-driver employment agreement or owner-operator lease.
- 03
Set the pay formula precisely — mileage basis, percentage, detention, layover, and accessorials.
- 04
For leases: itemize every chargeback, the escrow terms, and the federal payment and return clocks.
- 05
Allocate insurance (liability under dispatch, physical damage, occupational/workers' comp) and compliance duties.
- 06
Set termination, equipment return, and final-settlement terms, then have both parties sign and keep copies in the truck and the office.
Skip this template if…
- Freight brokerage agreements — broker-carrier contracts cover load tenders, rates, and claims, not driver services.
- Final-mile courier and gig delivery — parcel delivery runs on different platforms, insurance, and classification battles.
FAQs
How much do truck drivers make per mile?
Company drivers typically earn $0.50–$0.75 per mile depending on experience and freight type, with specialized freight higher. Percentage pay runs 25–35% of load gross for company drivers and 65–85% for owner-operators — who pay their own fuel, maintenance, and equipment costs out of that share.
What is a truck driver lease agreement?
The contract between an owner-operator and a carrier whose authority they haul under. Federal Truth-in-Leasing rules (49 CFR Part 376) require it in writing and require it to state compensation, payment within 15 days of paperwork, itemized chargebacks, insurance responsibility, and escrow terms including the 45-day return.
Are truck drivers independent contractors or employees?
It depends on the actual relationship, not the label. Genuine owner-operators with their own equipment, dispatch freedom, and multi-carrier options can be contractors; drivers under carrier control on carrier equipment usually test as employees — and state ABC tests like California's AB5 make contractor status hard to sustain for controlled drivers.
What is detention pay and am I owed it?
Pay for time stuck at a shipper or receiver beyond a free period, typically 2 hours, at $25–$75 per hour. It's owed only when the contract provides it — which is why the detention clause, the free-period length, and ELD-based documentation belong in every driver agreement.
What are chargebacks in trucking?
Deductions from an owner-operator's settlement — fuel, insurance, trailer rental, ELD fees, plates, tolls. Federal leasing rules require each chargeback itemized in the lease with its computation method, and unitemized deductions are a leading source of Truth-in-Leasing claims against carriers.
Is lease-purchase trucking a good deal?
Approach with caution: settlement-deducted truck payments, walk-away terms that forfeit equity, and at-will termination have made predatory lease-purchase programs a regulatory target. If entering one, the contract must state the full payment schedule, balloon, maintenance escrow, and exactly what happens to payments and equity on early termination.
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