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Truck Driver Contract Agreement

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Independent Contractor Agreement Between an Owner/Operator Truck Driver and Common Carrier Company or Organization

This Agreement is between hereinafter referred to as "Contractor" located at and located at hereinafter referred to as Carrier.

Now in consideration of the mutual covenants and promises hereinafter set forth, the parties agree as follows:

1. Carrier hereby agrees to offer to Contractor, for transportation by and with Contractor's own equipment, one or more shipments per year, and Contractor agrees to pick-up, transport, and deliver goods in behalf of Carrier's Shippers, Consignees, and/or Customers and furnish transportation services to meet the distinct needs of Carrier as detailed hereunder.

2. Carrier agrees to provide contractor with truck liability and property insurance coverage with a minimum combined single limit of $1,000,000.00 and cargo insurance in an amount not less than $250,000.00 and any additional insurance required by applicable laws, rules and regulations for any services provided by Contractor under this Agreement.

3. Carrier will invoice and collect freight charges from Shipper, Consignee or appropriate party and Contractor will be paid within days of receipt of proper documentation from Contractor including:

A. Original bill of lading between Shipper and Carrier issued by Shipper and any original shipping documents.

B. Proof of delivery, either on the original bill of lading or on a separate delivery receipt showing the person's name receiving the freight, the description and the total weight and number pieces received, and any overages, shortages, damages or other notations.

C. Invoice from Contractor to Carrier for the amount agreed upon and described herein.

D. Signed shipment and rate confirmation for invoiced shipment.

E. Copy of original grant of ICC Authority to cover commodities transported and a current certificate of insurance issued to Carrier from Contractor's insurance companies showing proof of motor truck liability and cargo coverage's, showing Carrier and Contractor as insured parties on the liability policy and on the cargo policy.

F. Contractor agrees to provide Carrier with the above-mentioned documentation within hours of delivery.

4. Contractor shall execute a bill of lading for property it receives for transportation under this agreement and shall be liable to the person or company entitled to recover under the bill of lading. The liability imposed by this paragraph is for the actual loss or injury to the property caused by the Contractor which may be more than the amount of coverage required by the ICC for a Contractor. Contractor's liability shall be the same as Contractor's liability as required by federal law and shall include but not be limited to liability for loss, delay, theft, damage, destruction or liability of whatever nature arising from the transport of all loads arranged and accepted by Contractor. The cargo insurance shall be in the form required by federal regulations, and shall have no exclusions or restrictions that would not be accepted by the ICC for a filing under the statutory requirements and shall in all respects, be identical to the cargo insurance filed in accord with the said laws and regulations. Contractor further agrees to defend and hold harmless Carrier against any and all liability or claims on each shipment transported by Contractor pursuant to the agreement.

5. The parties to the agreement acknowledge that cargo claims shall be settled in accordance with federal regulations.

6. Contractor agrees to telephone Carrier at within 30 minutes of any delay, accident or breakdown that will affect the condition or the timely delivery of merchandise transported.

7. Contractor agrees, at it's own expense, to maintain public liability and property insurance coverage with a minimum combined single limit of $750,000.00 per occurrence, or $1,000,000.00 if Contractor transports hazardous materials, and for loss of or damage to freight and Cargo insurance in an amount not less than $100,000.00 as well as any additional insurance required by applicable laws, rules and regulations. Contractor will furnish to Carrier upon request a copy of each such insurance policy and written certificate of insurance and further agrees to name Carrier as an additional insured on the Policy. Contractor further agrees to defend, indemnify and hold harmless Carrier from any and all liability costs and damages to persons and/or property arising out of Contractor's Operations pursuant to this agreement, including but not limited to all road, fuel and other taxes, fees, permits or cost of insurance, including Workman's Compensation, if applicable and any expense related to a claim by a third party, including reasonable attorney fees to defend Carrier for claims related to the shipments transported by Contractor as arranged by Carrier.

8. Contractor authorizes Carrier to invoice shipper, receiver, consignor, consignee or appropriate party for freight charges as agent for and on behalf of Contractor. Payment of the freight charges to Carrier shall relieve shipper, receiver, consignor, consignee or appropriate party of any liability to Contractor for non-payment of charges.

9. The relationship of Contractor to Carrier shall, at all times, be that of an independent contractor, except that Carrier shall be the agent for Contractor for the collection of charges, when Carrier collects such charges.

10. Contractor represents and warrants that the drivers he utilizes pursuant to this agreement herein are competent and properly licensed drivers and are fully informed concerning their responsibilities for the protection and care of the involved lading. Contractor agrees to pay the subject driver's salary and to be responsible for workman's compensation coverage, if applicable, and all taxes based on said salary and operation.

11. Contractor's rate for trailer-load shipments placed by Carrier will be in the form of a flat charge, based on a pay per mile, in addition to additional stop charges, and other accessorial charges, to be negotiated on a per load basis and reflected on an addendum labeled as SCHEDULE "A". Such an addendum for each shipment will be executed containing information such as the origin, pick-up time and date, destination, delivery time and date, and agreed upon rates for such shipment. Other pertinent information will also be shown on this addendum.

12. Contractor shall not solicit freight from any shipper, consignor, consignee, or customer of Carrier where (1) the availability of such traffic first became known to Contractor as a result of Carrier's effort, or (2) where the shipment of the consignor, shipper or customer of Carrier was first tendered to Contractor by Carrier. If Contractor breaches this agreement and solicits Carrier's customer(s), Carrier is then entitled, for a period of two (2) years after involved traffic first begins to move, to commissions from Contractor of 15% of the transportation revenue on the movement of the traffic plus any reimbursement of legal fees expended to enforce such action.

13. Neither party hereto will be liable for the failure to tender or timely transport freight under this agreement if such failure, delay or other omission is caused by strikes, acts of God, wars or civil disorders, and if such failure is a result of either party's compliance with legally constituted orders of civil or military authorities.

14. Contractor warrants that all operations conducted with Carrier will be as a Dedicated Contractor, operating under an exclusive use agreement. During the term of this Agreement, Contractor shall provide direct service from origin to destination with no interchange with other Contractors or trip leasing. Both parties agree that this Agreement governs all relationships between Carrier and Contractor, and that any additional funds, payments or fees which might be due Contractor as a result of holding other authorities and/or the filing of other tariffs, schedules or circulars are, pursuant to this agreement assigned, bargained or sold to Carrier.

15. The validity of this Agreement and any terms or provisions as well as the rights and duties of the parties hereunder, shall be governed by the laws of the State of .

All civil actions filed as a result of disputes arising out of this Agreement shall be filed in the court of proper jurisdiction in the State of .

16. If any provisions of the agreement are invalid under Federal or State law, or any other jurisdiction, such provisions shall be waived and deemed a part of the Agreement. However, it is agreed that under no circumstance shall such waiver or exception cause any other section or provision of this Agreement to become invalid.

17. The Agreement shall become effective as of the date recorded below and shall remain in force for a period of and shall be renewed automatically until cancelled by either party on thirty (30) days written notice.

18. This Agreement contains the entire sales contract and no additions or changes can be made unless in writing and initialed by both parties.

IN WITNESS WHEREOF, the parties hereto have signed their names on this day of , 20 , in .

Carrier

Contractor

Enter text✕

What the Truck Driver Contract Agreement Is

A Truck Driver Contract Agreement is a written contract that sets the working relationship between a carrier or broker and a driver — either as an employee or as an independent contractor. It defines scope of work, routes, compensation and pay schedule, hours, equipment responsibility, insurance and liability, compliance with DOT and FMCSA rules, medical and CDL requirements, termination and notice periods, and tax classification for reporting purposes. The agreement helps reduce disputes, documents proof of compliance, and serves as the basis for tax filings, insurance claims, and regulatory audits.

Why a Clear Driver Agreement Matters

A clear Truck Driver Contract Agreement documents duties, pay, insurance, and safety expectations; it reduces legal and operational risk while supporting payroll and tax reporting.

Why a Clear Driver Agreement Matters

Who Typically Uses This Agreement

The Truck Driver Contract Agreement is used by parties who need written terms for driving services, including carriers, brokers, owner-operators, and fleet managers.

  • Fleet managers and carriers who assign drivers and manage payroll, benefits, and compliance.
  • Independent owner-operators contracting with brokers or carriers for route assignments or hauling contracts.
  • Human resources and compliance officers documenting employment status and regulatory obligations.

Use this agreement when engaging drivers for recurring routes, one-off contracted services, or long-term freight work where written expectations reduce ambiguity.

Step-by-Step: Complete the Agreement

Follow these sequential steps to prepare, review, sign, and store a complete Truck Driver Contract Agreement.

  • 01
    Draft Terms: Define parties, services, rates, insurance, and termination terms.
  • 02
    Verify IDs: Confirm driver's CDL and medical card are valid and documented.
  • 03
    Agree Payment: Confirm pay method, schedule, and invoicing requirements.
  • 04
    Sign and Store: Obtain signatures and retain executed copy for compliance.

Essential Contract Sections to Include

A complete agreement addresses six core areas to reduce disputes and support regulatory compliance across payroll, safety, and insurance domains.

Parties

Identify full legal names and business entities for carrier, broker, and driver. Include DBA names, EIN or SSN where required, and a primary contact for notices.

Scope of Work

Describe permitted cargo types, route limits, expected hours of service, load acceptance rules, and any non-compete or exclusivity provisions.

Compensation

State base pay, mileage or load rates, accessorial pay, expense reimbursement, invoicing cadence, payment terms, and late-payment remedies.

Insurance and Liability

Specify required insurance types and minimum coverage levels, proof of insurance delivery, indemnity obligations, and claims reporting procedures.

Compliance and Safety

Require valid CDL, medical certification, drug and alcohol testing compliance, electronic logging device rules, and FMCSA/DOT adherence.

Term and Termination

State effective term, renewal conditions, termination rights, notice periods, cause definitions, and post-termination obligations such as equipment return.

Required Information and Minimum Fields

Driver Name: Full legal name
Driver ID: CDL number
Company Name: Legal entity
Compensation: Rate and terms
Insurance: Policy numbers
Effective Date: MM/DD/YYYY

Where to Send and How Signing Works

Decide routing based on whether the agreement is internal, vendor-facing, or requires notarization; use secure channels for signature exchange and storage.

  • Upload Document: Sender uploads PDF or DOCX to signing platform.
  • Place Fields: Add signature, initial, and date fields where needed.
  • Send to Signer: Send email link or guest signing URL to driver.
  • Receive Executed Copy: All parties receive signed PDF and audit trail.

How to Configure an Online Signing Workflow

Set up signer order, authentication, and field requirements to match your internal approvals and compliance needs.

Field Configuration
Signer Order Sequential or parallel signer sequence
Authentication Email, SMS code, or KBA
Required Fields Signature, date, initials, attachments
Notifications Automated reminders and completion emails

Digital Signing and File Format Requirements

Use platforms that accept common formats and integrate with your systems to reduce manual processing.

  • Supported Formats: PDF, DOCX, HTML, XLSX
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: AES-256 at rest

Key Dates and Reporting Deadlines to Track

Track effective dates, renewal notice periods, payroll cutoffs, and tax reporting deadlines to avoid penalties and ensure accurate records.

Effective Date:

Date obligations and insurance begin

Payment Due Dates:

Per contract pay schedule (e.g., weekly)

Renewal Notice:

Deadline for automatic renewal opt-out

1099-NEC Reporting:

Issue to recipients by Jan 31

Record Retention Start:

Retention counts from effective date

Common Mistakes to Avoid When Preparing the Agreement

  • Failing to state whether the driver is an employee or independent contractor, which can trigger tax and labor-law disputes.
  • Omitting specific insurance minimums or proof requirements, leaving the carrier exposed during claims.
  • Using vague compensation formulas without concrete examples, leading to payment disagreements or audit issues.
  • Not documenting CDL and medical certificate validation dates, which can create regulatory noncompliance risks during inspections.

Penalties and Legal Risks of an Incorrect Agreement

1099 Late Filing: $60–$330 per form under IRC §6721
Intentional Disregard: $660+ per form, no maximum
I-9 Violations: $281–$2,789 per violation
Misclassification: Payroll taxes, penalties, and back pay
Insurance Gaps: Claim denial and indemnity exposure
Regulatory Fines: FMCSA or DOT enforcement actions

Real-World Use Cases for Driver Agreements

Two common scenarios show how the agreement is used to manage risk, payroll classification, and operational consistency across fleets.

Local Carrier Use

A carrier documents route assignments and pay rates for seasonal drivers

  • Ensures each driver presents valid CDL and insurance
  • The executed agreement reduced disputes and clarified payment timing during peak season, improving dispatch consistency and audit readiness.

Owner-Operator Contract

An owner-operator signs a contract with a broker defining load acceptance and liability

  • Broker requires certificate of insurance and indemnity clauses
  • Clear terms aligned expectations, simplified 1099-NEC reporting, and supported faster invoice processing.

Frequently Asked Questions About Truck Driver Contracts

Answers to common questions about execution, enforceability, tax reporting, and electronic signatures for Truck Driver Contract Agreements.


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eSignature Pricing Comparison for Signing Truck Driver Agreements

Comparing common eSignature vendors can help select a platform that supports secure signing, HIPAA needs, and integration with existing systems; signNow is listed first per vendor comparison conventions.

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