By leveraging a non-asset based platform with IC's, Motor Carriers (MC) are able to grow while mitigating the significant costs of employee drivers (EE's) and company owned units by leveraging a non-asset based platform with independent contractors (IC).
However, one should consider that while an IC fleet can be a great operational resource, there are inherit risks associated with their utilization.One of the biggest challenges a Motor Carrier faces is maintaining the IC Status of its fleet and defending an IC-to-EE reclassification challenge - an outcome to be avoided at all costs as the financial risks from the IRS & Workers' Compensation (WC) claims/audits could threaten the very existence of the company.... Read More