A motor carrier may adjust compensation to its owner-operators to address its cost of insurance, the Seventh Circuit Court of Appeals confirmed on August 9. The insurance issue emanated from a claim by the Owner-Operator Independent Drivers Association that a motor carrier, Mayflower, made illegal chargebacks from owner operators that amounted to a mandatory purchase of insurance from the motor carrier, which is prohibited by the Federal Leasing Regulations governing motor carrier lease arrangements with owner-operators.
A motor carrier may adjust compensation to its owner-operators to address its cost of insurance, the Seventh Circuit Court of Appeals confirmed on August 9. The insurance issue emanated from a claim by the Owner-Operator Independent Drivers Association that a motor carrier, Mayflower, made illegal chargebacks from owner operators that amounted to a mandatory purchase of insurance from the motor carrier, which is prohibited by the Federal Leasing Regulations governing motor carrier lease arrangements with owner-operators.
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