Fair (noun):
-impartial and just, without favoritism or discrimination.
Asking about fair pay in the trucking industry is a tricky question, especially with how volatile the market is in 2023 (a trend we’ve been seeing since 2022).
The answer is complicated.
In short, you’re being paid fairly as a company driver when you’re being paid for all the work you’re doing. You’re being paid fairly as an independent contractor when you’re being paid according to what you agreed upon in your contract.
Is the pay good? Well, that depends on every driver’s definition of good. And believe us, it’s different for everyone.
Because pay has dropped so significantly industry-wide, fairness has come into question. Comparisons come into play: Is what I’m being paid fair compared to what drivers at this other company are being paid?
But it’s not that simple; to truly understand who’s being paid more, you need to compare yourself to a driver doing the exact same job as you. That is, if you’re a flatbed driver hauling farm equipment over-the-road (OTR) to all 48 states and you run 2,000 miles per week, you need to look at a driver also doing exactly that at another company to get a true comparison.
We understand you’re frustrated and upset about pay decreases. Frankly speaking, we are too. We don’t like to see struggling drivers. That’s why we’re being transparent about pay so you can understand if you’re being paid fairly and if your current pay meets your own unique definition of good.
Believe it or not, we have contacts with other trucking companies who are saying the same things. This isn’t simply a lie your carrier is feeding you.
In this article, we’ll explain how you can take an unbiased look at your pay and compare it to other companies you’re considering. You’ll be able to answer the question, “How do I know that my current pay isn’t fair and it’s time to leave?”
Understanding Why Driver Pay Has Dropped
In today’s economy, you’d be hard-pressed to find a truck driver who hasn’t seen some sort of change in pay. Whether their pay dropped significantly or they had to start working a lot harder to make what they used to — no one is going unaffected.
Everyone is required to budget differently in this market. Inflation has taken a toll on a lot of families. Consumer spending has shifted since the pandemic, so fewer goods are being hauled on trucks. That means fewer loads for you and most other truck drivers to haul. It also means there’s less demand, so rates have dropped.
Additionally, the cost to operate a truck has increased in the last decade. Fuel is more expensive and maintenance costs are up. In 2023, we’re still facing the aftershocks of the truck and parts shortage that began during the pandemic. Parts are still not plentiful. A lot of carriers are running older fleets. Older fleets break down more, which results in expensive repairs for carriers and drivers.
All of this has contributed to drivers taking home less money each week.
Related: An in-depth look at recent market changes
It’s easy for drivers to blame decreasing freight rates solely on their trucking company. However, it’s important to understand that trucking companies don’t control rates. The market does.
In some cases, dispatchers make more money when you make more money. The more successful you are and the more revenue you bring in, the more they bring in. The overall financial health of a trucking company is tied to drivers’ financial health. The more money a driver makes, the more money the trucking company is likely to make. It’s a team effort.
What is FAIR Pay in Trucking?
So let's dive in and determine what fair pay is and what it isn’t.
Fair pay simply means you’re being paid according to the contract you signed and your pay isn’t being discriminated against or treated with favoritism. Does that mean the pay is also good? Not necessarily.
Is it fair that the market changed and freight rates dropped? No, not really. It sucks.
But as long as your carrier is paying you what they agreed to pay you, then yes, you’re being paid fairly. Fair pay isn’t what a faceless driver on Facebook tells you is or isn't fair.
Freight rates can be crappy or really great, but fair is what you’ve agreed to when you signed on with the company.
However, fair, to you, can also mean you’re being paid competitively for the work you’re doing.
Understanding What You’re Being Paid
Now, determining if you’re being paid what you were promised is a whole different story.
When starting with a new company and talking to a recruiter, you need to go in-depth to determine what you’ll take home each week. Don’t just ask for averages. Go a step further to figure out every little thing the company will and will not pay you for. And we’re not just talking about them paying for fuel and maintenance repairs as a company driver.
We mean the little things that all add up. Will you be paid to tarp? Paid stop charges? Paid detention? Paid layover? Does the carrier pay for your permits and tolls? Do you need to pay a trailer rental fee, or do you pay for that yourself? If they require a TWIC and you don’t have one, will they cover the cost? Who pays truck insurance?
What about fines? Will the company help you with those, should they occur?
What about travel to orientation and meals? Who covers that?
Do you need to pay a pet deposit? A rider fee?
If you’re signing on as an owner-operator, who pays for the plating fee and the DOT inspection?
Before you sign a contract, make sure it’s a mutual agreement. Don’t sign it if you don’t agree with it. You might not be able to negotiate that contract, but you can certainly company shop to get a rate you feel is fair.
If you’re already at a company right now, review the contract and the agreements you made. Read the contract a few times. Read it nightly if that’s what it takes. You have a right to know what you’re being paid for and your company has a right to tell you.
Once you’ve determined that, look at your settlements. Does your pay match up? Did they actually pay you what they promised and what you agreed to before signing a contract? If not, you’re being paid unfairly and you need to raise the issue with your carrier. Contractors should be compensated for everything in the contract.
Your company should be open with you about how much you make on every load you haul. Is your company willing to show you everything? Can you see the freight bills and see what they billed the customer?
ATS does let our drivers see their freight bills so they can match every expense and know exactly what they’re being paid for. There won’t be any hidden fees the carrier isn’t paying to you. ATS will schedule a meeting with you and let you see this information any time you request it.
Some companies will not. And if they won’t, you may ask yourself if you’re working for an honest and transparent company. Do a gut check. How does this feel to you? Talk to others, like a partner or a trusted family member for advice before making a rash decision.
Related: Understanding your settlements
What is Good Pay?
Now that you know what fair pay is, what’s good pay?
Good is subjective and will differ for every driver.
To some, good might consist of driving for a company that pays all the extra fees so they don’t have to worry about it.
For others, it might be a carrier who pays a high percentage of the linehaul but makes them pay to rent a trailer and cover other fees, like permits.
This is where it gets tricky when comparing pay at different companies. You can’t look at pay at face value. You have to go in-depth and crunch the numbers.
For instance, one carrier might advertise that they pay 85 percent of the linehaul, while another carrier pays 70 percent. Your first instinct is to go with the carrier that pays 85 percent, right?
But the thing is, that first company will make you pay a weekly trailer rental fee. They won’t pay you to tarp. You have to pay for all your permits and tolls. The second company pays for these things.
When all is said and done, what you make in an average month at the second company far exceeds the one that paid a higher percentage. Why? Because all those fees added up. This is what you have to think about when considering the pay at different companies.
A lot of drivers fail to take these things into consideration, and it can be a big part of why they swap companies so quickly and end up going back to the company they started with.
You also need to consider what kind of freight the company has. Are they a spot market company or a carrier with a wide customer base? You’ll have a boom and bust with a spot market company. Their rates largely depend on what the market is doing. A company with asset-based freight, on the other hand, provides more stability because contracts are negotiated far in advance.
Again, one company might advertise a much lower percentage or cents-per-mile (CPM). But, they could have a wider base of high-paying customers, or asset-based freight, which ends up helping you earn more money. The company that’s paying 85 percent of the linehaul could be relying solely on the spot market.
If you want to compare your wages to another truck driver at a different company, don’t look at face value. You need to look at a driver who’s driving in the same type of fleet (for-hire vs. private). Make sure they’re also running the same type of route as you (i.e. they’re also an over-the-road driver). Make sure they’re the same type of driver, too (company vs. independent contractor). Make sure the situation is as similar to yours as possible.
Don’t just rely on what someone on social media says is good pay. For starters, people lie. And second, drivers are sometimes confused about their settlements and exactly what they are and aren’t getting paid for.
Do your digging. Look at all the facts and then determine what your definition of good pay is. Some drivers can get by making less than others. Some have larger families or unique situations where they need more money. Either situation is okay.
Considering Other Factors
It’s really easy to read stuff on social media and think your trucking company is screwing you over. It’s easy to look at ads and assume you’re going to make more money elsewhere without looking into the details. It’s easy to get heated in the moment and make a quick decision without thinking things through.
And, therefore, it’s really easy to quit your company, jump to another one and end up making even less than you did before.
Because what’s on social media doesn't always tell you the entire truth about what companies are paying you for and what they aren’t paying you for.
To really understand if you’re being paid fairly, educate yourself about what you signed up for with your current carrier. Do in-depth research to determine what other carriers are offering for similar programs. Gut-check yourself before you make a split-second decision to leave your carrier and go to another one for pay.
It’s also important to look at the company as a whole. What else do they have to offer you? Consider what — other than pay — you need to feel fulfilled at a company. Maybe the atmosphere matters to you. Maybe you want to walk through company headquarters and be treated with respect. Maybe you want a stable company that’ll last the market changes.
Either way, there are five other factors you should consider when choosing the right trucking company.