What is Layover Pay? [Plus Questions All Drivers Should Ask]
Samantha joined the Anderson Trucking Family in November of 2012 as a specialized driver manager and managed a fleet of mixed company and contractor drivers. In the spring of 2014, she transitioned to the driver administration department and began working in contractor services. While in contractor services, Samantha familiarized herself with all processes, procedures and information in regards to driver contracts, pay and settlements. She is currently the operations support manager and oversees both the contractor services department as well as the driver settlement department and leads both of her teams to ensure our drivers receive the highest level of service required to help navigate their accounts and settlements on a daily basis.
There are a lot of different ways you can get paid as a truck driver.
Most drivers become truck drivers because they want to drive. But sometimes, your truck is in the shop or there’s no freight so you’re cooped up in a hotel waiting — and you’re very much not driving.
To protect you and your wallet during those times, some carriers offer layover pay.
And of course, to make it confusing — much like many aspects of pay in the trucking industry — every carrier does it differently. There’s a lack of transparency simply because it’s different across carriers.
As the operations support manager, it’s my job to know everything there is to know about pay at Anderson Trucking Service (ATS) and industry-wide. In this article, I’ll do my best to help you understand how different trucking companies do layover pay. I’ll start with a definition of layover pay and continue on to the questions you must ask about it, outlined in the following:
Layover pay is muddy and it’s an aspect of pay that carriers don’t always talk about, so I’m here to clear things up.
Layover Pay for Truckers
Layover pay varies by carrier, but it generally refers to the compensation a driver receives when they are unable to move freight due to being delayed.
Common reasons for being laid over include:
- The truck is in the shop getting repaired
- Freight isn’t available
- The driver is scheduled for a load that isn’t ready yet
In a nutshell, it’s an event that prevents regular load pay.
What Should I Ask My Carrier About Layover Pay?
The only way layover pay will become clearer is if you ask a lot of questions of your carrier to understand what their policy is, how it’s paid out and when, and how it compares to other layover pay programs in the industry.
The following sections will cover the questions you should ask about layover pay and why.
Which Drivers Qualify for Layover Pay?
Independent contractors, owner-operators, company drivers — they might all receive layover pay depending on the carrier. It’s at their discretion to create policies that determine which drivers receive layover pay.
At some companies, that means only company drivers receive layover pay. At others, all drivers could be eligible for it.
Make sure you know what to expect when you sign on with a new carrier.
Ask your carrier (or the carrier you’re looking to drive for):
- Am I eligible for layover pay?
What Events Are Covered Under Layover Pay?
Some events do and don’t qualify for layover pay and they’ll differ for every carrier, but the general understanding is that it covers things like breakdowns, maintenance, and freight delays.
Even then, there are stipulations. For example, if a driver is in the shop because they were driving recklessly and caused an accident, they won’t get layover pay for the time the truck is in the shop.
A carrier may refuse to pay out layover depending on who initiated the delay — the carrier or the driver. Confusing, right?
Let’s say a driver decides they need to go to the shop for a repair. They stop at a random shop on the road — that may or may not be a carrier-approved shop — and get the truck repaired. The truck is in the shop for three days — two of which the truck wasn’t getting worked on — and the driver requests layover pay to accommodate this period of downtime.
Because the driver took it upon himself to go into the shop for repairs without talking to their carrier first, the carrier might not cover layover. Some carriers won’t pay layover unless they help arrange the delay (in this case, shop time) — including booking an appointment at a reliable, economical, and affordable shop. That way the carrier can help control how long the driver is down.
It’s not that carriers won’t cover downtime for repairs, it’s that they want to make sure a driver is being efficient with their time and going to an approved shop for repairs.
Oftentimes driver managers will schedule preventive maintenance or other repairs when drivers are at home. Or, they’ll schedule it so drivers have the least amount of downtime. They know drivers want to be out on the road making money.
It’s important to note that drivers don’t get paid layover for going home. When you’re home, you’re not working and therefore you’re ineligible to haul freight. That means you don’t qualify for layover pay.
Ask your carrier (or the carrier you’re looking to drive for):
- What events are covered under layover pay?
- Does the company need to initiate the delay for me to receive layover pay?
When Do Drivers Start Qualifying for Layover Pay?
Layover pay could be paid out based on a per-hour basis, a daily basis, or a weekly basis. What this means is that some carriers may pay drivers if they’re delayed for as little as an hour, while other carriers won’t begin paying layover until drivers are down for an entire week.
Carriers have different guidelines depending on their pay programs. For example, some carriers have pay guarantee programs in place to protect drivers from periods of downtime. So instead of qualifying for layover pay, the driver would receive the weekly pay guarantee amount. Carriers that have an hourly rate or pay drivers a salary may also have different layover pay regulations.
Ask your carrier (or the carrier you’re looking to drive for):
- How many hours/days/weeks until layover pay kicks in?
When is it Paid Out?
Here at ATS, our settlements team gets calls from drivers wondering where their layover pay is. This is another major point of contention for drivers because when layover pay is settled differs widely.
Drivers might get paid when the load pays out, they might get paid immediately, or they might get paid during the next pay period. That’s why it’s crucial you talk to your carrier about their guidelines.
For reference, at ATS we have to attach layover pay to a load. So when your next load pays out, that’s when layover is paid as well.
It’s a good idea to communicate with your driver manager throughout the process to clarify that you are getting layover pay, first and foremost, and then to confirm with the pay team when you’ll receive it.
Ask your carrier (or the carrier you’re looking to drive for):
- How long does it take to settle layover pay?
How Much is Layover Pay?
Layover pay varies from carrier to carrier. Often, however, we see that the industry tends to start paying layover after a driver is down for more than one day. If a driver is down for one day, it’s generally agreed upon that they can rebound and still make a good profit that week. But after more than a day delayed, layover pay kicks in. It often varies from around $75 to $200 per day.
Again, this isn’t what every carrier does, but it’s what we see some carriers do.
Ask your carrier (or the carrier you’re looking to drive for):
- How much is layover pay?
Types of Truck Driver Pay, Explained
Layover pay is one of the many complexities of truck driver compensation, and while it may seem like just another industry headache, it’s an important piece of your financial security as a driver. Whether you’re sitting in a hotel because freight isn’t ready or waiting for your truck to get out of the shop, layover pay ensures you’re compensated for your downtime.
Every carrier does layover pay differently, which is why it’s essential to ask the right questions when you’re signing on with a new company. When it comes to layover pay, no question is too silly. Understanding who qualifies, what events are covered, when payments kick in, how long they take to settle, and how much you’ll get are all critical pieces of the puzzle.
Ultimately, transparency is key. Don’t hesitate to ask your carrier — or any potential carrier — detailed questions about layover pay policies. Armed with this knowledge, you can make informed decisions and ensure that your time, whether spent driving or waiting, is valued.
While you’re at it, make sure you understand these seven other types of pay.
If you’re curious about how ATS pays its drivers, you can learn more about our pay programs here.