Breach of contract

[uskyldig]

What is the name of your state? Alabama

My husband is an independent trucker with his equipment leased to a company based in Pennsylvania. The company dispatches him on all loads. His contract with this company states he is to be paid 62% for the line haul charged to the customer. The billings to the customer include the line haul, waiting time, tank cleaning charges, etc. Some of these items he receives a percentage of, some he does not.

He was recently informed that the company is billing one line haul charge to the customer and paying the drivers from a lower charge (ie. - customer is billed .225 per mile and driver is paid based on .215 per mile). When questioned, the company stated that the "differential" is an insurance surcharge and while it may look illegal, it is their policy and they will not change it.

Do we have any recourse in this matter? Also, some of the customers are government agencies. Would the billing records be open to us under the Freedom of Information Act? How would we pursue getting these?

Thank you for your help in this matter.

 

[Beth3]

He was recently informed that the company is billing one line haul charge to the customer and paying the drivers from a lower charge (ie. - customer is billed .225 per mile and driver is paid based on .215 per mile). Perhaps I'm missing the point but if the company didn't charge their customers more than they're paying for the leased equipment, they'd go bankrupt in no time. The difference is their margin which is what allows them to pay all their overhead costs, generate a profit, and stay in business.

 

[uskyldig]

Beth3,

You misunderstood. He is to be paid 62% of the line haul charge, the company keeps 38%. What the company is doing is charging one rate to the customer and paying the driver from a lower rate. For example, a load is billed to the customer at .225 a mile for 150 miles. The total would be 33.75, 62% of that should go to the driver (20.925) and the company would keep 38% (12.825). What the company is doing is billing that rate to the customer but paying the driver from a lower rate, my example being .215. The driver receives 62% of the lower rate or 19.995. The contract reads that he is to be paid 62% of the line haul charge.