When the leasing rules apply
Any time an authorized carrier transports under its own authority in equipment it does not own — typically an owner-operator's tractor — there must be a written lease meeting §376.12, possession receipts when the carrier takes and returns the truck, and the truck must be marked as operated by the carrier. §376.11
The twelve things every lease must contain
| Clause | Rule |
|---|---|
| Parties and signatures Between the carrier and the equipment owner, signed by both or their authorized representatives. | §376.12(a) |
| Exact start and end The time and date, or the event, when the lease begins and ends — matching the possession receipts. | §376.12(b), §376.11(b) |
| Exclusive possession and control The carrier has exclusive possession, control and use of the truck and full responsibility for its operation during the lease. | §376.12(c)(1) |
| Compensation on the face of the lease What the carrier pays for equipment and driver, as a percentage, per mile or any agreed method, delivered before the first trip. | §376.12(d) |
| Who pays for what Fuel, fuel taxes, empty miles, permits, tolls, detention, plates and licenses, loading and unloading — each assigned to a party. | §376.12(e) |
| Paid within 15 days Payment within 15 days after the owner turns in logs and the delivery documents the carrier needs to bill. No deadline may be set for turning them in. | §376.12(f) |
| Rated freight bill on percentage pay If pay is a percentage of revenue, the owner gets a copy of the rated freight bill at or before settlement. | §376.12(g) |
| Every charge-back listed Each item the carrier may deduct and how it is computed, with copies of the documents behind each charge. | §376.12(h) |
| No forced purchases The owner is not required to buy or rent products, equipment or services from the carrier. | §376.12(i) |
| Insurance The carrier's public liability duty, who buys other coverage such as bobtail, any insurance charge-back amount, and written itemization before any cargo-damage deduction. | §376.12(j) |
| Escrow terms Amount, what it can cover, accounting on each settlement or monthly, interest at least quarterly at the 13-week Treasury bill rate, and return within 45 days of termination. | §376.12(k) |
| Copies Both parties keep a copy; another rides on the truck — or a statement of the lease instead. | §376.12(l), §376.11(c)(2) |
The required provisions are not just words in a contract: §376.12 says they "shall be adhered to and performed by the authorized carrier."
Payment, charge-backs and escrow in practice
- The 15-day clock starts when the owner submits logs and the documents you need to bill the shipper. You can ask for more paperwork, but not as a condition of payment, and you can't hold pay for a clean bill of lading.
- Final settlement may be held until the owner removes and returns your identification devices — a letter certifying removal is enough if they were lost.
- Fines for sealed or pre-loaded trailers that turn out overweight or oversize are on the carrier, not the owner, unless the owner caused them.
- Escrow belongs to the owner. Show every deduction on the settlement or account monthly, pay interest at least quarterly, and return what's left no later than 45 days after the lease ends, with a final accounting.
On the truck and in your files
- A copy of the lease, or a statement naming the owner, the lease dates, any commodity limits and where the original is kept. §376.11(c)(2)
- Trip documents showing the owner's name and address, origin, departure time and date, destination and that the carrier is responsible for the move. §376.11(d)
- The driver still needs a complete driver qualification file, drug and alcohol testing and logs under your carrier — a lease does not move those duties to the owner.
Lease vs. employee
Federal leasing rules don't decide whether an owner-operator is an independent contractor or an employee — §376.12(c)(4) says so directly. State wage and classification laws can. In 2020, for example, J.B. Hunt settled a California owner-operator misclassification case for $6.5 million, without admitting wrongdoing.
Settlements an owner-operator can check
IFTAX settles pay load by load and shows every deduction on the settlement, so the numbers in the lease and the numbers on payday match.
Sources: 49 CFR 376.11, 376.12 (eCFR, current as of September 2026). General information, not legal advice — have an attorney review your lease. IFTAX is not affiliated with FMCSA or any government agency.