What is an owner-operator in trucking?

A driver who owns or leases the truck and runs it as a business — either leased on to a motor carrier, hauling under its authority, or holding their own operating authority.

What is the difference between a leased owner-operator and one with their own authority?

A leased owner-operator hauls under the carrier's authority and dispatch, with the carrier in control of the truck for the lease. With their own authority, they find their own freight and carry their own insurance.

How quickly must a carrier pay a leased owner-operator?

Within 15 days of the owner-operator submitting the delivery documents the lease requires, under US leasing rules.

Term

Owner-operator

An owner-operator is a truck driver who owns or leases the truck and runs it as a business. In the US most either lease on to a motor carrier and haul under its authority, or hold their own operating authority. A lease must say how they are paid, and pay them within 15 days of the delivery paperwork.

Also called owner operator trucking, independent owner-operator, lease operator, leased owner-operatorApplies in USUpdated 13 October 2026

What an owner-operator is

The Federal Highway Administration's freight glossary defines it as a trucking operation in which the owner of the truck is also the driver. The US Bureau of Labor Statistics adds that some long-haul drivers, called owner-operators, buy or lease trucks and go into business for themselves, with business tasks such as finding and keeping clients on top of the driving.

Leased on, or own authority

	Leased on to a carrier	Own authority
Whose authority the truck runs under	The carrier's	The owner-operator's
Control of the truck	The carrier has exclusive possession, control and use for the lease (49 CFR 376.12)	The owner-operator's own
Liability insurance	As the lease assigns it	At least USD 750,000 for general freight in a vehicle of 10,001 lb or more (49 CFR 387.9)
Finding freight	The carrier dispatches	Shippers, brokers and load boards

What the lease must say

How pay is worked out — for example a percentage of gross revenue or a flat rate per mile.
Who bears operating costs, including fuel, fuel taxes and empty mileage.
Every charge-back the carrier may deduct, and who provides which insurance.
When pay is a percentage of revenue, the carrier must show the rated freight bill.

Worked example: the clocks in the lease

Event	Deadline
Delivery documents submitted, 3 November	Pay due by 18 November — within 15 days
Lease ends, 30 November	Escrow returned by 14 January — within 45 days
Escrow held during the lease	Interest paid at least every quarter

Under 49 CFR 376.12, for a load whose delivery paperwork is handed in on 3 November

The mistake people make

Reading the lease's control clause as settling employment status. The rule says in terms that the carrier's exclusive control under the lease is not meant to decide whether the owner-operator is an independent contractor or an employee; that is decided on other facts.

FAQ

Owner-operator: common questions

What is an owner-operator in trucking?: A driver who owns or leases the truck and runs it as a business — either leased on to a motor carrier, hauling under its authority, or holding their own operating authority.
What is the difference between a leased owner-operator and one with their own authority?: A leased owner-operator hauls under the carrier's authority and dispatch, with the carrier in control of the truck for the lease. With their own authority, they find their own freight and carry their own insurance.
How quickly must a carrier pay a leased owner-operator?: Within 15 days of the owner-operator submitting the delivery documents the lease requires, under US leasing rules.