What Are the Consequences of Letting Someone Run Under Your Authority?

If you're thinking of joining the trucking industry as an owner-operator, you don't have to work under your own authority set by the U.S. Department of Transportation. Carriers and truckers also have the option to lease on with another owner-operator using their DOT authority. Letting someone run under your authority can be beneficial, yet there could be consequences to entrusting authority to another party.

No one can share DOT numbers despite authorizing another's actions under your authority, so all motor carriers and truckers must complete US DOT number applications. So why would someone want to run under another owner-operator's authority, and what could happen if they do? The following guide answers those questions. 

What Is Trucking Authority?

In commercial trucking, authority refers to motor carrier authority. It's the permission the Federal Motor Carrier Safety Administration grants to people or companies to function as commercial truckers or carriers. To get this permission, applicants must meet all insurance, legal, and safety requirements set by the DOT. 

Trucking owner-operators can have their authority under the DOT or choose to lease on with another carrier using their authority. Being an owner-operator without another company or individual providing oversight allows more flexibility regarding loads and scheduling. Yet, it also means you must comply with all regulations and manage increased responsibilities. 

Should You Only Run Under Your Own Authority?

As an owner-operator with authority, you're essentially an independent contractor. This title frees you to set your routes, clientele, scheduling, pricing, and more. Working under your authority instead of another's also provides better job stability and security as well as the following benefits:

• Ability to negotiate your own pay
• Control over your own workload
• Reduced fees for insurance, vehicle maintenance, and fuel
• Tax deductions for entrepreneurs
• Greater profits
• No restrictive company policies

Despite the advantages of being a motor carrier owner-operator with DOT authority, the responsibilities are plentiful. You would manage all of your business's operations including truck driving, administration duties, logistics, and compliance with safety and transportation regulations. You would also be responsible for maintaining your truck or fleet and keeping up with insurance.

Are There Challenges to Operating Under Your Own Authority?

Working under your own trucking authority isn't without challenges. Managing all responsibilities can be time-consuming, and it can also be difficult to comply with the various regulatory requirements that can change from region to region. 

Though operating with your trucking authority can yield lots of profits, you must also consider the substantial setup and operational costs of running your own motor carrier service. Maintenance, insurance, fuel expenses, payroll, and other expenditures like marketing and bookkeeping can be surprisingly expensive. 

What Does Running Under Another Person's Authority Mean?

If you don't want the responsibilities of operating under your authority, you could work under someone else's. Granting permission to operate under another authority means allowing someone else to be part of your company's operation with some independence. 

Though you wouldn't have all the responsibilities as an owner-operator with your own authority, leasing on with another organization still comes with some responsibilities like:

• Meeting all safety standards
• Maintaining your vehicle
• Following the carrier's schedule and workload
• Complying with the motor carrier's policies and procedures

Why Would Carriers or Truck Drivers Lease-On Under Someone Else's Authority?

Letting someone run under your authority can be beneficial to those who sign on with you. They would have better administrative support and logistics management, which would allow them to spend more time on the road than in the office completing paperwork. They would also likely have a steady workflow due to leasing on with motor carriers who have a consistent clientele. 

The problem with using someone else's DOT authority is that it removes a significant amount of independence and freedom from the owner-operator who joins another company. They won't be able to choose their routes and workloads since those decisions fall on the owner-operator with the trucking authority.

Truckers who lease must also deal with their carrier's reputation. It would be harder for them to stand out in their own business due to their automatic affiliation with the carrier's brand. 

What Should You Consider Before Leasing with a Carrier?

Anybody considering leasing with another motor carrier should consider the following before using another's authority:

• Profit earning potential
• Operating costs
• Desired workload
• Scheduling preferences
• Commitment to administration work

Let FMCA Filings Help Get Your Own-Operator Paperwork in Order

Whether you're running under your own trucking authority or considering letting someone run under your authority, you must ensure your paperwork with the Department of Transportation is in order. Thankfully, FMCA Filings can help with that.

With our streamlined processes and knowledgeable representatives, we can help truckers who are operating without an MC number, owner-operators allowing someone to represent their authority, and many others in the trucking industry. For more information about delegating responsibility under your trucking authority, contact FMCA Filings online or use our convenient live chat feature.