Dangers and Risks of Signing the J.A.S Trucking Independent Contractor Agreement.

Below is a breakdown of major risks, dangers, and highly unfavorable clauses that may negatively affect a driver/owner-operator signing this agreement:

1. True "Independent Contractor" But High Financial and Legal Risks

• No employment protection: You are not an employee — meaning no benefits, no health insurance, no workers' compensation, no unemployment, and no company-paid taxes (e.g., Social Security, Medicare).

• You bear all tax obligations: You will owe all state, federal, and self-employment taxes, including Social Security and Medicare.

• No guarantee of work: Company makes it clear there is no guarantee of jobs, and you can refuse jobs, but that means no income stability.

• No unemployment benefits if work slows or ends.

• You must pay your own workers' comp for any help you hire.

2. Extreme Financial Liability for Damages, Fines, and Fees

• Full responsibility for cargo and equipment damages, even if equipment was faulty or damage is discovered much later (up to 250 days or more after job completion).

• Company can deduct unlimited amounts from your pay to cover:

  • Damage to equipment/chassis/containers.

  • Toll violations (even if fees are excessive or wrongly assessed).

  • Any fines or fees from Intermodal Equipment Providers or railroads.

• You are on the hook even after contract termination and agree to pay all legal fees and interest (3%) if you fail to pay quickly.

• $2,500 deductible per insurance claim, per type of insurance (Liability, Cargo, Trailer Interchange) — paid by you. Multiple claims = multiple deductibles.

3. Payment Uncertainty and Heavy Paperwork Requirements

• Payment amounts unclear — subject to verbal quotes unless you request written quotes via email (high risk of misunderstandings/disputes).

• No guaranteed rates — your pay "cannot be higher than a chart" you don’t have in this document (hidden rate cap).

• Strict paperwork submission deadlines — failure to submit paperwork on time may result in reduced or canceled payment.

• Disputes must be raised within 30 days — or you lose the right to claim underpayment.

• Accessorial (extra work) pay requires immediate reporting (e.g., detention must be reported exactly at "1 hour 20 minutes" or you lose claim).

4. Hidden Ongoing Fees and Deductions

• Weekly $10 fee for use of company signs/insurance access.

• You are responsible for all maintenance, repairs, and road taxes.

• All fuel, tolls, tickets, and fines are your responsibility, even if caused indirectly by company operations.

• Reservation and per diem fees for intermodal equipment if company assigns you work and something goes wrong.

5. No Real Control Over Some Critical Issues Despite Being "Independent"

• Although labeled as an independent contractor, company:

  • Requires approval of substitute drivers (must meet their qualifications, drug testing, and insurance).

  • Controls branding of trucks with company logos (may increase your liability exposure).

  • Has authority to reject you from working under their contract if they deem you "unqualified".

• In practice, while you "control" your work methods, the company still dictates major parts of the work relationship.

6. Personal Liability Extends Beyond Termination of Agreement

• You remain responsible for:

  • Any damages or fees incurred while operating for them, even long after quitting.

  • Any claims filed after you’ve left still become your financial obligation.

• No release of liability once relationship ends — unlimited tail liability.

7. Risk of Legal Action and Fee Recovery

• If you dispute any charges or refuse to pay deductions, the company can file a lawsuit, and you agree to pay all attorney's fees and costs — even if you win, you may incur substantial legal costs to defend yourself.

8. Ambiguity and One-Sided Clauses Favoring the Company

• Many clauses are vague, giving the company discretion to interpret and enforce penalties.

• Company can change or apply internal policies (handbook), which may influence your pay and obligations without clear prior agreement.

• No dispute resolution process (like arbitration/mediation) — you must go to Illinois courts (possibly expensive and unfavorable to out-of-state contractors).

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 Summary of Main Dangers if You Sign:

Danger / Risk

Consequence

Unlimited financial liability

You could owe large sums for damages, tolls, fines.

Unclear and limited pay

Quotes not guaranteed in writing; strict limits on payment.

No benefits or protections

No healthcare, retirement, or workers' comp unless you buy.

Company deductions from pay

Company can deduct unlimited amounts without appeal.

Legal and tax exposure

You pay all taxes, insurance, employee costs.

Post-termination liability

You remain liable even after leaving the company.

Difficult and risky to dispute issues

You must sue in Illinois courts and pay legal fees.

 

Conclusion:

This is a high-risk agreement for the contractor (you). You take nearly all the financial, legal, and operational risks while the company maintains key controls and protections. You could easily lose money or face lawsuits under this agreement.

If you are considering signing, consult an attorney with experience in transportation/owner-operator contracts to negotiate or reject the most dangerous terms.