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Transportation Bill Guarantees Drivers’ Pay for All On-Duty Hours

Transportation Bill Guarantees Drivers’ Pay for All On-Duty Hours

Alexandra Blake
by 
Alexandra Blake
18 minutes read
Trends in Logistic
September 18, 2025

Recommendation: Pay drivers for all on-duty hours now. This will stabilize income for small fleets and large carriers alike, and it will reduce disputes over whether detention or wait time is compensated. The bill should require their time to be paid even when no delivery has occurred, ensuring all on-duty time is paid. The department can lead the process by publishing a standard of what constitutes on-duty, how materials (time logs, pay records) are submitted, and how pay is calculated and safely processed, with steps done in a verifiable way. This success depends on robust logging and timely payments.

To implement, define on-duty hours clearly: time in transit, loading/unloading, waiting, detention, and post-trip inspections must be compensated. Use telematics or official timesheets to capture hours, with materials and records stored for audit. Pay rates should be determined by department guidelines, and every wage must be paid for all on-duty time. The system should be simple for management and drivers; no aspect of the mechanism should complicate compliance more than needed.

Safeguards against abuse: set penalties for misclassification and ensure that pay is not impacted by performance policies. Documentation rules and independent audits keep operations fair. In commercial fleets, small and large players alike must implement uniform pay codes. The department can provide model language and sample materials to help managers implement the policy consistently.

Whether a city adopts the bill as a local ordinance or a statewide policy, the core principle remains: drivers deserve full compensation for on-duty work. The bill should specify a transition period and training materials for management and city departments to align paid hours with payroll cycles. The approach will create good incentives for safe driving, reduce abuse risks, and support city logistics by ensuring reliable delivery timing.

Practical Framework for Applying the Bill in Trucking Payroll

Practical Framework for Applying the Bill in Trucking Payroll

Start by implementing a policy that pays for every on-duty minute, backed by a single, reliable system for time tracking and payroll. This approach guarantees drivers earn for moving, loading, waiting, and other required tasks, while giving managers a clear path to compliance and continuous improvement.

  1. Define on-duty scope and pay rules

    • On-duty includes: driving, loading/unloading, fueling, inspections, waiting at shipper/receiver, security checks, and escort for unusual loads (like tanker moves).
    • Include training and safety briefings conducted by school staff or company trainers as on-duty when they occur during scheduled work days.
    • Offer a clear minimum pay concept: guarantee a daily minimum for days when the driver is on-duty but not driving long miles, so nothing falls through the cracks.
    • Specify what does and does not qualify as on-duty to avoid disputes and complaints from drivers or shippers.
  2. Adopt a unified time-tracking system

    • Integrate telematics, ELD data, and the payroll system to capture status: running, working, waiting, escorting, and other on-duty activities.
    • Record time in at least 15-minute increments to support accurate earnings for short pauses and loading events.
    • Ensure the system logs days and miles, so managers can compare hours worked to miles moved for performance reviews.
  3. Policy implementation and pilot rollout

    • Run a 4–6 week pilot with a representative mix of vehicles: standard dry vans, tankers, and leased units to capture edge cases.
    • During the pilot, monitor risk areas such as long-loading delays, waiting times at docks, and road-side escorts to adjust pay codes quickly.
    • Collect driver feedback to refine what the system records and how it calculates pay, focusing on fairness and transparency.
  4. Payment calculations and data handling

    • Calculate earnings as: on-duty hours multiplied by an hourly on-duty rate, plus miles moved multiplied by a mileage rate where applicable, aligned with the bill’s guarantees.
    • Apply a minimum daily pay whenever on-duty time occurs, even if miles are low or zero on a given day.
    • For each run, generate auditable line items: driving, loading/unloading, waiting, inspections, escort, and any other on-duty tasks.
  5. Compliance, audits, and risk controls

    • Run monthly reconciliations between payroll, telematics, and shipper proofs to identify gaps and prevent underpaying drivers who complain later.
    • Flag anomalies when on-duty time diverges from expected activity by more than a small threshold, and assign owners to investigate.
    • Document changes to policies and system rules clearly to avoid misinterpretation across days, routes, and leases.
  6. Training, skills, and ongoing improvement

    • Provide targeted training for payroll staff and dispatchers on the new framework, including how to classify moves, loads, and escorts accurately.
    • Offer driver-facing training modules (in-person or online at a driving school) that explain the on-duty definitions and how earnings are calculated.
    • Build a quarterly skills refresh to minimize mistakes and reduce the risk of “suffer” situations where drivers feel underpaid.
  7. Operational discipline and performance metrics

    • Track miles, days on duty, and on-duty performance to identify changing patterns in road conditions, loads, and schedules.
    • Use metrics to drive improvements: on-time pay accuracy, average wait time per shipper, and the percentage of shifts meeting the minimum pay guarantee.
    • Publish monthly dashboards for drivers and managers to review what changed and how it affected earnings and running efficiency.
  8. Communication and stakeholder alignment

    • Explain the system’s purpose and how it protects earnings, so drivers do not complain about hidden rules or misinterpretations.
    • Share realistic examples from road routes and tankers that illustrate how moving, loading, and waiting translate into pay.
    • Keep space for feedback from owner-operators, fleet managers, and HR to ensure the policy remains practical across leases and operating models.
  9. Continuous refinement

    • Review a sample month’s data to confirm there is no gap between what the bill guarantees and what drivers earn.
    • Adjust thresholds, increments, and minimums as the fleet grows or as new routes emerge, while preserving the core guarantee.
    • Identify interesting edge cases (such as extended escort routines or long tanker moves) and codify them into standard pay codes.

By aligning policy, system design, and day-to-day practices, the fleet can maintain consistent earnings for drivers, reduce risk of underpayment, and support clear performance outcomes across miles, road time, and on-duty tasks.

Defining on-duty hours and when pay must start

Pay starts at the first on-duty task under the operator’s model. For a tanker operator, this right rule puts the driver on a predictable pay line and guarantees salary protection from the moment duties begin. Define hour by hour: pre-trip checks and cargo tie-downs count as on-duty; loading, unloading, and preparing routes count as on-duty work; transit and on-road tasks count as on-duty while the vehicle is engaged. youve got to track each task with a simple log to ensure consistent treatment across shifts. The side of the company must clarify when pay starts and ends: when a task is active under control of the employer, pay accrues; when the driver is released from duties, pay stops. Then, publish a standard that applies across towns so operators and owner fleets stay aligned and drivers feel the salary is guaranteed.

On-duty trigger Pay start rule
Pre-trip inspection and cargo tie-down Pay starts at the moment the task begins and continues until completion
Loading/unloading and cargo securing Pay continues through task duration; partial hours count proportionally
Transit between stops with cargo on board Pay remains on-duty; driving hours counted toward salary
Waiting under assignment at a facility Pay starts if assigned to duties; if simply waiting, not counted

To implement, the model uses a simple rule: the hour begins with task start and ends when the task ends, then the next task’s hour begins. This approach supports negotiating with drivers, creates a clear baseline for salary, ensures guaranteed earnings during duty, and provides towns with consistent payroll math. right fits the needs of operators, owner fleets, and every town that relies on steady, transparent compensation for on-duty work. light duties and heavy shifts alike are captured, so everything stays fair for the operator and the driver, and the model remains easy to audit.

Guaranteed pay: scope, minimums, and how it interacts with schedules

Recommendation: Set a guaranteed pay floor of $25/hour for all on-duty hours, including driving, waiting, loading, and time spent moving between stops. Do not deduct for traffic delays, early arrivals, or schedule lags. Publish this policy in the driver agreement and share it with dispatch teams. This approach keeps earnings stable across market cycles and aligns with driver expectations.

Scope matters: On-duty hours cover every minute under dispatch control, from in-cab driving to fueling, loading/unloading, waiting at shippers or receivers, hazmat checks, and time spent following directions between stops. Hours logged as on-duty but not actively driving count toward the guaranteed earnings. Off-duty time remains outside the guarantee, ensuring drivers aren’t monetarily penalized for breaks they’ve logged as off-duty.

Minimums and schedule interaction: The daily floor should guarantee at least 8 hours of pay if any on-duty time is recorded that day. If actual on-duty hours exceed 8, earnings equal actual hours multiplied by the rate. Weekly overtime applies beyond 40 hours at 1.5x, reinforcing time-and-dispatch fairness. This structure keeps earnings predictable while preserving incentives for longer runs and consistent performance across several days of work.

Schedules and knobs: Treat the guaranteed pay as a hard element in the schedule, not a soft promise. Use policy knobs to adjust the rate or the daily floor in response to market signals, load mix, and compliance needs. Ensure the next-week schedule clearly shows guaranteed hours, with a clear follow-up path if a change affects drivers’ earnings. If a change is necessary, obtain a quick agreement and inform drivers in advance, so youve got time to adapt without surprises.

Impact and practical tips: A steady guaranteed pay helps recruit and retain drivers, especially in segments with hazmat lanes or tight turnaround times. It reduces the influence of weather, traffic, and miles on earnings, while still rewarding high-performing routes and efficient loads. For fleets, tie earnings to specific activities (loads, dock time, waiting, and in-transit segments) to avoid disputes and to keep performance metrics clear. In practice, publish earnings dashboards and provide a one-page follow-up plan so drivers see how hours translate into earnings day by day.

Next steps: finalize the agreement with drivers, train dispatch on the new directions, and set a clear timeline for the initial rollout. Gather feedback within days of launch and adjust the knobs as needed. This approach supports a unified industry standard, provides a familiar framework for both sides, and reduces the risk of complaints or misunderstandings about earnings and hours.

The 8 Types of Truck Driver Pay

The 8 Types of Truck Driver Pay

Hourly pay Base pay on hourly wages and supplement with mileage, detentions, and incentives to reflect actual time spent on the road. This system stabilizes earnings when you’re running across states delivering materials and moving goods. Outline the pay structure during orientation so drivers familiar with the line know how tasks map to compensation, and keep feedback channels open to reduce disputes.

Mileage pay Compensates per mile, with typical rates ranging from $0.50 to $0.95 per mile depending on region and whether miles are loaded or empty. Moving materials across routes, including light loads, demands careful adjustments for deadhead and time spent at stops. When you run routes across states, reflect variations in terrain and costs so the line stays fair.

Percentage of line haul Pay gives drivers a share of the revenue earned on a haul. A common split is 60–65% for the driver; owner-operators may see 60–75% depending on support and risk. This method helps determine earnings from the entire line haul rather than driving time alone, and owners, theyd often prefer a stable mix that aligns with familiar routes and the overall line of business.

Accessorial pay Pays for tasks beyond driving: loading/unloading, paperwork, tarping, securing loads, and light maintenance along the route. Use fixed rates per service or per 15-minute blocks to reflect time spent and the materials handled. This approach keeps the system transparent so drivers can operate with clarity, anyhow.

Detention pay Reimburses time spent waiting at shippers or receivers beyond the agreed window. Typical policy pays after 1–2 hours, around $30–$40 per hour, with caps per shipment to prevent abuse. Detention reduces risk of unpaid hours and helps cover meals and fuel when a driver is forced to wait.

Stop-off pay Pays for each stop beyond the initial pickup and final delivery, commonly $5–$15 per stop depending on distance and complexity. For runs with multiple deliveries, this adds up quickly and keeps the overall schedule moving along the line, so drivers aren’t stuck with unpaid tasks.

HazMat pay Recognizes the added risk and required training for hazardous materials. Offer a per-mile premium or per-load bonus; typical increments are a few cents per mile or a fixed amount per load, plus ongoing endorsements. This work requires operating with strict safety controls, and drivers must avoid intoxicated states to keep everyone safe.

Bonus and incentive pay Rewards on-time deliveries, safety milestones, fuel efficiency, and route loyalty. Tie bonuses to measurable targets like quarterly on-time rates, safety performance, or improvements in miles per gallon. For drivers, this component can be better when it’s predictable and aligned with the carrier’s orientation and goals, reinforcing performance across the line.

Payroll calculations: overtime, bonuses, and per-diem settlement rules

Implement a single, transparent payroll protocol focused on keeping all on-duty hours captured with exact timestamps and supporting overtime, bonuses, and per-diem settlements. For overtime, apply the usual rule: hours over 40 in a workweek are paid at 1.5x the base rate; double time may apply for holiday work or hazardous cases as defined by state acts. Document every case where overtime rules shift due to state acts or company policy, and specify how those differences are handled in the calculations. Bonuses should be tied to clear performance metrics and paid in the next regular cycle when earned; define a cap and a performance band to avoid surprises. Per-diem settlements must follow federal per-diem rates, with distinctions for travel days, on-duty travel, and stay-on-site days. Keep a robust log that supports what counts as on-duty, including hazmat or hazardous work, driving, inspections, and other tasks, and ensure those logs feed the payroll system automatically.

Those records help avoid damage from misclassification and prevent lose pay. Years of data support ongoing improvements; going forward, use trends from prior audits to refine the rules. Administration, the manager, and heads of departments should enforce these directions and theyd ensure the policy stays aligned with goals, with everyone aware of what counts as reimbursable versus non-reimbursable. Going forward, set a cadence for reviews later in the year to accommodate new rules, while maintaining a single calculation engine that supports different states and their acts. theres no room for guesswork in approvals; ensure the system tracks type and other expenses, and allow sort of expenses only when approved. The policy should spell out what effects overtime and bonuses have on the total and how to document it for audits and future years. This approach would also reduce disputes and improve timeliness of payments, keeping the payroll process efficient for managers and drivers alike.

Recordkeeping, audits, and enforcement steps for carriers

Implement a centralized digital recordkeeping system and a 30-day rollout plan to capture all on-duty hours, loading times, fuel receipts, meal breaks (eating), and wage calculations. This approach preserves every on-duty minute and strengthens readiness for audits.

Core records to maintain include:

  • Hours-of-service data and supporting logs, with clear on-duty, driving, and sleeper statuses.
  • Loading and unloading timestamps, locations, and load numbers for each shipment.
  • Fuel receipts, fuel type, amounts, and pump IDs tied to trips and drivers.
  • Wages, earnings, overtime, bonuses, and any voids or corrections, with dates and payroll references.
  • Packages and shipment details, including origin, destination, and bill-of-lading numbers.
  • Meal breaks and rest periods, with durations that align to on-duty calculations.
  • Driver eligibility indicators, including qualifications, endorsements, and vehicle assignment (e.g., flatbed vs other equipment).
  • Equipment maintenance and inspection records to support duty status and safe operation.
  • Retention schedule showing when each document was created and last reviewed.

Audits should follow a disciplined, evidence-based review process that identifies gaps before regulators arrive. Use a clear find-and-review protocol to verify data alignment across logs, payroll, and load documentation. When you locate discrepancies, trace them to the source–whether a misclassified status, missing receipt, or incorrect wage entry–and correct them in the same cycle.

Enforcement steps for carriers must be concrete and timely. If a gap affects earning or wages, issue back pay within the current payroll cycle and document the adjustment. Communicate findings to drivers promptly and offer a clear explanation of the correction and its impact on pay. Then update procedures to prevent recurrence, including training that aligns skills versus requirements and a revision of data-entry practices.

Adopt a transparent punitive-free approach to corrections; the aim is compliance, not punishment. Build a practical pay model that guarantees pay for all on-duty hours, including loading, unloading, and driving time. If systemic issues persist, escalate to internal compliance owners and, when needed, engage an external reviewer to validate corrections–this boosts credibility with drivers and inspectors alike.

Practical steps to tighten controls include:

  1. Assign a single record owner for each data type (log data, payroll, fuel, shipments) to ensure accountability.
  2. Require daily reconciliation of logs with at least two independent checks before payroll runs.
  3. Queue a monthly review that flags anomalies such as gaps in on-duty time, mismatched package IDs, or missing receipts.
  4. Maintain a rolling audit trail that captures edits with timestamps, user IDs, and rationale.
  5. Store digital copies of documents in a secure, centralized system accessible to drivers, dispatch, and payroll staff.

In practice, this discipline helps carriers find risks early and act fast. For flatbed fleets, emphasize loading and securing times, which tie to each shipment’s earning potential, and ensure loading/unloading data matches the corresponding packages. For all sides of the business, align the review cadence with payroll cycles so drivers see timely corrections and management keeps a clear, auditable history. This approach reduces disputes, protects wages, and supports a straightforward, enforceable model that benefits both sides of the operation.

Real-world scenarios: driver, dispatcher, and HR perspectives

Adopt a policy that pays for every on-duty hour, including pre-trip, fueling, loading and securing loads, hand-offs, escort to docks, and detention spent at towns or shipper sites. Define on-duty precisely and set 15-minute increments, with rates that reflect the work and include a minimum pay threshold. Build a specific rulebook for what counts as on-duty, with concrete examples from loads and packages, so drivers know what to expect. This clarity helps employer and company align and reduces gaps in pay across many cases. Detention time should be paid after 60 minutes, at 1.5x the base rate and escalating to 2x after longer holds, ensuring crews aren’t left waiting without fair compensation. Knowing these rules, drivers stay confident and safe on the road.

Driver perspective: In practice, a driver arrives in a town, does a pass-through pre-trip, handles the haul, and may wait while the shipper completes the unload. The driver hauls loads, uses an escort to the dock, and is paid for time spent fueling and waiting, including detention if needed. If the policy is clear, the driver can plan around the minimum pay and still keep safer driving habits, avoiding rushed or unsafe decisions. When a load shifts or a detour adds miles, the driver knows what earns extra pay and can communicate what counts as on-duty time without ambiguity. This approach makes every pass and hand-off accountable and predictable across many routes.

Dispatcher perspective: Dispatchers adjust schedules with knobs in the transportation management system to balance lanes and reduce long idle periods. If a dock delays, they log the hold time and ensure the pay adjusts through the payroll system. They plan through towns and school zones to optimize safety and efficiency, coordinating with escort and hand-off tasks to keep operations smooth. They use real-time data to set fair rates for each case and to communicate precisely what counts as on-duty time to drivers. Dispatchers also coordinate with drivers under leases to align expectations while supporting the employer’s and company’s service goals.

HR perspective: HR ensures compliance with minimum pay rules for all drivers, including those operating under leases. They maintain packages of safety and pay training and deliver them through school-based or online modules. They audit timecards against loads and passes, and verify that drivers are paid what they earn for each haul in every case. HR uses feedback from drivers and managers to refine what counts as on-duty time and to tighten documentation around detours, fuel stops, and escort events, so the company can sustain fair, transparent pay without gaps. This focus helps guys on the road feel respected and connected to the organization’s standards.

Next steps: run a pilot in one region, establish a quarterly review of on-duty pay data, and track metrics such as detention pay accuracy, fuel-related time, and driver satisfaction. Implement a dashboard to monitor pass-through moments, hand-offs, escort events, and loads moved, then adjust rates and minimums as needed. Share clear updates with drivers, dispatchers, and HR, ensuring everyone knows what counts as on-duty and how pay is calculated through every through-stop in the route. This disciplined approach supports safe driving, timely deliveries, and a transparent, reliable pay system for the entire team.