Owner-operators are a valuable resource used by many motor carriers, either in addition to, or instead of, company drivers. Many motor carriers are often left wondering who is responsible for owner-operators' DOT safety compliance. The answer is not so simple - it depends. You will need to define your situation.
Option A: Independents
When an owner-operator is using his/her own USDOT number, MC number (authority), and insurance, he/she is acting as a for-hire carrier (independent). He/she is defined as the motor carrier. A business that utilizes an owner-operator in this capacity is either the shipperor acting as a broker.
The shipper or broker will have no recordkeeping responsibilities for the driver or vehicle under the Federal Motor Carrier Safety Regulations (FMCSRs) in this kind of agreement. Responsibility falls squarely on the shoulders of the owner-operator, who is defined as the motor carrier.
The owner-operator would have to maintain his/her DQ file and retain hours-of-service records, driver daily vehicle inspection reports, vehicle maintenance records, and the annual inspection report while in your service.
If the owner-operator is operating a commercial motor vehicle as defined in §382.107, he/she is subject to the DOT drug and alcohol testing requirements. As a single driver, he/she would have to be placed in a consortium.
The advantage to having an arrangement like this with an owner-operator is that he/she is able to operate a vehicle sooner than other options - without the complications of qualifying a driver beforehand or the storage of records afterwards. On the other hand, such an agreement keeps safety compliance out of your hands. Will your goods make it safely to the destination? Even though it's the carrier's insurance claim, it could be your company's reputation.
Option B: Leased
Another option with owner-operators is to have an agreement to contract/lease them to your motor carrier (e.g., works under your USDOT number). Owner-operators who own their own equipment are leased to a motor carrier through the use of a lease agreement, governed by the FMCSRs in Part 376. The company leasing the owner-operator is defined as the motor carrier and compliance is attributed to their U.S. DOT number in the event of a roadside inspection or compliance review.
Owner-operators will provide transportation services using their own equipment, remaining independent contractors, meaning they are not considered employees of the company for benefit and pay purposes. However, they are included in the definition of "employee" when it comes to compliance with the FMCSRs. This definition of "employee" is located in §390.5 and §40.3.
Essentially, owner-operators will be included in any regulations (i.e., DQ files, logs, DOT drug and alcohol) having to do with a driver of a commercial motor vehicle. Motor carriers are ultimately responsible for the actions of these owner-operators that are leased to the motor carrier. The motor carrier must ensure that all regulations are adhered to by all drivers, not just company drivers.
The motor carrier is also responsible for the condition and maintenance of the owner-operator's vehicle while it is operating under their USDOT number, and maintenance of these records after it leaves their control. The motor carrier is also responsible for insuring the cargo.