Owner-Operator

Definition

An owner-operator is a CDL driver who owns or leases their own commercial vehicle and either runs under their own MC authority or leases on to a motor carrier under a 49 CFR Part 376 lease. Treated as an independent contractor for federal income-tax purposes (1099 / Schedule C). Responsible for fuel, maintenance, physical damage insurance, and (when running own authority) primary liability and cargo insurance. Owner-operators with their own authority must enroll in a third-party drug and alcohol consortium under 49 CFR §382.103. The category contrasts with a W-2 company driver who operates under the carrier's authority and equipment.