Trucker Life & Pay
How OTR Pay Really Works (CPM, Accessorials, Bonuses)
Over-the-road trucking can provide good take-home pay, and part of the reason why is because drivers get multiple types of pay. Understanding your total pay will help you select the most opportune jobs -- and ensure you receive the compensation you’re due. Here’s a breakdown of what OTR pay might include.
Base Pay: Cents Per Mile
The core of an over-the-road driver’s pay is cents per mile (CPM). You can expect to get a certain amount for every mile covered, although there are different ways of calculating miles:
- Practical Miles: This is the most common and fair method. Practical miles are based on the actual route a driver takes, accounting for real-world roads and turns. You’re paid for every mile you actually cover.
- Short Route Miles: These are calculated using a standardized mapping system that finds the shortest possible route between two points, regardless of actual road conditions, or a driver’s ability to take that route. This method often results in fewer paid miles than practical miles, and is generally less favorable for drivers. Also called “household goods” (HHG).
- Hub Miles: Less common, this method measures the distance a truck's wheel hubs turn. This is an older and less accurate method that made sense before GPS, but is now out of date.
Example: Assume you’re on a route that pays 62 CPM based on short route miles, which are calculated at 800 miles. You’re “base pay” would be $496, even if you drove another 10 miles for a detour, 5 miles because of a low bridge, and a few additional miles for fuel and food.
Accessorials: Important Additional Pay
Accessorials pay you for time and tasks other than driving, such as waiting while loading or making an extra stop. These are important additions to your total compensation, and it’s important that you correctly document them so you receive full pay.
- Detention Pay: Compensation for time spent waiting at a shipper or receiver beyond a predetermined free period. Most companies allow for a certain amount of time (often two hours) for loading or unloading. If you're held longer, you should be compensated.
To track this, note the exact time you arrived, the time you were given a door, and the time you were released. Get a signature on your bill of lading (BOL) or a separate detention form to verify the waiting time. You might also use app check-ins with location verification, or gate receipts. - Layover Pay: When you're required to wait for an extended period (usually 24 hours or more) between trips, you may be eligible for layover pay. This compensates you for the time you're on the road but not actively driving.
Talk directly with your dispatcher to get this time approved and documented. - Stop Pay: If a trip has multiple pickup or drop-off locations, you should receive a fee for each stop after the first one. This is known as "stop pay" or "multi-stop pay."
Keep a record of every stop you make, including the time and location. BOLs, app check-ins and gate receipts can be helpful, too. - Breakdown Pay: Either flat or hourly pay if you’re stuck because of a mechanical issue. This is pay for your time, and not for the cost of the repair. The repair is your responsibility if an owner-operator, or covered by the company if an employee.
Notify dispatch, and keep any shop or roadside assist receipts. - MIsc. Reimbursements: Some companies reimburse fuel, tolls, parking fees, scale payments, or permit fees. Keep the receipts for any eligible expenses.
- Driver Assist/Lumpers: Pay for the time you help load/unload, or the cost of hiring lumpers to do the work. Keep receipts for lumpers.
- Tarp Pay: Flatbed drivers may be paid for tarping their own loads, usually only when a tarp is required.
- Extra Pallet: Certain companies pay a small additional fee for each additional pallet you handle at a warehouse. Confirm this with your dispatcher or supervisor.
- Special Pay: Additional pay for special conditions, such as hazmat loads, driving into Manhattan, crossing a border, chaining tires, etc.
Bonuses: Potential Additional Compensation
Bonuses aren’t guaranteed, but can provide a nice boost to your pay. These tend to account for a smaller portion of pay. Don’t ignore them, though.
- Safety Bonus: For maintaining a clean safety record over a certain period (e.g., no accidents, citations, or preventable incidents).
- Efficiency Bonus: For driving fuel efficiently, often based on miles per gallon (MPG).
- On-Time Delivery Bonus: For consistently delivering loads on schedule.
- Referral Bonus: One-time bonus for referring someone who joins the company as an OTR driver.
Understand Your Pay
Whether you’re looking for a new over-the-road trucking job or happy with your current one, make sure you understand all of your compensation. Getting everything you’re due should make for quite a nice paycheck.