What is Layover Pay in Trucking: Essential Driver Info

For many drivers, payment is based on the distance driven and doesn't always reflect the time spent working. At HMD Trucking, we understand that time not driving often means time not directly earning mileage pay. Life on the road is often unpredictable. It can involve delays due to weather, market conditions, or simply waiting for the next load. These reasons are why concepts such as knowing what is layover pay in trucking are crucial. This form of payment is designed to ease the financial impact from unavoidable idle time.

As a trusted Chicago carrier with a fleet of dry vans and flatbeds, HMD Trucking shares this important information with our drivers because we aim to resolve ambiguities and foster a community of educated drivers. In this article, we will go in-depth regarding layover pay, its differences with other types of payment, and why it's important for drivers.

What is Layover Pay in Trucking?

Let's get deeper into layover pay in trucking. Layover pay is money a driver earns when there is a long delay that prevents them from driving and earning miles. Most often, this happens between loads while waiting to be dispatched for a new assignment. This does not include the initial waiting at a receiver or shipper, which is called detention pay (more on this later). This refers to waiting time, sometimes a day or weekend, due to freight that is not ready or assigned.

However, it's important to know layover pay isn't strictly limited to waiting between loads. Sometimes, a driver might get stuck at a single location, like a receiver (consignee), waiting to be unloaded for an exceptionally long time – think well beyond typical detention hours, maybe even a full day or more. In these specific, less common cases, some company policies might transition the compensation away from the standard hourly detention rate once detention exceeds a certain number of hours. After a certain threshold of excessive waiting at one place (like 8, 12, or even 24 hours, depending on the specific company rules), the pay structure might shift to something more like a daily rate, potentially called layover pay or handled under a specific "extended delay" policy by that carrier.

Consider the following example (the most common scenario): You drop off a load on Friday afternoon. Your dispatcher advises that your next pickup is scheduled for Monday morning due to freight availability or scheduling. The waiting time from Friday completion to Monday pickup would be a layover, given that it typically exceeds 24 hours.

The primary layover meaning in trucking relates to payment for extended, unproductive time between driving jobs. But it also acknowledges that extreme delays preventing driving, even if stuck at one customer location, may warrant similar compensation according to some company policies. The availability of freight is subject to a variety of economic or market influences and even some that are seasonal. This indicates most OTR drivers – over-the-road truck drivers – will, in some shape or form, make use of a layover experience significant waiting periods in her or his career at one time or another. For HMD Trucking and other companies, there is a responsibility to accept and pay the layover or appropriate extended delay fees for a driver's unused time, which goes towards paying the driver’s downtime. Such an arrangement assumes you are in fact far away from home and are still committed to the job; therefore, compensation is provided to cover those hindrances.

Layover Pay vs. Detention Pay: Knowing the Difference

Layover pay and detention pay can be easily mixed, as both of them compensate the driver for non-driving time. Each of these, however, has a unique context, and sometimes they can interact, which is why it is very important to differentiate the two so that you can understand your pay stub correctly.

Here’s a clear breakdown:

Let's look at an example:

• Detention Pay Scenario: You arrive at a shipper for your scheduled 8 AM appointment. Due to delays at the facility, they don’t finish loading your truck until 1 PM. If the standard free waiting time is 2 hours, you might be eligible for detention pay for the extra 3 hours you waited (from 10 AM to 1 PM).
• Layover Pay Scenario: You successfully deliver your load on Friday afternoon. Your dispatcher informs you that due to weekend schedules and freight availability, your next load pickup isn't until Monday morning. If company policy dictates layover pay starts after 24 hours of waiting, you may qualify for layover pay covering the waiting period (e.g., for Saturday and Sunday).
• Extended Delay / Possible Layover Scenario: You arrive at a receiver on Tuesday morning. Due to major issues at their facility, they cannot unload you until Wednesday afternoon. Your company's policy might state that after 12 hours of detention, the pay switches from hourly detention to a daily layover/extended delay rate. You would receive detention for the initial hours (after free time) up to the 12-hour mark, and then the daily rate for the remaining delay.

While both types of pay acknowledge that your time is valuable, layover pay in trucking typically tackles the gaps between jobs, while detention pay addresses the initial delays during a specific job's pickup or delivery process. Understanding that extremely long detention might convert to a different pay structure is also important. Being clear on the difference and your company's specific rules helps you understand your pay structure and communicate effectively with dispatch about any delays you encounter.

How Does Layover Pay Work?

While specifics of layover pay tend to differ from organization to organization, most follow the same general processes:

1. The Trigger: Layover does not usually begin the moment you are ‘waiting’. Most companies have a minimum waiting period before compensation begins. The industry standard often expects a driver to be available and waiting for dispatch for a minimum of 24 hours without an assignment.
2. The Duration: After meeting the initial period, you are typically compensated for that first block (e.g., the first 24 hours) and then often for each following 24-hour period you continue to wait.
3. Company Policy: You should know that every company has a policy that is unique to it. It's crucial to understand the exact waiting period that triggers layover pay, how much it is paid daily (or per 24-hour period), how availability is captured and reported, and how layover time is marked for payroll purposes. Here at HMD Trucking, we strive for open lines of communication regarding our payment policies.

How Much Is Layover Pay for Truck Drivers?

This is a common question. The answer is: it varies significantly across the industry. Overall, it's very different within the sector. There is no set federally mandated policy for layover pay. These factors are influenced by a given trucking company, the type of haul, and perhaps the market conditions. 

However, we can look at general industry standards for the standard layover fee trucking companies often provide:

• Dry Van and Flatbed Loads: Typically ranges from $20 to $100 per day (or per 24-hour period).
• Refrigerated Freight: Rates might be a bit above dry van due to the nature of the cargo and equipment.
• Heavy Haul & Specialized Freight: Specialized equipment often comes with more lucrative heavy haul & specialized freight. As such, layover fees can be much higher than average, sometimes in the $500-1,000/day range.

Companies tend to set these rates based on their operational costs, retention strategies, and competition in the trucking market. Layover pay attempts to account for lost earning potential by providing some compensation for idle time during unavoidable delays. Having a certain figure helps set your expectations.

Why Do Layovers Happen?

While no one's really at "fault," layovers tend to happen due to the complex nature of the trucking business. A few of the most common causative factors include:

• Gaps in Freight: There may simply be a lull in activity in a particular area during a particular time.
• Weekend Gaps: If a driver is delivering a load on a Friday afternoon, they may have to sit and wait until the middle of the week because of no operations over the weekend.
• Market Activity: Business slumps can sometimes lead to decreased volumes/supply of freight, which in turn, increases the number of gaps between assignments.
• Gaps between Appointments: Your next load may be readily available, but the pick-up appointment could be scheduled a day or two later.
• Gaps due to HOS: In some situations, gaps need to be created to ensure adequate driving hours are available for the planned movement.

Understanding these factors helps explain why layovers happen. In simplistic terms, layover pay in trucking is used in most cases to offset the impact of these largely uncontrollable conditions.

Making the Most of Layover Time

Okay, so you find yourself on a layover. You've communicated with dispatch and understand the pay situation. What now? While frustrating, this downtime can be used productively:

1. Relax: catch up on the lost sleep and enjoy it. Being well rested enables optimum safety for you when driving again.
2. Truck Maintenance & Cleaning: This is a good opportunity to clean the cab, throw out the trash, organize space, or attend to minor routine checks on the semi.
3. Stay in Touch: Longer than usual calls or video chats can be done with family and friends. Make use of the additional time you have.
4. Physical Activities: Go out and take a stroll; this can also be done in the cab, or you can do some stretching. Don't forget that staying active in general is very good at reducing fatigue.
5. Plan Ahead: Review your route for the next load (if assigned), check weather forecasts, or catch up on industry news.
6. Explore (Safely): Depending on where you are and the available time/transportation, you might explore local sights or grab a meal outside the truck stop.

The HMD Trucking Commitment

We know our drivers are the heart of our operations here at HMD Trucking. We appreciate that downtime like layovers is unavoidable. This is precisely why we take a fair approach and have policies where all drivers are given compensation for layovers when they occur, according to our structure. Dispatch efficiency is a priority, but in the case that a driver does experience a layover, our company policies and structure ensure that there is no need for concern about being compensated fairly for that time. Your time is valuable regardless of whether you are behind the wheel or awaiting your next assignment.